EXHIBIT (e)(1)
INTERIM SUB-ADVISORY AGREEMENT
ING VARIABLE INSURANCE TRUST
THIS INTERIM SUB-ADVISORY AGREEMENT made this 29th day of April 2005
between ING Investments, LLC, an Arizona limited liability company (the
"Manager"), and ING Investment Management Advisors B.V., an indirect wholly
owned subsidiary of ING Groep N.V., domiciled in The Hague, The Netherlands (the
"Sub-Adviser").
WHEREAS, ING VARIABLE INSURANCE TRUST (the "Trust") is registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end,
management investment company; and
WHEREAS, the Trust is authorized to issue separate series, each series
having its own investment objective or objectives, policies, and limitations;
and
WHEREAS, the Trust may offer shares of additional series in the future;
and
WHEREAS, pursuant to a Restated Investment Management Agreement, dated May
9, 2001, as amended (the "Management Agreement"), a copy of which has been
provided to the Sub-Adviser, the Trust has retained the Manager to render
advisory and management services with respect to certain of the Trust's series;
and
WHEREAS, pursuant to authority granted to the Manager in the Management
Agreement, the Manager wishes to retain the Sub-Adviser to furnish investment
advisory services to one or more of the series of the Trust, and the Sub-Adviser
is willing to furnish such services to the Trust and the Manager.
WHEREAS, in order to provide continuous and uninterrupted investment
advisory services to the Trust, pursuant to Rule 15a-4 under the 1940 Act, the
Sub-Adviser and the Manager sought, and approval was obtained from a majority of
the Board of Trustees (the "Board") of the Trust who have no interest in this
Agreement and are not interested persons (as such term is defined in the 0000
Xxx) of any party to this Agreement, to enter into this Interim Sub-Advisory
Agreement to be effective upon the date first written above.
NOW, THEREFORE, in consideration of the premises and the promises and
mutual covenants herein contained, it is agreed between the Manager and the
Sub-Adviser as follows:
1. Appointment. The Manager hereby appoints the Sub-Adviser to act as the
investment adviser and manager to the series of the Trust set forth on SCHEDULE
A hereto (the "Series") for the periods and on the terms set forth in this
Agreement. The Sub-Adviser accepts such appointment and agrees to furnish the
services herein set forth for the compensation herein provided.
In the event the Trust designates one or more series (other than the
Series) with respect to which the Manager wishes to retain the Sub-Adviser to
render investment advisory services hereunder, it shall notify the Sub-Adviser
in writing. If the Sub-Adviser is willing to render such services, it shall
notify the Manager in writing, whereupon such series shall become a Series
hereunder, and be subject to this Agreement.
2. Sub-Adviser Duties. Subject to the supervision of the Trust's Board of
Trustees and the Manager, the Sub-Adviser will provide a continuous investment
program for each Series' portfolio and determine in its discretion the
composition of the assets of each Series' portfolio, including determination of
the purchase, retention, or sale of the securities, cash, and other investments
contained in the portfolio. The Sub-Adviser will provide investment research and
conduct a continuous program of evaluation, investment, sales, and reinvestment
of each Series' assets by determining the securities and other investments that
shall be purchased, entered into, sold, closed, or exchanged for the Series,
when these transactions should be executed, and what portion of the assets of
the Series should be held in the various securities and other investments in
which it may invest. To the extent permitted by the investment policies of each
Series, the Sub-Adviser shall make decisions for the Series as to foreign
currency matters and make determinations as to and execute and perform foreign
currency exchange contracts on behalf of the Series. The Sub-Adviser will
provide the services under this Agreement in accordance with each Series'
investment objective or objectives, policies, and restrictions as stated in the
Trust's Registration Statement filed with the Securities and Exchange Commission
("SEC"), as amended, copies of which shall be sent to the Sub-Adviser by the
Manager prior to the commencement of this Agreement and promptly following any
such amendment. The Sub-Adviser further agrees as follows:
(a) The Sub-Adviser will conform with the 1940 Act and all rules and
regulations thereunder, all other applicable federal and state laws
and regulations, with any applicable procedures adopted by the
Trust's Board of Trustees of which the Sub-Adviser has been sent a
copy, and the provisions of the Registration Statement of the Trust
filed under the Securities Act of 1933 (the "1933 Act") and the 1940
Act, as supplemented or amended, of which the Sub-Adviser has
received a copy, and with the Manager's portfolio manager operating
policies and procedures as in effect on the date hereof, as such
policies and procedures may be revised or amended by the Manager and
agreed to by the Sub-Adviser. In carrying out its duties under the
Interim Sub-Advisory Agreement, the Sub-Adviser will comply with the
following policies and procedures:
(i) The Sub-Adviser will (1) manage each Series so that it meets
the income and asset diversification requirements of Section
851 of the Internal Revenue Code of 1986, as amended (the
"Code"), and (2) manage each Series so that no action or
omission on the part of the Sub-Adviser shall cause a Series
to fail to comply with the diversification requirements of
Section 817(h) of the Code, and the regulations issued
thereunder.
