Exhibit No. EX-99.h.3
Delaware Management Company
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
November __, 2006
Delaware Group Government Fund
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 Core Plus Bond Fund (formerly, Delaware American
Government Bond Fund) and Delaware Inflation Protected Bond Fund (collectively,
the "Funds"), which are series of Delaware Group Government Fund, 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 Core Plus Bond Fund 0.75% 12/01/06-01/31/07
0.70% 02/01/07-11/30/07
Delaware Inflation Protected Bond Fund 0.50% 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 Government Fund
By: _________________________
Name:
Title:
Date: