EXHIBIT (g)(21)
NORTHERN FUNDS
ADDENDUM NO. 4 TO THE FOREIGN CUSTODY AGREEMENT
This Addendum No. 4, 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 ("Northern"), an Illinois state bank.
WHEREAS, the Trust and Northern have entered into a Foreign Custody
Agreement dated April 1, 1994, as amended by Addendum No. 1 dated as of April 1,
1998, Addendum No. 2 dated as of February 8, 2000 and Addendum No. 3 dated July
31, 2000 (the "Foreign Custody 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, International Select Equity Fund and
Global Communications Fund (collectively, the "Funds"); and
WHEREAS, the Trust and Northern desire to change the provision in the
Foreign Custody 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 Foreign Custody Agreement entitled "Cash Balance
Compensation" is hereby amended and restated as follows:
Northern shall compensate each portfolio 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 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 portfolio's accumulated Cash
Balance Compensation shall be paid monthly in the
form of reductions to the custody fees otherwise
allocable to the Portfolio under the Agreement for
such month. In the event that a Portfolio's Cash
Balance Compensation for any month exceeds the
custody fees payable by the Portfolio under the
Agreement for such month, the Portfolio'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
Foreign Custody 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:
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Name:
Title:
THE NORTHERN TRUST COMPANY
Attest: By:
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Name:
Title:
