FORUM FUNDS
MONARCH FUNDS
INSURANCE AGREEMENT AMONG INSUREDS
REQUIRED BY RULE 17G-1(F)
February 28, 2008
Forum Funds, a Delaware statutory trust, and Monarch Funds, a Massachusetts
business trust (the "Trusts"), are registered management investment companies,
and are named as insureds in a joint fidelity bond issued by the Vigilant
Insurance Company, a member of the Chubb Group of Insurance Companies
("Chubb"). The fidelity bond issued by Chubb provides coverage for larceny and
embezzlement, among other things, in the principal amount of $3,750,000.
Pursuant to Rule 17g-1(f) of the Investment Company Act of 1940, each of the
undersigned hereby agrees that in the event recovery is received under this
bond as a result of a loss sustained by a Trust with respect to a Portfolio or
Fund, each Trust shall receive an equitable and proportionate share of the
recovery, but at least equal to the amount each would have received had single
insured bonds, with minimum coverage as required by Rule 17g-1(d)(1) under the
Investment Company Act of 1940, been provided and maintained by each Trust. In
addition, each of the undersigned agrees that the premium be allocated pro-rata
amongst the Trusts based on gross assets.
Forum Funds
By: /s/ Xxxx X. Xxxxxx
------------------------------
Xxxx X. Xxxxxx, Vice President
Monarch Funds
By: /s/ Xxxx X. Xxxxxx
------------------------------
Xxxx X. Xxxxxx, Vice President
