EXPENSE LIMITATION AGREEMENT
FOR THE AEGIS HIGH YIELD FUND
THIS AGREEMENT, dated as of January __, 2007, is made and entered into by
and between The Aegis Funds, a Delaware statutory trust (the "Trust"), on behalf
of its series the Aegis High Yield Fund (the "Fund"), and Aegis Financial
Corporation (formerly, Berno, Gambal & Xxxxxx, Inc.) (the "Adviser").
WHEREAS, the Adviser has been appointed the investment adviser of the Fund
pursuant to an Investment Advisory Agreement between the Trust, on behalf of the
Fund, and the Adviser (the "Advisory Agreement"); and
WHEREAS, the Trust and the Adviser desire to enter into the arrangements
described herein relating to certain expenses of the Fund;
NOW, THEREFORE, the Trust and the Adviser hereby agree as follows:
1. Until December 31, 2007 and while the Adviser serves as investment
adviser to the Fund pursuant to an investment advisory agreement
between the Trust and the Adviser, the Adviser agrees, subject to
Section 2 hereof, to limit its fee and/or reimburse other expenses of
the Fund to the extent necessary to limit the operating expenses of
the Fund to an annual rate of 1.20% of the Fund's average daily net
assets.
2. The Fund agrees to pay or repay to the Adviser the amount of fees
(including any amounts foregone through limitation or reimbursed
pursuant to Section 1 hereof) that, but for Section 1 hereof, would
have been payable by the Fund to the Adviser pursuant to the
Investment Advisory Agreement (the "Deferred Fees"). Such repayment
shall be made monthly, but only to the extent that the operating
expenses of the Fund (exclusive of brokerage costs, interest, taxes
and dividend and extraordinary expenses), without regard to such
repayment, are at an annual rate (as a percentage of the average daily
net assets of the Fund) below the limit set in Section 1. The amount
of Deferred Fees paid by the Fund in any month shall be limited so
that the sum of (a) the amount of such payment and (b) the other
operating expenses of the Fund (exclusive of brokerage costs,
interest, taxes and extraordinary expenses) do not exceed the limit
set by Section 1. Deferred Fees with respect to any fiscal year of the
Fund shall not be payable by the Fund to the extent that the amounts
payable pursuant to the foregoing provisions of this Section 2 during
the period ending three years after the end of such fiscal year are
not sufficient to pay such Deferred Fees. In no event will the Fund be
obligated to pay any fees waived or deferred by the Adviser with
respect to any other series of the Trust.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.
THE AEGIS FUNDS AEGIS FINANCIAL CORPORATION
on behalf of its series
the Aegis High Yield Fund
By: By:
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Name: Name:
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Title: Title:
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SK 23261 0002 768822
