SELLING GROUP AGREEMENT
AMERICAN LEGACY SUITE OF PRODUCTS
This Selling Group Agreement applies to the duly registered and
licensed broker/dealer, which by signing below does evidence its desire to
distribute certain Individual and Group Flexible Premium Deferred Variable
Annuity Contracts (the "Contracts") issued by The Lincoln National Life
Insurance Company ("Lincoln National") through Separate Accounts E and H
(individual) and Separate Accounts 50, 51 and 52 (group); and certain Individual
Single and Flexible Premium Variable Life Insurance Policies (the "Policies")
issued by Lincoln National through Separate Account F (single premium) and
Separate Accounts J and Y(flexible premium).
In addition to issuing the contracts, Lincoln National, acting as a
broker/dealer will also maintain the selling group for the contracts and
policies described above except in the State of New York.
This Selling Group Agreement also applies to the duly licensed broker/dealer,
which by signing below, does evidence its desire to sell certain Individual
Flexible Premium Deferred Annuities (the "Contracts") issued in the state of New
York by Lincoln Life & Annuity Company of New York ("Lincoln New York")
utilizing Separate Account H. In New York, the selling group is maintained by
Lincoln Financial Advisors Corporation ("LFA"), a broker/dealer, member of the
NASD.
As applicable, we will refer to Lincoln National and Lincoln New York
collectively as "Lincoln" and the Broker/Dealer and its insurance agency
subsidiaries, if any, as "you" or the "Representative."
The Contracts and Policies described above are considered securities under the
Securities Act of 1933. This Selling Group Agreement also pertains to certain
fixed single premium immediate annuity Contracts issued by Lincoln. This Selling
Group Agreement is subject to all provisions of the relevant Principal
Underwriting Agreements among the parties mentioned above. This Selling Group
Agreement on your part runs to Lincoln and the Separate Accounts and is for the
benefit of and enforceable by each party.
A. Definitions
1. Registered Representative: An individual who, as a result of passing the
appropriate examinations of the National Association of Securities Dealers
(NASD) or other appropriate self-regulatory organizations (SRO), and also
appropriately licensed and appointed to sell insurance products, may sell the
insurance products described herein;
2. Broker/Dealer: An individual, partnership, corporation or other legal
entity admitted to membership in the National Association of Securities Dealers
(NASD) and appropriately licensed and appointed to sell the insurance products
described herein.
B. Terms and Conditions
1. You represent that you are a properly registered and licensed broker or
dealer under applicable federal and state securities laws and regulations and a
member in good standing of the National Association of Securities Dealers
(NASD). You agree to immediately notify us if you cease to be so registered or
licensed or a member in good standing of the NASD.
XXXXXXX
0. You agree to abide by all rules and regulations of the NASD, including its
Conduct Rules, and to comply with all applicable federal and state laws, rules
and regulations (all of which shall control and override any provision to the
contrary in this Selling Group Agreement).
You are responsible for such supervision of your registered representatives and
other associated persons which will enable you to ensure that your registered
representatives and associated persons are in compliance with applicable
insurance and securities laws, rules, regulations and statements of policy
promulgated thereunder.
Your authority under this Selling Group Agreement extends only to the Contracts
and Policies described herein.
3. You represent that you will not sell any Contracts or Policies until you
are a properly licensed insurance agent duly appointed by Lincoln.
4. You will distribute the Contracts and Policies only in those jurisdictions
in which the Contracts and Policies are registered or qualified for sale and
only through your duly licensed registered representatives (in accordance with
the rules of the NASD) who are also fully licensed with Lincoln to sell the
Contracts or Policies in the applicable jurisdictions (in accordance with the
insurance regulations and laws of such jurisdictions).
5. All applications and initial and subsequent payments under the Contracts or
Policies collected by you will be remitted promptly by you to Lincoln at such
address as Lincoln may designate.
6. You agree to indemnify and hold Lincoln harmless according to the following
provisions:
a. You shall be responsible to Lincoln for the malicious,
intentional, reckless, knowing or negligent acts or omissions of
your employees, officers, agents, and sales persons (which shall
include Registered Representatives) for the business covered
under this Selling Group Agreement and shall indemnify and hold
harmless Lincoln from any claims, demands, actions, judgements,
loss, cost or expense, including court costs, punitive damages
and reasonable attorney fees incurred by Lincoln by reason of
such acts or omissions.
b. You, not Lincoln, are solely responsible for all statements,
written or oral, acts, or representations, whether expressed or
implied, made by your/its agents, employees or sales persons and
are responsible for notifying your agents, employees or sales
person of the terms and conditions of this Selling Group
Agreement.
c. You, not Lincoln, are solely responsible regarding the
suitability of sale of Lincoln contracts to individual persons.
d. You shall immediately notify Lincoln of any and all complaints
about Lincoln contracts received by you.
7. All applications are subject to acceptance or rejection by Lincoln at its
sole discretion. Lincoln will make payment of commissions directly to you with
respect to the sale of the Contracts or Policies according to the schedules set
forth in the attached Commission Schedules. No commissions will be paid on
Contracts that are not subject to an initial or contingent deferred sales charge
(other than American Legacy III C Share).
8. Lincoln will use reasonable efforts to provide information and marketing
assistance to you, including providing you, without charge, reasonable
quantities of advertising materials, sales literature, reports and current
prospectuses of the Contracts or Policies and of the underlying variable funding
vehicle, the American Funds Insurance Series/(R)/.
9. In making all offers of the Contracts or Policies, you will deliver the
applicable currently effective prospectuses.
10. You are to offer and sell the Contracts or Policies only at the regular
public offering price currently determined by the applicable Separate Account in
the manner described in the current applicable prospectus or Contract or Policy
and will make no representation not included in the prospectus or Contract or
Policy or in any authorized supplemental material. This Selling Group Agreement
is in all respects subject to all provisions of the current applicable
prospectuses.
11. We will deliver to you and you will use only sales literature and
advertising material that conforms to the requirements of federal and state laws
and regulations and which have been authorized by Lincoln.
12. The signing of this Selling Group Agreement does not obligate Lincoln to
license any particular registered representative as a salesperson of Contracts
or Policies. All licensing matters under any applicable state insurance law
shall be handled directly by you and the registered representative involved,
with all required proof of state insurance licensing furnished to Lincoln before
commission payments may be made.
13. You understand that with respect to Lincoln, you are acting in the capacity
of an independent contractor.
14. Any party to this Selling Group Agreement may cancel at any time upon
written notice to all other parties, effective upon receipt.
15. All communications to Lincoln should be sent to the address which is listed
below. Any notice to you shall be duly given if mailed or electronically
transmitted to you at the address specified by you below.
16. The schedules of commissions, bonuses, sales charges and allowances
attached to this Selling Group Agreement and incorporated herein apply to
Contracts and Policies initially sold through you. Commissions on Contracts and
Policies initially sold through another dealer for which you become the
supervising dealer will be paid to you based on the original dealer's schedule
of commissions, bonuses, sales charges and allowances.
17. Commission schedules for Contracts and Policies that are actively being
sold to new customers are set forth in Commission Schedule A.
18. Commission schedules for Contracts and Policies that are no longer being
actively sold to new customers are set forth in Commission Schedule B.
19. Different commission schedules may apply for internal transfers from
another Lincoln contract.
20. Two originals of this document should be executed. One of the originals
should be returned to us for our files. The Selling Group Agreement shall be
effective as of the date of execution by you, but only upon receipt by us of the
original. This Selling Group Agreement may be amended by notification from us
and orders received following such notification shall be deemed to be an
acceptance of such amendments. This Selling Group Agreement shall be governed by
the laws of the State of Indiana.
21. You agree to maintain confidential information in strict confidence and in
a manner to safeguard against unauthorized access, disclosure, use, destruction,
loss or alteration in accordance with applicable state and federal laws and
regulations (all the foregoing referred to as "Privacy Law"). You are prohibited
from using consumer or customer non-public information other than (1) to execute
the terms and conditions of this Selling Group Agreement as permitted by Privacy
Law or (2) as required by state or federal law, regulation or rule. You agree
not to disclose confidential information to any third parties without prior
written permission of the disclosing party. You shall promptly report to Lincoln
any unauthorized disclosure or use of any confidential information of which you
become aware. Lincoln has the right to make reasonable requests to inspect,
during normal business hours, your facilities, data and records, associated
audit reports, summaries of test results or equivalent measures taken by you to
ensure compliance with Privacy Law for the purposes of verifying that the
confidentiality provisions of this Selling Group Agreement are being complied
with.
The Lincoln National Life Insurance Company
0000 Xxxxx Xxxxxxx Xxxxxx
Xxxx Xxxxx, XX 00000
By:
----------------------------------
Lincoln Life & Annuity Company of Lincoln Financial Advisors Corporation
New York (New York Only)
000 Xxxxxxx Xxxxxx, Xxxxx 0000 0000 Xxxxx Xxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxx, XX 00000 Xxxx Xxxxx, XX 00000
By: By:
---------------------------------- ----------------------------------
Accepted:
--------------------------------------
Broker/Dealer
By:
----------------------------------
Signature of Officer or Partner
----------------------------------
Print Name of Officer or Partner
Address:
-----------------------------
--------------------------------------
--------------------------------------
Date:
--------------------------------
ADDENDUM
This addendum ("Addendum") adds to the Selling Agreement between The Lincoln
National Life Insurance Company ("Lincoln") and ___________________________
("Broker/Dealer") dated ________("Agreement"). Except for a conflict between the
terms of the Agreement and this Addendum, the terms of the Agreement shall apply
to this Addendum. In the event of a conflict between the terms of this Addendum
and the terms of the Agreement, this Addendum shall control.
WHEREAS Broker/Dealer and Lincoln are registered broker-dealers and subject to
the requirements of the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept andObstruct Terrorism Act of 2001, 31
U.S.C. 5311 et seq. (the "Act"); and
WHEREAS Broker/Dealer and Lincoln are required to comply with the Customer
Identification Program ("CIP") provisions of the Act; and
WHEREAS Broker/Dealer sells Lincoln's life insurance and annuity products and
has access to the information necessary to provide CIP services on behalf of
Lincoln;
THEREFORE, in consideration of the mutual obligations contained herein, the
parties agree as follows:
1. Broker/Dealer certifies that it has implemented an anti-money laundering
program that complies with the requirements of the Act.
2. Broker/Dealer certifies that it has implemented a CIP that complies with
all requirements of the Act.
3. Lincoln certifies that it has implemented an anti-money laundering program
that complies with the requirements of the Act.
4. For the term of this Addendum, Broker/Dealer agrees to provide required CIP
services for any Lincoln variable annuity or life insurance contracts that
are sold by Broker/Dealer's agents, brokers or contractors.
5. The parties may extend this Addendum for additional one year periods as
prescribed in the Act, provided both parties agree to the extension and
provided Broker/Dealer certifies to Lincoln that it has implemented an
anti-money laundering program and will perform the CIP obligations
specified herein.
6. Either party may terminate this Addendum for any reason upon sixty (60)
days prior written notice to the other party as provided in the Agreement.
AGREED TO AND ACCEPTED:
The Lincoln National Life Insurance --------------------------------------
Company (Broker/Dealer full legal name)
By: By:
---------------------------------- ----------------------------------
Printed Name: Printed Name:
------------------------ ------------------------
Title: Title:
------------------------------- -------------------------------
Date: Date:
-------------------------------- --------------------------------
COMMISSION SCHEDULE A
---------------------
American Legacy III
Variable Annuity
The individual registered representative can choose commission options on a
Contract-by-Contract basis. Once a commission option is chosen for a contract,
it may not be changed. The commission option chosen must be indicated on the
application. If no selection is made, the default will be option 1. Separate
commission arrangements, as described in this document, apply to Contracts that
have been annuitized or have elected Income4Life or i4Life.
----------------------------------------------------------------------------
Trail Commissions (1)
Commission Attained Age At -------------------------------
Schedule Time of Deposit* Cash Flow Years 2 - 7 (2) Years 8 + (3)
----------------------------------------------------------------------------
Standard ** 81 5.00% 0.25% 0.40%
81 - 85 2.25%
86 - 90 1.60%
----------------------------------------------------------------------------
1 ** 81 6.50% 0.00% 0.00%
81 - 85 3.00%
86 - 90 2.00%
----------------------------------------------------------------------------
2 ** 81 5.35% 0.25% 0.25%
81 - 85 2.25%
86 - 90 1.60%
----------------------------------------------------------------------------
3 ** 81 1.00% 1.00% 1.00%
81 - 85 0.65%
86 - 90 0.00%
----------------------------------------------------------------------------
Years 2 - 5 (2) Years 6 + (3)
----------------------------------------------------------------------------
4 ** 81 6.00% 0.00% .25%
81 - 85 2.85%
86 - 90 1.85%
----------------------------------------------------------------------------
* Age refers to the age of the owner(s).
** is less than
(1) Trail commissions will continue to be paid on a particular Contract until
the Contract is surrendered or annuity benefits begin to be paid under an
annuity option.
Trail commissions, if any, include a 0.25% annual service fee. Payment of
the annual service fee is subject to the continuation of the plan of
distribution adopted by American Funds Insurance Series, which serves as
the investment vehicle for the American Legacy III series. Such payments
may be varied or discontinued at any time.
(2) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the Contract has been
in force for 15 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 15 months.
(3) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the Contract has been
in force for 84 months (60 months for option 4). Trail commissions are paid
at the end of each calendar quarter on the quarter ending account value
less any deposits made within the prior 84 months (60 months for option 4).
American Legacy III (New York)
Variable Annuity
The individual registered representative can choose commission options on a
Contract-by-Contract basis. Once a commission option is chosen for a contract,
it may not be changed. The commission option chosen must be indicated on the
application. If no selection is made, the default will be option 1. Separate
commission arrangements, as described in this document, apply to Contracts that
have been annuitized or have elected Income4Life or i4Life.
----------------------------------------------------------------------------
Trail Commissions (1)
Commission Attained Age At -------------------------------
Schedule Time of Deposit* Cash Flow Years 2 - 7 (2) Years 8 + (3)
----------------------------------------------------------------------------
Standard ** 81 5.00% 0.25% 0.40%
81 - 85 2.25%
86 - 89 1.60%
----------------------------------------------------------------------------
1 ** 81 6.50% 0.00% 0.00%
81 - 85 3.00%
86 - 89 2.00%
----------------------------------------------------------------------------
2 ** 81 5.35% 0.25% 0.25%
81 - 85 2.25%
86 - 89 1.60%
----------------------------------------------------------------------------
3 ** 81 1.00% 1.00% 1.00%
81 - 85 0.65%
86 - 89 0.00%
----------------------------------------------------------------------------
Years 2 - 5 (2) Years 6 + (3)
----------------------------------------------------------------------------
4 ** 81 6.00% 0.00% .25%
81 - 85 2.85%
86 - 89 1.85%
----------------------------------------------------------------------------
* Age refers to the age of the owner(s).
** is less than
(1) Trail commissions will continue to be paid on a particular Contract until
the Contract is surrendered or annuity benefits begin to be paid under an
annuity option.
Trail commissions, if any, include a 0.25% annual service fee. Payment of
the annual service fee is subject to the continuation of the plan of
distribution adopted by American Funds Insurance Series, which serves as
the investment vehicle for the American Legacy III series. Such payments
may be varied or discontinued at any time.
(2) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the Contract has been
in force for 15 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 15 months.
(3) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the Contract has been
in force for 84 months (60 months for option 4). Trail commissions are paid
at the end of each calendar quarter on the quarter ending account value
less any deposits made within the prior 84 months (60 months for option 4).
American Legacy III View
Variable Annuity
The individual registered representative can choose commission options on a
Contract-by-Contract basis. Once a commission option is chosen for a contract,
it may not be changed. The commission option chosen must be indicated on the
application. If no selection is made, the default will be option 2. Separate
commission arrangements, as described in this document, apply to Contracts that
have been annuitized or have elected Income4Life or i4Life.
----------------------------------------------------------------------------
Trail Commissions (1)
Commission Attained Age At -------------------------------
Schedule Time of Deposit* Cash Flow Years 2 - 4 (2) Years 5 + (3)
----------------------------------------------------------------------------
1 ** 81 5.00% 0.00% 1.00%
81 - 85 3.60%
86 - 90 3.00%
----------------------------------------------------------------------------
2 ** 81 4.00% 0.40% 1.00%
81 - 85 2.75%
86 - 90 2.25%
----------------------------------------------------------------------------
3 ** 81 2.60% 1.00% 1.00%
81 - 85 1.55%
86 - 90 1.20%
----------------------------------------------------------------------------
4 ** 81 5.50% 0.00% 0.80%
81 - 85 4.10%
86 - 90 3.50%
----------------------------------------------------------------------------
* Age refers to the age of the owner(s).
** is less than
(1) Trail commissions will continue to be paid on a particular Contract until
the Contract is surrendered or annuity benefits begin to be paid under an
annuity option.
Trail commissions, if any, include a 0.25% annual service fee. Payment of
the annual service fee is subject to the continuation of the plan of
distribution adopted by American Funds Insurance Series, which serves as
the investment vehicle for the American Legacy III series. Such payments
may be varied or discontinued at any time.
(2) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 15 months.
(3) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 48 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 48 months.
American Legacy III View (New York)
Variable Annuity
The individual registered representative can choose commission options on a
Contract-by-Contract basis. Once a commission option is chosen for a contract,
it may not be changed. The commission option chosen must be indicated on the
application. If no selection is made, the default will be option 2. Separate
commission arrangements, as described in this document, apply to Contracts that
have been annuitized or have elected Income4Life or i4Life.
----------------------------------------------------------------------------
Trail Commissions (1)
Commission Attained Age At -------------------------------
Schedule Time of Deposit* Cash Flow Years 2 - 4 (2) Years 5 + (3)
----------------------------------------------------------------------------
1 ** 81 5.00% 0.00% 1.00%
81 - 85 3.60%
86 - 89 3.00%
----------------------------------------------------------------------------
2 ** 81 4.00% 0.40% 1.00%
81 - 85 2.75%
86 - 89 2.25%
----------------------------------------------------------------------------
3 ** 81 2.60% 1.00% 1.00%
81 - 85 1.55%
86 - 89 1.20%
----------------------------------------------------------------------------
4 ** 81 5.50% 0.00% 0.80%
81 - 85 4.10%
86 - 89 3.50%
----------------------------------------------------------------------------
* Age refers to the age of the owner(s).
