-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LmN74OoQXtx5DcpiRqrfEK+zs/DPWsAGCvcp1Dz+NohTc1gu6nGJNEVf3h/kd08W 34jMYrIOBWTUqPiIECTHgQ== 0001004402-98-000339.txt : 20040407 0001004402-98-000339.hdr.sgml : 20040407 19980608154700 ACCESSION NUMBER: 0001004402-98-000339 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19980608 DATE AS OF CHANGE: 19980612 EFFECTIVENESS DATE: 19980608 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FORUM FUNDS INC CENTRAL INDEX KEY: 0000315774 IRS NUMBER: 133114790 STATE OF INCORPORATION: ME FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 002-67052 FILM NUMBER: 98643900 BUSINESS ADDRESS: STREET 1: TWO PORTLAND SQUARE CITY: PORTLAND STATE: ME ZIP: 04101 BUSINESS PHONE: 2078796500 MAIL ADDRESS: STREET 1: FORUM FUNDS STREET 2: TWO PORTLAND SQUARE CITY: PORTLAND STATE: ME ZIP: 04101 FORMER COMPANY: FORMER CONFORMED NAME: FORUM FUNDS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FAHNESTOCK DAILY INCOME FUND INC DATE OF NAME CHANGE: 19870617 FORMER COMPANY: FORMER CONFORMED NAME: DAILY INCOME EXTENSION FUND INC DATE OF NAME CHANGE: 19810607 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FORUM FUNDS INC CENTRAL INDEX KEY: 0000315774 IRS NUMBER: 133114790 STATE OF INCORPORATION: ME FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03023 FILM NUMBER: 98643901 BUSINESS ADDRESS: STREET 1: TWO PORTLAND SQUARE CITY: PORTLAND STATE: ME ZIP: 04101 BUSINESS PHONE: 2078796500 MAIL ADDRESS: STREET 1: FORUM FUNDS STREET 2: TWO PORTLAND SQUARE CITY: PORTLAND STATE: ME ZIP: 04101 FORMER COMPANY: FORMER CONFORMED NAME: FORUM FUNDS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FAHNESTOCK DAILY INCOME FUND INC DATE OF NAME CHANGE: 19870617 FORMER COMPANY: FORMER CONFORMED NAME: DAILY INCOME EXTENSION FUND INC DATE OF NAME CHANGE: 19810607 485BPOS 1 POLARIS GLOBAL VALUE FUND As filed with the Securities and Exchange Commission on June 8, 1998 File Nos. 2-67052 and 811-3023 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM N-1A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Post-Effective Amendment No. 63 AND REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 65 FORUM FUNDS (Formerly "Forum Funds, Inc.") Two Portland Square Portland, Maine 04101 (207) 879-1900 Leslie K. Klenk, Esq. Forum Financial Services, Inc. Two Portland Square, Portland, Maine 04101 Copies to: Anthony C.J. Nuland, Esq. Seward & Kissel 1200 G Street, N.W. Washington, D.C. 20005 It is proposed that this filing will become effective: [X] immediately upon filing pursuant to Rule 485, paragraph (b) [ ] on [ ] pursuant to Rule 485, paragraph (b) [ ] 60 days after filing pursuant to Rule 485, paragraph (a)(1) [ ] on [ ] pursuant to Rule 485, paragraph (a)(1) [ ] 75 days after filing pursuant to Rule 485, paragraph (a)(2) [ ] on [ ] pursuant to Rule 485, paragraph (a)(2) [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. CROSS REFERENCE SHEET (As required by Rule 481(a)) (Prospectus offering shares of Polaris Global Value Fund) PART A Form N-1A - --------- Item No. - --------- Location in Prospectus ---------------------- Item 1. Cover Page Cover Page Item 2. Synopsis Prospectus Summary Item 3. Condensed Financial Information Not Applicable Item 4. General Description of Registrant Prospectus Summary; Investment Objective, Policies and Risk; Other Information Item 5. Management of the Fund Prospectus Summary; Management Item 5A. Management's Discussion of Fund Performance Not Applicable Item 6. Capital Stock and Other Securities Investment Objective, Policies and Risk; Dividends and Tax Matters; Other Information - The Trust and its Shares Item 7. Purchase of Securities Being Offered Purchases and Redemptions of Shares; Other Information - Determination of Net Asset Value; Management Item 8. Redemption or Repurchase Purchases and Redemptions of Shares Item 9. Pending Legal Proceedings Not Applicable
2 CROSS REFERENCE SHEET PART A (All other Prospectuses) Not Applicable in this Filing 3 CROSS REFERENCE SHEET (AS REQUIRED BY RULE 481(A)) (SAI offering shares of Polaris Global Value Fund) PART B Form N-1A - --------- Item No. - --------- Location in Statement of Additional Information ----------------------------------------------- Item 10. Cover Page Cover Page Item 11. Table of Contents Cover Page Item 12. General Information and History Management; Other Matters Item 13. Investment Objectives and Other Policies Investment Policies and Limitations Item 14. Management of the Fund Management Item 15. Control Persons and Principal Holders of Other Matters Securities Item 16. Investment Advisory and Other Services Management; Other Matters - Counsel and Auditors Item 17. Brokerage Allocation and Other Practices Portfolio Transactions Item 18. Capital Stock and Other Securities Determination of Net Asset Value Item 19. Purchase, Redemption and pricing of Determination of Net Asset Value; Additional Securities Being Offered Purchase and Redemption Information Item 20. Tax Status Tax Matters Item 21. Underwriters Management Item 22. Calculation of Performance Data Performance Data Item 23. Financial Statements Not Applicable
4 CROSS REFERENCE SHEET PART B (All other SAIs) Not Applicable in this Filing 5 PART A The Prospectus for Forum Funds (the "Registrant") filed as Part A to Post-Effective Amendment No. 59 to the Registrant's Registration Statement on Form N-1A (File No. 2-67052) is incorporated herein by reference. This Prospectus offers shares of Polaris Global Value Fund, a series of the Registrant. 6 PART B The Statement of Additional Information (the "SAI") for Forum Funds (the "Registrant") filed as Part B to Post-Effective Amendment No. 59 to the Registrant's Registration Statement on Form N-1A (File No. 2-67052) is incorporated herein by reference. This SAI supplements the Prospectus offering shares of Polaris Global Value Fund, a series of the Registrant. 7 PART C OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial statements Prospectus: Not Applicable Statement of Additional Information: Not Applicable (b) Exhibits (1) Trust Instrument of Registrant dated August 29, 1995 (see Note 1). (2) By-Laws of Registrant (see note 2). (3) None. (4) See the following Sections in the Trust Instrument filed as Exhibit 1: Sections 2.04 and 2.06. (5)(a) Investment Advisory Agreement between Registrant and H.M. Payson & Co. relating to Payson Value Fund and Payson Balanced Fund dated December 18, 1995 (see note 3). (b) Investment Advisory Agreement between Registrant and Quadra Capital Partners, L.P. relating to Quadra Value Equity Fund, Quadra International Equity Fund, Quadra Opportunistic Bond Fund and Quadra Restricted Maturity Treasury Fund dated as of December 20, 1996 (see note 4). (c) Investment Subadvisory Agreement between Quadra Capital Partners, L.P. and Carl Domino Associates, L.P. relating to Value Equity Fund dated as of October 18, 1996 (see note 4). (d) Investment Advisory Agreement between Registrant and Austin Investment Management, Inc. relating to Austin Global Equity Fund dated as of June 14, 1996 (see note 3). (e) Investment Advisory Agreement between Registrant and Oak Hall Capital Advisors, Inc. relating to Oak Hall Equity Fund dated as of June 14, 1996 (see note 3). (f) Investment Advisory Agreement between Registrant and Forum Investment Advisors, LLC relating to Investors Bond Fund, TaxSaver Bond Fund, Maine Municipal Bond Fund, Investors High Grade Bond Fund and Investors Growth Fund dated as of January 2, 1998 (see note 5). (g) Investment Subadvisory Agreement between Quadra Capital Partners, L.P. and Smith Asset Management Group, L.P. relating to Quadra Growth Fund dated as of November 1, 1997 (see note 6). 8 (h) Investment Advisory Agreement between Registrant and Polaris Capital Management, Inc. (filed herewith). (6)(a) Selected Dealer Agreement between Forum Financial Services, Inc. and securities brokers (see note 3). (b) Bank Affiliated Selected Dealer Agreement between Forum Financial Services, Inc. and bank affiliates (see note 3). (c) Distribution Agreement between Registrant and Forum Financial Services, Inc. relating to Quadra Opportunistic Bond Fund, Quadra Limited Maturity Treasury Fund, Quadra International Equity Fund, Quadra Value Equity Fund, Investor Bond Fund, TaxSaver Bond Fund, Maine Municipal Bond Fund, New Hampshire Bond Fund, Payson Balanced Fund, Payson Value Fund, Daily Assets Cash Fund, Daily Assets Treasury Fund, Oak Hall Equity Fund and Austin Global Equity Fund dated as of June 19, 1997 (see note 3). (7) None. (8)(a) Transfer Agency and Services Agreement between Registrant and Forum Shareholder Services, LLC relating to Investors Bond Fund TaxSaver Bond Fund, Maine Municipal Bond Fund, New Hampshire Bond Fund, Payson Balanced Fund, Payson Value Fund, Equity Index Fund, Small Cap Fund, International Equity Fund, Emerging Markets Fund, Investors Equity Fund, Investors Growth Fund, Investors High Grade Bond Fund, Daily Assets Cash Fund, Daily Assets Treasury Fund, Daily Assets Government Fund, Daily Assets Tax-Exempt Fund, Daily Assets Treasury Obligations Fund, Austin Global Equity Fund, Oak Hall Equity Fund, Quadra Value Equity Fund andQuadra Growth Fund dated May 19, 1998 (see note 3). (b) Custodian Agreement between Registrant and BankBoston N.A.,relating to Daily Assets Treasury Fund, Daily Assets Treasury Obligations Fund, Daily Assets Government Fund, Daily Assets Cash Fund, Daily Assets Municipal Fund, Investors High Grade Bond Fund, Investors Bond Fund, TaxSaver Bond Fund, Maine Municipal Bond Fund, New Hampshire Bond Fund, Payson Balanced Fund, Equity Index Fund, Investors Equity Fund, Payson Value Fund, Investors Growth Fund, International Equity Fund, Emerging Markets Fund, Small Company Opportunities Fund, Quadra Limited Maturity Treasury Fun, Quadra Growth Fund, Oak Hall Small Cap Contrarian Fund, Austin Global Equity Fund and Polaris Global Value Fund dated as of May 19, 1998 (see note 3). (c) Sub-Transfer Agent Agreement between Forum Financial Corp., Administrative Data Management Corp. and Forum Funds dated December 18, 1995 (see note 3). (9)(a) Administration Agreement between Registrant and Forum Administrative Services, LLC relating to Investor Bond Fund, TaxSaver Bond Fund, Maine Municipal Bond Fund, New Hampshire Bond Fund, Payson Balanced Fund, Payson Value Fund, Equity Index Fund, Small Cap Fund, International Equity Fund, Emerging Markets Fund, Investors Equity Fund, Investors Growth Fund, Daily Assets Cash Fund, Daily Assets Treasury Fund, Daily Assets Government Fund, Daily Assets Tax-Exempt Fund, Daily Assets Treasury Obligations Fund, 9 Austin Global Equity Fund, Oak Hall Equity Fund, Quadra International Equity Fund, Quadra Value Equity Fund, Quadra Opportunistic Bond Fund, Quadra Limited Maturity Treasury Fund and Quadra Growth Fund dated as of June 19, 1997 and amended as of December 5, 1997 (see note 3). (b) Shareholder Service Plan of Registrant relating to Quadra Funds dated June 19, 1997, amended September 22, 1997 and Form of Shareholder Service Agreement relating to Quadra Funds (see note 7). (c) Form of Shareholder Service Plan of Registrant dated September 22, 1997 and Form of Shareholder Service Agreement dated ___/____/1997 relating to the Daily Assets Treasury Fund, Daily Assets Cash Fund, Daily Assets Government Fund, Daily Assets Municipal Fund and Daily Assets Treasury Obligations Fund (see note 8). (10) Opinion of Seward & Kissel dated January 5, 1996 (see note 3). (11) Consent of Independent Auditors (see note 3). (12) None. (13) Investment Representation letter of Reich & Tang, Inc. as original purchaser of shares of Registrant(see note 3). (14) Form of Disclosure Statement and Custodial Account Agreement applicable to individual retirement accounts (see note 3). (15) Form of Rule 12b-1 Plan adopted by Registrant (see note 3). (16) Schedule of Sample Performance Calculations (see note 10) relating to: Investors High Grade Bond Fund Oak Hall Small Cap Contrarian Fund Investors Bond Fund Quadra Limited Maturity Treasury Fund TaxSaver Bond Fund Quadra Value Equity Fund Maine Municipal Bond Fund Quadra Growth Fund New Hampshire Bond Fund Quadra International Equity Fund Daily Assets Treasury Obligations Fund Quadra Opportunistic Bond Fun Daily Assets Government Fund Equity Index Fund Daily Assets Government Obligations Fund Investors Equity Fund Daily Assets Cash Fund Investors Growth Fund Daily Assets Municipal Fund Small Company Opportunities Fund Payson Value Fund International Equity Fund Payson Balanced Fund Emerging Markets Fund Austin Global Equity Fund
(17) Not Applicable. (18) 18f-3 plan adopted by Registrant (see note 3). Other Exhibits: Powers of Attorney (see note 1) - --------------- 10 Note (1) Exhibit incorporated by reference as filed on PEA No. 34 via EDGAR on May 9, 1996, accession number 0000912057-96-008780. (2) Exhibit incorporated by reference as filed on PEA No. 43 via EDGAR on July 31, 1997, accession number 0000912057-97-025707. (3) Exhibit incorporated by reference as filed on PEA No. 62 via EDGAR on May 26, 1998, accession number 0001004402-98-000307. (4) Exhibit incorporated by reference as filed on PEA No. 41 via EDGAR on December 31, 1996, accession number 0000912057-96-030646. (5) Exhibit incorporated by reference as filed on PEA 56 via EDGAR on December 31, 1997, accession number 0001004402-97-000281. (6) Exhibit incorporated by reference as filed on PEA No. 48 via EDGAR on October 31, 1997, accession number 0001004402-97-000152. (7) Exhibit incorporated by reference as filed on PEA No. 49 via EDGAR on November 5, 1997, accession number 0001004402-97-000163. (8) Exhibit incorporated by reference as filed on PEA No. 50 via EDGAR on November 12, 1997, accession no. 0001004402-97-000189. (9) Exhibit incorporated by reference as filed on PEA No. 33 via EDGAR on January 5, 1996, accession number 0000912057-96-000216. (10) Exhibit incorporated by reference as filed on PEA No. 61 via EDGAR on May 8, 1998, accession number 0001004402-98-000295.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT None. ITEM 26. NUMBER OF HOLDERS OF SECURITIES ------------------------------------------------------------------------- -------------------------------- Title of Class Number of Recordholders as of June 1, 1998 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Investors High Grade Bond Fund 2 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Investors Bond Fund 59 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- TaxSaver Bond Fund 41 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Maine Municipal Bond Fund 387 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- New Hampshire Bond Fund 76 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Daily Assets Treasury Obligations Fund ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional Services 5 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional 3 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Investor Shares 1 ------------------------------------------------------------------------- --------------------------------
11 ------------------------------------------------------------------------- -------------------------------- Title of Class Number of Recordholders as of June 1, 1998 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Daily Assets Government Fund ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional Services 98 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional 1 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Investor Shares 1 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Daily Assets Government Obligations Fund ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional Services 9 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional 4 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Investor Shares 1 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Daily Assets Cash Fund ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional Services 33 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional 2 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Investor Shares 1 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Daily Assets Municipal Fund ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional Services 1 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Institutional 1 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Investor Shares 1 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Payson Value Fund 362 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Payson Balanced Fund 387 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Austin Global Equity Fund 14 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Oak Hall Small Cap Contrarian Fund 164 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Quadra Limited Maturity Treasury Fund 0 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Quadra Value Equity Fund 17 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Quadra Growth Fund 14 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Quadra International Equity Fund 0 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Quadra Opportunistic Bond Fund 0 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Polaris Global Value Fund 112 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Equity Index Fund 3 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Investors Equity Fund 3 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Investors Growth Fund 3 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Small Company Opportunities Fund 1 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- International Equity Fund 2 ------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------- -------------------------------- Emerging Markets Fund 2 ------------------------------------------------------------------------- --------------------------------
ITEM 27. INDEMNIFICATION In accordance with Section 3803 of the Delaware Business Trust Act, Section 5.2 of Registrant's Trust Instrument provides as follows: "5.2. INDEMNIFICATION. "(a) Subject to the exceptions and limitations contained in Section (b) below: 12 "(i) Every Person who is, or has been, a Trustee or officer of the Trust (hereinafter referred to as a "Covered Person") shall be indemnified by the Trust to the fullest extent permitted by law against liability and against all expenses reasonably incurred or paid by him in connection with any claim, action, suit or proceeding in which he becomes involved as a party or otherwise by virtue of being or having been a Trustee or officer and against amounts paid or incurred by him in the settlement thereof; "(ii) The words "claim," "action," "suit," or "proceeding" shall apply to all claims, actions, suits or proceedings (civil, criminal or other, including appeals), actual or threatened while in office or thereafter, and the words "liability" and "expenses" shall include, without limitation, attorneys' fees, costs, judgments, amounts paid in settlement, fines, penalties and other liabilities. "(b) No indemnification shall be provided hereunder to a Covered Person: "(i) Who shall have been adjudicated by a court or body before which the proceeding was brought (A) to be liable to the Trust or its Holders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of the Covered Person's office or (B) not to have acted in good faith in the reasonable belief that Covered Person's action was in the best interest of the Trust; or "(ii) In the event of a settlement, unless there has been a determination that such Trustee or officer did not engage in willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of the Trustee's or officer's office, "(A) By the court or other body approving the settlement; "(B) By at least a majority of those Trustees who are neither Interested Persons of the Trust nor are parties to the matter based upon a review of readily available facts (as opposed to a full trial-type inquiry); or "(C) By written opinion of independent legal counsel based upon a review of readily available facts (as opposed to a full trial-type inquiry); provided, however, that any Holder may, by appropriate legal proceedings, challenge any such determination by the Trustees or by independent counsel. "(c) The rights of indemnification herein provided may be insured against by policies maintained by the Trust, shall be severable, shall not be exclusive of or affect any other rights to which any Covered Person may now or hereafter be entitled, shall continue as to a person who has ceased to be a Covered Person and shall inure to the benefit of the heirs, executors and administrators of such a person. Nothing contained herein shall affect any rights to indemnification to which Trust personnel, other than Covered Persons, and other persons may be entitled by contract or otherwise under law. "(d) Expenses in connection with the preparation and presentation of a defense to any claim, action, suit or proceeding of the character described in paragraph (a) of this Section 5.2 may be paid by the Trust or Series from time to time prior to final disposition thereof upon receipt of an undertaking by or on behalf of such Covered Person that such amount will be paid over by him to the Trust or Series if it is ultimately determined that he is not entitled to indemnification under this Section 5.2; provided, however, that either (a) such Covered Person shall have provided appropriate security for such undertaking, (b) the Trust is insured against losses arising out of any such advance payments or (c) either a majority of the Trustees who are neither Interested Persons of the Trust nor parties to the matter, or independent legal counsel in a written opinion, shall have determined, based upon a review of readily available facts (as opposed to a trial-type inquiry or full investigation), that there is reason to believe that such Covered Person will be found entitled to indemnification under this Section 5.2. 