(ii) The Sub-Adviser will have no duty to vote any proxy solicited
by or with respect to the issuers of securities in which
assets of the Series are invested unless the Manager gives the
Sub-Adviser written instructions to the contrary. The
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Sub-Adviser will immediately forward any proxy solicited by or
with respect to the issuers of securities in which assets of
the Series are invested to the Manager or to any agent of the
Manager designated by the Manager in writing.
The Sub-Adviser will make appropriate personnel available for
consultation for the purpose of reviewing with representatives
of the Manager and/or the Board any proxy solicited by or with
respect to the issuers of securities in which assets of the
Series are invested. Upon request, the Sub-Adviser will submit
a written voting recommendation to the Manager for such
proxies. In making such recommendations, the Sub-Adviser shall
use its good faith judgment to act in the best interests of
the Series. The Sub-Adviser shall disclose to the best of its
knowledge any conflict of interest with the issuers of
securities that are the subject of such recommendation
including whether such issuers are clients or are being
solicited as clients of the Sub-Adviser or of its affiliates.
(iii) In connection with the purchase and sale of securities for
each Series, the Sub-Adviser will arrange for the transmission
to the custodian and portfolio accounting agent for the Series
on a daily basis, such confirmation, trade tickets, and other
documents and information, including, but not limited to,
Cusip, Sedol, or other numbers that identify securities to be
purchased or sold on behalf of the Series, as may be
reasonably necessary to enable the custodian and portfolio
accounting agent to perform its administrative and record
keeping responsibilities with respect to the Series. With
respect to portfolio securities to be settled through the
Depository Trust Company, the Sub-Adviser will arrange for the
prompt transmission of the confirmation of such trades to the
Trust's custodian and portfolio accounting agent.
(iv) The Sub-Adviser will assist the custodian and portfolio
accounting agent for the Trust in determining or confirming,
consistent with the procedures and policies stated in the
Registration Statement for the Trust or adopted by the Board
of Trustees, the value of any portfolio securities or other
assets of the Series for which the custodian and portfolio
accounting agent seeks assistance from or identifies for
review by the Sub-Adviser. The parties acknowledge that the
Sub-Adviser is not a custodian of the Series' assets and will
not take possession or custody of such assets.
(v) The Sub-Adviser will provide the Manager, no later than the
10th business day following the end of each Series'
semi-annual period and fiscal year, a letter to shareholders
(to be subject to review and editing by the Manager)
containing a discussion of those factors referred to in Item
5(a) of 1940 Act Form N-1A in respect of both the prior
quarter and the fiscal year to date.
(vi) The Sub-Adviser will complete and deliver to the Manager a
written compliance checklist in a form provided by the Manager
for each month by the 10th business day of the following
month.
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(b) The Sub-Adviser will complete and deliver to the Manager by the 10th
business day of each month a written report on each Series of the
Trust that contains the following information as of the immediately
previous month's end.
(i) A performance comparison to the Series benchmark listed in the
prospectus as well as a comparison to other mutual funds as
listed in the rankings prepared by Lipper Analytical Services,
Inc., Morningstar, Inc., or similar independent services that
monitor the performance of mutual funds or with other
appropriate indexes of investment securities;
(ii) Composition of the assets of each Series' portfolio and the
impact of key portfolio holdings and sector concentrations on
the Series; and
(iii) Confirmation of each Series' current investment objective and
Sub-Adviser's projected plan to realize the Series' investment
objectives.
(c) The Sub-Adviser will contact Morningstar to clarify any style box
conflicts with each Series' style and the anticipated timeframe in
which Morningstar will remedy such conflicts, if any.
