0000357235-05-000482 Sample Contracts

FORM OF FEE WAIVER AND EXPENSE CAP AGREEMENT
Waiver and Expense Cap Agreement • December 28th, 2005 • Legg Mason Cash Reserve Trust

Legg Mason Fund Adviser, Inc. ("LMFA") hereby notifies you that it will waive its fees (and to the extent necessary bear other expenses) from December 1, 2005 through December 31, 2006, to the extent that expenses of Legg Mason Cash Reserve Trust ("Fund") (exclusive of interest, taxes, brokerage commissions, and extraordinary expenses) would exceed an annual rate of 0.68%. The expense ratio for the last fiscal year was 0.68%.

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