Exhibit 28(d)(1)(a)
INVESTMENT MANAGEMENT AGREEMENT
THIS AGREEMENT is made by and between the LINCOLN VARIABLE INSURANCE
PRODUCTS TRUST (the "Trust"), a Delaware statutory trust, on behalf of each of
its series (the "Funds"), which are listed in Schedule A to this Agreement, and
LINCOLN INVESTMENT ADVISORS CORPORATION (the "Investment Manager"), a Tennessee
corporation.
WITNESSETH:
WHEREAS, the Trust has been organized and operates as a series investment
company registered under the Investment Company Act of 1940, as amended (the
"1940 Act"); and
WHEREAS, each Fund engages in the business of investing and reinvesting its
assets in securities; and
WHEREAS, the Investment Manager is registered under the Investment Advisers
Act of 1940 as an investment adviser and engages in the business of providing
investment management services; and
WHEREAS, each Fund and the Investment Manager desire to enter into this
Agreement.
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. The Trust hereby employs the Investment Manager to manage the investment
and reinvestment of each Fund's assets and to administer its affairs, subject to
the direction of the Trust's Board of Trustees and officers for the period and
on the terms hereinafter set forth. The Investment Manager hereby accepts such
employment and agrees during such period to render the services and assume the
obligations herein set forth for the compensation herein provided. The
Investment Manager shall for all purposes herein be deemed to be an independent
contractor, and shall, unless otherwise expressly provided and authorized, have
no authority to act for or represent the Funds in any way, or in any way be
deemed an agent of the Funds. The Investment Manager shall regularly make
decisions as to what securities and other instruments to purchase and sell on
behalf of each Fund and shall effect the purchase and sale of such investments
in furtherance of each Fund's objectives and policies. The Investment Manager
shall furnish the Board of Trustees with such information and reports regarding
each Fund's investments as the Investment Manager deems appropriate or as the
Board of Trustees may reasonably request.
2. The Trust shall conduct its own business and affairs and shall bear the
expenses and salaries necessary and incidental thereto, including, but not in
limitation of the foregoing, the costs incurred in: the maintenance of its
corporate existence; the maintenance of its own books, records and procedures;
dealing with each Fund's shareholders; the payment of dividends; transfer of
shares, including issuance, redemption and repurchase of shares; preparation of
share
certificates; reports and notices to shareholders; calling and holding of
shareholders' meetings; miscellaneous office expenses; brokerage commissions;
custodian fees; legal and accounting fees; taxes; and federal and state
registration fees. In conducting its own business and affairs, the Trust may
utilize its trustees, officers and employees; may utilize the facilities and
personnel of the Investment Manager and its affiliates; and may enter into
agreements with third parties, either affiliated or non-affiliated, to perform
any of these functions. In the conduct of the respective businesses of the
parties hereto and in the performance of this Agreement, the Trust, the
Investment Manager and its affiliates may share facilities common to each, which
may include, without limitation, legal and accounting personnel, with
appropriate proration of expenses between them. Directors, officers and
employees of the Investment Manager or its affiliates may be directors, trustees
and/or officers of any of the investment companies within the Lincoln Financial
Group family. Directors, officers and employees of the Investment Manager or its
affiliates who are directors, trustees, and/or officers of these investment
companies shall not receive any compensation from such investment companies for
acting in such dual capacity.
3. (a) Subject to the primary objective of obtaining the best execution,
the Investment Manager may place orders for the purchase and sale of portfolio
securities and other instruments with such broker/dealers selected who provide
statistical, factual and financial information and services to the Funds, to the
Investment Manager, to any sub-adviser (as defined in Paragraph 5 hereof, a
"Sub-Adviser") or to any other fund for which the Investment Manager or any
Sub-Adviser provides investment advisory services and/or with broker/dealers who
sell shares of the Fund or who sell shares of any other investment company (or
series thereof) for which the Investment Manager or any Sub-Adviser provides
investment advisory services. Broker/dealers who sell shares of any investment
company or series thereof for which the Investment Manager or Sub-Adviser
provides investment advisory services shall only receive orders for the purchase
or sale of portfolio securities to the extent that the placing of such orders is
in compliance with the Rules of the Securities and Exchange Commission and NASD
Regulation, Inc.