(d) The Sub-Adviser will make available to the Trust and the Manager,
promptly upon request, any of the Series' investment records and
ledgers maintained by the Sub-Adviser (which shall not include the
records and ledgers maintained by the custodian or portfolio
accounting agent for the Trust) as are necessary to assist the Trust
and the Manager to comply with requirements of the 1940 Act and the
Investment Advisers Act of 1940 (the "Advisers Act"), as well as
other applicable laws. The Sub-Adviser will furnish to regulatory
authorities having the requisite authority any information or
reports in connection with such services in respect to the Series
which may be requested in order to ascertain whether the operations
of the Trust are being conducted in a manner consistent with
applicable laws and regulations.
(e) The Sub-Adviser will provide reports to the Trust's Board of
Trustees for consideration at meetings of the Board of Trustees on
the investment program for each Series and the issuers and
securities represented in each Series' portfolio, and will furnish
the Trust's Board of Trustees with respect to each Series such
periodic and special reports as the Trustees and the Manager may
reasonably request.
3. Broker-Dealer Selection. The Sub-Adviser is authorized to make
decisions to buy and sell securities and other investments for each Series'
portfolio, broker-dealer selection, and negotiation of brokerage commission
rates in effecting a security transaction. The Sub-Adviser's primary
consideration in effecting a security transaction will be to obtain the best
execution for the Series, taking into account the factors specified in the
prospectus and/or statement of additional information for the Trust, and
determined in consultation with the Manager, which include price (including the
applicable brokerage commission or dollar spread), the size of the order, the
nature of the market for the security, the timing of the transaction, the
reputation, the experience and financial stability of the broker-dealer
involved, the quality of the service, the
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difficulty of execution, and the execution capabilities and operational
facilities of the firm involved, and the firm's risk in positioning a block of
securities. Accordingly, the price to a Series in any transaction may be less
favorable than that available from another broker-dealer if the difference is
reasonably justified, in the judgment of the Sub-Adviser in the exercise of its
fiduciary obligations to the Trust, by other aspects of the portfolio execution
services offered. Subject to such policies as the Trust's Board of Trustees or
Manager may determine and consistent with Section 28(e) of the Securities
Exchange Act of 1934, 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 a Series to pay a broker-dealer for
effecting a portfolio investment transaction in excess of the amount of
commission another broker-dealer 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, viewed in terms of either that
particular transaction or the Sub-Adviser's or the Manager's overall
responsibilities with respect to the Series and to their respective other
clients as to which they exercise investment discretion. The Sub-Adviser will
consult with the Manager to the end that portfolio transactions on behalf of a
Series are directed to broker-dealers on the basis of criteria reasonably
considered appropriate by the Manager. To the extent consistent with these
standards, the Sub-Adviser is further authorized to allocate the orders placed
by it on behalf of a Series to the Sub-Adviser if it is registered as a
broker-dealer with the SEC, to an affiliated broker-dealer, or to such brokers
and dealers who also provide research or statistical material, or other services
to the Series, the Sub-Adviser, or an affiliate of the Sub-Adviser. Such
allocation shall be in such amounts and proportions as the Sub-Adviser shall
determine consistent with the above standards, and the Sub-Adviser will report
on said allocation regularly to the Trust's Board of Trustees indicating the
broker-dealers to which such allocations have been made and the basis therefor.
4. Disclosure about Sub-Adviser. The Sub-Adviser has reviewed the most
recent Post-Effective Amendment to the Registration Statement for the Trust
filed with the SEC that contains disclosure about the Sub-Adviser, and
represents and warrants that, with respect to the disclosure about the
Sub-Adviser or information relating, directly or indirectly, to the Sub-Adviser,
such Registration Statement contains, as of the date hereof, no untrue statement
of any material fact and does not omit any statement of a material fact which
was required to be stated therein or necessary to make the statements contained
therein, in light of the circumstances under which they were made, not
misleading. The Sub-Adviser further represents and warrants that it is a duly
registered investment adviser under the Advisers Act and will maintain such
registration so long as this Agreement remains in effect. The Sub-Adviser will
provide the Manager with a copy of the Sub-Adviser's Form ADV, Part II at the
time the Form ADV is filed with the SEC.
