Exhibit No. EX-99.h.3
Delaware Management Company
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
November __, 2006
Delaware Group Income Funds
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Re: Expense Limitation
Ladies and Gentlemen:
By our execution of this letter agreement (the "Agreement"), intending to
be legally bound hereby, Delaware Management Company, a series of Delaware
Management Business Trust (the "Manager"), agrees that in order to improve the
performance of Delaware High Yield Opportunities Fund, Delaware Corporate Bond
Fund, Delaware Extended Duration Bond Fund and Delaware Delchester Fund
(collectively, the "Funds"), which are series of Delaware Group Income Funds,
the Manager shall waive all or a portion of its investment advisory fees and/or
reimburse expenses (excluding any 12b-1 plan expenses, taxes, interest,
brokerage fees, short-sale dividend and interest expenses, certain insurance
costs and non-routine expenses or costs, including but not limited to, those
relating to reorganizations, litigation, conducting shareholder meetings and
liquidations [collectively, "non-routine expenses"]) in an aggregate amount
equal to the amount by which the Funds' respective total operating expenses
(excluding any 12b-1 plan expenses, taxes, interest, brokerage fees, short-sale
dividend and interest expenses, certain insurance costs and non-routine
expenses) exceed the amounts indicated below for the periods described below.
For purposes of this Agreement, non-routine expenses may also include such
additional costs and expenses as may be agreed upon from time to time by the
Funds' Board and the Manager.
Fund Expense Limitation Effective Dates
Delaware High Yield Opportunities Fund 0.83% 12/01/06-11/30/07
Delaware Corporate Bond Fund 0.65% 07/01/07-11/30/07
Delaware Extended Duration Bond Fund 0.65% 12/01/06-11/30/07
Delaware Delchester Fund 0.87% 12/01/06-11/30/07
The Manager acknowledges that it (1) shall not be entitled to collect on,
or make a claim for, waived fees at any time in the future, and (2) shall not be
entitled to collect on, or make a claim for, reimbursed Fund expenses at any
time in the future.
Delaware Management Company, a series of
Delaware Management Business Trust
By: _________________________
Name:
Title:
Date:
Your signature below acknowledges
acceptance of this Agreement:
Delaware Group Income Funds
By: _________________________
Name:
Title:
Date:
