Exhibit (g)(14)
NORTHERN FUNDS
ADDENDUM NO. 10 TO THE CUSTODIAN AGREEMENT
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This Addendum, dated as of the 28th day of December, 1999, 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, by Addendum No. 6 dated February 12, 1997, by Addendum No. 7 dated
November 18, 1997, by Addendum No. 8 dated December 21, 1998 and by Addendum No.
9 dated September 15, 1999 (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, Small Cap
Index Fund, Mid Cap Growth Fund, High Yield Municipal Fund, High Yield Fixed
Income Fund, Tax-Exempt Money Market and the Small Cap Growth Fund;
WHEREAS, the Trust is establishing the MarketPower Fund (the "Fund"),
and the Trust desires to retain Northern under the terms of the Custodian
Agreement to act as the custodian for the Fund, and Northern is willing to so
act; and
WHEREAS, the Trust and Northern desire to enter into this Addendum No.
10 to provide compensation for the 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
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Trust for the 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. Capitalized Terms. From and after the date hereof, the term
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"Funds" as used in the Custodian Agreement shall be deemed to
include the 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 the Fund
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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 the 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 ▇▇▇▇ 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 Custodian 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 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
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Compensation may be carried forward beyond the end of any fiscal
year.
4. Miscellaneous. The initial term of the Custodian Agreement with
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respect to the Fund shall continue, unless sooner terminated in
accordance with the Custodian Agreement, until March 31, 2000.
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.
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: /s/ Jylanne ▇. ▇▇▇▇▇
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Title: President
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THE NORTHERN TRUST COMPANY
Attest: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇
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Title: Vice President
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