5. Expenses. During the term of this Agreement, the Sub-Adviser will pay
all expenses incurred by it and its staff and for their activities in connection
with its portfolio management duties under this Agreement. The Manager or the
Trust shall be responsible for all the expenses of the Trust's operations. In
addition, if the Trust is required, under applicable law, to supplement the
Registration Statement because of a change requested by the Sub-Adviser, the
Sub-Adviser will reimburse the Trust and/or the Manager for the cost of
preparing, printing and distributing such supplement, unless the Sub-Adviser is
requesting the change in order to comply with an applicable law, rule or
regulation.
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6. Compensation. For the services provided to each Series, the Manager
will pay the Sub-Adviser an interim sub-advisory fee equal to the amount
specified for such Series in SCHEDULE A hereto, payable monthly in arrears. The
fee will be appropriately prorated to reflect any portion of a calendar month
that this Agreement is not in effect among the parties. In accordance with the
provisions of the Management Agreement, the Manager is solely responsible for
the payment of fees to the Sub-Adviser, and the Sub-Adviser agrees to seek
payment of its fees solely from the Manager; provided, however, that if the
Trust fails to pay the Manager all or a portion of the management fee under said
Management Agreement when due, and the amount that was paid is insufficient to
cover the Sub-Adviser's fee under this Agreement for the period in question,
then the Sub-Adviser may enforce against the Trust any rights it may have as a
third-party beneficiary under the Management Agreement and the Manager will take
all steps appropriate under the circumstances to collect the amount due from the
Trust.
7. Marketing Materials.
(a) During the term of this Agreement, the Sub-Adviser agrees to furnish
the Manager at its principal office for prior review and approval by
the Manager all written and/or printed materials, including but not
limited to, PowerPoint(R) or slide presentations, news releases,
advertisements, brochures, fact sheets and other promotional,
informational or marketing materials (the "Marketing Materials") for
internal use or public dissemination, that are produced or are for
use or reference by the Sub-Adviser, its affiliates or other
designees, broker-dealers or the public in connection with the
Series, and Sub-Adviser shall not use any such materials if the
Manager reasonably objects in writing within five business days (or
such other period as may be mutually agreed) after receipt thereof.
Marketing Materials may be furnished to the Manager by first class
or overnight mail, facsimile transmission equipment, electronic
delivery or hand delivery.
(b) During the term of this Agreement, the Manager agrees to furnish the
Sub-Adviser at its principal office all prospectuses, proxy
statements, reports to shareholders, or Marketing Materials prepared
for distribution to shareholders of each Series, or the public that
refer to the Sub-Adviser in any way, prior to the use thereof, and
the Manager shall not use any such materials if the Sub-Adviser
reasonably objects in writing within five business days (or such
other period as may be mutually agreed) after receipt thereof. The
Sub-Adviser's right to object to such materials is limited to the
portions of such materials that expressly relate to the Sub-Adviser,
its services and its clients. The Manager agrees to use its
reasonable best efforts to ensure that materials prepared by its
employees or agents or its affiliates that refer to the Sub-Adviser
or its clients in any way are consistent with those materials
previously approved by the Sub-Adviser as referenced in the first
sentence of this paragraph. Marketing Materials may be furnished to
the Sub-Adviser by first class or overnight mail, facsimile
transmission equipment, electronic delivery or hand delivery.
8. Compliance.
(a) The Sub-Adviser agrees to use reasonable compliance techniques as
the Manager or the Board of Trustees may adopt, including any
written compliance procedures.
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(b) The Sub-Adviser agrees that it shall promptly notify the Manager and
the Trust (i) in the event that the SEC has censured the
Sub-Adviser; placed limitations upon its activities, functions or
operations; suspended or revoked its registration as an investment
adviser; or has commenced proceedings or an investigation that may
result in any of these actions, or (ii) upon having a reasonable
basis for believing that the Series has ceased to qualify or might
not qualify as a regulated investment company under Subchapter M of
the Internal Revenue Code. The Sub-Adviser further agrees to notify
the Manager and the Trust promptly of any material fact known to the
Sub-Adviser respecting or relating to the Sub-Adviser that is not
contained in the Registration Statement or prospectus for the Trust
(which describes the Series), or any amendment or supplement
thereto, or if any statement contained therein that becomes untrue
in any material respect.