(b) Notwithstanding the provisions of subparagraph (a) above and subject to
such policies and procedures as may be adopted by the Board of Trustees and
officers of the Trust, the Investment Manager may cause a Fund to pay a member
of an exchange, broker or dealer an amount of commission for effecting a
securities transaction in excess of the amount of commission another member of
an exchange, broker or dealer would have charged for effecting that transaction,
in such instances where the Investment Manager has determined in good faith that
such amount of commission was reasonable in relation to the value of the
brokerage and research services provided by such member, broker or dealer,
viewed in terms of either that particular transaction or the Investment
Manager's overall responsibilities with respect to the Fund and to other
investment companies (or series thereof) and other advisory accounts for which
the Investment Manager or any Sub-Adviser exercises investment discretion.
4. As compensation for the services to be rendered to each Fund by the
Investment Manager under the provisions of this Agreement, each Fund shall pay
monthly to the Investment Manager exclusively from that Fund's assets, a fee
based on the average daily net assets of that Fund during the month. Such fee
shall be calculated in accordance with the fee schedule applicable to that Fund
as set forth in Schedule A hereto.
2
If this Agreement is terminated prior to the end of any calendar month with
respect to a particular Fund, the management fee for such Fund shall be prorated
for the portion of any month in which this Agreement is in effect with respect
to such Fund according to the proportion which the number of calendar days
during which the Agreement is in effect bears to the number of calendar days in
the month, and shall be payable within 10 calendar days after the date of
termination.
5. The Investment Manager may, at its expense, select and contract with one
or more investment advisers registered under the Investment Advisers Act of 1940
("Sub-Advisers") to perform some or all of the services for a Fund for which it
is responsible under this Agreement. The Investment Manager will compensate any
Sub-Adviser for its services to the Fund. The Investment Manager may terminate
the services of any Sub-Adviser at any time with the approval of the Board of
Trustees. At such time, the Investment Manager shall assume the responsibilities
of such Sub-Adviser unless and until a successor Sub-Adviser is selected and the
approval of the Board of Trustees and any requisite shareholder approval is
obtained. The Investment Manager will continue to have responsibility for all
advisory services furnished by any Sub-Adviser.
6. The services to be rendered by the Investment Manager to each Fund under
the provisions of this Agreement are not to be deemed to be exclusive, and the
Investment Manager 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.
7. The Investment Manager, its trustees, officers, employees, agents and
shareholders may engage in other businesses, may render investment advisory
services to other investment companies, or to any other corporation,
association, firm or individual, and may render underwriting services to any
Fund or to any other investment company, corporation, association, firm or
individual.
8. It is understood and agreed that so long as the Investment Manager
and/or its advisory affiliates shall continue to serve as each Fund's investment
adviser, other investment companies as may be sponsored or advised by the
Investment Manager or its affiliates shall have the right to adopt and to use
the words "LIAC," "Lincoln Investment Advisors Corporation" in their names and
in the names of any series or class of shares of such investment companies.
9. In the absence of willful misfeasance, bad faith, gross negligence, or a
reckless disregard of the performance of its duties as the Investment Manager to
each Fund, the Investment Manager shall not be subject to liability to the Fund
or to any shareholder of the Fund for any action or omission in the course of,
or connected with, rendering services hereunder or for any losses that may be
sustained in the purchase, holding or sale of any security, or otherwise.
10. This Agreement shall be executed and become effective as of the date
written below, and shall become effective with respect to each Fund as of the
effective date set forth in Schedule A for that Fund, if approved by the vote of
a majority of the outstanding voting securities of that Fund. It shall continue
in effect for an initial period of two years for each Fund
3
and may be renewed thereafter only so long as such renewal and 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 that Fund and only if the
terms and the renewal hereof have been approved by the vote of a majority of the
Trustees who are not parties hereto or interested persons of any such party,
cast in person at a meeting called for the purpose of voting on such approval.