** is less than
(1) Trail commissions will continue to be paid on a particular Contract until
the Contract is surrendered or annuity benefits begin to be paid under an
annuity option.
Trail commissions, if any, include a 0.25% annual service fee. Payment of
the annual service fee is subject to the continuation of the plan of
distribution adopted by American Funds Insurance Series, which serves as
the investment vehicle for the American Legacy III series. Such payments
may be varied or discontinued at any time.
(2) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 15 months.
(3) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 48 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 48 months.
American Legacy III Plus
Variable Annuity
The individual registered representative can choose commission options on a
Contract-by-Contract basis. Once a commission option is chosen for a contract,
it may not be changed. The commission option chosen must be indicated on the
application. If no selection is made, the default will be option 2. Separate
commission arrangements, as described in this document, apply to Contracts that
have been annuitized or have elected Income4Life or i4Life.
-------------------------------------------------------------------------------
Trail Commissions (2)
Commission Attained Age At --------------------------------
Schedule Time of Deposit* Cash Flow(1) Years 2 - 9 (3) Years 10 + (4)
-------------------------------------------------------------------------------
1 ** 81 6.25% 0.00% 0.00%
81 - 85 2.50%
86 - 90 1.50%
-------------------------------------------------------------------------------
2 ** 81 5.10% 0.25% 0.25%
81 - 85 2.50%
86 - 90 1.50%
-------------------------------------------------------------------------------
3 ** 81 3.75% 0.25% 1.00%
81 - 85 2.50%
86 - 90 1.50%
-------------------------------------------------------------------------------
* Age refers to the age of the owner(s).
** is less than
(1) Cash Flow commissions are reduced by 0.50% on deposits that qualify for the
5.00% "bonus credit." For purposes of determining whether the 5.00% "bonus
credit" and the reduced commissions apply, all purchase payments received
in the first Contract year will be aggregated.
(2) Trail commissions will continue to be paid on a particular Contract until
the Contract is surrendered or annuity benefits begin to be paid under an
annuity option.
Trail commissions, if any, include a 0.25% annual service fee. Payment of
the annual service fee is subject to the continuation of the plan of
distribution adopted by American Funds Insurance Series, which serves as
the investment vehicle for the American Legacy III series. Such payments
may be varied or discontinued at any time.
(3) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 15 months.
(4) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 108 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 108 months.
American Legacy III Plus (New York)
Variable Annuity
The individual registered representative can choose commission options on a
Contract-by-Contract basis. Once a commission option is chosen for a contract,
it may not be changed. The commission option chosen must be indicated on the
application. If no selection is made, the default will be option 2. Separate
commission arrangements, as described in this document, apply to Contracts that
have been annuitized or have elected Income4Life or i4Life.
-------------------------------------------------------------------------------
Trail Commissions (2)
Commission Attained Age At --------------------------------
Schedule Time of Deposit* Cash Flow (1) Years 2 - 9 (3) Years 10 + (4)
-------------------------------------------------------------------------------
1 ** 81 6.25% 0.00% 0.00%
81 - 85 2.50%
86 - 89 1.50%
-------------------------------------------------------------------------------
2 ** 81 5.10% 0.25% 0.25%
81 - 85 2.50%
86 - 89 1.50%
-------------------------------------------------------------------------------
3 ** 81 3.75% 0.25% 1.00%
81 - 85 2.50%
86 - 89 1.50%
-------------------------------------------------------------------------------
* Age refers to the age of the owner(s).
** is less than
(1) Cash Flow commissions are reduced by 0.50% on deposits that qualify for the
5.00% "bonus credit." For purposes of determining whether the 5.00% "bonus
credit" and the reduced commissions apply, all purchase payments received
in the first Contract year will be aggregated.
(2) Trail commissions will continue to be paid on a particular Contract until
the Contract is surrendered or annuity benefits begin to be paid under an
annuity option.
Trail commissions, if any, include a 0.25% annual service fee. Payment of
the annual service fee is subject to the continuation of the plan of
distribution adopted by American Funds Insurance Series, which serves as
the investment vehicle for the American Legacy III series. Such payments
may be varied or discontinued at any time.
(3) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 15 months.
(4) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 108 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 108 months.
American Legacy III C-Share
Variable Annuity
--------------------------------------------------------
Trail Commissions (2)
Attained Age At ---------------------
Time of Deposit* Cash Flow (1) Years 2 + (3)
--------------------------------------------------------
** 81 1.25% 1.00%
81 - 90 1.00%
--------------------------------------------------------
* Age refers to the age of the owner(s).
** is less than
(1) If withdrawals during a contract year exceed 10% of net deposits (gross
deposits less prior withdrawals), cash flow commissions will be subject to
a charge back. During the first twelve from when a deposit is made, 100% of
the cash flow commission will be charged back on amounts in excess of the
allowable withdrawal. Deposits will be withdrawn on a first-in, first-out
basis to determine if a charge back should apply. The allowable withdrawals
per contract year are not cumulative. 100% of the cash flow commission will
be charged back on deposits surrendered or annuitized within twelve months
from the date of receipt.
(2) Annual trail compensation rates are shown. Trail compensation begins on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail compensation is paid on the quarter ending
account value less any deposits made within the prior 15 months.
American Legacy III C-Share (New York)
Variable Annuity
--------------------------------------------------------
Trail Commissions (2)
Attained Age At ---------------------
Time of Deposit* Cash Flow (1) Years 2 + (3)
--------------------------------------------------------
** 81 1.25% 1.00%
81 - 89 1.00%
--------------------------------------------------------
* Age refers to the age of the owner(s).
** is less than
(1) If withdrawals during a contract year exceed 10% of net deposits (gross
deposits less prior withdrawals), cash flow commissions will be subject to
a charge back. During the first twelve from when a deposit is made, 100% of
the cash flow commission will be charged back on amounts in excess of the
allowable withdrawal. Deposits will be withdrawn on a first-in, first-out
basis to determine if a charge back should apply. The allowable withdrawals
per contract year are not cumulative. 100% of the cash flow commission will
be charged back on deposits surrendered or annuitized within twelve months
from the date of receipt.