(c) The Manager agrees that it shall promptly notify the Sub-Adviser (i)
in the event that the SEC has censured the Manager or the Trust;
placed limitations upon either of their activities, functions, or
operations; suspended or revoked the Manager's registration as an
investment adviser; or has commenced proceedings or an investigation
that may result in any of these actions, or (ii) upon having a
reasonable basis for believing that the Series has ceased to qualify
or might not qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code.
9. Books and Records. The Sub-Adviser hereby agrees that all records which
it maintains for the Series are the property of the Trust and further agrees to
surrender promptly to the Trust any of such records upon the Trust's or the
Manager's request in compliance with the requirements of Rule 31a-3 under the
1940 Act, although the Sub-Adviser may, at its own expense, make and retain a
copy of such records. The Sub-Adviser further agrees to preserve for the periods
prescribed by Rule 31a-2 under the 1940 Act the records required to be
maintained by Rule 31a-l under the 1940 Act.
10. Cooperation; Confidentiality. Each party to this Agreement agrees to
cooperate with the other party and with all appropriate governmental authorities
having the requisite jurisdiction (including, but not limited to, the SEC) in
connection with any investigation or inquiry relating to this Agreement or the
Trust. Subject to the foregoing, the Sub-Adviser shall treat as confidential all
information pertaining to the Trust and actions of the Trust, the Manager and
the Sub-Adviser, and the Manager shall treat as confidential and use only in
connection with the Series all information furnished to the Trust or the Manager
by the Sub-Adviser, in connection with its duties under the Agreement except
that the aforesaid information need not be treated as confidential if required
to be disclosed under applicable law, if generally available to the public
through means other than by disclosure by the Sub-Adviser or the Manager, or if
available from a source other than the Manager, Sub-Adviser or the Trust.
11. Non-Exclusivity. The services of the Sub-Adviser to the Series and the
Trust are not to be deemed to be exclusive, and the Sub-Adviser shall be free to
render investment advisory or other services to others (including other
investment companies) and to engage in other activities.
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12. Prohibited Conduct. The Sub-Adviser may not consult with any other
sub-adviser of the Trust concerning transactions in securities or other assets
for any investment portfolio of the Trust, including the Series, except that
such consultations are permitted between the current and successor sub-advisers
of the Series in order to effect an orderly transition of sub-advisory duties so
long as such consultations are not concerning transactions prohibited by Section
17(a) of the 1940 Act.
13. Representations Respecting Sub-Adviser. The Manager agrees that
neither the Manager, nor affiliated persons of the Manager, shall give any
information or make any representations or statements in connection with the
sale of shares of the Series concerning the Sub-Adviser or the Series other than
the information or representations contained in the Registration Statement,
prospectus, or statement of additional information for the Trust's shares, as
they may be amended or supplemented from time to time, or in reports or proxy
statements for the Trust, or in sales literature or other promotional material
approved in advance by the Sub-Adviser, except with the prior permission of the
Sub-Adviser.
14. Control. Notwithstanding any other provision of the Agreement, it is
understood and agreed that the Trust shall at all times retain the ultimate
responsibility for and control of all functions performed pursuant to this
Agreement and has reserved the right to reasonably direct any action hereunder
taken on its behalf by the Sub-Adviser.
15. Liability. Except as may otherwise be required by the 1940 Act or the
rules thereunder or other applicable law, the Manager agrees that the
Sub-Adviser, any affiliated person of the Sub-Adviser, and each person, if any,
who, within the meaning of Section 15 of the 1933 Act controls the Sub-Adviser
(a) shall bear no responsibility and shall not be subject to any liability for
any act or omission respecting any series of the Trust that is not a Series
hereunder, and (b) shall not be liable for, or subject to any damages, expenses,
or losses in connection with, any act or omission connected with or arising out
of any services rendered under this Agreement, except by reason of willful
misfeasance, bad faith, or gross negligence in the performance of the
Sub-Adviser's duties, or by reason of reckless disregard of the Sub-Adviser's
obligations and duties under this Agreement.