13 "(e) Conditional advancing of indemnification monies under this Section 5.2 for actions based upon the 1940 Act may be made only on the following conditions: (i) the advances must be limited to amounts used, or to be used, for the preparation or presentation of a defense to the action, including costs connected with the preparation of a settlement; (ii) advances may be made only upon receipt of a written promise by, or on behalf of, the recipient to repay that amount of the advance which exceeds that amount which it is ultimately determined that he is entitled to receive from the Trust by reason of indemnification; and (iii) (a) such promise must be secured by a surety bond, other suitable insurance or an equivalent form of security which assures that any repayments may be obtained by the Trust without delay or litigation, which bond, insurance or other form of security must be provided by the recipient of the advance, or (b) a majority of a quorum of the Trust's disinterested, non-party Trustees, or an independent legal counsel in a written opinion, shall determine, based upon a review of readily available facts, that the recipient of the advance ultimately will be found entitled to indemnification. "(f) In case any Holder or former Holder of any Series shall be held to be personally liable solely by reason of the Holder or former Holder being or having been a Holder of that Series and not because of the Holder or former Holder acts or omissions or for some other reason, the Holder or former Holder (or the Holder or former Holder's heirs, executors, administrators or other legal representatives, or, in the case of a corporation or other entity, its corporate or other general successor) shall be entitled out of the assets belonging to the applicable Series to be held harmless from and indemnified against all loss and expense arising from such liability. The Trust, on behalf of the affected Series, shall, upon request by the Holder, assume the defense of any claim made against the Holder for any act or obligation of the Series and satisfy any judgment thereon from the assets of the Series." Paragraph 4 of each Investment Advisory Agreement provides in substance as follows: "4. We shall expect of you, and you will give us the benefit of, your best judgment and efforts in rendering these services to us, and we agree as an inducement to your undertaking these services that you shall not be liable hereunder for any mistake of judgment or in any event whatsoever, except for lack of good faith, provided that nothing herein shall be deemed to protect, or purport to protect, you against any liability to us or and to our security holders to which you would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of your duties hereunder, or by reason of your reckless disregard of your obligations and duties hereunder." Section 8 of the Distribution Agreement provides: (a) The Trust will indemnify, defend and hold the Distributor, its employees, agents, directors and officers and any person who controls the Distributor within the meaning of section 15 of the Securities Act or section 20 of the 1934 Act ("Distributor Indemnitees") free and harmless from and against any and all claims, demands, actions, suits, judgments, liabilities, losses, damages, costs, charges, reasonable counsel fees and other expenses of every nature and character (including the cost of investigating or defending such claims, demands, actions, suits or liabilities and any reasonable counsel fees incurred in connection therewith) which any Distributor Indemnitee may incur, under the Securities Act, or under common law or otherwise, arising out of or based upon any alleged untrue statement of a material fact contained in the Registration Statement or the Prospectuses or arising out of or based upon any alleged omission to state a material fact required to be stated in any one thereof or necessary to make the statements in any one thereof not misleading, unless such statement or omission was made in reliance upon, and in conformity with, information furnished in writing to the Trust in connection with the preparation of the Registration Statement or exhibits to the Registration Statement by or on behalf of the Distributor ("Distributor Claims"). After receipt of the Distributor's notice of termination under Section 13(e), the Trust shall indemnify and hold each Distributor Indemnitee free and harmless from and against any Distributor Claim; provided, that the term Distributor Claim for purposes of this sentence shall mean any Distributor Claim related to the matters for which the Distributor has requested amendment to the Registration Statement and for which the 14 Trust has not filed a Required Amendment, regardless of with respect to such matters whether any statement in or omission from the Registration Statement was made in reliance upon, or in conformity with, information furnished to the Trust by or on behalf of the Distributor. (b) The Trust may assume the defense of any suit brought to enforce any Distributor Claim and may retain counsel of good standing chosen by the Trust and approved by the Distributor, which approval shall not be withheld unreasonably. The Trust shall advise the Distributor that it will assume the defense of the suit and retain counsel within ten (10) days of receipt of the notice of the claim. If the Trust assumes the defense of any such suit and retains counsel, the defendants shall bear the fees and expenses of any additional counsel that they retain. If the Trust does not assume the defense of any such suit, or if Distributor does not approve of counsel chosen by the Trust or has been advised that it may have available defenses or claims that are not available to or conflict with those available to the Trust, the Trust will reimburse any Distributor Indemnitee named as defendant in such suit for the reasonable fees and expenses of any counsel that person retains. A Distributor Indemnitee shall not settle or confess any claim without the prior written consent of the Trust, which consent shall not be unreasonably withheld or delayed. (c) The Distributor will indemnify, defend and hold the Trust and its several officers and trustees (collectively, the "Trust Indemnitees"), free and harmless from and against any and all claims, demands, actions, suits, judgments, liabilities, losses, damages, costs, charges, reasonable counsel fees and other expenses of every nature and character (including the cost of investigating or defending such claims, demands, actions, suits or liabilities and any reasonable counsel fees incurred in connection therewith), but only to the extent that such claims, demands, actions, suits, judgments, liabilities, losses, damages, costs, charges, reasonable counsel fees and other expenses result from, arise out of or are based upon: (i) any alleged untrue statement of a material fact contained in the Registration Statement or Prospectus or any alleged omission of a material fact required to be stated or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon, and in conformity with, information furnished to the Trust in writing in connection with the preparation of the Registration Statement or Prospectus by or on behalf of the Distributor; or (ii) any act of, or omission by, Distributor or its sales representatives that does not conform to the standard of care set forth in Section 7 of this Agreement ("Trust Claims"). (d) The Distributor may assume the defense of any suit brought to enforce any Trust Claim and may retain counsel of good standing chosen by the Distributor and approved by the Trust, which approval shall not be withheld unreasonably. The Distributor shall advise the Trust that it will assume the defense of the suit and retain counsel within ten (10) days of receipt of the notice of the claim. If the Distributor assumes the defense of any such suit and retains counsel, the defendants shall bear the fees and expenses of any additional counsel that they retain. If the Distributor does not assume the defense of any such suit, or if Trust does not approve of counsel chosen by the Distributor or has been advised that it may have available defenses or claims that are not available to or conflict with those available to the Distributor, the Distributor will reimburse any Trust Indemnitee named as defendant in such suit for the reasonable fees and expenses of any counsel that person retains. A Trust Indemnitee shall not settle or confess any claim without the prior written consent of the Distributor, which consent shall not be unreasonably withheld or delayed. (e) The Trust's and the Distributor's obligations to provide indemnification under this Section is conditioned upon the Trust or the Distributor receiving notice of any action brought against a Distributor Indemnitee or Trust Indemnitee, respectively, by the person against whom such action is brought within twenty (20) days after the summons or other first legal process is served. Such notice shall refer to the person or persons against whom the action is brought. The failure to provide such notice shall not relieve the party entitled to such notice of any liability that it may have to any Distributor Indemnitee or Trust Indemnitee except to the extent that the ability of the party entitled to such notice to defend such action has been materially adversely affected by the failure to provide notice. 