February 28, 2005
Board of Trustees
Forum Funds
Two Portland Square
Portland, Maine 04101
RE: Contractual Waivers and Reimbursements
Dear Sirs:
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, 2006.
Very truly yours,
By: /s/ Xxxxx Xxxx
---------------------
Xxxxx Xxxx, President
