Exhibit No. EX-99.h.3
Delaware Management Company
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
April 14, 2006
Delaware VIP Trust
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 "Advisor") agrees that in order to improve the
performance of certain portfolios in Delaware VIP Trust, which is comprised of
the Delaware VIP Balanced Series, Delaware VIP Capital Reserves Series, Delaware
VIP Cash Reserve Series, Delaware VIP Diversified Income Series, Delaware VIP
Emerging Markets Series, Delaware VIP Global Bond Series, Delaware VIP Growth
Opportunities Series, Delaware VIP High Yield Series, Delaware VIP International
Value Equity Series, Delaware VIP REIT Series, Delaware VIP Select Growth
Series, Delaware VIP Small Cap Value Series, Delaware VIP Trend Series, Delaware
VIP U.S. Growth Series, and Delaware VIP Value Series (each a "Series"), the
Advisor shall, from May 1, 2006 through April 30, 2007, waive all or a portion
of its investment advisory fees and/or reimburse expenses (excluding any 12b-1
plan expenses, taxes, interest, brokerage fees, certain insurance costs and
extraordinary expenses) in an aggregate amount equal to the amount by which each
Series' total operating expenses (excluding any 12b-1 plan expenses, taxes,
interest, brokerage fees, certain insurance costs and extraordinary expenses)
exceeds the following total operating expense ratios (excluding any 12b-1 plan
expenses, taxes, interest, brokerage fees, certain insurance costs and
extraordinary expenses):
Series Expense Limitation
Delaware VIP Balanced Series 0.80%
Delaware VIP Capital Reserves Series 0.70%
Delaware VIP Cash Reserve Series 0.67%
Delaware VIP Diversified Income Series 0.81%
Delaware VIP Emerging Markets Series 1.50%
Delaware VIP Global Bond Series 1.00%
Delaware VIP Growth Opportunities Series 0.95%
Delaware VIP High Yield Series 0.78%
Delaware VIP International Value Equity Series 1.08%
Delaware VIP REIT Series 1.00%
Delaware VIP Select Growth Series 0.90%
Delaware VIP Small Cap Value Series 1.03%
Delaware VIP Trend Series 0.92%
Delaware VIP U.S. Growth Series 0.87%
Delaware VIP Value 0.86%
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 Series expenses at any
time in the future.
Delaware Management Company, a series
of Delaware Management Business Trust
By: /s/ Xxxx X. Xxxxxxxx
Name: Xxxx X. Xxxxxxxx
Title: President/Chief Executive Officer
Date: April 14, 2006
Your signature below acknowledges
acceptance of this Agreement:
DELAWARE VIP TRUST
By: /s/ Xxxx X. Xxxxxxxx
Name: Xxxx X. Xxxxxxxx
Title: Chairman/President/Chief
Executive Officer
Date: April 14, 2006
