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EXHIBIT (d)(9)
NORTHERN FUNDS
ADDENDUM NO. 7 TO THE INVESTMENT ADVISORY AGREEMENT
This Addendum, dated as of the 21st day of December, 1998, is
entered into between NORTHERN FUNDS (the "Trust"), a Massachusetts business
trust, and THE NORTHERN TRUST COMPANY (the "Investment Adviser"), an Illinois
state bank.
WHEREAS, the Trust and the Investment Adviser have entered into an
Investment Advisory and Ancillary Services 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
March 24, 1997, by Addendum No. 5 dated February 12, 1997 and by Addendum No. 6
dated November 18, 1997 (the "Advisory Agreement") pursuant to which the Trust
has appointed the Investment Adviser to act as investment adviser 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, International Fixed Income Fund, Income Equity
Fund, Growth Equity Fund, Select Equity Fund, Small Cap Fund, International
Growth Equity Fund, International Select Equity Fund, Technology Fund, Stock
Index Fund, Short-Intermediate U.S. Government Fund, California Intermediate
Tax-Exempt Fund, Arizona Tax-Exempt Fund, California Tax-Exempt Fund, Florida
Intermediate Tax-Exempt Fund, Small Cap Index Fund and the Mid Cap Growth Fund;
and
WHEREAS, Section 1(b) of the Advisory Agreement provides that in the
event the Trust establishes one or more additional investment portfolios with
respect to which it desires to retain the Investment Adviser to act as
investment adviser under the Advisory Agreement, the Trust shall so notify the
Investment Adviser in writing and if the Investment Adviser is willing to render
such services it shall notify the Trust in writing, and the compensation to be
paid to the Investment Adviser shall be that which is agreed to in writing by
the Trust and the Investment Adviser; and
WHEREAS, pursuant to Section 1(b) of the Advisory Agreement, the
Trust has notified the Investment Adviser that it is establishing the High Yield
Muncipal and the High Yield Fixed Income Funds (the "Funds"), and that it
desires to retain the Investment Adviser to act as the investment adviser for
the Funds, and the Investment Adviser has notified the Trust that it is willing
to serve as investment adviser for the Funds;
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NOW THEREFORE, the parties hereto, intending to be legally bound, hereby
agree as follows:
1. Appointment. The Trust hereby appoints the Investment Adviser to
act as investment adviser to the Trust for the Funds in accordance with the
terms set forth in the Advisory Agreement. The Investment Adviser hereby accepts
such appointment and agrees to render the services set forth in the Advisory
Agreement for the compensation herein provided.
2. Compensation. For the services provided and the expenses assumed
pursuant to the Advisory Agreement regarding each Fund, the Trust will pay the
Investment Adviser, and the Investment Adviser will accept as full compensation
therefor from the Trust, a fee at the annual rate of 0.75% of each Fund's
average net assets.
3. Capitalized Terms. From and after the date hereof, the term
"Current Funds" as used in the Advisory 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 Advisory Agreement.
4. Miscellaneous. The initial term of the Advisory Agreement with
respect to the Funds shall continue, unless sooner terminated in accordance with
the Advisory Agreement, until March 31, 1999. Except to the extent supplemented
hereby, the Advisory Agreement shall remain unchanged and in full force and
effect, and is hereby ratified and confirmed in all respects as supplemented
hereby.
All signatures need not appear on the same copy of this Addendum.
IN WITNESS WHEREOF, the undersigned have executed this Addendum as
of the date and year first above written.
NORTHERN FUNDS
Attest: /s/ Illegible By: /s/ Xxxxxx X. Xxxxxxx
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Title: Vice President
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THE NORTHERN TRUST COMPANY
Attest: /s/ Illegible By: /s/ Xxxxx X. Xxxxxxxx
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Title: Senior Vice President
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