1
EXHIBIT 8(o)
[FORM]
NORTHERN FUNDS
ADDENDUM NO. 7 TO THE CUSTODIAN AGREEMENT
This Addendum, dated as of the ___ day of __________, 1998, is entered
into between NORTHERN FUNDS (the "Trust"), a Massachusetts 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
and by Addendum No. 6 dated _________ __, 199_ (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 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 and the Small Cap Index Fund;
WHEREAS, the Trust is establishing the Mid-Cap Growth Fund, and the
Trust desires to retain Northern under the terms of the Custodian Agreement to
act as the custodian for the Mid-Cap Growth Fund, and Northern is willing to so
act; and
WHEREAS, the Trust and Northern desire to enter into this Addendum No.
7 to provide compensation for each 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 Mid-Cap Growth Fund in accordance with the
terms set forth in the Custodian Agreement. Northern hereby
accepts such appointment and agrees to render the services set
forth in the Custodian Agreement for the compensation therein
provided.
2
2. Capitalized Terms. From and after the date hereof, the term
"Funds" as used in the Custodian Agreement shall be deemed to
include the Mid-Cap Growth Fund. 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 each 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
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 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 Custodian Agreement for such month. In the event
that a Fund's Cash Balance Compensation for any month exceeds
the custody fees payable by the 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 Mid-Cap Growth Fund shall continue, unless
sooner terminated in accordance with the Custodian Agreement,
until March 31, 1999. 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.
3
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:________________________________
Title:_____________________________
THE NORTHERN TRUST COMPANY
Attest:__________________ By:________________________________
Title:_____________________________
