Exhibit No. EX-99.h.3
Delaware Management Company
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
December __, 2006
Voyageur Insured Funds
Voyageur Intermediate Tax Free Funds
Delaware Investments Municipal Trust
Voyageur Mutual Funds
Voyageur Mutual Funds II
Voyageur Tax-Free 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 Tax-Free Arizona Fund, Delaware Tax-Free Minnesota
Insured Fund, Delaware Tax-Free Minnesota Intermediate Fund, Delaware Tax-Free
Florida Insured Fund, Delaware Minnesota High-Yield Municipal Bond Fund,
Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California
Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund, Delaware
Tax-Free Colorado Fund and Delaware Tax-Free Minnesota Fund (collectively, the
"Funds"), which are series of Voyageur Insured Funds, Voyageur Intermediate Tax
Free Funds, Delaware Investments Municipal Trust, Voyageur Mutual Funds,
Voyageur Mutual Funds II and Voyageur Tax-Free Funds, respectively, 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 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' Boards and the Manager.
Fund Expense Limitation Effective Dates
---- ------------------ ---------------
Delaware Tax-Free Arizona Fund 0.50% 12/31/06-12/31/07
Delaware Tax-Free Minnesota
Insured Fund 0.64% 12/31/06-12/31/07
Delaware Tax-Free Minnesota
Intermediate Fund 0.60% 12/31/06-12/31/07
Delaware Tax-Free Florida
Insured Fund 0.61% 12/31/06-12/31/07
Delaware Minnesota High-Yield
Municipal Bond Fund 0.64% 12/31/06-12/31/07
Delaware National High-Yield
Municipal Bond Fund 0.65% 12/31/06-12/31/07
Delaware Tax-Free California
Fund 0.63% 12/31/06-12/31/07
Delaware Tax-Free Idaho Fund 0.60% 12/31/06-12/31/07
Delaware Tax-Free New York
Fund 0.60% 12/31/06-12/31/07
Delaware Tax-Free Colorado Fund 0.68% 12/31/06-12/31/07
Delaware Tax-Free Minnesota Fund 0.68% 12/31/06-12/31/07
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:
Voyageur Insured Funds Voyageur Intermediate Tax-Free Funds
By: _________________________ By: _________________________
Name: Name:
Title: Title:
Date: Date:
Delaware Investments Municipal Trust Voyageur Mutual Funds
By: _________________________ By: _________________________
Name: Name:
Title: Title:
Date: Date:
Voyageur Mutual Funds II Voyageur Tax-Free Funds
By: _________________________ By: _________________________
Name: Name:
Title: Title:
Date: Date:
