Exhibit 4(b)

                         INVESTMENT MANAGEMENT AGREEMENT

      AGREEMENT, dated September 29, 2006, between BlackRock Variable Series
Funds, Inc. (the "Corporation"), a Maryland corporation, on behalf of each of
its series named in Schedule A attached hereto (each, a "Fund" and together the
"Funds"), and BlackRock Advisors, LLC, a Delaware limited liability company (the
"Advisor").

      WHEREAS, the Advisor has agreed to furnish investment advisory services to
each Fund, series of the Corporation, an open-end management investment company
registered under the Investment Company Act of 1940, as amended (the "1940
Act");

      WHEREAS, the Board of Directors of the Corporation has established and
designated each Fund as a series of the Corporation; and

      WHEREAS, this Agreement has been approved in accordance with the
provisions of the 1940 Act, and the Advisor is willing to furnish such services
upon the terms and conditions herein set forth.

      NOW, THEREFORE, in consideration of the mutual premises and covenants
herein contained and other good and valuable consideration, the receipt of which
is hereby acknowledged, it is agreed by and between the parties hereto as
follows:

      1. In General. The Advisor agrees, all as more fully set forth herein, to
act as investment advisor to the Funds with respect to the investment of the
Funds' assets and to supervise and arrange for the day to day operations of the
Funds and the purchase of securities for and the sale of securities held in the
investment portfolios of the Funds.

      2. Duties and Obligations of the Advisor with Respect to Investment of
Assets of the Funds. Subject to the succeeding provisions of this section and
subject to the direction and control of the Corporation's Board of Directors,
the Advisor shall (i) act as investment advisor for and supervise and manage the
investment and reinvestment of the Funds' assets and in connection therewith
have complete discretion in purchasing and selling securities and other assets
for the Funds and in voting, exercising consents and exercising all other rights
appertaining to such securities and other assets on behalf of the Funds; (ii)
supervise continuously the investment program of each Fund and the composition
of its investment portfolio; (iii) arrange, subject to the provisions of
paragraph 4 hereof, for the purchase and sale of securities and other assets
held in the investment portfolios of the Funds; and (iv) provide investment
research to the Funds.

      3. Duties and Obligations of Advisor with Respect to the Administration of
the Funds. The Advisor also agrees to furnish office facilities and equipment
and clerical, bookkeeping and administrative services (other than such services,
if any, provided by the Funds' Custodian, Transfer Agent and Dividend Disbursing
Agent and other service providers) for the Fund. To the extent requested by the
Funds, the Advisor agrees to provide the following administrative services:

            (a) Oversee the determination and publication of each Fund's net
asset value in accordance with the Fund's policy as adopted from time to time by
the Board of Directors;

<PAGE>

            (b) Oversee the maintenance by the Funds' Custodian and Transfer
Agent and Dividend Disbursing Agent of certain books and records of the Funds as
required under Rule 31a-1(b)(4) of the 1940 Act and maintain (or oversee
maintenance by such other persons as approved by the Board of Directors) such
other books and records required by law or for the proper operation of the
Funds;

            (c) Oversee the preparation and filing of each Fund's federal, state
and local income tax returns and any other required tax returns;

            (d) Review the appropriateness of and arrange for payment of each
Fund's expenses;

            (e) Prepare for review and approval by officers of the Corporation's
financial information for the Funds' semiannual and annual reports, proxy
statements and other communications with shareholders required or otherwise to
be sent to Fund shareholders, and arrange for the printing and dissemination of
such reports and communications to shareholders;

            (f) Prepare for review by an officer of the Corporation the Funds'
periodic financial reports required to be filed with the Securities and Exchange
Commission ("SEC") on Form N-SAR, Form N-CSR, Form N-PX, Form N-Q, and such
other reports, forms and filings, as may be mutually agreed upon;

            (g) Prepare such reports relating to the business and affairs of the
Funds as may be mutually agreed upon and not otherwise appropriately prepared by
the Funds' custodian, counsel or auditors;

            (h) Make such reports and recommendations to the Board of Directors
concerning the performance of the independent accountants as the Board of
Directors may reasonably request or deems appropriate;

            (i) Make such reports and recommendations to the Board of Directors
concerning the performance and fees of the Funds' Custodian and Transfer Agent
and Dividend Disbursing Agent as the Board of Directors may reasonably request
or deems appropriate;

            (j) Oversee and review calculations of fees paid to the Funds'
service providers;

            (k) Oversee each Fund's portfolio and perform necessary calculations
as required under Section 18 of the 1940 Act;

            (l) Consult with the Corporation's officers, independent
accountants, legal counsel, custodian, accounting agent and transfer and
dividend disbursing agent in establishing the accounting policies of the Funds
and monitor financial and shareholder accounting services;

            (m) Determine the amounts available for distribution as dividends
and distributions to be paid by each Fund to its shareholders; prepare and
arrange for the printing of dividend notices to shareholders; and provide the
Funds' dividend disbursing agent and


                                       2
<PAGE>

custodian with such information as is required for such parties to effect the
payment of dividends and distributions and to implement the Funds' dividend
reinvestment plan;

            (n) Prepare such information and reports as may be required by any
banks from which a Fund borrows funds;

            (o) Provide such assistance to the Custodian and the Funds' counsel
and auditors as generally may be required to properly carry on the business and
operations of the Fund;

            (p) Respond to or refer to the Corporation's officers or transfer
agent, shareholder (including any potential shareholder) inquiries relating to
the Funds; and

            (q) Supervise any other aspects of the Funds' administration as may
be agreed to by the Corporation and the Advisor.

      All services are to be furnished through the medium of any directors,
officers or employees of the Advisor or its affiliates as the Advisor deems
appropriate in order to fulfill its obligations hereunder.

      The Funds will reimburse the Advisor or its affiliates for all out of
pocket expenses incurred by them in connection with the performance of the
administrative services described in this paragraph 3. The Funds will reimburse
the Advisor and its affiliates for their costs in providing accounting services
to the Funds.

      4. Covenants. (a) In the performance of its duties under this Agreement,
the Advisor shall at all times conform to, and act in accordance with, any
requirements imposed by: (i) the provisions of the 1940 Act and the Investment
Advisers Act of 1940, as amended, and all applicable Rules and Regulations of
the Securities and Exchange Commission; (ii) any other applicable provision of
law; (iii) the provisions of the Charter and By Laws of the Corporation, as such
documents are amended from time to time; (iv) the investment objectives and
policies of the Funds as set forth in its Registration Statement on Form N-1A
and/or the resolutions of the Board of Directors; and (v) any policies and
determinations of the Board of Directors of the Corporation and

            (b) In addition, the Advisor will:

            (i) place orders either directly with the issuer or with any broker
      or dealer. Subject to the other provisions of this paragraph, in placing
      orders with brokers and dealers, the Advisor will attempt to obtain the
      best price and the most favorable execution of its orders. In placing
      orders, the Advisor will consider the experience and skill of the firm's
      securities traders as well as the firm's financial responsibility and
      administrative efficiency. Consistent with this obligation, the Advisor
      may select brokers on the basis of the research, statistical and pricing
      services they provide to the Funds and other clients of the Advisor.
      Information and research received from such brokers will be in addition
      to, and not in lieu of, the services required to be performed by the
      Advisor hereunder. A commission paid to such brokers may be higher than
      that which another qualified broker would have charged for effecting the
      same transaction, provided that the Advisor


                                       3
<PAGE>

      determines in good faith that such commission is reasonable in terms
      either of the transaction or the overall responsibility of the Advisor to
      the Funds and its other clients and that the total commissions paid by
      each Fund will be reasonable in relation to the benefits to the Fund over
      the long term. Subject to the foregoing and the provisions of the 1940
      Act, the Securities Exchange Act of 1934, as amended, and other applicable
      provisions of law, the Advisor may select brokers and dealers with which
      it or the Corporation is affiliated;

            (ii) maintain a policy and practice of conducting its investment
      advisory services hereunder independently of the commercial banking
      operations of its affiliates. When the Advisor makes investment
      recommendations for the Funds, its investment advisory personnel will not
      inquire or take into consideration whether the issuer of securities
      proposed for purchase or sale for each Fund's account are customers of the
      commercial department of its affiliates; and