15 (f) The provisions of this Section and the parties' representations and warranties in this Agreement shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any Distributor Indemnitee or Trust Indemnitee and shall survive the sale and redemption of any Shares made pursuant to subscriptions obtained by the Distributor. The indemnification provisions of this Section will inure exclusively to the benefit of each person that may be a Distributor Indemnitee or Trust Indemnitee at any time and their respective successors and assigns (it being intended that such persons be deemed to be third party beneficiaries under this Agreement). (g) Each party agrees promptly to notify the other party of the commencement of any litigation or proceeding of which it becomes aware arising out of or in any way connected with the issuance or sale of Shares. (h) Nothing contained herein shall require the Trust to take any action contrary to any provision of its Organic Documents or any applicable statute or regulation or shall require the Distributor to take any action contrary to any provision of its Articles of Incorporation or Bylaws or any applicable statute or regulation; provided, however, that neither the Trust nor the Distributor may amend their Organic Documents or Articles of Incorporation and Bylaws, respectively, in any manner that would result in a violation of a representation or warranty made in this Agreement. (i) Nothing contained in this section shall be construed to protect the Distributor against any liability to the Trust or its security holders to which the Distributor would otherwise be subject by reason of its failure to satisfy the standard of care set forth in Section 7 of this Agreement. ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER (a) Forum Investment Advisors, LLC The description of Forum Investment Advisors, LLC (investment adviser to each of Daily Assets Treasury Obligations Fund, Daily Assets Government Fund, Daily Assets Government Obligations Fund, Daily Assets Cash Fund, Daily Assets Municipal Fund, Investors High Grade Bond Fund, Investors Bond Fund, TaxSaver Bond Fund, Maine Municipal Bond Fund, New Hampshire Bond Fund and Investors Growth Fund) in the Prospectuses and Statements of Additional Information, constituting certain of Parts A and B, respectively, of this Registration Statement, are incorporated by reference herein. The following are the members of Forum Investment Advisors, LLC, Two Portland Square, Portland, Maine 04101, including their business connections which are of a substantial nature. Forum Holdings Corp. I., Member. Forum Trust, LLC., Member. Both Forum Holdings Corp. and Forum Financial Group, LLC are controlled by John Y. Keffer, Chairman and President of the Registrant. Mr. Keffer is President of Forum Financial Group, LLC. Mr. Keffer is also a director and/or officer of various registered investment companies for which the various Forum Financial Group of Companies provides services. The following are the officers of Forum Investment Advisors, LLC, including their business connections which are of a substantial nature. Each officer may serve as an officer of various registered investment companies for which the Forum Financial Group of Companies provides services. 16 ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- William J. Lewis Director Forum Investment Advisors, LLC. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Sara M. Morris Treasurer Forum Investment Advisors, LLC. ------------------------------------ ---------------------------------- Chief Financial Officer Forum Financial Group, LLC. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Officer Other Forum affiliated companies ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- David I. Goldstein Secretary Forum Investment Advisors, LLC. ------------------------------------ ---------------------------------- General Counsel Forum Financial Group, LLC. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Officer Other Forum affiliated companies ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Dana A. Lukens Assistant Secretary Forum Investment Advisors, LLC. ------------------------------------ ---------------------------------- Corporate Counsel Forum Financial Group, LLC. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Officer Other Forum affiliated companies ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Margaret J. Fenderson Assistant Treasurer Forum Investment Advisors, LLC. ------------------------------------ ---------------------------------- Corporate Accounting Manager Forum Financial Group, LLC. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Officer Other Forum affiliated companies ---------------------------------- ------------------------------------ ----------------------------------
(b) H.M. Payson & Co. The description of H.M. Payson & Co. in the Prospectuses and Statements of Additional Information, with respect to the Payson Value Fund, Payson Balanced Fund and investors Equity Fund, constituting certain of Parts A and B, respectively, of this Registration Statement, are incorporated by reference herein. The following are the directors and principal executive officers of H.M. Payson & Co., including their business connections which are of a substantial nature. The address of H.M.Payson & Co.is One Portland Square, Portland, Maine 04101. ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Adrian l. Asherman Managing Director H.M. Payson & Co. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- John C. Downing Managing Director, Treasurer H.M. Payson & Co. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- William A. Macleod Managing Director H.M. Payson & Co. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Thomas M. Pierce Managing Director H.M. Payson & Co. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Peter E. Robbins Managing Director H.M. Payson & Co. ---------------------------------- ------------------------------------ ----------------------------------
17 ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- John H. Walker Managing Director, President H.M. Payson & Co. ------------------------------------ ---------------------------------- Director York Holding Company ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Director York Insurance Company ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Teresa M. Esposito Managing Director H.M. Payson & Co. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- John C. Knox Managing Director H.M. Payson & Co. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Harold J Dixon Managing Director H.M. Payson & Co. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Laura McDill Managing Director H.M. Payson & Co. ---------------------------------- ------------------------------------ ----------------------------------
(c) Austin Investment Management, Inc. The description of Austin Investment Management, Inc. in the Prospectus and Statement of Additional Information with respect to the Austin Global Equity Fund, constituting certain of Parts A and B, respectively, of this Registration Statement, are incorporated by reference herein. The following is the director and principal executive officer of Austin Investment Management, Inc. 375 Park Avenue, New York, New York 10152, including his business connections which are of a substantial nature. ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Peter Vlachos Director, President, Treasurer, Austin Investment Management Inc. Secretary ---------------------------------- ------------------------------------ ----------------------------------
(d) Oak Hall Capital Advisors, LLP The description of Oak Hall Capital Advisors, LLP in the Prospectus and Statement of Additional Information with respect to Oak Hall Small Cap Contrarian Fund, constituting part of Parts A and B, respectively, of this Registration Statement are incorporated by reference herein. The following are the directors and principal executive officers of, Oak Hall Capital Advisors, Inc. 122 East 42nd Street, New York, New York 10168, including their business connections which are of a substantial nature. ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Alexander G. Anagnos Director, Portfolio Manager Oak Hall Capital Advisors, LLP ------------------------------------ ---------------------------------- Consultant American Services Corporation ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Financial Advisor WR Family Associates ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Lewis G. Cole Director Oak Hall Capital Advisors, LLP ------------------------------------ ---------------------------------- Partner The Law Firm of Strook, Strook & Lavan ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- John J. Hock Executive Vice President Oak Hall Capital Advisors, LLP ---------------------------------- ------------------------------------ ----------------------------------
18 ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Charles D. Klein Portfolio Manager Oak Hall Capital Advisors, LLP ------------------------------------ ---------------------------------- Director American Services Corporation ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Financial Advisor WR Family Associates ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- David P. Steinmann Executive Vice President Oak Hall Capital Advisors, LLP ------------------------------------ ---------------------------------- Secretary, Treasurer American Securities Corporation ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Administrator WR Family Associates ---------------------------------- ------------------------------------ ----------------------------------
(e) Carl Domino Associates, L.P. The description of Carl Domino Associates, L.P. in the Prospectus and Statement of Additional Information with respect to the Quadra Value Equity Fund, constituting certain of Parts A and B, respectively, of this Registration Statement, are incorporated by reference herein. The following are the directors and principal executive officers of, Carl Domino Associates, L.P., 580 Village Blvd., West Palm Beach, FL 33409 including their business connections which are of a substantial nature. ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Carl J. Domino Managing Partner, Portfolio Manager Carl Domino Associates, L.P. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Paul Scoville, Jr. Senior Portfolio Manager Carl Domino Associates, L.P. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Ann Fritts Syring Senior Portfolio Manager Carl Domino Associates, L.P. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- John Wagstaff-Callahan Senior Portfolio Manager Carl Domino Associates, L.P. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Trustee formerly of Batterymarch Financial Management ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Stephen Krider Kent, Jr. Senior Portfolio Manager Carl Domino Associates, L.P. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Senior Portfolio Manager formerly of Gamble, Jones Holbrook & Brent ---------------------------------- ------------------------------------ ----------------------------------