Notwithstanding the foregoing, this Agreement may be terminated as to any Fund
by the Fund at any time, without the payment of a penalty, on not more than
sixty days' written notice to the Investment Manager of the Fund's intention to
do so, pursuant to action by the Board of Trustees or pursuant to the vote of a
majority of the outstanding voting securities of the affected Fund. The
Investment Manager may terminate this Agreement as to any Fund at any time,
without the payment of a penalty, on sixty days' written notice to the Trust of
its intention to do so. Upon termination of this Agreement as to a Fund, the
obligations of that Fund and the Investment Manager with respect to that Fund
shall cease and terminate as of the date of such termination, except for any
obligation to respond for a breach of this Agreement committed prior to such
termination, and except for the obligation of the Fund to pay to the Investment
Manager the fee provided in Paragraph 4 hereof, prorated to the date of
termination. This Agreement shall automatically terminate in the event of its
assignment.
11. This Agreement shall extend to and bind the heirs, executors,
administrators and successors of the parties hereto.
12. 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.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed by their duly authorized officers and duly attested as of the 30th day of
April, 2007.
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LINCOLN VARIABLE INSURANCE PRODUCTS
TRUST, on behalf of each of its series
/s/ Xxxxxx X. Xxxxx
-------------------------------------------
Xxxxxx X. Xxxxx
Name: Xxxxxx X. Xxxxx
Title: President
LINCOLN INVESTMENT ADVISORS CORPORATION
/s/ Xxxxxxx X. Xxxxx, Xx.
-------------------------------------------
Xxxxxxx X. Xxxxx, Xx.
Name: Xxxxxxx X. Xxxxx, Xx.
Title: Second Vice President & Chief
Accounting Officer
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SCHEDULE A
THIS SCHEDULE A lists the Funds for which the Investment Manager provides
investment management services pursuant to this Agreement:
FUND NAME MANAGEMENT FEE SCHEDULE EFFECTIVE DATE
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)
----------------------------------------------------- ----------------------------------------------- ----------------------------
LVIP American Balanced Allocation Fund .25% July 30, 2010
LVIP American Growth Allocation Fund .25% July 30, 2010
LVIP American Income Allocation Fund .25% July 30, 2010
LVIP BlackRock Inflation Protected Bond Fund 0.45% of the first $500 million; and April 30, 2010
0.40% of the excess over $500 million
LVIP Capital Growth Fund .75% of the first $100 million; April 30, 2007
.70% of the next $150 million;
.65% of the next $750 million; and
.60% of the excess over $1 billion
LVIP Xxxxx & Steers Global Real Estate Fund .95% April 30, 2007
LVIP Columbia Value Opportunities Fund 1.05% of the first $60 million; April 30, 2007
.75% of the next $90 million; and
.65% of the excess over $150 million
LVIP Delaware Bond Fund .48% of the first $200 million; April 30, 2007
.40% of the next $200 million; and
.30% of the excess over $400 million
LVIP Delaware Diversified Floating Rate Fund 0.60% of the first $500 million; and April 30, 2010
0.55% of the excess over $500 million
LVIP Delaware Foundation Conservative Allocation Fund .75% May 1, 2009
LVIP Delaware Foundation Conservative Allocation Fund .75% May 1, 2009
A-1
FUND NAME MANAGEMENT FEE SCHEDULE EFFECTIVE DATE
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)
----------------------------------------------------- ----------------------------------------------- ----------------------------
LVIP Delaware Foundation Conservative Allocation Fund .75% May 1, 2009
LVIP Delaware Growth and Income Fund .48% of the first $200 million; April 30, 2007
.40% of the next $200 million; and
.30% of the excess of $400 million
LVIP Delaware Social Awareness Fund .48% of the first $200 million; April 30, 2007
.40% of the next $200 million; and
.30% of the excess over $400 million
