EXHIBIT 3E
American
Funds American Funds Distributors, Inc.
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333 South Hope Street . Los Angeles, California 90071 September 20,1999
Dear American Legacy Selling Group Member:
This letter amends your Selling Group Agreement with American Funds
Distributors, Inc. ("AFD") and The Lincoln National Life Insurance Company
("Lincoln Life") to add American Legacy Shareholder's Advantage, our new
flexible premium variable annuity, to the product line.
The following compensation will be paid on American Legacy Shareholder's
Advantage sales:
Commission as Sales Charge as
Percentage of Percentage of
Gross Gross
Contract Owner's Investment* Purchase Payment Purchase Payment
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Less than $50,000 5.00% 5.75%
$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 $1,000,000 1.60% 2.00%
$1.000,000 or more 1.00% 1.00%
*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.
In addition to the commissions described above, a continuing .25% annual
service fee mill be paid to dealers on the value of all Contract purchase
payments beginning in the second Contract year. The service fee will be paid at
the end of each calendar quarter on the quarter ending account value less
purchase payments made in the previous 15 months. A separate compensation
arrangement (as described below) applies to Contracts that have been annuitized.
Service fee payments are subject to the continuation of the plan of distribution
adopted by American Variable Insurance Series, which serves as the investment
vehicle for American Legacy Shareholders Advantage, and such service fee
payments may be varied or discontinued at any time.
American Legacy Shareholder's Advantage
Variable Annuity--Annuitization
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Upon annuitizatlon of American Legacy Shareholder's Advantage contracts, a
continuing commission of 25% annually will be paid to dealers on "statutory
reserves" which have been annuitized on a variable basis. This amount will be
based on end-of-quarter reserve amounts and paid to dealers each calendar
quarter. A commission of 3% will be paid to dealers on account values which have
been annuitized on a fixed basis.
If you determine that American Legacy Shareholders Advantage does not fit
your marketing plan at this time. please complete and return the enclosed form
to AFD. Otherwise, any order received by us following this notification shall be
deemed an acceptance of this amendment to your Selling Group Agreement.
Very truly yours,
Xxxxx X. Xxxxxxxx Xxxxxxx X. Xxxxxxxxx
President Vice President
American Funds Distributors, Inc. The Lincoln National Life Insurance Company