(f) Smith Asset Management Group, L.P. The description of Smith Asset Management Group, L.P. in the Prospectus and Statement of Additional Information with respect to the Quadra Growth Fund, constituting certain of Parts A and B, respectively, of this Registration Statement, are incorporated by reference herein. The following are the directors and principal executive officers of Smith Asset Management Group, L.P., including their business connections which are of a substantial nature. ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Stephen Smith Chief Investment Officer Smith Asset Management Group, L.P. ---------------------------------- ------------------------------------ ----------------------------------
19 (g) Norwest Investment Management, Inc. The description of Norwest Investment Management, Inc. ("NIM") in the Prospectus and Statement of Additional Information for Equity Index Fund, constituting certain of Parts A and B, respectively, of this Registration Statement, are incorporated by reference herein. The following are the directors and principal executive officers of NIM, including their business connections which are of a substantial nature. The address of Norwest Corporation, the parent of Norwest Bank Minnesota, N.A. ("Norwest Bank"), which is the parent of NIM, is Norwest Center, Sixth Street and Marquette Avenue, Minneapolis, MN 55479. Unless otherwise indicated below, the principal business address of any company with which the directors and principal executive officers are connected is also Sixth Street and Marquette Avenue, Minneapolis, MN 55479. ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- P. Jay Kiedrowski Chairman, Chief Executive Officer, Norwest Investment Management, President Inc. ------------------------------------ ---------------------------------- Executive Vice President, Employee Norwest Bank Minnesota, N.A. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Director Crestone Capital Management, Inc. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Chairman Galliard Capital Management, Inc. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Stephen P. Gianoli Senior Vice President, Chief Norwest Investment Management, Executive Officer Inc. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Director Crestone Capital Management, Inc. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- David S. Lunt Vice President, Senior Portfolio Norwest Investment Management, Manager Inc. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Richard C. Villars Vice President, Senior Portfolio Norwest Investment Management, Manager Inc. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Lee K. Chase Senior Vice President Norwest Investment Management, Inc. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- James W. Paulsen Vice President Norwest Investment Management, Inc. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Andrew Owen Vice President Norwest Investment Management, Inc. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Eileen A. Kuhry Investment Compliance Specialist Norwest Investment Management, Inc. ---------------------------------- ------------------------------------ ----------------------------------
(h) Schroder Capital Management International Inc. The description of Schroder Capital Management International Inc. ("Schroder") in the Prospectus Statement of Additional Information relating to International Equity Fund and Emerging Markets 20 Fund, constituting certain of Parts A and B, respectively, of this Registration Statement, are incorporated by reference herein. The following are the directors and principal officers of Schroder, including their business connections of a substantial nature. The address of each company listed, unless otherwise noted, is 33 Gutter Lane, London EC2V 8AS, United Kingdom. Schroder Capital Management International Limited ("Schroder Ltd.") is a United Kingdom affiliate of Schroder which provides investment management services international clients located principally in the United States. ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- David M. Salisbury Chief Executive Officer, Director, SCMI Chairman ------------------------------------ ---------------------------------- Chief Executive, Director Schroder Ltd. ------------------------------------ ---------------------------------- Director Schroders plc. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Richard R. Foulkes Deputy Chairman/Executive Vice SCMI President ------------------------------------ ---------------------------------- Director Schroder Ltd. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- John A. Troiano Chief Executive, Director SCMI ------------------------------------ ---------------------------------- Director Schroder Ltd. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- David Gibson Senior Vice President, Director SCMI ------------------------------------ ---------------------------------- Director Schroder Capital Management ------------------------------------ ---------------------------------- Senior Vice President Schroder Ltd. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- John S. Ager Senior Vice President, Director SCMI ------------------------------------ ---------------------------------- Director Schroder Ltd. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Sharon L. Haugh Executive Vice President, Director SCMI ---------------------------------- ------------------------------------ ---------------------------------- Director, Chairman Schroder Advisors ------------------------------------ ---------------------------------- Director Schroder Ltd. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Gavin D. L. Ralston Senior Vice President, Managing SCMI Director ------------------------------------ ---------------------------------- Director Schroder Ltd. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Mark J. Smith Senior Vice President, Director SCMI ------------------------------------ ---------------------------------- Director Schroder Ltd. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Robert G. Davy Senior Vice President, Director SCMI ------------------------------------ ---------------------------------- Director Schroder Ltd. ------------------------------------ ---------------------------------- ------------------------------------ ---------------------------------- Officer of open end investment companies for which SCMI and/or its affiliates provide investment services ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Jane P. Lucas Senior Vice President, Director SCMI ------------------------------------ ---------------------------------- Director Schroder Advisors ------------------------------------ ---------------------------------- Director Schroder Capital Management ---------------------------------- ------------------------------------ ----------------------------------
21 ---------------------------------- ------------------------------------ ---------------------------------- C. John Govett Director SCMI ------------------------------------ ---------------------------------- Group Managing Director Schroder Ltd. ---------------------------------- ------------------------------------ Director Schroders plc. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Phillipa J. Gould Senior Vice President, Director SCMI ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Louise Croset First Vice President, Director SCMI ------------------------------------ ---------------------------------- First Vice President Schroder Ltd. ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Abdallah Nauphal Group Vice President, Director SCMI ---------------------------------- ------------------------------------ ----------------------------------
(i) Polaris Capital Management, Inc. The description of Polaris Capital Management, Inc. ("Polaris") under the caption "Management Investment Adviser and Portfolio Manager." in the Prospectus for Polaris Global Value Fund and "Management - Investment Adviser and Portfolio Manager" in the Statement of Additional Information relating to that fund, constituting certain of Parts A and B, respectively, of the Registration Statement, are incorporated by reference herein. The following are the directors and principal officers of Polaris, including their business connections of a substantial nature. The address of the company is 125 Summer Street, Boston, Massachusetts 02110. ---------------------------------- ------------------------------------ ---------------------------------- Name Title Business Connection ---------------------------------- ------------------------------------ ---------------------------------- ---------------------------------- ------------------------------------ ---------------------------------- Bernard R. Horn, Jr. President, Portfolio Manager Polaris Capital Management, Inc. ---------------------------------- ------------------------------------ ----------------------------------
ITEM 29. PRINCIPAL UNDERWRITERS (a) Forum Financial Services, Inc., Registrant's underwriter, serves as underwriter for the following investment companies registered under the Investment Company Act of 1940, as amended: The CRM Funds BT Alex. Brown Cash Reserve Fund, Inc The Cutler Trust Flag Investors Telephone Fund, Inc. Forum Funds Flag Investors International Fund, Inc. Flag Investor Family of Funds Flag Investors Emerging Growth Fund, Inc. The Glenmede Fund, Inc. Total Return U.S. Treasury Fund, Inc. The Glenmede Portfolios Managed Municipal Fund, Inc. Memorial Funds Flag Investors Value Builder Fund, Inc. Monarch Funds Flag Investors Real Estate Securities Fund, Inc. Norwest Advantage Funds Flag Investors Equity Partners Fund, Inc. Norwest Select Funds Flag Investors Maryland Intermediate Tax-Free Income Fund, Inc. Sound Shore Fund, Inc. Flag Investors Short-Intermediate Income Fund, Inc.
