EXHIBIT 28(h)(26)
EXPENSE LIMITATION AGREEMENT
This Expense Limitation Agreement, effective as of April 30, 2012 , by and
between Lincoln Investment Advisors Corporation ("LIA") and Lincoln Variable
Insurance Products Trust (the "Trust"), on behalf of its series set forth in
Schedule A to this Agreement (the "Funds").
----------
WHEREAS, the Board of Trustees has determined that it is in the best
interests of each Fund to enter into an Expense Limitation Agreement.
NOW THEREFORE, the parties hereto agree as follows:
1. Expense Limitation.
(a) Applicable Expense Limit. To the extent that the ordinary operating
expenses ("Fund Operating Expenses") incurred by a Fund in any fiscal year,
including, but not limited to, investment management fees of LIA and amounts
payable pursuant to a plan adopted in accordance with Rule 12b-1 under the
Investment Company Act of 1940 Act (the "1940 Act"), but excluding interest,
taxes, brokerage commissions, underlying fund fees and expenses, extraordinary
expenses such as litigation, and other expenses not incurred in the ordinary
course of such Fund's business, exceed the Operating Expense Limit, as defined
below, such excess amount (the "Excess Amount") shall be the liability of LIA.
(b) Operating Expense Limit. The Operating Expense Limit in any year with
respect to each Fund shall be the amount specified in Schedule A based on a
----------
percentage of the average daily net assets of each Fund.
(c) Method of Computation. To determine LIA's obligation with respect to
the Excess Amount, each day the Fund Operating Expenses for each Fund shall be
estimated and accrued. Each day, the Fund shall also calculate an Operating
Expense Limit Amount, based on each Fund's average net assets and its Annual
Expense Limit. If the total expenses exceed the Operating Expense Limit Amount,
the Fund shall record a receivable from LIA in an amount equal to the Excess
Amount less any such receivables previously recorded for the fiscal period.
Shortly after the end of each month, the Fund shall deliver to LIA a statement
indicating the Excess Amount owed to the Fund for the month and LIA will remit
to the Fund an amount that is sufficient to pay that monthly Excess Amount.
LIA's method of notification and payment to the Fund shall be as mutually agreed
upon by LIA and the Fund.
(d) Adjustment Payments. At least annually, and more frequently throughout
the year if mutually agreed to by the parties, an adjustment payment shall be
made by the appropriate party in order that the payments remitted by LIA to each
Fund with respect to the previous fiscal year shall equal the Excess Amount for
that Fund.
1
2. Term and Termination of Agreement.
This Agreement will continue with respect to each Fund at least through
April 30, 2013, and renew automatically for one year terms unless LIA provides
written notice of termination of the Agreement to a Fund at least ten (10) days
prior to the end of the then current term.
3. Miscellaneous.
(a) Nothing herein contained shall be deemed to require the Trust or the
Funds to take any action contrary to the Trust's Declaration of Trust or
By-Laws, or any applicable statutory or regulatory requirement to which it is
subject or by which it is bound, or to relieve or deprive the Board of Trustees
of the Trust of its responsibility regarding the affairs of the Trust or the
Funds.
(b) Any question of interpretation of any term or provision of this
Agreement, including but not limited to the investment management fee, the
computations of net asset values, and the allocation of expenses, having a
counterpart in or otherwise derived from the terms and provisions of the
Investment Management Agreement or the 1940 Act, shall have the same meaning as
and be resolved by reference to such Investment Management Agreement or the 1940
Act.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
on their behalf by their duly authorized representatives, all as of the day and
year first above written.
LINCOLN INVESTMENT ADVISORS LINCOLN VARIABLE INSURANCE
CORPORATION PRODUCTS TRUST
By: /s/ Xxxxx X. Xxxxxxx By: /s/ Xxxxxxx X. Xxxxx, Xx.
-------------------------------- -------------------------------
Name: Xxxxx X. Xxxxxxx Name: Xxxxxxx X. Xxxxx, Xx.
Title: Vice President Title: Chief Accounting Officer and
Vice President
2
SCHEDULE A
OPERATING EXPENSE LIMITS
This Agreement relates to the following Funds of the Trust:
MAXIMUM OPERATING EXPENSE LIMIT
NAME OF FUND (AS A PERCENTAGE OF AVERAGE NET ASSETS)
---------------------------------------- --------------------------------------
LVIP Protected Profile Conservative Fund Standard Class: 0.30%
Service Class: 0.55%
LVIP Protected Profile Moderate Fund Standard Class: 0.30%
Service Class: 0.55%
LVIP Protected Profile Growth Fund Standard Class: 0.30%
Service Class: 0.55%
3