            (iii) treat confidentially and as proprietary information of the
      Funds all records and other information relative to the Funds, and the
      Funds' prior, current or potential shareholders, and will not use such
      records and information for any purpose other than performance of its
      responsibilities and duties hereunder, except after prior notification to
      and approval in writing by each Fund, which approval shall not be
      unreasonably withheld and may not be withheld where the Advisor may be
      exposed to civil or criminal contempt proceedings for failure to comply,
      when requested to divulge such information by duly constituted
      authorities, or when so requested by the Funds.

      5. Services Not Exclusive. Nothing in this Agreement shall prevent the
Advisor or any officer, employee or other affiliate thereof from acting as
investment advisor for any other person, firm or corporation, or from engaging
in any other lawful activity, and shall not in any way limit or restrict the
Advisor or any of its officers, employees or agents from buying, selling or
trading any securities for its or their own accounts or for the accounts of
others for whom it or they may be acting; provided, however, that the Advisor
will undertake no activities which, in its judgment, will adversely affect the
performance of its obligations under this Agreement.

      6. Sub-Advisors. The Advisor may from time to time, in its sole discretion
to the extent permitted by applicable law, appoint one or more sub-advisors,
including, without limitation, affiliates of the Advisor, to perform investment
advisory services with respect to the Funds. The Advisor may terminate any or
all sub-advisors in its sole discretion at any time to the extent permitted by
applicable law.

      7. Books and Records. In compliance with the requirements of Rule 31a-3
under the 1940 Act, the Advisor hereby agrees that all records which it
maintains for the Fund are the property of the Corporation and further agrees to
surrender promptly to the Corporation any such records upon the Corporation's
request. The Advisor 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-1 under the 1940 Act.

      8. Expenses. During the term of this Agreement, the Advisor will bear all
costs and expenses of its employees and any overhead incurred in connection with
its duties hereunder and


                                       4
<PAGE>

shall bear the costs of any salaries or directors' fees of any officers or
directors of the Corporation who are affiliated persons (as defined in the 1940
Act) of the Advisor; provided that the Board of Directors of the Corporation may
approve reimbursement to the Advisor of the pro rata portion of the salaries,
bonuses, health insurance, retirement benefits and all similar employment costs
for the time spent on Fund operations, (including, without limitation,
compliance matters) (other than the provision of investment advice and
administrative services required to be provided hereunder) of all personnel
employed by the Advisor who devote substantial time to Fund operations or the
operations of other investment companies advised by the Advisor.

      9. Compensation of the Advisor. (a) The Corporation, on behalf of each
Fund, agrees to pay to the Advisor and the Advisor agrees to accept as full
compensation for all services rendered by the Advisor as such, a monthly fee
(the "Investment Advisory Fee") in arrears at an annual rate equal to the amount
set forth in Schedule A hereto of the average daily value of each Fund's Net
Assets. "Net Assets" means the total assets of a Fund minus the sum of the
accrued liabilities. For any period less than a month during which this
Agreement is in effect, the fee shall be prorated according to the proportion
which such period bears to a full month of 28, 29, 30 or 31 days, as the case
may be.

            (b) For purposes of this Agreement, the net assets of each Fund
shall be calculated pursuant to the procedures adopted by resolutions of the
Directors of the Corporation for calculating the value of each Fund's assets or
delegating such calculations to third parties.