(2) Annual trail compensation rates are shown. Trail compensation begins on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail compensation is paid on the quarter ending
account value less any deposits made within the prior 15 months.
American Legacy Shareholder's Advantage
-----------------------------------------------------------------------------------------------------
Trail
Commission as Sales Charge as Commissions (2)
Percentage of Percentage of ---------------
Contract Owner's Investment (1) Gross Purchase Payment Gross Purchase Payment Years 2 + (3)
-----------------------------------------------------------------------------------------------------
Less than $25,000 5.00% 5.75% 0.25%
$25,000 but less than $50,000 4.25% 5.00%
$50,000 but less than $100,000 3.75% 4.50%
$100,000 but less than $250,000 2.75% 3.50%
$250,000 but less than $500,000 2.00% 2.50%
$500,000 but less than $750,000 1.60% 2.00%
$750,000 but less than $1,000,000 1.20% 1.50%
$1,000,000 or more 1.00% 1.00%
-----------------------------------------------------------------------------------------------------
(1) As defined under "Charges and Other Deductions" in the American Legacy
Shareholder's Advantage prospectus. Includes the value of other American
Legacy contracts and eligible mutual funds of The American Funds Group.
(2) Trail commissions will continue to be paid on a particular Contract until
the Contract is surrendered or annuity benefits begin to be paid under an
annuity option.
Trail commissions include a 0.25% annual service fee. Payment of the annual
service fee is subject to the continuation of the plan of distribution
adopted by American Funds Insurance Series, which serves as the investment
vehicle for American Legacy Shareholder's Advantage. Such payments may be
varied or discontinued at any time.
(3) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail commissions are paid on the quarter ending
account value less any deposits made within the prior 15 months.
American Legacy Shareholder's Advantage (New York)
-----------------------------------------------------------------------------------------------------
Trail
Commission as Sales Charge as Commissions (2)
Percentage of Percentage of ---------------
Contract Owner's Investment (1) Gross Purchase Payment Gross Purchase Payment Years 2 + (3)
-----------------------------------------------------------------------------------------------------
Less than $25,000 5.00% 5.75% 0.25%
$25,000 but less than $50,000 4.25% 5.00%
$50,000 but less than $100,000 3.75% 4.50%
$100,000 but less than $250,000 2.75% 3.50%
$250,000 but less than $500,000 2.00% 2.50%
$500,000 but less than $750,000 1.60% 2.00%
$750,000 but less than $1,000,000 1.20% 1.50%
$1,000,000 or more 1.00% 1.00%
-----------------------------------------------------------------------------------------------------
(1) As defined under "Charges and Other Deductions" in the American Legacy
Shareholder's Advantage prospectus. Includes the value of other American
Legacy contracts and eligible mutual funds of The American Funds Group.
(2) Trail commissions will continue to be paid on a particular Contract until
the Contract is surrendered or annuity benefits begin to be paid under an
annuity option.
Trail commissions include a 0.25% annual service fee. Payment of the annual
service fee is subject to the continuation of the plan of distribution
adopted by American Funds Insurance Series, which serves as the investment
vehicle for American Legacy Shareholder's Advantage. Such payments may be
varied or discontinued at any time.
(3) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail commissions are paid on the quarter ending
account value less any deposits made within the prior 15 months.
American Legacy
i4Life Advantage
Income4Life Solution (for contracts issued on or after November 4, 2002)
If an i4Life Advantage or Income4Life Solution option is elected, cash flow
commissions will be paid according to the commission option selected for the
American Legacy product involved. Trail commissions through the end of the
initial surrender charge period, if any, for the option selected will also
remain unchanged. At the end of the initial surrender charge period, the trail
commission rates will be increased to:
----------------------------------------------------------------------------
Commission Annual Trail Commission
Product Option Payable after the CDSC (1)
----------------------------------------------------------------------------
American Legacy III (2) Standard 1.00%
1 0.50%
2 0.75%
3 1.00%
4 0.75%
----------------------------------------------------------------------------
American Legacy III View (2) 1 1.00%
2 1.00%
3 1.00%
4 1.00%
----------------------------------------------------------------------------
American Legacy III Plus (2) 1 0.50%
2 0.75%
3 1.00%
----------------------------------------------------------------------------
American Legacy III C-Share (3) 1.00%
----------------------------------------------------------------------------
American Legacy Shareholder's 0.50%
Advantage (3)
----------------------------------------------------------------------------
American Legacy (4) 1.00%
----------------------------------------------------------------------------
American Legacy II (4) 1.00%
----------------------------------------------------------------------------
(1) Trail commissions include a 0.25% annual service fee. Payment of the annual
service fee is subject to the continuation of the plan of distribution
adopted by American Funds Insurance Series, which serves as the investment
vehicle for the American Legacy III suite of products and for American
Legacy Shareholder's Advantage. Such payments may be varied or discontinued
at any time.
(2) Trail commissions shown are payable quarterly beginning on the calendar
quarter end immediately after the contract has been in force for: 84 months
for American Legacy III; 48 months for American Legacy III View; 108 months
for American Legacy Plus. Trail commissions are paid on the quarter ending
account value less any deposits that are still within the surrender charge
period for the product involved.
(3) Trail commissions shown are payable quarterly beginning on the calendar
quarter end immediately after the contract has been in force for 15 months.
Trail commissions are paid on the quarter ending account value less any
deposits made within the prior 15 months.
(4) Trail commissions shown are payable quarterly beginning on the calendar
quarter end immediately after the contract has been in force for 84 months
for American Legacy and American Legacy II. Trail commissions are paid on
the quarter ending account value less any deposits that are still within
the surrender charge period for the product involved. The persistency bonus
payable beginning at the end of the 7/th/ contract anniversary will no
longer be payable. [Note: American Legacy and American Legacy II are no
longer available for new sales.]
American Legacy
i4Life Advantage
Income4Life Solution (for contracts issued on or after November 4, 2002)
If either Income4Life option is being selected at issue of an American Legacy
III or an American Legacy III Plus contract, an additional commission option is
available for each product.
