Exhibit (g)(25)

                                 NORTHERN FUNDS

                                     FORM OF
                 ADDENDUM NO. 6 TO THE FOREIGN CUSTODY AGREEMENT

      This Addendum No. 6, dated as of the ____ day of ____, 200__, is entered
into between NORTHERN FUNDS (the "Trust"), a Delaware statutory trust, and THE
NORTHERN TRUST COMPANY ("Northern"), an Illinois state bank.

      WHEREAS, the Trust and Northern have entered into a Foreign Custody
Agreement dated April 1, 1994, as amended to date (the "Agreement"), pursuant to
which the Trust has appointed Northern to act as custodian to the Trust for its
International Growth Equity and Global Fixed Income Funds; and

      WHEREAS, the Trust is establishing the International Equity Index Fund
(the "New Fund"), and it desires to retain Northern to act as custodian therefor
under the Agreement, and Northern is willing to so act; and

      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 New Fund for the period and terms set forth in the Agreement.
        Northern hereby accepts such appointment and agrees to render the
        services set forth in the Agreement for the compensation therein
        provided.

    2.  Capitalized Terms. From and after the date hereof, the term "Funds" as
        used in the Agreement shall be deemed to include the New Fund.
        Capitalized terms used herein and not otherwise defined shall have the
        meanings ascribed to them in the Agreement.

    3.  Cash Balance Compensation. Northern shall compensate the Fund for
        uninvested U.S. dollar cash balances ("Cash Balances") maintained with
        Northern at the end of each day in accordance with this paragraph ("Cash
        Balance Compensation"). Cash Balance Compensation with respect to the
        Fund's uninvested Cash Balances 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 bill 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 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 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 Agreement with respect to the New
        Fund shall continue, unless sooner terminated in accordance with the
        Agreement, until March 31, 2005. 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: __________________________      By: ____________________________________

                                        Name:  _________________________________

                                        Title: _________________________________

                                        THE NORTHERN TRUST COMPANY

Attest: __________________________      By: ____________________________________

                                        Name:  _________________________________

                                        Title: _________________________________