February 28, 2003
Xx. Xxxx X. Xxxxxx
Chairman
Board of Trustees
Forum Funds
Two Portland Square
Portland, Maine 04102
RE: Contractual Waivers and Reimbursements
Dear Xxxx:
King Investment Advisors, Inc. (the "Adviser") agrees to waive its
investment advisory fee and reimburse expenses as necessary to ensure that total
annual operating expenses (excluding taxes, interest, portfolio transaction
expenses and extraordinary expenses) for Fountainhead Special Value Fund, a
series of the Forum Funds (the "Trust"), does not exceed 1.50%.
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 as of February 28, 2004.
Very truly yours,
/s/ XXXXX X. XXXX
By: XXXXX X. XXXX
Title: President
