Exhibit No. EX-99.h.3
Delaware Management Company
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
June 14, 2006
Delaware Group State Tax-Free Income Trust
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 "Advisor"), agrees that in order to improve the
performance of the Delaware Tax-Free Pennsylvania Fund (the "Fund"), which is a
series of the Delaware State Tax-Free Income Trust, the Advisor shall waive all
or a portion of its investment advisory fees and/or reimburse expenses
(excluding any Rule 12b-1 plan expenses, taxes, interest, brokerage fees,
certain insurance costs and extraordinary expenses) in an aggregate amount equal
to the amount by which the Fund's total operating expenses (excluding any 12b-1
plan expenses, taxes, interest, brokerage fees, certain insurance costs and
extraordinary expenses) exceeds 0.67% for the period July 1, 2006 through June
30, 2007.
The Advisor 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 State Tax-Free Income Trust
By: _________________________
Name:
Title:
Date:
