Exhibit 23(h)(13)
EXPENSE LIMITATION AGREEMENT
This Expense Limitation Agreement, effective as of April 30, 2007, is by and
between Lincoln Investment Advisors Corporation ("LIAC") and Lincoln Variable
Insurance Products Trust (the "Trust"), on behalf of its series set forth in
Schedule A to this Agreement (the "Funds").
WHEREAS, the Trust and LIAC, 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.
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 LIAC 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, 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 LIAC.
(b) Operating Expense Limit. The Operating Expense Limit with respect to
each Fund shall be the lesser of (i) the amount specified in Schedule A or
(ii) the aggregate fees of the corresponding acquired JPVF Fund, Inc. Portfolio
on March 31, 2007. In either case, the Operating Expense Limit shall be based
on a percentage of the average daily net assets of each Fund.
(c) Method of Computation. To determine LIAC'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 Annual
Expense Limit. If the total expenses exceed the Operating Expense Limit Amount,
the Fund shall record a receivable from LIAC 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 LIAC a statement
indicating the Excess Amount owed to the Fund for the month and LIAC will remit
to the Fund an amount that is sufficient to pay that monthly Excess Amount.
(d) Year-End Adjustment. If necessary, on or before the last day of the
first month of each fiscal year, an adjustment payment shall be made by the
appropriate party in order that the payments remitted by LIAC to each Fund with
respect to the previous fiscal year shall equal the Excess Amount for that Fund.
2. Term and Termination of Agreement.
(a) This Agreement will continue with respect to each Fund at least through
April 30, 2008, and renew automatically for one-year terms unless LIAC provides
written notice of termination to a Fund.
(b) This Agreement shall terminate with respect to any Fund upon termination
of the Investment Management Agreement, dated April 30, 2007, between the
Trust, on behalf of each Fund, and LIAC ("Investment Management Agreement"), or
it may be terminated by either party hereto, without payment of any penalty,
upon ten (10) days' prior written notice to the other party at its principal
place of business.
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 PRODUCTS
CORPORATION TRUST
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
------------------------------- ------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
Title: Second Vice President Title: President
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SCHEDULE A
OPERATING EXPENSE LIMITS
This Agreement relates to the following Funds of the Trust. The Maximum
Operating Expense Limit (as a percentage of average net assets) is the lesser
of (i) the amount specified in Schedule A below or (ii) the aggregate fees of
the corresponding acquired JPVF Fund, Inc. Portfolio on March 31, 2007.
Maximum Operating Expense Limit
Name of Fund (as a percentage of average net assets)
------------ -------------------------------------------------
LVIP Capital Growth Fund Standard Class:
.81*
Service Class:
1.06**
*aggregate fees as of March 31, 2007 were .78%
**aggregate fees as of March 31, 2007 were 1.03%
LVIP ▇▇▇▇▇▇▇ International Standard Class:
Growth Fund 1.12*
Service Class:
1.37**
*aggregate fees as of March 31, 2007 were 1.04%
**aggregate fees as of March 31, 2007 were 1.29%
LVIP MFS Value Fund Standard Class:
.82*
Service Class:
1.07**
*aggregate fees as of March 31, 2007 were .80%
**aggregate fees as of March 31, 2007 were 1.05%
LVIP Mid-Cap Growth Fund Standard Class:
1.05*
Service Class:
1.30**
*aggregate fees as of March 31, 2007 were 1.02%
**aggregate fees as of March 31, 2007 were 1.27%
LVIP Mid-Cap Value Fund Standard Class:
1.11*
Service Class:
1.36**
*aggregate fees as of March 31, 2007 were 1.04%
**aggregate fees as of March 31, 2007 were 1.29%
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Maximum Operating Expense Limit
Name of Fund (as a percentage of average net assets)
------------ -------------------------------------------------
LVIP S&P 500 Index Fund Standard Class:
.28*
Service Class:
.53**
*aggregate fees as of March 31, 2007 were .28%
**aggregate fees as of March 31, 2007 were .53%
LVIP Small-Cap Index Fund Standard Class:
.46
Service Class:
.71
LVIP ▇▇▇▇▇▇▇▇▇ Growth Fund Standard Class:
.86*
Service Class:
1.11**
*aggregate fees as of March 31, 2007 were .81%
**aggregate fees as of March 31, 2007 were 1.06%
LVIP ▇. ▇▇▇▇ Price Growth Standard Class:
Stock Fund .88*
Service Class:
1.13**
*aggregate fees as of March 31, 2007 were .86%
**aggregate fees as of March 31, 2007 were 1.11%
LVIP Value Opportunities Standard Class:
Fund 1.34*
Service Class:
1.59**
*aggregate fees as of March 31, 2007 were 1.35%
**aggregate fees as of March 31, 2007 were 1.60%
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