EXPENSE LIMITATION AGREEMENT
This EXPENSE LIMITATION AGREEMENT, effective as of the dates indicated on Schedule A, shall be between LINCOLN FINANCIAL INVESTMENTS CORPORATION (“LFI”) and LINCOLN FUNDS TRUST (the “Trust”), on behalf of each series (each, a “Fund”) set forth in Schedule A to this Expense Limitation Agreement.
WHEREAS, the Trust’s 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 LFI (but excluding Enumerated Expenses, as defined below), exceed the Operating Expense Limit, as defined below, such excess amount (the “Excess Amount”) shall be the liability of LFI.
(b) Enumerated Expenses. Enumerated Expenses shall mean (i) interest, taxes, dividends tied to short sales, and brokerage commissions; (ii) underlying fund fees and expenses; (iii) other expenses attributable to, and incurred as a result of, a Fund’s investments; (iv) amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the Investment Company Act of 1940 Act (the “1940 Act”); and (v) extraordinary expenses (including litigation expenses) not incurred in the ordinary course of a Fund’s business.
(c) 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.
(d) Method of Computation. To determine LFI’s obligation with respect to the Excess Amount, each day the Fund Operating Expenses for each Fund shall be estimated and accrued. Each day, a 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, a Fund shall record a receivable from LFI 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, each Fund shall deliver to LFI a statement indicating the Excess Amount owed to that Fund for the month and LFI will remit to that Fund an amount that is sufficient to pay that monthly Excess Amount. LFI’s method of notification and payment to each Fund shall be as mutually agreed upon by LFI and the Fund.
(e) 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 LFI to each Fund with respect to the previous fiscal year shall equal the Excess Amount for that Fund.
2. Possible Reimbursement.
LFI retains the right to receive reimbursements of Excess Amounts waived or paid by LFI under this Agreement, and each Fund hereby agrees to such reimbursements, for a period of three years after the occurrence of any waiver and/or reimbursement, provided that the Fund is able to effect such payments to LFI and remain in compliance with the Operating Expense Limit in effect at the time the waiver or
payment of Excess Amounts occurred and the Operating Expense Limit in effect at the time such reimbursement is sought.
3. Term and Termination of Agreement.
This Agreement will continue with respect to each Fund in accordance with the dates indicated on Schedule A, and renew automatically for one year terms unless LFI provides written notice of termination of the Agreement to each such Fund at least ten (10) days prior to the end of the then current term.
4. Miscellaneous.
(a) Nothing herein contained shall be deemed to require the Trust or a Fund 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 a Fund.
(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.
The parties hereto have caused this EXPENSE LIMITATION AGREEMENT to be signed by their duly authorized officers as of the 2nd day of July 2024.
| LINCOLN FINANCIAL INVESTMENTS | LINCOLN FUNDS TRUST, on behalf of each of its | |||||||
| CORPORATION | Funds listed on Schedule A | |||||||
| /s/ Xxxxxxxx X. Xxxxxx | /s/ Xxxxx Xxxxxxxxx | |||||||
| Name: | Xxxxxxxx X. Xxxxxx | Name: | Xxxxx Xxxxxxxxx | |||||
| Title: | Senior Vice President | Title: | Vice President & Chief Accounting Officer | |||||
SCHEDULE A
AMENDED AND RESTATED
THIS SCHEDULE A lists the Funds and the Expense Limitation Amounts which are established pursuant to this Amended and Restated Expense Limitation Agreement.
| LFT FUND NAME |
CLASS I EXPENSE LIMIT |
CLASS A EXPENSE LIMIT |
EFFECTIVE DATE |
TERMINATION DATE |
||||||||||||
| Lincoln U.S. Equity Income Maximizer Fund |
1.07 | % | 1.32 | % | 8/1/2024 | 7/31/2026 | ||||||||||
| Lincoln Inflation Plus Fund |
1.10 | % | 1.35 | % | 8/1/2024 | 7/31/2026 | ||||||||||