22 (b) The following directors and officers of Forum Financial Services, Inc. hold the following positions with Registrant. Their business address is Two Portland Square, Portland, Maine 04101. --------------------------- ------------------------------- ----------------------------- Name Position with Underwriter Position with Registrant --------------------------- ------------------------------- ----------------------------- --------------------------- ------------------------------- ----------------------------- John Y. Keffer President Chairman, President --------------------------- ------------------------------- -----------------------------
(c) Not Applicable. ITEM 30. LOCATION OF ACCOUNTS AND RECORDS The majority of the accounts, books and other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder are maintained at the offices of Forum Administrative Services, LLC and Forum Financial Corp., Two Portland Square, Portland, Maine 04101. The records required to be maintained under Rule 31a-1(b)(1) with respect to journals of receipts and deliveries of securities and receipts and disbursements of cash are maintained at the offices of the Registrant's custodian, BankBoston, 100 Federal Street, Boston, Massachusetts 02106. The records required to be maintained under Rule 31a-1(b)(5), (6) and (9) are maintained at the offices of the Registrant's adviser or subadviser, as listed in Item 28 hereof. ITEM 31. MANAGEMENT SERVICES Not Applicable. ITEM 32. UNDERTAKINGS Registrant undertakes to furnish each person to whom a prospectus is delivered with a copy of Registrant's latest annual report to shareholders relating to the portfolio or class thereof to which the prospectus relates upon request and without charge. 23 SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Registration Statement pursuant to rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereto duly authorized, in the City of Portland, and State of Maine on the 8th day of June, 1998. FORUM FUNDS By: /s/ John Y. Keffer ____________________________________ John Y. Keffer, President Pursuant to the requirements of the Securities Act of 1933, this amendment to the Registrant's Registration Statement has been signed below by the following persons on the 8th day of June, 1998. Signatures Title ---------- ----- (a) Principal Executive Officer /s/ John Y. Keffer President ___________________________________ and Chairman John Y. Keffer (b) Principal Financial and Accounting Officer /s/ Sara M. Morris Treasurer ___________________________________ Sara M. Morris (c) A majority of the Trustees /s/ John Y. Keffer Trustee ___________________________________ John Y. Keffer James C. Cheng* Trustee J. Michael Parish* Trustee Costas Azariadis* Trustee By: /s/ John Y. Keffer ________________________________ John Y. Keffer Attorney in Fact* 24 INDEX TO EXHIBITS Exhibit - ------- (5)(h) Investment Advisory Agreement between Registrant and Polaris Capital Management, Inc. EX-99 2 INVESTMENT ADVISORY AGREEMENT EXHIBIT (5)(h) FORUM FUNDS INVESTMENT ADVISORY AGREEMENT AGREEMENT made as of the 1st day of June, 1998, by and between Forum Funds, a Delaware business trust, with its principal office and place of business at Two Portland Square, Portland, Maine 04101 (the "Trust"), and Polaris Capital Management, Inc., a Massachusetts corporation, with its principal office and place of business at 125 Summer Street, Boston, Massachusetts 02110 (the "Adviser"). WHEREAS, the Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end, management investment company and may issue its shares of beneficial interest, no par value (the "Shares"), in separate series; and WHEREAS, the Trust desires that the Adviser perform investment advisory services for each series of the Trust listed in Appendix A hereto (each, a "Fund" and collectively, the "Funds"), and the Adviser is willing to provide those services on the terms and conditions set forth in this Agreement; NOW THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, the Trust and the Adviser hereby agree as follows: SECTION 1. APPOINTMENT; DELIVERY OF DOCUMENTS (a) The Trust hereby employs the Adviser, subject to the direction and control of the Board, to manage the investment and reinvestment of the assets in each Fund and, without limiting the generality of the foregoing, to provide other services as specified herein. The Adviser accepts this employment and agrees to render its services for the compensation set forth herein. (b) In connection therewith, the Trust has delivered to the Adviser copies of: (i) the Trust's Trust Instrument and Bylaws (collectively, as amended from time to time, "Organic Documents"); (ii) the Trust's Registration Statement and all amendments thereto filed with the U.S. Securities and Exchange Commission ("SEC") pursuant to the Securities Act of 1933, as amended (the "Securities Act"), or the 1940 Act (the "Registration Statement"); (iii) the Trust's current Prospectuses and Statements of Additional Information of each Fund (collectively, as currently in effect and as amended or supplemented, the "Prospectus"); and (iv) all procedures adopted by the Trust with respect to the Funds (i.e., repurchase agreement procedures), and shall promptly furnish the Adviser with all amendments of or supplements to the foregoing. The Trust shall deliver to the Adviser: (x) a certified copy of the resolution of the Board of Trustees of the Trust (the "Board") appointing the Adviser and authorizing the execution and delivery of this Agreement; (y) a copy of all proxy statements and related materials relating to the Funds; and (z) any other documents, materials or information that the Adviser shall reasonably request to enable it to perform its duties pursuant to this Agreement. (c) The Adviser has delivered, or will deliver within 45 days, to the Trust: (i) a copy of its Form ADV as most recently filed with the SEC; and (ii) a copy of its code of ethics complying with the requirements of Rule 17j-1 under the 1940 Act (the "Code"). The Adviser shall promptly furnish the Trust with all amendments of or supplements to the foregoing at least annually. SECTION 2. DUTIES OF THE TRUST In order for the Adviser to perform the services required by this Agreement, the Trust: (i) shall cause all service providers to the Trust to furnish information to the Adviser and to assist the Adviser as may be required; and (ii) shall ensure that the Adviser has reasonable access to all records and documents maintained by the Trust or any service provider to the Trust. 25 SECTION 3. DUTIES OF THE ADVISER (a) The Adviser will make decisions with respect to all purchases and sales of securities and other investment assets in each Fund. To carry out such decisions, the Adviser is hereby authorized, as agent and attorney-in-fact for the Trust, for the account of, at the risk of and in the name of the Trust, to place orders and issue instructions with respect to those transactions of the Funds. In all purchases, sales and other transactions in securities and other investments for the Funds, the Adviser is authorized to exercise full discretion and act for the Trust in the same manner and with the same force and effect as the Trust might or could do with respect to such purchases, sales or other transactions, as well as with respect to all other things necessary or incidental to the furtherance or conduct of such purchases, sales or other transactions. Consistent with Section 28(e) of the Securities and Exchange Act of 1934, as amended, the Adviser may allocate brokerage on behalf of the Funds to broker-dealers who provide research services. The Adviser may aggregate sales and purchase orders of the assets of the Funds with similar orders being made simultaneously for other accounts advised by the Adviser or its affiliates. Whenever the Adviser simultaneously places orders to purchase or sell the same asset on behalf of a Fund and one or more other accounts advised by the Adviser, the orders will be allocated as to price and amount among all such accounts in a manner believed to be equitable over time to each account. (b) The Adviser will report to the Board at each meeting thereof as requested by the Board all material changes in each Fund since the prior report, and will also keep the Board informed of important developments affecting the Trust, the Funds and the Adviser, and on its own initiative, will furnish the Board from time to time with such information as the Adviser may believe appropriate for this purpose, whether concerning the individual companies whose securities are included in the Funds' holdings, the industries in which they engage, the economic, social or political conditions prevailing in each country in which the Funds maintain investments, or otherwise. The Adviser will also furnish the Board with such statistical and analytical information with respect to investments of the Funds as the Adviser may believe appropriate or as the Board reasonably may request. In making purchases and sales of securities