Exhibit (h)(18)
CONTRACTUAL FEE WAIVER AGREEMENT
Liberty Street Advisors, Inc.
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April 30, 2007
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President, Forum Funds
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RE: Contractual Expense Limitation Agreement
Dear ▇▇. ▇▇▇▇▇▇▇:
Liberty Street Advisors, Inc. (the "Adviser"), the investment adviser to the
Liberty Street Horizon Fund (the "Fund"), a series of the Forum Funds (the
"Trust"), pursuant to an investment advisory agreement between the Adviser and
the Trust, on behalf of the Fund, agrees to waive its investment advisory fee
and/or pay Fund expenses as necessary to ensure that total annual operating
expenses (excluding taxes, interest, extraordinary expenses, such as civil or
regulatory litigation, and portfolio transaction expenses) for the Fund, do not
exceed 1.25%, 1.50% and 2.00%, for Institutional Shares, A Shares and C Shares,
respectively, for the period of April 30, 2007, the Fund's commencement of
operations, through August 31, 2008. The aggregate amount of this expense
limitation obligation is hereinafter referred to as the "Expense Limitation
Amount."
Subject to approval by the Board of Trustees of the Trust, the Trust, on
behalf of the Fund, agrees to repay the Adviser the Expense Limitation Amount
for a Fund or a class of a Fund, as applicable, in later periods; provided,
however, that the repayment shall be payable only to the extent that it (1) can
be made during the three years following the time at which the Adviser waived
fees or paid expenses for a Fund or class of a Fund under this agreement, and
(2) can be repaid without causing the total annual operating expenses
(excluding taxes, interest, extraordinary expenses, such as civil or regulatory
litigation, and portfolio transaction expenses) of the Fund or class during a
year in which such repayment is made to exceed any applicable expense limit
that was in place for the Fund when the amount was paid or waived. The Trust
agrees to furnish or otherwise make available to the Adviser such copies of its
financial statements, reports, and other
information relating to its business and affairs as the Adviser may, at any
time or from time to time, reasonably request in connection with this agreement.
No assignment of this agreement shall be made by the Adviser without the
prior consent of the Trust. 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. This
agreement shall be effective on the date set forth above and shall continue in
effect from year to year after its initial termination date of August 31, 2008,
upon mutual agreement of the Trust and Adviser.
Very truly yours,
Liberty Street Advisors, Inc.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇, III
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President of Liberty Street
Advisors, Inc.
Agreed to by the Trust, on behalf of
the Fund:
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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President, Forum Funds