16. Indemnification.
(a) The Manager agrees to indemnify and hold harmless the Sub-Adviser,
any affiliated person of the Sub-Adviser, and each person, if any,
who, within the meaning of Section 15 of the 1933 Act controls
("controlling person") the Sub-Adviser (all of such persons being
referred to as "Sub-Adviser Indemnified Persons") against any and
all losses, claims, damages, liabilities, or litigation (including
legal and other expenses) to which a Sub-Adviser Indemnified Person
may become subject under the 1933 Act, the 1940 Act, the Advisers
Act, under any other statute, at common law or otherwise, arising
out of the Manager's responsibilities to the Trust which (1) may be
based upon the Manager's negligence, willful misfeasance, or bad
faith in the performance of its duties (which could include a
negligent action or a negligent omission to act), or by reason of
the Manager's reckless disregard of its obligations and duties under
this Agreement, or (2) may be based upon any untrue statement or
alleged untrue statement of a material fact contained in the
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Registration Statement or prospectus covering shares of the Trust or
any Series, or any amendment thereof or any supplement thereto, or
the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements
therein not misleading, unless such statement or omission was made
in reliance upon information furnished to the Manager or the Trust
or to any affiliated person of the Manager by a Sub-Adviser
Indemnified Person; provided however, that in no case shall the
indemnity in favor of the Sub-Adviser Indemnified Person be deemed
to protect such person against any liability to which any such
person would otherwise be subject by reason of willful misfeasance,
bad faith, or negligence in the performance of its duties, or by
reason of its reckless disregard of obligations and duties under
this Agreement.
(b) Notwithstanding Section 15 of this Agreement, the Sub-Adviser agrees
to indemnify and hold harmless the Manager, any affiliated person of
the Manager, and any controlling person of the Manager (all of such
persons being referred to as "Manager Indemnified Persons") against
any and all losses, claims, damages, liabilities, or litigation
(including legal and other expenses) to which a Manager Indemnified
Person may become subject under the 1933 Act, 1940 Act, the Advisers
Act, under any other statute, at common law or otherwise, arising
out of the Sub-Adviser's responsibilities as Sub-Adviser of the
Series which (1) may be based upon the Sub-Adviser's negligence,
willful misfeasance, or bad faith in the performance of its duties
(which could include a negligent action or a negligent omission to
act), or by reason of the Sub-Adviser's reckless disregard of its
obligations and duties under this Agreement, or (2) may be based
upon any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or prospectus covering
the shares of the Trust or any Series, or any amendment or
supplement thereto, or the omission or alleged omission to state
therein a material fact known or which should have been known to the
Sub-Adviser and was required to be stated therein or necessary to
make the statements therein not misleading, if such a statement or
omission was made in reliance upon information furnished to the
Manager, the Trust, or any affiliated person of the Manager or Trust
by the Sub-Adviser or any affiliated person of the Sub-Adviser;
provided, however, that in no case shall the indemnity in favor of a
Manager Indemnified Person be deemed to protect such person against
any liability to which any such person would otherwise be subject by
reason of willful misfeasance, bad faith, negligence in the
performance of its duties, or by reason of its reckless disregard of
its obligations and duties under this Agreement.
(c) The Manager shall not be liable under Paragraph (a) of this Section
16 with respect to any claim made against a Sub-Adviser Indemnified
Person unless such Sub-Adviser Indemnified Person shall have
notified the Manager in writing within a reasonable time after the
summons or other first legal process giving information of the
nature of the claim shall have been served upon such Sub-Adviser
Indemnified Person (or after such Sub-Adviser Indemnified Person
shall have received notice of such service on any designated agent),
but failure to notify the Manager of any such claim shall not
relieve the Manager from any liability which it may have to the
Sub-Adviser Indemnified Person against whom such action is brought
except to the extent the Manager is prejudiced by the failure or
delay in giving such notice. In case any such action is brought
against the Sub-Adviser
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Indemnified Person, the Manager will be entitled to participate, at
its own expense, in the defense thereof or, after notice to the
Sub-Adviser Indemnified Person, to assume the defense thereof, with
counsel satisfactory to the Sub-Adviser Indemnified Person. If the
Manager assumes the defense of any such action and the selection of
counsel by the Manager to represent the Manager and the Sub-Adviser
Indemnified Person would result in a conflict of interests and
therefore, would not, in the reasonable judgment of the Sub-Adviser
Indemnified Person, adequately represent the interests of the
Sub-Adviser Indemnified Person, the Manager will, at its own
expense, assume the defense with counsel to the Manager and, also at
its own expense, with separate counsel to the Sub-Adviser
Indemnified Person, which counsel shall be satisfactory to the
Manager and to the Sub-Adviser Indemnified Person. The Sub-Adviser
Indemnified Person shall bear the fees and expenses of any
additional counsel retained by it, and the Manager shall not be
liable to the Sub-Adviser Indemnified Person under this Agreement
for any legal or other expenses subsequently incurred by the
Sub-Adviser Indemnified Person independently in connection with the
defense thereof other than reasonable costs of investigation. The
Manager shall not have the right to compromise on or settle the
litigation without the prior written consent of the Sub-Adviser
Indemnified Person if the compromise or settlement results, or may
result, in a finding of wrongdoing on the part of the Sub-Adviser
Indemnified Person.
