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EXHIBIT (g)(13)
NORTHERN FUNDS
ADDENDUM NO. 9 TO THE CUSTODIAN AGREEMENT
This Addendum, dated as of the 15th day of September, 1999, 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, by Addendum No. 7 dated
November 18, 1997 and by Addendum No. 8 dated December 21, 1998 (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, Mid Cap Growth Fund, High Yield Municipal
Fund and the High Yield Fixed Income Fund;
WHEREAS, the Trust is establishing the Tax-Exempt Money Market
and the Small Cap Growth 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. 9 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, 2000. 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/ Xxxxx Xxxxxxxx By: /s/ Xxxxx X. Xxxxxxxx
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Title: President
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THE NORTHERN TRUST COMPANY
Attest: /s/ Xxxxx Xxxxxxxx By: /s/ Xxxxxxxxx X. Xxxx
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Title: Vice President
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