January 27, 2003
Xx. Xxxx X. Xxxxxx
Chairman
Board of Trustees
Forum Funds
Two Portland Square
Portland, Maine 04102
RE: Contractual Waivers and Reimbursements
Dear Xxxx:
Brown Investment Advisory Incorporated (the "Adviser") agrees to waive its
investment advisory fee and reimburse expenses as necessary to ensure that total
annual operating expenses for Institutional and A Shares of Brown Advisory Value
Equity Fund, a series of Forum Funds, do not exceed 1.00% and 1.25%,
respectively, of that class' average daily net assets.
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 resigns
as the Fund's investment adviser or is otherwise no longer a service provider to
the Fund. Unless otherwise amended or terminated, this agreement will terminate
on December 31, 2003.
Very truly yours,
Brown Investment Advisory Incorporated
By: /s/ XXXXX X. XXXXXXXXX
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Xxxxx X. Xxxxxxxxx
Chief Financial Officer
