EXHIBIT 28(d)(23)
SUB-ADVISORY AGREEMENT
LVIP TEMPLETON GROWTH FUND
This Sub-Advisory Agreement ("Agreement") executed as of April 30,
2007, is between LINCOLN INVESTMENT ADVISORS CORPORATION, a New Hampshire
corporation (the "Adviser"), and XXXXXXXXX INVESTMENT COUNSEL, LLC, a Florida
limited liability company (the "Sub-Adviser").
WHEREAS, Lincoln Variable Insurance Products Trust (the "Trust"), on
behalf of the LVIP Xxxxxxxxx Growth Fund (the "Fund"), has entered into an
Investment Management Agreement, dated April 30, 2007, with the Adviser,
pursuant to which the Adviser has agreed to provide certain investment
management services to the Fund; and
WHEREAS, the Adviser desires to appoint Sub-Adviser as investment
sub-adviser to provide the investment advisory services to the Fund specified
herein, and Sub-Adviser is willing to serve the Fund in such capacity.
NOW, THEREFORE, in consideration of the mutual covenants herein
contained, and each of the parties hereto intending to be legally bound, it is
agreed as follows:
1. SERVICES TO BE RENDERED BY SUB-ADVISER TO THE FUND.
(a) Subject to the direction and control of the Board of Trustees (the
"Trustees") of the Trust, the Sub-Adviser, at its expense, will furnish
continuously an investment program for the Fund which shall at all times meet
the diversification requirements of Section 817(h) of the Internal Revenue Code
of 1986 (the "Code"). The Sub-Adviser will make investment decisions on behalf
of the Fund and place all orders for the purchase and sale of portfolio
securities. The Sub-Adviser will be an independent contractor and will not have
authority to act for or represent the Trust or Adviser in any way or otherwise
be deemed an agent of the Trust or Adviser except as expressly authorized in
this Agreement or another writing by the Trust, Adviser and the Sub-Adviser.
(b) The Sub-Adviser, at its expense, will furnish (i) all necessary
investment and management facilities, including salaries of personnel, required
for it to execute its duties faithfully and (ii) administrative facilities,
including bookkeeping, clerical personnel and equipment necessary for the
efficient conduct of the investment affairs of the Fund (excluding determination
of net asset value per share, portfolio accounting and shareholder accounting
services). The Sub-Adviser shall be responsible for commercially reasonable
expenses relating to the printing and mailing of required supplements to the
Fund's registration statement, provided that such supplements relate solely to a
change in control of the Sub-Adviser or any change in the portfolio manager or
managers assigned by the Sub-Adviser to manage the Fund.
(c) The Sub-Adviser shall vote proxies relating to the Fund's
investment securities in the manner in which the Sub-Adviser believes to be in
the best interests of the Fund, and shall review its proxy voting activities on
a periodic basis with the Trustees. Sub-Adviser's obligation to vote proxies
shall be contingent upon receipt or proxies from the Fund custodian in a timely
manner. The Trust or Adviser may withdraw the authority granted to the
Sub-Adviser pursuant to this Section at any time upon written notice.
