Exhibit No. EX-99.(h)(3)
Delaware Management Company
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December 28, 2005
Delaware Investments Municipal Trust
(formerly Voyageur Investment Trust)
Voyageur Insured Funds
Voyageur Intermediate Tax-Free Funds
Voyageur Mutual Funds
Voyageur Mutual Funds II
Voyageur Tax Free Funds
Delaware Group Tax Free Fund
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Re: Expense Limitations
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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 of the above listed registered
investment companies, which are comprised of the individual series listed on
Exhibit A attached hereto (together, the "Funds") the Advisor shall, from
December 30, 2005 through December 31, 2006, 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
Fund's total operating expenses (excluding any 12b-1 plan expenses, taxes,
interest, brokerage fees, certain insurance costs and extraordinary expenses)
exceeds the total operating expense ratios (excluding any 12b-1 plan expenses,
taxes, interest, brokerage fees, certain insurance costs and extraordinary
expenses) listed on Exhibit A attached hereto.
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: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: President/Chief Executive Officer
Date: December 28, 2005
Your signature below acknowledges acceptance of this Agreement:
Delaware Investments Municipal Trust
(formerly Voyageur Investment Trust)
Voyageur Insured Funds
Voyageur Intermediate Tax-Free Funds
Voyageur Mutual Funds
Voyageur Mutual Funds II
Voyageur Tax Free Funds
Delaware Group Tax Free Fund
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: President/Chief Executive Officer
Date: December 28, 2005
EXHIBIT A
Investment Company/Fund Total Expense Limit
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VOYAGEUR INSURED FUNDS
Tax-Free Arizona Insured Fund 0.50%
Tax-Free Minnesota Insured Fund 0.64%
VOYAGEUR INTERMEDIATE TAX FREE FUNDS
Tax-Free Minnesota Intermediate Fund 0.60%
DELAWARE INVESTMENTS MUNICIPAL TRUST
(FORMERLY VOYAGEUR INVESTMENT TRUST)
Tax-Free Florida Insured Fund 0.61%
Tax-Free Missouri Insured Fund 0.65%
Tax-Free Oregon Insured Fund 0.60%
VOYAGEUR MUTUAL FUNDS
Minnesota High-Yield Municipal
Bond Fund 0.64%
National High-Yield Municipal
Bond Fund 0.65%
Tax-Free New York Fund 0.40%
Tax-Free California Fund 0.63%
Tax-Free Idaho Fund 0.60%
VOYAGEUR MUTUAL FUNDS II
Tax-Free Colorado Fund 0.68%
VOYAGEUR TAX FREE FUNDS
Tax-Free Minnesota Fund 0.68%
DELAWARE GROUP TAX FREE FUND
Tax-Free USA Intermediate Fund 0.60%
Tax-Free USA Fund 0.62%
Tax-Free Insured Fund 0.67%