--------------------------------------------------------------------------
Attained Age at Trail Commissions
Product Time of Deposit Cash Flow Years 2+ (1)
--------------------------------------------------------------------------
American Legacy III ** 81 1.75% 1.00%
81 - 90 0.75% 1.00%
--------------------------------------------------------------------------
American Legacy III Plus ** 81 1.75% 1.00%
81 - 90 0.75% 1.00%
--------------------------------------------------------------------------
** is less than
(1) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 15 months.
Trail commissions include a 0.25% annual service fee. Payment of the annual
service fee is subject to the continuation of the plan of distribution
adopted by American Funds Insurance Series, which serves as the investment
vehicle for American Legacy III and American Legacy III Plus. Such payments
may be varied or discontinued at any time.
American Legacy
i4Life Advantage (New York)
Income4Life Solution (for contracts issued on or after November 4, 2002)
If an i4Life Advantage or Income4Life Solution option is elected, cash flow
commissions will be paid according to the commission option selected for the
American Legacy product involved. Trail commissions through the end of the
initial surrender charge period, if any, for the option selected will also
remain unchanged. At the end of the initial surrender charge period, the trail
commission rates will be increased to:
----------------------------------------------------------------------------
Commission Annual Trail Commission
Product Option Payable after the CDSC (1)
----------------------------------------------------------------------------
American Legacy III (New York) (2) Standard 1.00%
1 0.50%
2 0.75%
3 1.00%
4 0.75%
----------------------------------------------------------------------------
American Legacy III View 1 1.00%
(New York) (2) 2 1.00%
3 1.00%
4 0.75%
----------------------------------------------------------------------------
American Legacy III Plus 1 0.50%
(New York) (2) 2 0.75%
3 1.00%
----------------------------------------------------------------------------
American Legacy III C-Share
(New York) (3) 1.00%
----------------------------------------------------------------------------
American Legacy Shareholder's
Advantage (New York) (3) 0.50%
----------------------------------------------------------------------------
(1) Trail commissions include a 0.25% annual service fee. Payment of the annual
service fee is subject to the continuation of the plan of distribution
adopted by American Funds Insurance Series, which serves as the investment
vehicle for the American Legacy III suite of products and for American
Legacy Shareholder's Advantage. Such payments may be varied or discontinued
at any time.
(2) Trail commissions shown are payable quarterly beginning on the calendar
quarter end immediately after the contract has been in force for: 84 months
for American Legacy III; 48 months for American Legacy III View; 108 months
for American Legacy Plus. Trail commissions are paid on the quarter ending
account value less any deposits that are still within the surrender charge
period for the product involved.
(3) Trail commissions shown are payable quarterly beginning on the calendar
quarter end immediately after the contract has been in force for 15 months.
Trail commissions are paid on the quarter ending account value less any
deposits made within the prior 15 months.
American Legacy
i4Life Advantage (New York)
Income4Life Solution (for contracts issued on or after November 4, 2002)
If either Income4Life option is being selected at issue of an American Legacy
III (New York) or an American Legacy III Plus (New York) contract, an additional
commission option is available for each product.
--------------------------------------------------------------------------
Attained Age at Trail Commissions
Product Time of Deposit Cash Flow Years 2+ (1)
--------------------------------------------------------------------------
American Legacy III ** 81 1.75% 1.00%
(New York) 81 - 89 0.75% 1.00%
--------------------------------------------------------------------------
American Legacy III Plus ** 81 1.75% 1.00%
(New York) 81 - 89 0.75% 1.00%
--------------------------------------------------------------------------
** is less than
(1) Annual trail commission rates are shown. Trail commissions begin on the
calendar quarter end immediately following the date the contract has been
in force for 15 months. Trail commissions are paid at the end of each
calendar quarter on the quarter ending account value less any deposits made
within the prior 15 months.
Trail commissions include a 0.25% annual service fee. Payment of the annual
service fee is subject to the continuation of the plan of distribution
adopted by American Funds Insurance Series, which serves as the investment
vehicle for American Legacy III and American Legacy III Plus. Such payments
may be varied or discontinued at any time.
American Legacy
Income4Life Solution
(For contracts issued prior to November 4, 2002)
If Income4Life ("I4L") is elected at issue or within twelve (12) months from the
time the American Legacy III contract is issued, the I4L commissions will be:
----------------------------------------------------------------------------
Trail Commissions
-----------------
American Legacy III Product Cash Flow (1) Years 2 + (2)
----------------------------------------------------------------------------
American Legacy III (New York and non-
New York) 1.00% 1.00%
American Legacy III View 1.00% 1.00%
American Legacy III Plus 1.00% 1.00%
American Legacy III C-Share (New York
and non-New York) 1.00% 1.00%
American Legacy Shareholder's Advantage Based on sales
charge. 0.50%
----------------------------------------------------------------------------
(1) If cash flow commissions were initially paid under the deferred annuity
schedule or a different option for the American Legacy III product, it will
be charged back and paid on the basis of the I4L commission schedule.
(2) Annual trail commission rate is shown. Trail commissions begin on the
calendar quarter end immediately after the contract has been in force for
15 months. Trail commissions are paid quarterly on the quarter ending
account value less any deposits made within the last 15 months.
Trail commissions include a 0.25% annual service fee. Payment of the annual
service fee is subject to the continuation of the plan of distribution
adopted by American Funds Insurance Series, which serves as the investment
vehicle for the American Legacy III series. Such payments may be varied or
discontinued at any time.
If I4L is elected more than 12 months after the date an American Legacy III,
American Legacy III View or American Legacy III Plus contract is issued:
. Commissions will continue to be paid on the basis of the initial
commission schedule elected at issue until the end of the initial
surrender charge period.
. The annual trail commissions will be increased to 1.00% beginning on
the calendar quarter end immediately following the date the contract
has been in force for 48 months (4 years) for American Legacy III
View, 84 months (7 years) for American Legacy III, 108 months (9
years) for American Legacy III Plus. Trail commissions are paid
quarterly and will be paid on the quarter ending account value less
any deposits made in the prior 48 months for American Legacy III View,
84 months for American Legacy III and 108 months for American Legacy
III Plus.
. If the I4L annuitization option is discontinued, future commissions
will be based on the deferred annuity commission schedule initially
selected.
If I4L is elected more than 12 months after the date an American Legacy III
C-Share contract is issued:
. The option 1 or option 2 trail commissions will continue to be paid.
