June 30, 2006 Mr. Simon D. Collier, President Forum Funds Two Portland Square Portland, Maine 04101 RE: Contractual Waivers and Reimbursements Dear Mr. Collier: D.F. Dent and Company, Inc. (the "Adviser") agrees to waive its investment advisory fee...

                                                              June 30, 2006


Xx. Xxxxx X. Xxxxxxx, President
Forum Funds
Two Portland Square
Portland, Maine 04101


RE:      Contractual Waivers and Reimbursements

Dear Xx. Xxxxxxx:

         X.X. Xxxx and Company, Inc. (the "Adviser") agrees to waive its
investment advisory fee and reimburse expenses as necessary to ensure that total
annual operating expenses for XX Xxxx Premier Growth Fund (the "Fund"), a series
of the Forum Funds (the "Trust"), do not exceed 1.20% from July 1, 2006 through
the period ending October 31, 2007.

         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 on October 31, 2007.


Very truly yours,

X.X. Xxxx & Company, Inc.


/s/Xxxxxx X. Xxxx
President