EX-99.(H)(3) 4 ex99-h3.txt EXHIBIT 99 (H)(3) Exhibit No. EX-99.(h)(3) Delaware Management Company 2005 Market Street Philadelphia, PA 19103 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 2005 Market Street Philadelphia, PA 19103 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 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/ Jude T. Driscoll ---------------------------- Name: Jude T. Driscoll 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/ Jude T. Driscoll ---------------------------- Name: Jude T. Driscoll Title: President/Chief Executive Officer Date: December 28, 2005 EXHIBIT A Investment Company/Fund Total Expense Limit ----------------------- ------------------- 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%