LVIP Delaware Special Opportunities Fund .48% of the first $200 million; April 30, 2007
.40% of the next $200 million; and
.30% of the excess over $400 million
LVIP Global Income Fund .65% May 1, 2009
LVIP Janus Capital Appreciation Fund .75% of the first $500 million; and April 30, 2007
.70% of the excess over $500 million
LVIP X.X. Xxxxxx High Yield Fund 0.65% of the first $500 million; and April 30, 2010
0.60% of the excess over $500 million
LVIP Xxxxxxx International Growth Fund 1.00% of the first $50 million; April 30, 2007
.95% of the next $50million;
.90% of the next $50 million;
.85% of the next $100 million; and
.80% of the excess over $250 million
LVIP MFS Value Fund .75% of the first $75 million; April 30, 2007
.70% of the next $75 million;
.65% of the next $50 million; and
.60% of the excess over $200 million
LVIP Mid-Cap Value Fund 1.05% of the first $25 million; April 30, 2007
.95% of the next $25 million;
.85% of the next $50 million;
.75% of the next $150 million; and
.70% of the excess over $250 million
LVIP Mondrian International Value Fund .90% of the first $200 million; April 30, 2007
.75% of the next $200 million; and
.60% of the excess over $400 million
LVIP Money Market Fund .48% of the first $200 million; April 30, 2007
.40% of the next $200 million; and
.30% of the excess over $400 million
A-2
FUND NAME MANAGEMENT FEE SCHEDULE EFFECTIVE DATE
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)
----------------------------------------------------- ----------------------------------------------- ----------------------------
LVIP SSgA Bond Index Fund .40% May 1, 2008
LVIP SSgA Conservative Index Allocation Fund .25% July 30, 2010
LVIP SSgA Conservative Structured Allocation Fund .25% July 30, 2010
LVIP SSgA Developed International 150 Fund .75% May 1, 2008
LVIP SSgA Emerging Markets 100 Fund 1.09% June 18, 2008
LVIP SSgA Global Tactical Allocation Fund .25% July 30, 2010
LVIP SSgA International Index Fund .40% May 1, 2008
LVIP SSgA Large Cap 100 Fund .52% May 1, 2008
LVIP SSgA Moderate Index Allocation Fund .25% July 30, 2010
LVIP SSgA Moderately Aggressive Index Allocation Fund .25% July 30, 2010
LVIP SSgA Moderate Structured Allocation Fund .25% July 30, 2010
LVIP SSgA Moderately Aggressive Structured .25% July 30, 2010
Allocation Fund
LVIP SSgA S&P 500 Index Fund .24% of the first $500 million; April 30, 2007
.20% of the next $500 million; and
.16% of the excess over $1 billion
LVIP SSgA Small-Cap Index Fund .32% April 30, 2007
LVIP SSgA Small-Mid Cap 200 Fund .69% May 1, 2008
LVIP X. Xxxx Price Growth Stock Fund .80% of the first $50 million; April 30, 2007
.75% of the next $50 million;
.70% of the next $150 million;
.65% of the next $250 million; and
.60% of the excess over $500 million
LVIP X. Xxxx Price Structured Mid-Cap Growth Fund .75% of the first $200 million; April 30, 2007
.70% of the next $200 million; and
.65% of the excess over $400 million
LVIP Xxxxxxxxx Growth Fund .75% of the first $200 million; April 30, 2007
.65% of the next $300 million; and
.60% of the excess over $500 million
A-3
FUND NAME MANAGEMENT FEE SCHEDULE EFFECTIVE DATE
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)
----------------------------------------------------- ----------------------------------------------- ----------------------------
LVIP Xxxxxx Mid-Cap Growth Fund .90% of the first $25 million; April 30, 2007
.85% of the next $50 million;
.80% of the next $75 million;
.70% of the next $100 million; and
.65% of the excess over $250 million
LVIP Xxxxx Fargo Intrinsic Value Fund .75% of the first $500 million; and October 1, 2009
.70% of the excess over $500 million
LVIP Wilshire Conservative Profile Fund .25% April 30, 2007
LVIP Wilshire Moderate Profile Fund .25% April 30, 2007
LVIP Wilshire Moderately Aggressive Profile Fund .25% April 30, 2007
LVIP Wilshire 2010 Profile Fund .25% April 30, 2007
LVIP Wilshire 2020 Profile Fund .25% April 30, 2007
LVIP Wilshire 2030 Profile Fund .25% April 30, 2007
LVIP Wilshire 2040 Profile Fund .25% April 30, 2007
A-4