. Any subsequent deposits will be paid on the basis of the I4L
commission schedule.
If I4L is elected more than 12 months after the date an American Legacy
Shareholder's Advantage contract is issued:
. The trail commissions will be increased to 0.50% beginning on the
calendar quarter end immediately following the date the I4L election
was made.
. Commissions on any new deposits will be based on the sales charges
assessed.
The I4L commission schedule applies only to I4L and is payable in lieu of any
other commissions.
American Legacy
Annuitization
----------------------------------------------------------------------------------------
Variable Basis
--------------------------
Continuing Fixed Basis
American Legacy Product* Cash Flow Commission (1) Cash Flow (2)
----------------------------------------------------------------------------------------
American Legacy III (3) 0.80% 3.00%
American Legacy III View (3) 1.00% 3.00%
American Legacy III Plus (3) 0.80% 3.00%
American Legacy III C-Share (4) 1.00% 3.00%
American Legacy Shareholder's Advantage (4) 0.25% 3.00%
The American Legacy (5) 4.00% 4.00%
American Legacy II (5) 4.70% 4.70%
----------------------------------------------------------------------------------------
* Schedule also applies to New York version of American Legacy III and
American Legacy Shareholder's Advantage.
(1) Percent, presented as an annual rate, is paid to dealers on "statutory
reserves" which have been initially annuitized on a variable basis. This
amount will be based on end-of-quarter reserve amounts and paid to dealers
each calendar quarter.
(2) Percent is paid to dealers on account values initially annuitized on a
fixed basis. No cash flow commission is payable on assets originally
annuitized on a variable basis and subsequently transferred to a fixed
basis.
Contracts issued by Lincoln Life that are annuitized solely on a fixed
basis will result in a separate Contract being issued.
(3) Commission is paid upon annuitization of contracts to which no surrender
charges apply.
(4) Commission is paid upon annuitization of contract.
(5) Commission is paid on all purchase payments held five years and on any
individual contract earnings that are annuitized.
Sales Volume Allowance
-------------------------------------------------------------
Combined Sales Volume among
American Legacy Products Annual Sales Volume Allowance
-------------------------------------------------------------
At least $7,500,000 0.25%
-------------------------------------------------------------
The Sales Volume Allowance will be paid to dealers maintaining a combined sales
volume of the amount shown each calendar year based on new deposits to the
American Legacy III, American Legacy III View, American Legacy III Plus,
American Legacy III C-Share and American Legacy Shareholder's Advantage
contracts.
The Sales Volume Allowance is paid as additional cash flow commissions on all
new deposits received during the calendar year (i.e. internal exchanges are
excluded) to contracts qualifying for this allowance.
Products currently qualifying for this allowance include the American Legacy III
variable annuity series (American Legacy III, American Legacy III Plus, American
Legacy III C-Share, and American Legacy View). Deposits to American Legacy
Shareholder's Advantage and American Legacy Group products are not eligible for
the Sales Volume Allowance.
The Sales Volume Allowance is paid quarterly after the sales volume threshold is
attained.
The threshold for qualifying for the Sales Volume Allowance may be modified from
time to time in future years.
The list of qualifying products may also be modified from time to time in future
years.
The amount of the Sales Volume Allowance may be modified from time to time in
future years.
American Legacy Retirement Investment Plan
--------------------------------------------------------------------------
Commission on Contract Purchase Payments Made During
---------------------------------------------------- Trail Commissions
First Twelve months Second and Third Years Years 4+ (1)
--------------------------------------------------------------------------
3.00% 2.00% 0.40%
--------------------------------------------------------------------------
(1) Once a Contract has been in effect for 13 full calendar quarters, an annual
0.40% continuing commission will be paid to dealers on the value of all
Contract purchase payments. This commission will be paid at the end of each
calendar quarter in an amount equal to 0.10% of quarter ending account
value.
COMMISSION SCHEDULE B
---------------------
The American Legacy
Variable Annuity (1)
---------------------------------------------------------------------
Trail Commissions
---------------------------
Cash Flow Years 2 - 7 Years 8 +
---------------------------------------------------------------------
Deposit 4.00% 0.25% (2) 0.25% (2)
---------------------------------------------------------------------
Increased Guaranteed
Minimum Death Benefit (3) 0.40%
---------------------------------------------------------------------
(a) New purchase payments for the American Legacy Variable Annuity are accepted
only in connection with existing Contracts.
(b) An annual 0.25% continuing commission will be paid to dealers on the value
of all deposits beginning on the calendar quarter end immediately following
the date the contract has been in force for 15 months. It will be paid on
the quarter ending account value less any deposits made within the prior 15
months.
(c) With respect to each Contract year's purchase payments, an annual 0.40%
persistency bonus will be paid to dealers on any "Increased Guaranteed
Minimum Death Benefit" (IGMDB). The IGMDB is determined as:
(a) purchase payments that have been on deposit for 7 contract years;
plus
(b) the attributable gain on such deposits; less
(c) any withdrawals.
For deposits to be included in the calculation, the annuitant must have not
have attained age 81. The death benefit is not adjusted if the annuitant is
age 81 or over on the 7/th/ anniversary date of a purchase payment. Such
deposits, the associated attributable gain and the associated withdrawals
are excluded from the bonus calculations.
The initial bonus payment will be made on the 7/th/ contract anniversary
(i.e. at the end of the surrender charge period for the initial deposit).
Subsequent bonus payments will occur on the 8/th/ through the 14/th/
anniversary of each purchase payment provided the contract is still in
force.
The amount of the bonus payment for each contract year's purchase payments
will remain constant unless there are subsequent withdrawals. Withdrawals
are done on a first-in, first-out basis.
Once a deposit reaches its 15/th/ anniversary, no additional bonus payments
will be made on that deposit and the attributable gain associated with that
deposit.
American Legacy II
Variable Annuity (1)
------------------------------------------------------------------------------
Trail Commissions (2)
Attained Age at ----------------------
Amount Time of Deposit Cash Flow Years 2 - 7 Years 8 +
------------------------------------------------------------------------------
Contract Purchase Payments ** 81 4.70% 0.25% 0.25%
--------------------------
*** 81 2.50%
------------------------------------------------------------------------------
Increased Guaranteed
Minimum Death Benefit (3) 0.50%
------------------------------------------------------------------------------
** is less than
*** is more than or equal to
(1) New purchase payments for the American Legacy II Variable Annuity are
accepted only in connection with existing Contracts.