(d) The Sub-Adviser will select brokers and dealers to effect all
portfolio transactions subject to the conditions set forth herein (except to the
extent such transactions are effected in accordance with such policies or
procedures as may be established by the Board of Trustees and received by
Sub-Adviser.) In the selection of brokers, dealers or futures commission
merchants and the placing of orders for the purchase and sale of portfolio
investments for the Fund, the Sub-Adviser shall use its best efforts to obtain
for the Fund the most favorable price and execution available, except to the
extent it may be permitted to pay higher brokerage commissions for brokerage and
research services as described below. The Adviser reserves the right to direct
the Sub-Adviser upon written notice not to execute transactions through any
particular broker(s) or dealer(s), and the Sub-Adviser agrees to comply with
such request within ten business days of receiving written notice. In using its
best efforts to obtain for the Fund the most favorable price and execution
available, the Sub-Adviser, bearing in mind the Fund's best interests at all
times, shall consider all factors it deems relevant, including by way of
illustration: price; the size of the transaction; the nature of the market for
the security; the amount of the commission; the timing of the transaction taking
into account market prices and trends; the reputation, experience and financial
stability of the broker, dealer, or futures commission merchant involved; and
the quality of service rendered by the broker, dealer or futures commission
merchant in other transactions. Subject to such policies as the Trustees may
determine and to the extent such policies are received by the Sub-Adviser, the
Sub-Adviser shall not be deemed to have acted unlawfully or to have breached any
duty created by this Agreement or otherwise solely by reason of its having
caused the Fund to pay a broker, dealer or futures commission merchant that
provides brokerage and research services to the Sub-Adviser an amount of
commission for effecting a portfolio investment transaction in excess of the
amount of commission another broker, dealer or futures commission merchant would
have charged for effecting that transaction, if the Sub-Adviser determines in
good faith that such amount of commission was reasonable in relation to the
value of the brokerage and research services provided by such broker, dealer or
futures commission merchant, viewed in terms of either that particular
transaction or the Sub-Adviser's over-all responsibilities with respect to the
Fund and to other clients of the Sub-Adviser as to which the Sub-Adviser
exercises investment discretion. The Sub-Adviser shall maintain records adequate
to demonstrate compliance with this section.
On occasions when the Sub-Adviser deems the purchase or sale of a
security to be in the best interest of the Fund as well as other clients of the
Sub-Adviser, the Sub-Adviser to the extent permitted by applicable laws and
regulations, may, but shall be under no obligation to, aggregate the securities
to be purchased or sold to attempt to obtain a more favorable price or lower
brokerage commissions and efficient execution. In such event, allocation of the
securities so purchased or sold, as well as the expenses incurred in the
transaction, will be made by the Sub-Adviser in compliance with Section 17(d) of
the Investment Company Act
of 1940 and the rules established thereunder, Section 206 of the Investment
Advisers Act of 1940 and any rules established thereunder, and pursuant to
policies adopted by the Sub-Adviser and approved by the Board of Trustees of the
Fund.
(e) The Sub-Adviser will provide advice and assistance to the
Investment Adviser as to the determination of the fair value of certain
investments where market quotations are not readily available for purposes of
calculating net asset value of the Fund in accordance with valuation procedures
and methods established by the Trustees.
(f) The Sub-Adviser shall furnish the Adviser and the Board of Trustees
with such information and reports regarding the Fund's investments as the
Adviser reasonably deems appropriate or as the Board of Trustees shall
reasonably request. The Sub-Adviser shall make its officers and employees
available from time to time, including attendance at Board of Trustees Meetings,
at such reasonable times as the parties may agree to review investment policies
of the Fund and to consult with the Adviser or the Board of Trustees regarding
the investment affairs of the Fund.
(g) The Sub-Adviser shall not consult with any other sub-adviser to the
Fund or a sub-adviser to a portfolio that is under common control with the Fund
concerning the assets of the Fund, except as permitted by the policies and
procedures of the Fund, which shall be provided to Sub-Adviser.
(h) In the performance of its duties, the Sub-Adviser shall be subject
to, and shall perform in accordance with, the following to the extent that
Sub-Adviser receives them from Adviser or Trust: (i) provisions of the
organizational documents of the Trust that are applicable to the Fund; (ii) the
investment objectives, policies and restrictions of the Fund as stated in the
Fund's currently effective Prospectus and Statement of Additional Information
("SAI") as amended from time to time; (iii) the Investment Company Act of 1940
(the "1940 Act") and the Investment Advisers Act of 1940 (the "Advisers Act");
(iv) any written instructions and directions of the Trustees, the Adviser or
Fund management; and (v) its general fiduciary responsibility to the Fund.
(i) The Sub-Adviser shall assist the Fund in the preparation of its
registration statement, prospectus, shareholder reports, marketing materials and
other regulatory filings, or any amendment or supplement thereto (collectively,
"Regulatory Filings") and shall provide the Fund with disclosure for use in the
Fund's Regulatory Filings, including, without limitation, any requested
disclosure related to the Sub-Adviser's investment management personnel,
portfolio manager compensation, Codes of Ethics, firm description, investment
management strategies and techniques, and proxy voting policies.