      10. Indemnity. (a) Each Fund may, in the discretion of the Board of
Directors of the Corporation, indemnify the Advisor, and each of the Advisor's
directors, officers, employees, agents, associates and controlling persons and
the directors, partners, members, officers, employees and agents thereof
(including any individual who serves at the Advisor's request as director,
officer, partner, member, trustee or the like of another entity) (each such
person being an "Indemnitee") against any liabilities and expenses, including
amounts paid in satisfaction of judgments, in compromise or as fines and
penalties, and counsel fees (all as provided in accordance with applicable state
law) reasonably incurred by such Indemnitee in connection with the defense or
disposition of any action, suit or other proceeding, whether civil or criminal,
before any court or administrative or investigative body in which such
Indemnitee may be or may have been involved as a party or otherwise or with
which such Indemnitee may be or may have been threatened, while acting in any
capacity set forth herein or thereafter by reason of such Indemnitee having
acted in any such capacity, except with respect to any matter as to which such
Indemnitee shall have been adjudicated not to have acted in good faith in the
reasonable belief that such Indemnitee's action was in the best interest of the
Corporation and furthermore, in the case of any criminal proceeding, so long as
such Indemnitee had no reasonable cause to believe that the conduct was
unlawful; provided, however, that (1) no Indemnitee shall be indemnified
hereunder against any liability to the Corporation or each Fund its shareholders
or any expense of such Indemnitee arising by reason of (i) willful misfeasance,
(ii) bad faith, (iii) gross negligence or (iv) reckless disregard of the duties
involved in the conduct of such Indemnitee's position (the conduct referred to
in such clauses (i) through (iv) being sometimes referred to herein as
"disabling conduct"), (2) as to any matter disposed of by settlement or a
compromise payment by such Indemnitee, pursuant to a consent decree or
otherwise, no indemnification either for said payment or for any other expenses
shall be provided unless there has been a


                                       5
<PAGE>

determination that such settlement or compromise is in the best interests of
each Fund and that such Indemnitee appears to have acted in good faith in the
reasonable belief that such Indemnitee's action was in the best interest of each
Fund and did not involve disabling conduct by such Indemnitee and (3) with
respect to any action, suit or other proceeding voluntarily prosecuted by any
Indemnitee as plaintiff, indemnification shall be mandatory only if the
prosecution of such action, suit or other proceeding by such Indemnitee was
authorized by a majority of the full Board of Directors of the Corporation.

            (b) A Fund may make advance payments in connection with the expenses
of defending any action with respect to which indemnification might be sought
hereunder if the Corporation receives a written affirmation of the Indemnitee's
good faith belief that the standard of conduct necessary for indemnification has
been met and a written undertaking to reimburse a Fund unless it is subsequently
determined that such Indemnitee is entitled to such indemnification and if the
Directors of the Corporation determine that the facts then known to them would
not preclude indemnification. In addition, at least one of the following
conditions must be met: (A) the Indemnitee shall provide security for such
Indemnitee undertaking, (B) the Corporation shall be insured against losses
arising by reason of any unlawful advance, or (C) a majority of a quorum
consisting of Directors of the Corporation who are neither "interested persons"
of the Corporation (as defined in Section 2(a)(19) of the 1940 Act) nor parties
to the proceeding ("Disinterested Non Party Directors") or an independent legal
counsel in a written opinion, shall determine, based on a review of readily
available facts (as opposed to a full trial type inquiry), that there is reason
to believe that the Indemnitee ultimately will be found entitled to
indemnification.

            (c) All determinations with respect to the standards for
indemnification hereunder shall be made (1) by a final decision on the merits by
a court or other body before whom the proceeding was brought that such
Indemnitee is not liable or is not liable by reason of disabling conduct, or (2)
in the absence of such a decision, by (i) a majority vote of a quorum of the
Disinterested Non Party Directors of the Corporation, or (ii) if such a quorum
is not obtainable or, even if obtainable, if a majority vote of such quorum so
directs, independent legal counsel in a written opinion. All determinations that
advance payments in connection with the expense of defending any proceeding
shall be authorized and shall be made in accordance with the immediately
preceding clause (2) above.

      The rights accruing to any Indemnitee under these provisions shall not
exclude any other right to which such Indemnitee may be lawfully entitled.

      11. Limitation on Liability. The Advisor will not be liable for any error
of judgment or mistake of law or for any loss suffered by the Advisor or by the
Funds in connection with the performance of this Agreement, except a loss
resulting from a breach of fiduciary duty with respect to the receipt of
compensation for services or a loss resulting from willful misfeasance, bad
faith or gross negligence on its part in the performance of its duties or from
reckless disregard by it of its duties under this Agreement. As used in this
Section 11, the term "Advisor" shall include any affiliates of the Advisor
performing services for a Fund contemplated hereby and partners, directors,
officers and employees of the Advisor and of such affiliates.


                                       6
<PAGE>

      12. Duration and Termination. This Agreement shall become effective as of
the date hereof and, unless sooner terminated with respect to the Funds as
provided herein, shall continue in effect for a period of two years. Thereafter,
if not terminated, this Agreement shall continue in effect with respect to the
Funds for successive periods of 12 months, provided such continuance is
specifically approved at least annually by both (a) the vote of a majority of
the Corporation's Board of Directors or the vote of a majority of the
outstanding voting securities of each Fund at the time outstanding and entitled
to vote, and (b) by the vote of a majority of the Directors who are not parties
to this Agreement or interested persons of any party to this Agreement, cast in
person at a meeting called for the purpose of voting on such approval.
Notwithstanding the foregoing, this Agreement may be terminated by the
Corporation, on behalf of a Fund, at any time, without the payment of any
penalty, upon giving the Advisor 60 days' notice (which notice may be waived by
the Advisor), provided that such termination by the Corporation, on behalf of a
Fund, shall be directed or approved by the vote of a majority of the Directors
of the Corporation in office at the time or by the vote of the holders of a
majority of the voting securities of each Fund at the time outstanding and
entitled to vote, or by the Advisor on 60 days' written notice (which notice may
be waived by the Corporation, on behalf of a Fund,). This Agreement will also
immediately terminate in the event of its assignment. (As used in this
Agreement, the terms "majority of the outstanding voting securities,"
"interested person" and "assignment" shall have the same meanings of such terms
in the 1940 Act.)

      13. Notices. Any notice under this Agreement shall be in writing to the
other party at such address as the other party may designate from time to time
for the receipt of such notice and shall be deemed to be received on the earlier
of the date actually received or on the fourth day after the postmark if such
notice is mailed first class postage prepaid.

      14. Amendment of this Agreement. This Agreement may be amended by the
parties only if such amendment is specifically approved by the vote of the Board
of Directors of the Corporation, including a majority of those Directors who are
not parties to this Agreement or interested persons of any such party cast in
person at a meeting called for the purpose of voting on such approval and, where
required by the 1940 Act, by a vote of a majority of the outstanding voting
securities of each Fund.

      15. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York for contracts to be performed
entirely therein without reference to choice of law principles thereof and in
accordance with the applicable provisions of the 1940 Act. To the extent that
the applicable laws of the State of New York, or any of the provisions, conflict
with the applicable provisions of the 1940 Act, the latter shall control.

      16. Use of the Name BlackRock. The Advisor has consented to the use by the
Corporation of the name or identifying word "BlackRock" in the name of the
Corporation and the Fund. Such consent is conditioned upon the employment of the
Advisor as the investment advisor to the Fund. The name or identifying word
"BlackRock" may be used from time to time in other connections and for other
purposes by the Advisor and any of its affiliates. The Advisor may require the
Corporation and the Fund to cease using "BlackRock" in the name of the
Corporation and a Fund if a Fund ceases to employ, for any reason, the Advisor,
any successor thereto or any affiliate thereof as investment advisor of the
Fund.


                                       7
<PAGE>

      17. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. 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. This Agreement shall be binding on, and shall inure to the
benefit of the parties hereto and their respective successors.

      18. Counterparts. This Agreement may be executed in counterparts by the
parties hereto, each of which shall constitute an original counterpart, and all
of which, together, shall constitute one Agreement.


                                       8
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused the foregoing
instrument to be executed by their duly authorized officers, all as of the day
and the year first above written.

                                       BLACKROCK VARIABLE SERIES FUNDS, INC.

