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EXHIBIT (g)(12)
NORTHERN FUNDS
ADDENDUM NO. 8 TO THE CUSTODIAN AGREEMENT
This Addendum, dated as of the 21st day of December, 1998, is
entered into between NORTHERN FUNDS (the "Trust"), a Massachusetts business
trust, and THE NORTHERN TRUST COMPANY, an Illinois state bank ("Northern").
WHEREAS, the Trust and Northern have entered into a Custodian
Agreement dated as of April 1, 1994 as amended by Addendum No. 1 dated November
29, 1994, by Addendum No. 2 dated March 29, 1996, by Addendum No. 3 dated August
7, 1996, by Addendum No. 4 dated August 6, 1996, by Addendum No. 5 dated March
24, 1997, by Addendum No. 6 dated February 12, 1997 and by Addendum No. 7 dated
November 18, 1997 (the "Custodian Agreement") pursuant to which the Trust has
appointed Northern to act as custodian to the Trust for the Money Market Fund,
U.S. Government Money Market Fund, Municipal Money Market Fund, U.S. Government
Select Money Market Fund, California Municipal Money Market Fund, U.S.
Government Fund, Fixed Income Fund, Intermediate Tax-Exempt Fund, Tax-Exempt
Fund, Income Equity Fund, Growth Equity Fund, Select Equity Fund, Small Cap
Fund, Technology Fund, Stock Index Fund, Florida Intermediate Tax-Exempt Fund,
Short-Intermediate U.S. Government Fund, California Intermediate Tax-Exempt
Fund, Arizona Tax-Exempt Fund, California Tax-Exempt Fund, Small Cap Index Fund
and the Mid Cap Growth Fund;
WHEREAS, the Trust is establishing the High Yield Municipal and the
High Yield Fixed Income Funds (the "Funds"), and the Trust desires to retain
Northern under the terms of the Custodian Agreement to act as the custodian for
the Funds, and Northern is willing to so act; and
WHEREAS, the Trust and Northern desire to enter into this Addendum
No. 8 to provide compensation for each Fund for uninvested cash balances
maintained with Northern under the Custodian Agreement;
NOW THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:
1. Appointment. The Trust hereby appoints Northern custodian to
the Trust for the Funds in accordance with the terms set forth
in the Custodian Agreement. Northern hereby accepts such
appointment and agrees to render the services set forth in the
Custodian Agreement for the compensation therein provided.
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2. Capitalized Terms. From and after the date hereof, the term
"Funds" as used in the Custodian Agreement shall be deemed to
include the Funds. Capitalized terms used herein and not
otherwise defined shall have the meanings ascribed to them in
the Custodian Agreement.
3. Cash Balance Compensation. Northern shall compensate each
Fund for uninvested cash balances maintained with Northern
at the end of each day ("Cash Balance Compensation") in
accordance with this paragraph. Cash Balance Compensation
with respect to each Fund's uninvested cash balance shall
be determined at the end of each day based on an annual
rate equal to 96% of the previous calendar month's average
90-day Treasury xxxx interest rate. The amount of each
Fund's accumulated Cash Balance Compensation shall be paid
monthly in the form of reductions to the custody fees
otherwise allocable to the Fund under the Custodian
Agreement for such month. In the event that a Fund's Cash
Balance Compensation for any month exceeds the custody fees
payable by the Fund under the Custodian Agreement for such
month, the Fund's excess Cash Balance Compensation may be
carried forward and credited against future custody fees,
provided that no excess Cash Balance Compensation may be
carried forward beyond the end of any fiscal year.
4. Miscellaneous. The initial term of the Custodian Agreement
with respect to the Funds shall continue, unless sooner
terminated in accordance with the Custodian Agreement, until
March 31, 1999. Except to the extent supplemented hereby, the
Custodian Agreement shall remain unchanged and in full force
and effect, and is hereby ratified and confirmed in all
respects as supplemented hereby.
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IN WITNESS WHEREOF, the undersigned have executed this Addendum as
of the date and year first above written.
All signatures need not appear on the same copy of this Addendum.
NORTHERN FUNDS
Attest: /s/ Illegible By: /s/ Xxxxxx X. Xxxxxxx
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Title: Vice President
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THE NORTHERN TRUST COMPANY
Attest: By: /s/ Xxxxx X. Xxxxxxxx
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Title: Senior Vice President
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