September 30, 2004 Mr. J. Michael Parish Chairman Board of Trustees Forum Funds Two Portland Square Portland, Maine 04101 RE: Contractual Waivers and Reimbursements Dear John: Brown Investment Advisory Incorporated (the "Adviser") agrees to waive its...

                                                              September 30, 2004

Mr. X. Xxxxxxx Xxxxxx
Chairman
Board of Trustees
Forum Funds
Two Portland Square
Portland, Maine 04101

         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 Brown  Advisory  Real  Estate  Fund (the
"Fund"), a series of the Forum Funds (the "Trust"), does not exceed 1.00%.

         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 September 30, 2005.

                                                    Very truly yours,
                                                    Brown Investment Advisory
                                                    Incorporated


                                                    By: /s/ Xxxxx X. Xxxxxxxxx
                                                        _____________________
                                                        Xxxxx X.Xxxxxxxxx
                                                        Chief Financial Officer