                                       By: _____________________________________
                                       Name:  Donald C. Burke
                                       Title: Vice President & Treasurer

                                       BLACKROCK ADVISORS, LLC

                                       By: _____________________________________
                                       Name:  Donald C. Burke
                                       Title: Managing Director


                                       9
<PAGE>

                                   Schedule A
                                   ----------

                             Investment Advisory Fee
                             -----------------------

<TABLE>
<CAPTION>
Name of Fund                                                                                                 Investment Advisory Fee
------------                                                                                                 -----------------------
<S>                                                                                                                   <C>
BlackRock Balanced Capital V.I. Fund .....................................................................            0.55%

BlackRock Basic Value V.I. Fund ..........................................................................            0.60%

BlackRock Fundamental Growth V.I. Fund ...................................................................            0.65%

BlackRock Global Allocation V.I. Fund ....................................................................            0.65%

BlackRock Global Growth V.I. Fund ........................................................................            0.75%

BlackRock Government Income V.I. Fund ....................................................................            0.50%

BlackRock International Value V.I. Fund ..................................................................            0.75%

BlackRock Large Cap Growth V.I. Fund .....................................................................            0.65%

BlackRock S&P 500 Index V.I. Fund ........................................................................            0.30%

BlackRock Utilities and Telecommunications V.I. Fund .....................................................            0.60%

BlackRock Value Opportunities V.I. Fund ..................................................................            0.75%
</TABLE>

<TABLE>
<CAPTION>
BlackRock Money Market V.I. Fund
--------------------------------
Portion of Average Daily Value of Net Assets                                                                 Investment Advisory Fee
--------------------------------------------                                                                 -----------------------
<S>                                                                                                                   <C>
Not exceeding $1 billion..................................................................................            0.50%

In excess of $1 billion but not exceeding $2 billion......................................................            0.45%

In excess of $2 billion  but not exceeding $3 billion.....................................................            0.40%

In excess of $3 billion but not exceeding $4 billion......................................................            0.375%

In excess of $4 billion  but not exceeding $7 billion.....................................................            0.35%

In excess of $7 billion  but not exceeding $10 billion....................................................            0.325%

In excess of $10 billion but not exceeding $15 billion....................................................            0.30%

In excess of $15 billion .................................................................................            0.29%
</TABLE>


                                       10
<PAGE>

<TABLE>
<CAPTION>
BlackRock Large Cap Core V.I. Fund
----------------------------------
Portion of Average Daily Value of Net Assets                                                                 Investment Advisory Fee
--------------------------------------------                                                                 -----------------------
<S>                                                                                                                   <C>
Not exceeding $250 million................................................................................            0.50%

In excess of $250 million but not exceeding $300 million..................................................            0.45%

In excess of $300  million but not exceeding $400 million.................................................            0.425%

In excess of $400 million ................................................................................            0.40%
</TABLE>

BlackRock Current Income V.I. Fund and BlackRock Bond V.I. Fund
---------------------------------------------------------------
Portion of aggregate average daily value of Net assets of both Funds:
---------------------------------------------------------------------

                                                         Investment Advisory Fee
                                                        ------------------------
                                                         BlackRock
                                                          Current      BlackRock
                                                        Income V.I.      Bond
                                                            Fund       V.I. Fund
                                                        -----------    ---------
Not exceeding $250 million                                 0.55%         0.50%
In excess of $250 million but not
  exceeding $500 million                                   0.50%         0.45%
In excess of $500 million but not
  exceeding $750 million                                   0.45%         0.40%
In excess of $750 million                                  0.40%         0.35%

      The fee rates for the BlackRock Current Income V.I. Fund and the BlackRock
Bond V.I. Fund are applied to the average daily Net Assets of each Fund, with
the reduced rates shown below applicable to portions of the assets of each Fund
to the extent that the aggregate average daily net assets of the combined Funds
exceed $250 million, $500 million and $750 million (each such amount being a
"breakpoint level"). The portion of the assets of a Fund to which the rate at
each breakpoint level applies will be determined on a "uniform percentage"
basis. The uniform percentage applicable to a breakpoint level is determined by
dividing the amount of the aggregate average daily net assets of the combined
Funds that falls within that breakpoint level by the aggregate average daily net
assets of the combined Funds. The amount of the fee for a Fund at each
breakpoint level is determined by multiplying the average daily net assets of
that Fund by the uniform percentage applicable to that breakpoint level and
multiplying the product by the advisory fee rate.

Dated as of September 29, 2006




                                       11