Exhibit 28(h)(6)
EXPENSE LIMITATION AGREEMENT
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This Expense Limitation Agreement, effective as of August 1, 2010, 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").
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WHEREAS, the Trust and LIA, the investment adviser to the Funds, have
determined that it is appropriate and in the best interests of each Fund and its
shareholders to maintain the expenses of each Fund at a level below the level to
which each such Fund may normally be subject; and
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
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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 Operating
Expense limit ("Operating Expense Limit Amount"). 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 LVIP American Fund of Funds
2. Term and Termination of Agreement.
This Agreement will continue with respect to each Fund at least through
April 30, 2012, and renew automatically for one-year terms unless LIA provides
written notice of termination to a Fund at least 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.
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Name: Xxxxx X. Xxxxxxx Name: Xxxxxxx X. Xxxxx, Xx.
Title: Second Vice President Title: Chief Accounting Officer and
Second Vice President
2 LVIP American Fund of Funds
SCHEDULE A
OPERATING EXPENSE LIMITS
This Agreement relates to the following Funds of the Trust:
MAXIMUM OPERATING EXPENSE LIMIT (AS A
NAME OF FUND PERCENTAGE OF AVERAGE NET ASSETS)
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LVIP American Balanced Allocation Fund Standard Class: 0.30%
Service Class: 0.65%
LVIP American Growth Allocation Fund Standard Class: 0.30%
Service Class: 0.65%
LVIP American Income Allocation Fund Standard Class: 0.30%
Service Class: 0.65%
3 LVIP American Fund of Funds
