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EXHIBIT 8(p)
NORTHERN FUNDS
ADDENDUM NO. 1 TO THE FOREIGN CUSTODY AGREEMENT
This Addendum No. 1, dated as of the 1st day of April, 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 Foreign Custody
Agreement dated April 1, 1994 (the "Agreement"), pursuant to which the Trust has
appointed Northern to act as custodian to the Trust for its International Growth
Equity, International Select Equity and International Fixed Income Funds
(collectively, the "Funds"); and
WHEREAS, the Trust and Northern desire to enter into this Addendum No.
1 to provide compensation for each Fund for uninvested cash balances maintained
with Northern under the Agreement;
NOW THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:
1. 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 ▇▇▇▇ 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 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 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.
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2. Miscellaneous. Except to the extent supplemented hereby, the
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: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Vice President
THE NORTHERN TRUST COMPANY
Attest: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Senior Vice President
