Exhibit (h)(4)(a)

                          EXPENSE LIMITATION AGREEMENT
                                       FOR
                THE FORWARD HANSBERGER INTERNATIONAL GROWTH FUND

     THIS AGREEMENT, dated as of January 1, 2005, is made and entered into by
and between Forward Funds, Inc., a Maryland corporation (the "Company"), on
behalf of its series, The Forward Hansberger International Growth Fund (the
"Fund"), and Forward Management, LLC (the "Investment Advisor").

     WHEREAS, the Investment Advisor has been appointed the investment adviser
of the Fund pursuant to an Amended and Restated Investment Management Agreement
dated June 6, 2002, between the Company, on behalf of the Fund, and the
Investment Advisor (the "Advisory Agreement"); and

     WHEREAS, the Company and the Investment Advisor desire to enter into the
arrangements described herein relating to certain expenses of the Fund;

     NOW, THEREFORE, the Company and the Investment Advisor hereby agree as
follows:

     1. Until further notice from the Investment Advisor to the Company, the
Investment Advisor agrees, subject to Section 2 hereof, to reduce the fees
payable to it under the Advisory Agreement (but not below zero) to the extent
necessary to limit the operating expenses of the Fund (exclusive of brokerage
costs, interest, taxes and dividend and extraordinary expenses) as follows:

          For a period of one year from the date of this Agreement, the
          Investment Advisor shall limit its fee so that the operating expenses
          of the Fund shall be limited to an annual rate (as a percentage of the
          Fund's average daily net assets) of 1.69%.

     2. The Fund agrees to pay to the Investment Advisor the amount of fees
that, but for Section 1 hereof, would have been payable by the Fund to the
Investment Advisor pursuant to the Advisory Agreement (the "Deferred Fees") for
a period of three years following the date on which the expense was incurred
(the "Recoupment Period"), subject to the limitations provided in this Section.
Such repayment shall be made monthly, but only if the operating expenses of the
Fund (exclusive of brokerage costs, interest, taxes and dividend and
extraordinary expenses), without regard to such repayment, are at an annual rate
(as a percentage of the average daily net assets of the Fund) of 1.69% or less.
Furthermore, the amount of Deferred Fees paid by the Fund in any month shall be
limited so that the sum of (a) the amount of such payment and (b) the other
operating expenses of the Fund (exclusive of brokerage costs, interest, taxes
and extraordinary expenses) do not exceed the foregoing annual percentage rate.
In no event will the Fund be



obligated to pay any fees waived or deferred by the Investment Advisor with
respect to any other series of the Company.

     3. The Investment Advisor may by notice in writing to the Company
terminate, in whole or in part, its obligation under Section 1 to reduce its
fees with respect to the Fund in any period following the date specified in such
notice (or change the percentage specified in Section 1), but no such change
shall affect the obligation (including the amount of the obligation) of the Fund
to repay amounts of Deferred Fees with respect to periods prior to the date
specified in such notice.

     4. A copy of the Agreement and Certificate of Incorporation establishing
the Company is on file with the Secretary of State of Maryland, and notice is
hereby given that this Agreement is executed by the Company on behalf of the
Fund by an officer of the Company as an officer and not individually and that
the obligations of or arising out of this Agreement are not binding upon any of
the Directors, officers or shareholders individually but are binding only upon
the assets and property belonging to the Fund.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

Forward Funds, Inc.
on behalf of its series
The Forward Hansberger International
Growth Fund                             Forward Management, LLC


By: /s/ J. Alan Reid, Jr.               By: /s/ Jeremy W. Deems
    ---------------------------------       ------------------------------------
Name: J. Alan Reid, Jr.                 Name: Jeremy W. Deems
Title: President                        Title: CFO