AMENDMENT
to each Reinsurance Agreement between CENTURY LIFE OF AMERICA of Waverly, Iowa
("REINSURED"), and THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort Xxxxx,
Indiana ("LINCOLN"), including but not limited to those agreements listed on the
attachment ("Reinsurance Agreements"), but excluding any agreements which
already include an election statement provided for in Section 1.848-2(g)(8)
(iii) of the Income Tax Regulations.
1. The LINCOLN and the REINSURED each repressents and warrants that it is
subject to taxation under Subchapter "L" of the Internal Revenue Code of 1986
(the "Code").
2. With respect to each of the Reinsurance Agreements (referred to
separately as "Agreement"), the LINCOLN and the REINSURED agree to the following
pursuant to Section 1.848 - 2(g)(8) of the Income Tax Regulations issued
December 1992, whereby:
(a) Each party shall attach a schedule to its federal income tax return
which identifies the relevant Reinsurance Agreements for which the
joint election under the Regulation has been made;
(b) The party with net positive consideration, as defined in the Regulation
promulgated under Code Section 848, for such Agreement for each taxable
year, shall capitalize specified policy acquisition expenses with
respect to such Agreement without regard to the general deductions
limitation of Section 848(c)(1);
(c) Each party agrees to exchange information pertaining to the amount of
net consideration under such Agreement each year to ensure consistency;
and
(d) If such Agreement was entered into prior to November 15, 1991, this
election shall be effective for 1992 and for all subsequent years that
such Agreement remains in effect. If such Agreement was entered into
after November 14, 1991, this election shall be effective for the year
that the Agreement was entered into and for all subsequent years that
such Agreement remains in effect.
3. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
CENTURY LIFE OF AMERICA
Signed at Waverly, Iowa
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By /s/ Xxxxxx X. Xxxxxxxxxx By /s/ Xxxxxxx X. Xxxxxx
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Title V.P. Valuation Actuary Title Secretary
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Date 6/29/93 Date 6/29/93
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THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort Xxxxx, Indiana
By /s/ Xxxx Xxxxxx By /s/ Signature
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Second Vice President Assistant Secretary
Date 5/24/93 Date 5/24/93
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