(d) The Sub-Adviser shall not be liable under Paragraph (b) of this
Section 16 with respect to any claim made against a Manager
Indemnified Person unless such Manager Indemnified Person shall have
notified the Sub-Adviser in writing within a reasonable time after
the summons or other first legal process giving information of the
nature of the claim shall have been served upon such Manager
Indemnified Person (or after such Manager Indemnified Person shall
have received notice of such service on any designated agent), but
failure to notify the Sub-Adviser of any such claim shall not
relieve the Sub-Adviser from any liability which it may have to the
Manager Indemnified Person against whom such action is brought
except to the extent the Sub-Adviser is prejudiced by the failure or
delay in giving such notice. In case any such action is brought
against the Manager Indemnified Person, the Sub-Adviser will be
entitled to participate, at its own expense, in the defense thereof
or, after notice to the Manager Indemnified Person, to assume the
defense thereof, with counsel satisfactory to the Manager
Indemnified Person. If the Sub-Adviser assumes the defense of any
such action and the selection of counsel by the Sub-Adviser to
represent both the Sub-Adviser and the Manager Indemnified Person
would result in a conflict of interests and therefore, would not, in
the reasonable judgment of the Manager Indemnified Person,
adequately represent the interests of the Manager Indemnified
Person, the Sub-Adviser will, at its own expense, assume the defense
with counsel to the Sub-Adviser and, also at its own expense, with
separate counsel to the Manager Indemnified Person, which counsel
shall be satisfactory to the Sub-Adviser and to the Manager
Indemnified Person. The Manager Indemnified Person shall bear the
fees and expenses of any additional counsel retained by it, and the
Sub-Adviser shall not be liable to the Manager Indemnified Person
under this Agreement for any legal or other expenses subsequently
incurred by the Manager Indemnified Person independently in
connection with the defense thereof other than reasonable costs of
investigation. The Sub-Adviser shall not have the right to
compromise on or settle the litigation without the
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prior written consent of the Manager Indemnified Person if the
compromise or settlement results, or may result in a finding of
wrongdoing on the part of the Manager Indemnified Person.
17. Duration and Termination.
(a) This Agreement shall become effective on the date first indicated
above, subject to the condition that the Trust's Board of Trustees,
including a majority of those Trustees who are not interested
persons (as such term is defined in the 0000 Xxx) of the Manager or
the Sub-Adviser, and the shareholders of each Series, shall have
approved this Agreement. Unless terminated as provided herein, this
Agreement shall remain in full force and effect through SEPTEMBER
26, 2005, 150 days from its effective date (the "Termination Date").
Notwithstanding the foregoing, this Agreement may be terminated with
respect to any Series covered by this Agreement: (i) by the parties'
entry into a new Sub-Advisory Agreement that replaces this
Agreement, following approval of the shareholders of each of the
Series covered by this Agreement, (ii) by the Manager at any time,
upon ten (10) calendar days' written notice to the Sub-Adviser and
the Trust, (iii) at any time without payment of any penalty by the
Trust, by the Trust's Board of Trustees or a majority of the
outstanding voting securities of each Series, upon ten (10) calendar
days' written notice to the Manager and the Sub-Adviser, or (iv) by
the Sub-Adviser upon three (3) months' written notice unless the
Trust or the Manager requests additional time to find a replacement
for the Sub-Adviser, in which case the Sub-Adviser shall allow the
additional time requested by the Trust or Manager provided, however,
in no event shall the effective date of the termination of this
Agreement exceed the Termination Date; provided, further, that the
Sub-Adviser may terminate this Agreement at any time without
penalty, effective upon written notice to the Manager and the Trust,
in the event either the Sub-Adviser (acting in good faith) or the
Manager ceases to be registered as an investment adviser under the
Advisers Act or otherwise becomes legally incapable of providing
investment management services pursuant to its respective contract
with the Trust, or in the event the Manager becomes bankrupt or
otherwise incapable of carrying out its obligations under this
Agreement, or in the event that the Sub-Adviser does not receive
compensation for its services from the Manager or the Trust as
required by the terms of this Agreement.
