EXHIBIT (g)(27)
NORTHERN FUNDS
FORM OF ADDENDUM NO. 7 TO THE FOREIGN CUSTODY AGREEMENT
This Addendum No. 7, dated as of the ____ day of_______, 2006, is entered
into between NORTHERN FUNDS (the "Trust"), a Delaware statutory trust, and THE
NORTHERN TRUST COMPANY ("Northern"), an Illinois state bank.
WHEREAS, the Trust and Northern have entered into a Foreign Custody
Agreement dated April 1, 1994, as amended to date (the "Agreement"), pursuant to
which the Trust has appointed Northern to act as custodian to the Trust for its
International Growth Equity Fund, Global Fixed Income Fund and International
Equity Index Fund; and
WHEREAS, the Trust is establishing the Emerging Markets Equity Fund (the
"New Fund"), and it desires to retain Northern to act as custodian therefor
under the Agreement, and Northern is willing to so act.
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 New Fund for the period and terms set forth in the Agreement.
Northern hereby accepts such appointment and agrees to render the
services set forth in the Agreement for the compensation therein
provided.
2. Capitalized Terms. From and after the date hereof, the term "Funds" as
used in the Agreement shall be deemed to include the New Fund.
Capitalized terms used herein and not otherwise defined shall have the
meanings ascribed to them in the Agreement.
3. Cash Balance Compensation. Northern shall compensate the 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 the Fund's uninvested Cash Balances 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 the 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 Agreement for such month. In the event
that the Fund's Cash Balance Compensation for any month exceeds the
custody fees payable by the Fund under the 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 Agreement with respect to the
New Fund shall continue, unless sooner terminated in accordance with
the Agreement, until March 31, 2007. Except to the extent supplemented
hereby, the 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.
NORTHERN FUNDS
Attest:_______________ By: _______________
Name: _______________
Title:_______________
THE NORTHERN TRUST COMPANY
Attest:_______________ By: _______________
Name: _______________
Title:_______________
