EXHIBIT (l) INITIAL CAPITAL AGREEMENT Dear Sir or Madam: In connection with the purchase by James R. Jundt (the "Purchaser") of 10,000 initial Series A Common Shares at a price of $10 per share and 10,000 initial Series B Common Shares at a price of...

                                                                     EXHIBIT (l)

                            INITIAL CAPITAL AGREEMENT


_________, 1999


Dear Sir or Madam:

         In connection with the purchase by Xxxxx X. Xxxxx (the "Purchaser") of
10,000 initial Series A Common Shares at a price of $10 per share and 10,000
initial Series B Common Shares at a price of $10 per share of American Eagle
Funds, Inc. (the "Company"), relating to the American Eagle Capital Appreciation
Fund and the American Eagle Twenty Fund, respectively (individually a "Fund"
and, collectively, the "Funds"), the Purchaser hereby represents that it is
acquiring such stock for investment with no intention of selling or otherwise
disposing or transferring it or any interest in it. The Purchaser hereby further
agrees that any transfer of any such stock or any interest in it shall be
subject to the following conditions:

1.   The Purchaser shall furnish the Funds and counsel satisfactory to the Funds
     prior to the time of transfer, a written description of the proposed
     transfer specifying its nature and consequence and giving the name of the
     proposed transferee.

2.   The Funds shall have obtained from its counsel a written opinion stating
     whether in the opinion of such counsel the proposed transfer may be
     effected without registration under the Securities Act of 1933. If such
     opinion states that such transfer may be so effected, the Purchaser shall
     then be entitled to transfer such stock in accordance with the terms
     specified in its description of the transaction to the Funds. If such
     opinion states that the proposed transfer may not be so effected, the
     Purchaser will not be entitled to transfer its stock unless such transfer
     is registered.

3.   The Purchaser understands that the Funds expect to incur organizational
     expenses in connection with the start-up and initial registration of the
     Funds. These costs will be amortized over 60 months on a straight-line
     basis beginning on the date such Fund first offers capital stock to the
     public (commencement of operations). If the Purchaser redeems any or all of
     the stock representing initial capital in a Fund prior to the end of the
     60-month amortization period, the redemption proceeds will be reduced by
     their pro rata portion of the unamortized organizational costs. Such
     proration shall be calculated by dividing the number of shares of stock to
     be redeemed by the number of shares of stock representing initial capital.

4.   The Purchaser further agrees that all certificates, if any,
     representing such stock shall contain on the face of such
     certificate the following legend: "American Eagle Capital
     Appreciation Fund" or "American Eagle Twenty Fund," as the case may
     be, and on the



     reverse of such certificate "The shares represented by this
     certificate may not be transferred without (i) the opinion of
     counsel satisfactory to American Eagle Funds, Inc. that the
     transfer may be legally made without registration under the federal
     Securities Act of 1933; or (ii) such registration." The Purchaser
     hereby authorizes the Company to take such action as it shall
     reasonably deem appropriate to prevent any violation of the
     Securities Act of 1933 in connection with the transfer of stock,
     including the imposition of a requirement that any transferee of
     the stock sign a letter agreement similar to this one.

     Very truly yours,


     Xxxxx X. Xxxxx