and other investment assets for the Funds, the Adviser will bear in mind the policies set from time to time by the Board as well as the limitations imposed by the Organic Documents and Registration Statement, the limitations in the 1940 Act, the Securities Act, the Internal Revenue Code of 1986, as amended, and other applicable laws and the investment objectives, policies and restrictions of the Funds. (c) The Adviser will from time to time employ or associate with such persons as the Adviser believes to be particularly fitted to assist in the execution of the Adviser's duties hereunder, the cost of performance of such duties to be borne and paid by the Adviser. No obligation may be incurred on the Trust's behalf in any such respect. (d) The Adviser will report to the Board all material matters related to the Adviser. On an annual basis, the Adviser shall report on its compliance with its Code to the Board and upon the written request of the Trust, the Adviser shall permit the Trust, or its representatives to examine the reports required to be made to the Adviser under the Code. The Adviser will notify the Trust of any change of control of the Adviser and any changes in the key personnel who are either the portfolio manager(s) of the Fund or senior management of the Adviser, in each case prior to or promptly after such change. (e) The Adviser will maintain records relating to its portfolio transactions and placing and allocation of brokerage orders as are required to be maintained by the Trust under the 1940 Act. The Adviser shall prepare and maintain, or cause to be prepared and maintained, in such form, for such periods and in such locations as may be required by applicable law, all documents and records relating to the services provided by the Adviser pursuant to this Agreement required to be prepared and maintained by the Adviser or the Trust pursuant to applicable law. To the extent required by law, the books and records pertaining to the Trust which are in possession of the Adviser shall be the property of the Trust. The Trust, or its representatives, shall have access to such books and records at all times during the Adviser's normal business hours. Upon the reasonable request of the Trust, copies of any such books and records shall be provided promptly by the Adviser to the Trust or its representatives. 26 (f) The Adviser will cooperate with each Fund's independent public accountants and shall take reasonable action to make all necessary information available to those accountants for the performance of the accountants' duties. (g) The Adviser will provide the Funds' custodian and fund accountant on each business day with such information relating to all transactions concerning the Funds' assets as the custodian and fund accountant may reasonably require. In accordance with procedures adopted by the Board, the Adviser is responsible for assisting in the fair valuation of all Fund assets and will use its reasonable efforts to arrange for the provision of prices from parties who are not affiliated persons of the Adviser for each asset for which the Funds' fund accountant does not obtain prices in the ordinary course of business. (h) The Adviser shall authorize and permit any of its directors, officers and employees who may be duly elected as Trustees or officers of the Trust to serve in the capacities in which they are elected. (i) The Adviser shall have no duties or obligations pursuant to this Agreement (other than the continuation of its preexisting duties and obligations) during any period in which the Fund invests all (or substantially all) of its investment assets in a registered, open-end management investment company, or separate series thereof, in accordance with Section 12(d)(1)(E) under the 1940 Act. SECTION 4. COMPENSATION; EXPENSES (a) In consideration of the foregoing, the Trust shall pay the Adviser, with respect to each of Fund, a fee at an annual rate as listed in Appendix A hereto. Such fees shall be accrued by the Trust daily and shall be payable monthly in arrears on the first day of each calendar month for services performed hereunder during the prior calendar month. If fees begin to accrue in the middle of a month or if this Agreement terminates before the end of any month, all fees for the period from that date to the end of that month or from the beginning of that month to the date of termination, as the case may be, shall be prorated according to the proportion that the period bears to the full month in which the effectiveness or termination occurs. Upon the termination of this Agreement with respect to a Fund, the Trust shall pay to the Adviser such compensation as shall be payable prior to the effective date of termination. (b) The Adviser shall reimburse expenses of each Fund or waive its fees to the extent necessary to maintain a Fund's expense ratio at an agreed-upon amount for a period of time specified in a separate letter of agreement. The Adviser's reimbursement of a Fund's expenses shall be estimated and paid to the Trust monthly in arrears, at the same time as the Trust's payment to the Adviser for such month. (c) No fee shall be payable hereunder with respect to a Fund during any period in which the Fund invests all (or substantially all) of its investment assets in a registered, open-end, management investment company, or separate series thereof, in accordance with Section 12(d)(1)(E) under the 1940 Act. (d) The Trust shall be responsible for and assumes the obligation for payment of all of its expenses, including: (i) the fee payable under this Agreement; (ii) the fees payable to each administrator under an agreement between the administrator and the Trust; (iii) expenses of issue, repurchase and redemption of Shares; (iv) interest charges, taxes and brokerage fees and commissions; (v) premiums of insurance for the Trust, its trustees and officers, and fidelity bond premiums; (vi) fees and expenses of third parties, including the Trust's independent public accountant, custodian, transfer agent, dividend disbursing agent and fund accountant; (vii) fees of pricing, interest, dividend, credit and other reporting services; (viii) costs of membership in trade associations; (ix) telecommunications expenses; (x) funds' transmission expenses; (xi) auditing, legal and compliance expenses; (xii) costs of forming the Trust and maintaining its existence; (xiii) costs of preparing, filing and printing the Trust's Prospectuses, subscription application forms and shareholder reports and other communications and delivering them to existing shareholders, whether of record or beneficial; (xiv) expenses of meetings of shareholders and proxy solicitations therefor; (xv) costs of maintaining books of original entry for portfolio and fund accounting and other required books and accounts, of calculating the net asset value of Shares and of preparing tax returns; (xvi) costs of reproduction, stationery, supplies and postage; (xvii) fees and expenses of the Trust's trustees and officers; (xviii) 27 the costs of personnel (who may be employees of the Adviser, an administrator or their respective affiliated persons) performing services for the Trust; (xix) costs of Board, Board committee, shareholder and other corporate meetings; (xx) SEC registration fees and related expenses; (xxi) state, territory or foreign securities laws registration fees and related expenses; and (xxii) all fees and expenses paid by the Trust in accordance with any distribution or service plan or agreement related to similar matters. SECTION 5. STANDARD OF CARE (a) The Trust shall expect of the Adviser, and the Adviser will give the Trust the benefit of, the Adviser's best judgment and efforts in rendering its services to the Trust. The Adviser shall not be liable hereunder for error of judgment or mistake of law or in any event whatsoever, except for lack of good faith, provided that nothing herein shall be deemed to protect, or purport to protect, the Adviser against any liability to the Trust or to the Trust's security holders to which the Adviser would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of the Adviser's duties hereunder, or by reason of the Adviser's reckless disregard of its obligations and duties hereunder. (b) The Adviser shall not be responsible or liable for any failure or delay in performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control including, without limitation, acts of civil or military authority, national emergencies, labor difficulties (other than those related to the Adviser's employees), fire, mechanical breakdowns, flood or catastrophe, acts of God, insurrection, war, riots or failure of the mails, transportation, communication or power supply. SECTION 6. EFFECTIVENESS, DURATION AND TERMINATION (a) Upon approval by a majority of the outstanding voting securities of a Fund, this Agreement shall become effective with respect to a Fund immediately after the Exchange as provided in the Agreement and Plan of Reorganization by and among the Trust, the