(2) An annual 0.25% continuing commission will be paid to dealers on the value
of all deposits beginning on the calendar quarter end immediately following
the date the contract has been in force for 15 months. It will be paid on
the quarter ending account value less any deposits made within the prior 15
months.
(3) With respect to each Contract year's purchase payments, an annual 0.50%
persistency bonus will be paid to dealers on any "Increased Guaranteed
Minimum Death Benefit" (IGMDB). The IGMDB is determined as:
(a) purchase payments that have been on deposit for 7 contract years;
plus
(b) the attributable gain on such deposits; less
(c) any withdrawals.
For deposits to be included in the calculation, the annuitant must have not
have attained age 81. The death benefit is not adjusted if the annuitant is
age 81 or over on the 7/th/ anniversary date of a purchase payment. Such
deposits, the associated attributable gain and the associated withdrawals
are excluded from the bonus calculations.
The initial bonus payment will be made on the 7/th/ contract anniversary
(i.e. at the end of the surrender charge period for the initial deposit).
Subsequent bonus payments will occur on the 8/th/ through the 14/th/
anniversary of each purchase payment provided the contract is still in
force.
The amount of the bonus payment for each contract year's purchase payments
will remain constant unless there are subsequent withdrawals. Withdrawals
are done on a first-in, first-out basis.
Once a deposit reaches its 15/th/ anniversary, no additional bonus payments
will be made on that deposit and the attributable gain associated with that
deposit.
The American Legacy
Group Variable Annuity (1)
--------------------------------------------------------------------------
Amount Cash Flow
--------------------------------------------------------------------------
Contract Purchase Payments 1.00% or 3.00% (as specified in the Contract)
--------------------------------------------------------------------------
(1) Purchase payments are generally accepted only in connection with existing
Contracts.
American Legacy
Group II Variable Annuity (1)
----------------------------------------------------------------------------------------
Trail Commissions
Commission on all Contract Purchase Payments -----------------
Sold in connection with Contracts established: Cash Flow Years 2 + (2)
----------------------------------------------------------------------------------------
On or after October 15, 1993 3.25% 0.25%
---------------------------------------------------------------------
On or after December 1, 1991 and prior to October 15, 1993 3.35%
---------------------------------------------------------------------
Prior to December 1, 1991 3.50%
----------------------------------------------------------------------------------------
(1) Purchase payments are generally accepted only in connection with existing
Contracts.
(2) An annual 0.25% continuing commission will be paid to dealers on the value
of all contract purchase payments beginning in the second contract year.
Trail commissions begin on the calendar quarter end immediately following
the date the contract has been in force for 15 months. Trail commissions
are paid at the end of each calendar quarter on the quarter ending account
value less any deposits made within the prior 15 months.
American Legacy Life
------------------------------------------------------------------------------
Trail Commissions
-----------------
Dealer's Total Sales Volume (1) All Premiums from Policies Years 2 + (2)
------------------------------------------------------------------------------
Less than $2,000,000 5.50% 0.25%
------------------------------- -----------------
At least $2,000,000 0.50%
------------------------------------------------------------------------------
(1) An additional annual 0.25% sales volume allowance will be paid to dealers
maintaining a sales volume of at least $2,000,000 in each calendar year.
This fee will be paid on all premiums received during the calendar year,
except on any premiums on which you have received commissions in excess of
5.50%. Payments will be made to dealers every quarter after the $2,000,000
sales level is attained. Dealers must attain the $2,000,000 sales volume
each calendar year to qualify for additional allowance payments.
(2) An annual 0.25% continuing commission will be paid to dealers on the value
of all Policy premiums beginning in the second Policy year. This commission
will be paid at the end of each calendar quarter and will be calculated as
follows: At the end of each calendar quarter, Lincoln Life will calculate
and pay for all Policies which have been in force for 15 months or more as
of the last day of the quarter, an amount equal to 0.0625% of an amount
equal to the excess of the Policy value over loans as of the last day of
the quarter.
American Legacy Estate Builder
---------------------------------------------------------------------------
Trail Commissions
Commissions -----------------
Amount to Dealers Years 2 + (1)
---------------------------------------------------------------------------
All Premiums from Policies Sold by Dealer 5.75% 0.25%
-------------------------------------------------------
1035 Transferred Loan Amounts 1.50%
---------------------------------------------------------------------------
(1) An annual 0.25% continuing commission will be paid to dealers on the value
of all Policy premiums less loan amounts beginning in the second Policy
year. This commission will be paid at the end of each calendar quarter and
will be calculated as follows: At the end of each calendar quarter, Lincoln
Life will calculate and pay for all Policies which have been in the force
for 15 months or more as of the last day of the quarter, an amount equal to
0.0625% of an amount equal to the excess of the Policy value over loans as
of the last day of the quarter.
American Legacy Variable Life
---------------------------------------------------------------------------------------------------
Renewal Service Fees
-------------------------------------
First Year (Years 2 through 10) (Years 11+) Asset Participation Fee (1)
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
80% of Commissionable Premium 3% of premiums 3% of premiums 0.25% annually of net
plus 3% of excess premium Policy Value (2)
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
(1) At the end of each calendar quarter, Lincoln Life will calculate and pay
the above mentioned Asset Participation Fee for all policies which have
been in force for 39 months or more as of the last day of the quarter, an
amount equal to 0.0625% of an amount equal to the excess of the Policy
Value over loans as of the last day of the quarter.
(2) Net of policy loans starting at the end of policy year 3 for all years.
Any commission paid on a Contract or Policy that is cancelled under the
Contract's or Policy's review provisions will be repaid to Lincoln Life or
charged against your account.
Variable Annuity
Selling Group Agreement Amendment
This amendment applies to your variable annuity selling group agreement(s) with
Lincoln National Life or Lincoln Life and Annuity Company of New York.
For contracts issued on or after October 6, 2003, age related commission break
points will be based on the oldest of the owner, the joint owner and the
annuitant as of the date the deposit is received.
As in the past, any order received by us following this notification shall be
deemed an acceptance of this amendment.