(j) The Sub-Adviser shall furnish the Adviser, the Board of Trustees
and/or the Chief Compliance Officer of the Trust and/or the Adviser with such
information, certifications and reports as such persons may reasonably deem
appropriate or may request from the Sub-Adviser regarding the Sub-Adviser's
compliance with Rule 206(4)-7 of the Advisers Act and the Federal Securities
Laws, as defined in Rule 38a-1 under the 1940 Act. Such information,
certifications and reports shall include, without limitation, those regarding
the Sub-Adviser's
compliance with the Xxxxxxxx-Xxxxx Act of 2002, Title V of the
Xxxxx-Xxxxx-Xxxxxx Act, the Code of Ethics of the Sub-Adviser and the Trust and
certifications as to the validity of certain information included in the Fund's
Regulatory Filings. The Sub-Adviser shall make its officers and employees
(including its Chief Compliance Officer) available to the Adviser and/or the
Chief Compliance Officer of the Trust and/or the Adviser from time to time to
examine and review the Sub-Adviser's compliance program and its adherence
thereto.
2. OTHER AGREEMENTS.
The investment management services provided by the Sub-Adviser under
this Agreement are not to be deemed exclusive, and the Sub-Adviser shall be free
to render similar or different services to others so long as its ability to
render the services provided for in this Agreement shall not be impaired
thereby.
3. COMPENSATION TO BE PAID BY THE ADVISER TO THE SUB-ADVISER.
(a) As compensation for the services to be rendered by the Sub-Adviser
under the provisions of this Agreement, the Adviser will pay to the Sub-Adviser
a fee each month based on the average daily net assets of the Fund during the
month. Solely for the purpose of determining the promptness of payments,
payments shall be considered made upon mailing or wiring pursuant to wiring
instructions provided by the Sub-Adviser. Such fee shall be calculated in
accordance with the fee schedule applicable to the Fund as set forth in Schedule
A attached hereto.
(b) The fee shall be paid by the Adviser, and not by the Fund, and
without regard to any reduction in the fees paid by the Fund to the Adviser
under its management contract as a result of any statutory or regulatory
limitation on investment company expenses or voluntary fee reduction assumed by
the Adviser. Such fee to the Sub-Adviser shall be payable for each month within
10 business days after the end of such month. If the Sub-Adviser shall serve for
less than the whole of a month, the foregoing compensation shall be prorated.
4. AUTOMATIC TERMINATION.
This Agreement shall automatically terminate, without the payment of
any penalty, in the event of its assignment or in the event that the investment
advisory contract between the Adviser and the Fund shall have terminated for any
reason.
5. EFFECTIVE PERIOD; TERMINATION AND AMENDMENT OF THIS AGREEMENT.
(a) This Agreement shall become effective as of the date first written
above, and shall remain in full force and effect continuously thereafter (unless
terminated automatically as set forth in Section 4) until terminated as set
forth below. This Agreement shall automatically terminate in the event of its
assignment or in the event of termination of the Investment Management
Agreement.
(b) This Agreement shall continue in effect for a period of more than
two years from the date hereof only so long as continuance is specifically
approved at least annually by the Board of Trustees or by the vote of a majority
of the outstanding voting securities of the Fund as required by the 1940 Act;
provided, however, that this Agreement may be terminated at any time without the
payment of any penalty:
(i) by the Board of Trustees of the Trust or by the vote of a
majority of the outstanding voting securities of the Fund;
(ii) by the Adviser on 60 days' written notice to the
Sub-Adviser; or
(iii) by the Sub-Adviser on 60 days' written notice to the
Adviser.
(c) Except to the extent permitted by the Investment Company Act of
1940 or the rules or regulations thereunder or pursuant to any exemptive relief
granted by the Securities and Exchange Commission ("SEC"), this Agreement may be
amended by the parties only if such amendment, if material, is specifically
approved by the vote of a majority of the outstanding voting securities of the
Fund (unless such approval is not required by Section 15 of the Investment
Company Act of 1940 as interpreted by the SEC or its staff) and by the vote of a
majority of the Independent Trustees.
