Contract
Exhibit (h)(22)
[WATERVILLE
CAPITAL, LLC LETTERHEAD]
October 29, 2009
Xx.
Xxxxxx X. Xxxx, President
Atlantic
Fund Administration, LLC
Three
Canal Plaza, Suite 600
Portland,
Maine 04101
RE: Expense
Limitation Agreement
Dear Xx.
Xxxx:
Waterville Capital, LLC, (the
“Adviser”) agrees to reduce its investment advisory fee and reimburse expenses
as necessary to ensure that total annual operating expenses (excluding all
taxes, interest, portfolio transaction expenses, dividends on short sales,
acquired fund fees and expenses, and extraordinary expenses) for the Waterville
Large Cap Value Fund (the “Fund”), a series of the Forum Funds (the “Trust”), do
not exceed 2.00% for Investor Shares for the period from November 1, 2009
through October 31, 2010.
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, 2010.
Very
truly yours,
Waterville
Capital, LLC
By: /s/ Xxxxxxx
Xxxxxx
Name: Xxxxxxx
Xxxxxx
Title: Managing
Member