In the event of termination for any reason, all records of each
Series for which the Agreement is terminated shall promptly be
returned to the Manager or the Trust, free from any claim or
retention of rights in such record by the Sub-Adviser, although the
Sub-Adviser may, at its own expense, make and retain a copy of such
records. This Agreement shall automatically terminate in the event
of its assignment (as such term is described in the 1940 Act). In
the event this Agreement is terminated or is not approved in the
manner described above, the Sections or Paragraphs numbered 9, 10,
13, 14, 15 and 16 of this Agreement shall remain in effect, as well
as any applicable provision of this Section numbered 17 and, to the
extent that only amounts are owed to the Sub-Adviser as compensation
for services rendered while the Agreement was in effect, Section 6.
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(b) Notices. Any notice must be in writing and shall be sufficiently
given (1) when delivered in person, (2) when dispatched by telegram
or electronic facsimile transfer (confirmed in writing by postage
prepaid first class air mail simultaneously dispatched), (3) when
sent by internationally recognized overnight courier service (with
receipt confirmed by such overnight courier service), or (4) when
sent by registered or certified mail, to the other party at the
address of such party set forth below or at such other address as
such party may from time to time specify in writing to the other
party.
If to the Trust:
ING Variable Insurance Trust
0000 Xxxx Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxx X. Xxxxxxx, Xx.
If to the Manager:
ING Investments, LLC
0000 Xxxx Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000 XXX
Attention: Xxxxxxx X. Xxxxxx
If to the Sub-Adviser:
ING Investment Management Advisors B.V.
Xxxxxxx Xxxxxxxxxxx 00
Xxx Xxxxx, Xxx Xxxxxxxxxxx
Attention: Xxxxxxx Xxxxxxxxxxx
18. Amendments. No provision of this Agreement may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by
the party against which enforcement of the change, waiver, discharge or
termination is sought, and no amendment of this Agreement shall be effective
until approved as required by applicable law.
19. Miscellaneous.
(a) This Agreement shall be governed by the laws of the State of
Arizona, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, the Advisers Act or rules or orders
of the SEC thereunder, and without regard for the conflicts of laws
principle thereof. The term "affiliate" or "affiliated person" as
used in this Agreement shall mean "affiliated person" as defined in
Section 2(a)(3) of the 1940 Act.
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(b) The Manager and the Sub-Adviser acknowledge that the Trust enjoys
the rights of a third-party beneficiary under this Agreement, and
the Manager acknowledges that the Sub-Adviser enjoys the rights of a
third party beneficiary under the Management Agreement.
(c) The captions of this Agreement are included for convenience only and
in no way define or limit any of the provisions hereof or otherwise
affect their construction or effect.
(d) To the extent permitted under Section 17 of this Agreement, this
Agreement may only be assigned by any party with the prior written
consent of the other parties.
(e) If any provision of this Agreement shall be held or made invalid by
a court decision, statute, rule or otherwise, the remainder of this
Agreement shall not be affected thereby, and to this extent, the
provisions of this Agreement shall be deemed to be severable.
(f) Nothing herein shall be construed as constituting the Sub-Adviser as
an agent or co-partner of the Manager, or constituting the Manager
as an agent or co-partner of the Sub-Adviser.
(g) This Agreement may be executed in counterparts.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed as of the day and year first above written.
ING INVESTMENTS, LLC
By: /s/ Xxxxxxx X. Xxxxxx
----------------------------------
Xxxxxxx X. Xxxxxx
Executive Vice President
ING INVESTMENT MANAGEMENT ADVISORS B.V.
By: /s/ X. Xxxxxxx
------------------------
Name: X. Xxxxxxx
Title: Managing Director
By: /s/ X. Xxx
-----------------------
Name: X. Xxx
Title: Managing Director
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SCHEDULE A
WITH RESPECT TO THE
INTERIM SUB-ADVISORY AGREEMENT
BETWEEN
ING INVESTMENTS, LLC
AND
ING INVESTMENT MANAGEMENT ADVISORS B.V.
ANNUAL SUB-ADVISER FEE
SERIES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)
ING VP Global Equity Dividend Portfolio 0.25%
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