6. CERTAIN INFORMATION.
The Sub-Adviser shall promptly notify the Adviser in writing of the
occurrence of any of the following events: (a) the Sub-Adviser shall fail to be
registered as an investment adviser under the Advisers Act and under the laws of
any jurisdiction in which the Sub-Adviser is required to be registered as an
investment adviser in order to perform its obligations under this Agreement, (b)
the Sub-Adviser has a reasonable basis for believing that the Fund has ceased to
qualify or might not qualify as a regulated investment company under Section
817(h) of the Code (c) the Sub-Adviser shall have been served or otherwise have
notice of any action, suit, proceeding, inquiry or investigation, at law or in
equity, before or by any court, public board or body, involving the affairs of
the Fund, and (d) any portfolio manager of the Fund shall have changed.
7. NONLIABILITY OF SUB-ADVISER.
(a) Except as may otherwise be provided by the Investment Company Act
of 1940 or the Investment Advisers Act of 1940, in the absence of willful
misfeasance, bad faith or gross negligence on the part of the Sub-Adviser, or
reckless disregard of its obligations and duties hereunder, neither the
Sub-Adviser nor its officers, directors, employees or agents shall be subject to
any liability to the Fund or to any shareholder of the Fund, for any act or
omission in the course of, or connected with, rendering services hereunder.
8. INDEMNIFICATION.
(a) Notwithstanding Section 7, the Sub-Adviser agrees to indemnify the
Adviser and the Funds for, and hold them harmless against, any and all losses,
claims, damages, liabilities (including amounts paid in settlement with the
written consent of the Sub-Adviser) or litigation (including reasonable legal
and other expenses) to which the Adviser or the Funds may become subject as a
result of any untrue statement of a material fact contained in disclosure
provided by the Sub-Adviser for inclusion in the Fund's Regulatory Filings or
any omission of a material fact required to be stated necessary to make such
disclosure not misleading, provided that the Sub-Adviser shall have been given
written notice concerning any matter for which indemnification is claimed under
this Section.
(b) The Adviser agrees to indemnify the Sub-Adviser for, and hold them
harmless against, any and all losses, claims, damages, liabilities (including
amounts paid in settlement with the written consent of the Adviser) or
litigation (including reasonable legal and other expenses) to which the
Sub-Adviser may become subject as a result of any untrue statement of a material
fact (or any omission of a material fact required to be stated necessary to make
such disclosure not misleading) pertaining to the Fund contained in the Fund's
Regulatory Filings, which statement was not either provided by Sub-Adviser or
submitted by Adviser to Sub-Adviser for review.
9. RECORDS; RIGHT TO AUDIT.
(a) The Sub-Adviser agrees to maintain in the form and for the period
required by Rule 31a-2 under the 1940 Act, all records relating to the Fund's
investments made by the Sub-Adviser that are required to be maintained by the
Fund pursuant to the requirements of Rule 31a-1 under the 1940 Act. The
Sub-Adviser agrees that all records that it maintains on behalf of the Fund are
the property of the Fund, and the Sub-Adviser will surrender promptly to the
Fund any such records upon the Fund's request; provided, however, that the
Sub-Adviser may retain a copy of such records. In addition, for the duration of
this Agreement, the Sub-Adviser shall preserve for the periods prescribed by
Rule 31a-2 under the 1940 Act any such records as are required to be maintained
by it pursuant to this Agreement and shall transfer all such records to any
entity designated by the Adviser upon the termination of this Agreement. This
Section shall not apply to separate records maintained by Sub-Adviser in
compliance with Section 204 of the Investment Advisers Act of 1940, which
records shall be the property of Sub-Adviser.
(b) The Sub-Adviser agrees that all accounts, books and other records
maintained and preserved by it as required hereby will be subject at any time,
and from time to time, to such reasonable periodic, special and other
examinations by the SEC, the Fund's auditors, any representative of the Fund,
the Adviser, or any governmental agency or other instrumentality having
regulatory authority over the Fund.
10. CONFIDENTIAL INFORMATION
(a) The Sub-Adviser will use records or information obtained under this
Agreement only for the purposes contemplated hereby, and will not disclose such
records or information
in any manner other than expressly authorized by the Fund, or if disclosure is
expressly required by applicable federal or state regulatory authorities or by
this Agreement.