Adviser, and Global Value Limited Partnership dated May 22, 1998. (b) This Agreement shall remain in effect with respect to a Fund for a period of two years from the date of its effectiveness and shall continue in effect for successive annual periods with respect to the Fund; provided that such continuance is specifically approved at least annually: (i) by the Board or by the vote of a majority of the outstanding voting securities of the Fund, and, in either case; (ii) by a majority of the Trust's trustees who are not parties to this Agreement or interested persons of any such party (other than as trustees of the Trust); provided further, however, that if the continuation of this Agreement is not approved as to a Fund, the Adviser may continue to render to that Fund the services described herein in the manner and to the extent permitted by the 1940 Act and the rules and regulations thereunder. (c) This Agreement may be terminated with respect to a Fund at any time, without the payment of any penalty: (i) by the Board or by a vote of a majority of the outstanding voting securities of the Fund on 60 days' written notice to the Adviser; or (ii) by the Adviser on 60 days' written notice to the Trust. This Agreement shall terminate immediately upon its assignment. SECTION 7. ACTIVITIES OF THE ADVISER Except to the extent necessary to perform its obligations hereunder, nothing herein shall be deemed to limit or restrict the Adviser's right, or the right of any of the Adviser's directors, officers or employees to engage in any other business or to devote time and attention to the management or other aspects of any other business, whether of a similar or dissimilar nature, or to render services of any kind to any other corporation, trust, firm, individual or association. SECTION 8. REPRESENTATIONS OF ADVISER. The Adviser represents and warrants that: (i) it is either registered as an investment adviser under the Investment Advisers Act of 1940, as amended ("Advisers Act") (and will continue to be so registered for so long as 28 this Agreement remains in effect) or exempt from registration under the Advisers Act; (ii) is not prohibited by the 1940 Act or the Advisers Act from performing the services contemplated by this Agreement; (iii) has met, and will seek to continue to meet for so long as this Agreement remains in effect, any other applicable federal or state requirements, or the applicable requirements of any self-regulatory agency, necessary to be met in order to perform the services contemplated by this Agreement; and (iv) will promptly notify the Trust of the occurrence of any event that would disqualify the Adviser from serving as an investment adviser of an investment company pursuant to Section 9(a) of the 1940 Act or otherwise. SECTION 9. SUBADVISERS At its own expense, the Adviser may carry out any of its obligations under this Agreement by employing, subject to the direction and control of the Board, one or more persons who are registered as investment advisers pursuant to the Advisers Act or who are exempt from registration thereunder ("Subadvisers"). Each Subadviser's employment will be evidenced by a separate written agreement approved by the Board and, if required, by the shareholders of the applicable Fund. The Adviser shall not be liable hereunder for any act or omission of any Subadviser, except to exercise good faith in the employment of the Subadviser and except with respect to matters as to which the Adviser assumes responsibility in writing. SECTION 10. LIMITATION OF SHAREHOLDER AND TRUSTEE LIABILITY The Trustees of the Trust and the shareholders of each Fund shall not be liable for any obligations of the Trust or of the Funds under this Agreement, and the Adviser agrees that, in asserting any rights or claims under this Agreement, it shall look only to the assets and property of the Trust or the Fund to which the Adviser's rights or claims relate in settlement of such rights or claims, and not to the Trustees of the Trust or the shareholders of the Funds. SECTION 11. RIGHTS TO NAME If the Adviser ceases to act as investment adviser to the Trust or any Fund whose name includes the word "Polaris" (the "Mark") or if the Adviser requests in writing, the Trust shall take prompt action to change the name of the Trust or any such Fund to a name that does not include the Mark. The Adviser may from time to time make available without charge to the Trust for the Trust's use any marks or symbols owned by the Adviser, including marks or symbols containing the Mark or any variation thereof, as the Adviser deems appropriate. Upon the Adviser's request in writing, the Trust shall cease to use any such mark or symbol at any time. The Trust acknowledges that any rights in or to the Mark and any such marks or symbols which may exist on the date of this Agreement or arise hereafter are, and under any and all circumstances shall continue to be, the sole property of the Adviser. The Adviser may permit other parties, including other investment companies, to use the Mark in their names without the consent of the Trust. The Trust shall not use the Mark in conducting any business other than that of an investment company registered under the 1940 Act without the permission of the Adviser. SECTION 12. MISCELLANEOUS (a) No provisions of this Agreement may be amended or modified in any manner except by a written agreement properly authorized and executed by both parties hereto and, if required by the 1940 Act, by a vote of a majority of the outstanding voting securities of any Fund thereby affected. (b) No amendment to this Agreement or the termination of this Agreement with respect to a Fund shall affect this Agreement as it pertains to any other Fund, nor shall any such amendment require the vote of the shareholders of any other Fund. (c) Neither party to this Agreement shall be liable to the other party for consequential damages under any provision of this Agreement. 29 (d) This Agreement shall be governed by, and the provisions of this Agreement shall be construed and interpreted under and in accordance with, the laws of the State of Massachusetts. (e) This Agreement constitutes the entire agreement between the parties hereto and supersedes any prior agreement between those parties with respect to the subject matter hereof, whether oral or written. (f) This Agreement may be executed by the parties hereto on any number of counterparts, and all of the counterparts taken together shall be deemed to constitute one and the same instrument. (g) If any part, term or provision of this Agreement is held to be illegal, in conflict with any law or otherwise invalid, the remaining portion or portions shall be considered severable and not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular part, term or provision held to be illegal or invalid. (h) Section headings in this Agreement are included for convenience only and are not to be used to construe or interpret this Agreement. (i) Notices, requests, instructions and communications received by the parties at their respective principal places of business, or at such other address as a party may have designated in writing, shall be deemed to have been properly given. (j) Notwithstanding any other provision of this Agreement, the parties agree that the assets and liabilities of each Fund of the Trust are separate and distinct from the assets and liabilities of each other Fund and that no Fund shall be liable or shall be charged for any debt, obligation or liability of any other Fund, whether arising under this Agreement or otherwise. (k) No affiliated person, employee, agent, director, officer or manager of the Adviser shall be liable at law or in equity for the Adviser's obligations under this Agreement. (l) The terms "vote of a majority of the outstanding voting securities", "interested person", "affiliated person," "control" and "assignment" shall have the meanings ascribed thereto in the 1940 Act. (m) Each of the undersigned warrants and represents that they have full power and authority to sign this Agreement on behalf of the party indicated and that their signature will bind the party indicated to the terms hereof and each party hereto warrants and represents that this Agreement, when executed and delivered, will constitute a legal, valid and binding obligation of the party, enforceable against the party in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the rights and remedies of creditors and secured parties. 30 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed all as of the day and year first above written. FORUM FUNDS /s/ John Y. Keffer __________________________________________ John Y. Keffer President POLARIS CAPITAL MANAGEMENT, INC. /s/Bernard H. Horn _________________________________________ Bernard R. Horn, Jr. President 31 FORUM FUNDS INVESTMENT ADVISORY AGREEMENT Appendix A Fee as a % of the Annual Funds of the Trust Average Daily Net Assets of the Fund Polaris Global Value Fund 1.00% -----END PRIVACY-ENHANCED MESSAGE-----