Exhibit 23H6A
SERVICE AGREEMENT
Between
Delaware Management Company,
a Series of Delaware Management Business Trust
And
Lincoln Life & Annuity Company of New York
This Agreement ("Service Agreement") sets forth the terms and conditions of the
Service Agreement between Delaware Management Company, a Series of Delaware
Management Business Trust ("Delaware") and Lincoln Life & Annuity Company of
New York (the "Company"), effective as of the 1st day of May, 2003.
The Company and Lincoln Variable Insurance Products Trust (the "Trust") have
entered into a Fund Participation Agreement, dated May 1, 2003, as may be
amended from time to time, pursuant to which the Company, on behalf of certain
of its separate accounts and those which it administers (together "Separate
Accounts"), has selected the Trust to serve as an investment vehicle under
certain variable annuity and/or variable life insurance contracts ("Variable
Contracts") offered by the Company, of which Trust may be one of several
investment options available under the Variable Contracts. The Trust is divided
into several series of shares, each designated a "Fund". Delaware is the
investment adviser for the Trust.
Delaware recognizes that in the course of soliciting applications for the
Variable Contracts and in servicing owners of the Variable Contracts, the
Company and its agents provide ongoing services respecting Variable Contract
owners' investments in the Trust.
Delaware understands that it benefits from the services that the Company and
its agents provide with respect to the Trust. These services promote retention
of assets in the Trust, which, in turn, provides benefits to Delaware. These
services also contribute to an increase in the assets in the Trust, which, in
turn, results in increased benefits to Delaware.
Accordingly, the following represents the collective intention and
understanding of Delaware and the Company:
The Company and/or its agents agree to provide services to current owners of
Variable Contracts which may include, but not limited to: teleservicing support
in connection with the Trust; delivery of notices; facilitation of the
tabulation of Variable Contract owners' votes in the event of a meeting of the
shareholders; maintenance of Variable Contact records reflecting units
purchased and redeemed and unit balances; provision of support services
including providing information about the Trust and answering questions
concerning the Trust, including questions respecting Variable Contract owners'
interests in the Trust; provision and administration of Variable Contract
features for the benefit of Variable Contract owners participating in the
Trust, including transfers, dollar cost averaging, asset allocation, portfolio
rebalancing, earnings sweep, and pre-authorized deposits and withdrawals; and
provision of other services as may be agreed upon from time to time.
In consideration of the benefits that Delaware derives from such services,
Delaware agrees to pay to the Company a service fee (not from Trust assets but
from the assets of Delaware) at an annual
142089/1
Service Agreement
Page 2
service fee rate set forth in the attached Exhibit A ("Service Fee Rate"). For
purposes of computing the amount due to the Company under this paragraph, the
Company's pro-rata share of a Fund's daily net asset value will be multiplied
by the applicable Service Fee Rate(s) (calculated on a daily basis). The
Company's pro-rata share of a Fund's daily net asset value represents the ratio
of Fund shares owned by the Company to the Fund's total outstanding shares
multiplied by the Fund's daily net asset value. The Fund's daily net asset
value will be the same for purposes of calculating the service fee as for
calculating the management fee under the advisory agreement with Delaware. The
service fee for each day will be aggregated for each calendar month and paid by
Delaware within ten (10) calendar days thereafter in a manner prescribed by the
Company. The service fee will be paid by Delaware to The Lincoln National Life
Insurance Company who will in turn remit the fee to the Company. Delaware will
provide the Company with supporting documentation of the amount due for the
month in a format agreeable to both parties on the first business day following
the close of the preceding calendar month.
The Service Agreement shall remain in full force and effect until terminated by
either the Company or Delaware upon 60 days' written notice to the other, and
shall terminate automatically upon redemption of all shares held in Separate
Accounts.
Notwithstanding the termination of the Service Agreement, Delaware will
continue to pay the service fees in accordance with the preceding paragraph so
long as net assets of the Company or a Separate Account remain in the Trust and
the Company performs such services, provided such continued payment is
permitted in accordance with applicable law and regulation. The Service
Agreement may be amended only upon mutual agreement of the Company and Delaware
in writing.
Nothing in the Service Agreement shall amend, modify or supersede any
contractual terms, obligations or covenants among or between the Company and
Delaware previously or currently in effect.
If the Service Agreement is consistent with your understanding of the matters
we discussed concerning the Company's provision of the services, please sign
below:
Lincoln Life & Annuity Company of New
York
Date: June 1, 2004 By: /s/ Rise X. X. Xxxxxx
--------------------------------
Name: Rise X. X. Xxxxxx
Title: Second Vice President
Delaware Management Company,
A Series of Delaware Management
Business Trust
Date: June 1, 2004 By: /s/ Xxxxxx X. Xxxxxxxx
--------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Senior Vice
President/Treasurer/Controller
Service Agreement
Page 3
Exhibit A
Service Fee Rates
Aggressive Growth Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.2374% 0 - $200,000,000
.1874% on $200,000,001 to $250,000,000
.2374% on $250,000,001 to $400,000,000
.1874% on $400,000,001 and above
Bond Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.3003% 0 - $200,000,000
.2203% on $200,000,001 to $400,000,000
.1203% on $400,000,001 and above
Capital Appreciation Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.1874% 0 - $100,000,000
.2374% on $100,000,001 to $500,000,000
.2374% on $500,000,001 and above
Equity-Income Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.2574% 0 - $500,000,000
.2074% on $500,000,001 and above
Global Asset Allocation Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.2674% 0 - $200,000,000
.2674% on $200,000,001 to $400,000,000
.2674% on $400,000,001 and above
Growth & Income Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.2674% 0 - $200,000,000
.1874% on $200,000,001 to $400,000,000
.0874% on $400,000,001 and above
Service Agreement
Page 4
International Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.3874% 0 - $200,000,000
.3374% on $200,000,001 to $400,000,000
.1874% on $400,000,001 and above
Managed Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.2891% 0 - $200,000,000
.2091% on $200,000,001 to $400,000,000
.1091% on $400,000,001 and above
Money Market Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.3003% 0 - $200,000,000
.2203% on $200,000,001 to $400,000,000
.1203% on $400,000,001 and above
Social Awareness Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.2674% 0 - $200,000,000
.1874% on $200,000,001 to $400,000,000
.0874% on $400,000,001 and above
Special Opportunities Fund
Fund's Daily Net Asset Value
Annual Rate (owned by all shareholders)
----------- ----------------------------
.2674% 0 - $200,000,000
.1874% on $200,000,001 to $400,000,000
.0874% on $400,000,001 and above
