Exhibit No. EX-99.h.3
Delaware Management Company
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
January __, 2007
Delaware Group Foundation Funds
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Re: Expense Limitations
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 Aggressive Allocation Portfolio, Delaware Moderate
Allocation Portfolio, and Delaware Conservative Allocation Portfolio
(collectively, the "Portfolios"), which are series of Delaware Group Foundation
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,
inverse floater program expenses, 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 Portfolios'
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 Portfolios' Board and the Manager.
Portfolio Expense Limitation Effective Dates
Delaware Aggressive Allocation Portfolio 0.55% 2/1/07 - 1/31/08
Delaware Moderate Allocation Portfolio 0.55% 2/1/07 - 1/31/08
Delaware Conservative Allocation Portfolio 0.55% 2/1/07 - 1/31/08
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 Portfolio 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 Foundation Funds
By: _________________________
Name:
Title:
Date:
