EXHIBIT (h)(5)
CUSTOMER IDENTIFICATION SERVICES AMENDMENT
This Customer Identification Services Amendment (the "AMENDMENT")
amends, as of the 1st day of October, 2003 (the "EFFECTIVE DATE"), the
Transfer Agency and Services Agreement, dated as of January 1, 2003, between
The Galaxy Fund (the "FUND") and PFPC Inc. ("PFPC") (the "AGREEMENT").
For valuable consideration, the receipt and sufficiency of which the
parties hereto hereby acknowledge, the Fund and PFPC hereby agree as follows:
1. CUSTOMER IDENTIFICATION PROGRAM SERVICES. As of the Effective Date, the
Agreement shall (without any further action by either of the parties hereto)
be amended by the addition of the following new provision:
"Customer Identification Program Services. To help the Fund comply with
its Customer Identification Program ("CIP") (which the Fund is required
to have under regulations issued under Section 326 of the USA PATROIT
Act), PFPC will do the following:
(a) Implement procedures under which new accounts in the Fund are not
established unless PFPC has obtained the name, date of birth (for
natural persons only), address and government-issued identification
number (collectively, the "DATA ELEMENTS") for each corresponding
CUSTOMER (as defined in 31 CFR 103.131).
(b) Use collected Data Elements to attempt to reasonably verify the
identity of each new Customer promptly before or after each
corresponding new account is opened. Methods may consist of
non-documentary methods (for which PFPC may use unaffiliated information
vendors to assist with such verifications) and documentary methods (as
permitted by 31 CFR 103.131), and may include procedures under which
PFPC personnel perform enhanced due diligence to verify the identities
of Customers the identities of whom were not successfully verified
through the first-level (which will typically be reliance on results
obtained from an information vendor) verification process(es).
(c) Record the Data Elements and maintain records relating to
verification of new Customers consistent with 31 CFR 103.131 (b)(3).
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(d) Determine whether new Customers appear on any lists of known or
suspected terrorist organizations provided by any government agency
consistent with 31 CFR 103.131 (b)(4).
(e) Regularly report to the Fund about measures taken under (a)-(d)
above.
(f) If PFPC provides services by which prospective Customers may
subscribe for shares in the Fund via the Internet or telephone, work
with the Fund to notify prospective Customers, consistent with 31 CFR
103.131(b)(5), about the Fund's CIP.
(g) Set forth on a separate fee schedule compensation amounts due to
PFPC for providing these CIP Services.
Notwithstanding anything to the contrary, and without expanding the
scope of the express language above, PFPC need not collect the Data
Elements for (or verify) prospective Customers (or accounts) beyond the
requirements of relevant regulations (for example, PFPC will not verify
Customers opening accounts through NSCC) and PFPC need not perform any
task that need not be performed for the Fund to be in compliance with
relevant regulations.
The Fund on behalf of each of its investment portfolios hereby agrees
that PFPC need not perform steps (a)-(g) above with respect to any
subscriber who is then a Customer of any other portfolio of the Fund.
PFPC hereby represents and warrants that (i) it has implemented an
anti-money laundering program and (ii) will certify annually to the Fund
that it will perform the CIP services for the Fund described above."
2. GENERAL. This Amendment contains the entire understanding between the
parties with respect to the services contemplated hereby. Except as
expressly set forth herein, the Agreement shall remain unaffected hereby.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized officers, as of the day and year first
above written.
THE GALAXY FUND
By:
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Name:
Title:
PFPC INC.
By:
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Name:
Title:
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[Letterhead of PFPC, Inc.]
______________, 2003
The Galaxy Fund
Xxx Xxxxxxxxx Xxxxxx
Xxxxxx, XX 00000
RE: CUSTOMER IDENTIFICATION SERVICES FEES
Dear Sir/Madam:
This letter constitutes our agreement with respect to compensation to be
paid to PFPC Inc. ("PFPC") solely for Customer Identification Services
provided under of the Transfer Agency and Services Agreement dated January 1,
2003 between The Galaxy Fund ("you" or the "Fund") and PFPC (the
"Agreement"), as amended. The Fund will pay PFPC fees, as follows:
- $2.25 per customer verification
- $.02 per month per search result stored
- $10,000 one time set-up fee
The fees described above are in addition to, and in no way affect, other
fees to which the parties hereto have agreed (or in the future agree) with
respect to the Agreement and related services.
If the foregoing accurately sets forth our agreement and you intend to
be legally bound thereby, please execute a copy of this letter and return it
to us.
Very truly yours,
PFPC INC.
By:
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Name:
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Title:
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Agreed and accepted:
THE GALAXY FUND
By:
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Name:
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Title:
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