EXHIBIT (g)(15)
NORTHERN FUNDS
ADDENDUM NO. 14 TO THE CUSTODIAN AGREEMENT
This Addendum, dated as of the 17th day of May, 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 and by Xxxxxxxx Xx. 00 dated September 26, 2000 (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 and the Growth Opportunities Fund;
WHEREAS, the Trust is establishing the Value Fund (the "Fund"), and
the Trust desires to retain Northern under the terms of the Custodian Agreement
to act as the custodian for the Fund, and Northern is willing to so act; and
WHEREAS, the Trust and Northern desire to enter into this Addendum
No. 14 to provide compensation for the 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 Fund in accordance with the terms set forth
in the Custodian Agreement, as amended to date. Northern
hereby accepts such appointment and agrees to render the
services set forth in the Custodian Agreement for the
compensation therein provided.
2. CAPITALIZED TERMS. From and after the date hereof, the term
"Funds" as used in the Custodian Agreement shall be deemed to
include the Fund. Capitalized
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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 the 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
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.
4. MISCELLANEOUS. The initial term of the Custodian Agreement
with respect to the Fund shall continue, unless sooner
terminated in accordance with the Custodian Agreement, until
March 31, 2002. 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/ Xxxx Xxxxxxxxxx
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Title: Vice President
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THE NORTHERN TRUST COMPANY
Attest: /s/ XXXXX XXXXXXXX By: /s/ XXXXXXX X. XXXXXX III
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Title: VICE PRESIDENT
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