EXHIBIT (g)(16)
NORTHERN FUNDS
ADDENDUM NO. 15 TO THE CUSTODIAN AGREEMENT
This Addendum, dated as of the 30th day of October, 2001, is
entered into between NORTHERN FUNDS (the "Trust"), a Delaware 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, by Addendum No. 8 dated December 21, 1998, by Addendum No. 9
dated September 15, 1999, by Xxxxxxxx Xx. 00 dated December 28, 1999, by
Xxxxxxxx Xx. 00 dated July 31, 2000, by Xxxxxxxx Xx. 00 dated August 1, 2000, by
Xxxxxxxx Xx. 00 dated September 26, 2000 and by Xxxxxxxx Xx. 00 dated May 17,
2001 (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
Value Fund (formerly known as the 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, High Yield Fixed Income Fund, Tax-Exempt Money Market
Fund, Small Cap Growth Fund, Blue Chip 20 Fund, Large Cap Value Fund, Growth
Opportunities Fund and Value Fund;
WHEREAS, the Trust and Northern desire to change the provision
in the Custodian Agreement regarding cash balance compensation;
NOW THEREFORE, the parties hereto, intending to be legally
bound, hereby agree as follows:
1. AMENDMENT REGARDING CASH BALANCE COMPENSATION. The provision
in the Custodian Agreement entitled "Cash Balance
Compensation" is hereby amended and restated as follows:
Northern shall compensate each Fund for uninvested U.S. dollar
cash balances ("Cash Balances") maintained with Northern at
the end of each day in accordance with this paragraph ("Cash
Balance Compensation"). Cash Balance Compensation with respect
to a 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 a
Fund's accumulated Cash Balance Compensation shall be paid
monthly in the form of reductions to the custody fees
otherwise allocable to a 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
a 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.
2. MISCELLANEOUS. Except to the extent amended 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.
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: By:
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Title:
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THE NORTHERN TRUST COMPANY
Attest: By:
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Title:
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