(b) Notwithstanding the foregoing, the Sub-Adviser shall not disclose
to any third party the "non-public portfolio holdings" of the Fund, unless (1)
there is a legitimate business purpose for such disclosure, and (2) such third
party agrees in writing with Sub-Adviser to keep such information confidential
and to not engage in trading based upon such information. "Non-public portfolio
holdings" means holdings which have not first been made public by making a
filing with the Securities and Exchange Commission which is required to include
such portfolio holdings information.
11. MARKETING MATERIALS.
(a) The Fund shall furnish to the Sub-Adviser, prior to its use, each
piece of advertising, supplemental sales literature or other promotional
material in which the Sub-Adviser or any of its affiliates is named. No such
material shall be used except with prior written permission of the Sub-Adviser
or its delegate. The Sub-Adviser agrees to respond to any request for approval
on a prompt and timely basis.
(b) The Sub-Adviser shall furnish to the Fund, prior to its use, each
piece of advertising, supplemental sales literature or other promotional
material in which the Fund, the Adviser or any of the Adviser's affiliates is
named. No such material shall be used except with prior written permission of
the Fund or its delegate. The Fund agrees to respond to any request for approval
on a prompt and timely basis.
12. GOVERNING LAW.
This Agreement shall be construed and interpreted in accordance with
the laws of the State of Delaware without regard to conflict of law principles,
and the applicable provisions of the Investment Company Act of 1940 or other
federal laws and regulations which may be applicable. To the extent that the
applicable law of the State of Delaware or any of the provisions herein,
conflict with the applicable provisions of the Investment Company Act of 1940 or
other federal laws and regulations which may be applicable, the latter shall
control.
13. SEVERABILITY/INTERPRETATION.
If any provision of this Agreement is held invalid by a court decision,
statute, rule or otherwise, the remainder of this Agreement shall not be
affected thereby. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors. Where the effect
of a requirement of the 1940 Act reflected in any provision of this Agreement is
altered by a rule, regulation or order of the SEC, whether of special or general
application, such provision shall be deemed to incorporate the effect of such
rule, regulation or order.
14. NOTICES.
Any notice that is required to be given by the parties to each other
under the terms of this Agreement shall be given in writing, delivered, or
mailed to the other party, or transmitted by facsimile to the parties at the
following addresses or facsimile numbers, which may from time to time be changed
by the parties by notice to the other party:
(a) If to the Sub-Adviser:
Xxxxxxxxx Investment Counsel, LLC
000 Xxxx Xxxxxxx Xxxxxxxxx
Xxxxx 0000
Xxxx Xxxxxxxxxx, Xxxxxxx 00000
With a copy to:
Franklin Xxxxxxxxx Investments
Xxx Xxxxxxxx Xxxxxxx
Xxx Xxxxx, XX 00000-0000
Attention: General Counsel
(b) If to the Adviser:
Lincoln Investment Advisors Corporation
Xxx Xxxxxxx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxxxx Xxxxxxxxx
Facsimile (000) 000-0000
15. CERTAIN DEFINITIONS.
For the purposes of this Agreement, the terms "vote of a majority of
the outstanding voting securities," "interested persons," and "assignment" shall
have the meaning defined in the 1940 Act, and subject to such orders or
no-action letters as may be granted by the SEC and/or its staff.
IN WITNESS WHEREOF, the parties have caused this instrument to be
signed by their duly authorized representatives, all as of the day and year
first above written.
LINCOLN INVESTMENT ADVISORS
CORPORATION
/s/ Xxxxx Xxxxx
---------------------------------------
Name: Xxxxx Xxxxx
Title: President
XXXXXXXXX INVESTMENT COUNSEL, LLC
/s/ Xxxx Xxxxx
---------------------------------------
Name: Xxxx Xxxxx
Title: President, CIO
Accepted and agreed to
as of the day and year
first above written:
LINCOLN VARIABLE INSURANCE PRODUCTS TRUST,
on behalf of the LVIP Xxxxxxxxx Growth Fund
/s/ Xxxxx X. Xxxxxxxxx
-----------------------------------------
Name: Xxxxx X. Xxxxxxxxx
Title: President
