Exhibit (g)(20)
NORTHERN FUNDS
FORM OF
ADDENDUM NO. 19 TO THE CUSTODIAN AGREEMENT
This Addendum, dated as of the [____]th day of [_____________], 2006,
is entered into between NORTHERN FUNDS (the "Trust"), a Delaware statutory
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, by Xxxxxxxx Xx. 00 dated May 21, 2001,
by Xxxxxxxx Xx. 00 dated October 30, 2001, by Xxxxxxxx Xx. 00 dated July 29,
2003, by Xxxxxxxx Xx. 00 dated February 14, 2005, and by Xxxxxxxx Xx. 00 dated
December 5, 2005 (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, Large Cap Value Fund, Value Fund, International
Equity Index Fund, Mid Cap Index Fund and Enhanced Large Cap Fund;
WHEREAS, the Trust is establishing the Multi-Manager Mid Cap Fund and
Multi-Manager Small Cap Fund (the "Funds"), and the Trust desires to retain
Northern under the terms of the Custodian Agreement to act as the custodian for
the Funds, and Northern is willing to so act; and
WHEREAS, the Trust and Northern desire to enter into this Addendum No.
19 to provide compensation for the Funds 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 Funds 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 Funds.
Capitalized 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 Funds 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 Funds shall continue, unless sooner terminated in
accordance with the Custodian Agreement, until March 31, 2007. 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: 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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