July 29, 2016 Board of Trustees Adirondack Funds

July 29, 2016

Board of Trustees

Adirondack Funds

0000 Xxxxxxx Xxxxxx

Guilderland, NY  12084

Dear Trustees:

Adirondack Research and Management, Inc. ("ARMI") xxxxxx agrees to permanently reduce the investment advisory and management fees, effective August 1, 2016, under the Management Agreement, dated April 17, 2005, between ARMI and Adirondack Funds (the "Trust") with respect to The Adirondack Small Cap Fund, a series of the Trust.  Specifically, XXXX agrees to reduce the investment advisory and management fees to 1.15%.

Sincerely,

Adirondack Research and Management, Inc.

By: /s/ Xxxxxxx Xxxxxx

Xxxxxxx Xxxxxx

President

0000 XXXXXXX XXXXXX • GUILDERLAND, NY• 12084

PHONE: 000-000-0000 • FAX: 000-000-0000

ADVISOR TO THE ADIRONDACK SMALL CAP FUND