[X.X. XXXX LETTERHEAD]
September 14, 2004
Mr. X. Xxxxxxx Xxxxxx Chairman Board of Trustees Forum Funds Two Portland Square
Portland, Maine 04101
RE: Contractual Waivers and Reimbursements
Dear Xxxx:
X.X. Xxxx and Company, Inc. (the "Adviser") agrees to waive its
investment advisory fee and reimburse expenses as necessary to ensure that total
annual operating expenses for XX Xxxx Premier Growth Fund (the "Fund"), a series
of the Forum Funds (the "Trust"), do not exceed 1.25%.
This agreement can only be terminated or amended upon the approval of
the Trust's Board of Trustees and is automatically terminated if the Adviser is
no longer a service provider to the Fund. Unless otherwise amended or
terminated, this agreement will terminate on October 31, 2005.
Very truly yours,
X.X. Xxxx & Company, Inc.
Xxxxxx X. Xxxx
President
