AGREEMENT
---------
Effective ___________________, The Lincoln Life & Annuity Company of New York,
(LNY) and/or Lincoln Financial Advisors Corp. (LFA) member, NASD (both
hereinafter "Lincoln", unless otherwise indicated) appoints ____________________
______________________________ of ___________________ in the following manner:
with LNY as a Corporate Insurance Broker, with LFA as a member of the Selling
Group being formed (hereinafter collectively referred to as "Representative").
1. DEFINITIONS
a. Broker: An individual appropriately licensed and appointed to sell the
fixed insurance products or non-registered variable products described
herein;
b. 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;
c. Corporate Insurance Broker: A corporation appropriately licensed to
sell the fixed insurance products or non-registered variable products
described herein.
d. 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/or appointed
to sell the insurance products described herein; or an organization
such as a bank, which pursuant to statutory or regulatory authority,
may act as a broker/dealer without being a member of the NASD, but is
appropriately licensed and appointed to sell the insurance products as
described herein.
2. LIMITATIONS ON APPOINTMENT
The Representative is authorized to solicit applications for those
contracts named in the Compensation Schedules attached to this Agreement,
and the Representative agrees to do so. However, he/she/it shall do so only
while properly licensed by and/or registered with the appropriate
governmental agency or authority for that specific type of product. All
fees for such licensing shall be borne by the Representative along with any
administrative charges associated with such licensing.
In no event is the Representative authorized to offer Lincoln contracts
outside of the state of New York.
3. NASD MEMBERSHIP (if applicable)
Each party to this Agreement, if acting as a Broker/Dealer, represents that
it is a member of the National Association of Securities Dealers, Inc.
("NASD"). Each party further agrees to comply with all applicable state and
federal law, rules, and regulations. Broker/Dealer's expulsion from the
NASD shall automatically terminate this Agreement without notice.
Broker/Dealer's suspension will terminate this Agreement immediately upon
written or oral notice from Lincoln received by Broker/Dealer.
4. LIMITATIONS OF AUTHORITY
The Representative has no authority to incur any obligations or debts for
or on behalf of Lincoln without its express written consent; to make,
modify, or discharge any contract on behalf of Lincoln by any statement,
promise, representation or transaction; to waive, alter, modify or change
any of the terms, rates, or conditions of the Lincoln contracts; or to
receive any monies or Purchase Payments (except for the sole purpose of
forwarding monies or Purchase Payments to Lincoln).
5. RELATIONSHIP OF PARTIES
In the performance of all of his/her/its duties under this Agreement, the
relationship of the Representative to Lincoln is that of an independent
contractor and none other. Neither party shall be deemed to be an employee
or partner of the other party for any purpose, and nothing herein shall be
construed to create the relationship of master and servant, employer and
employee, or joint venturers between the Representative and Lincoln.
6. COMPENSATION
Upon submission of applications for Lincoln contracts by the
Representative, or appropriately licensed agents of the Representative,
conforming to such rules and procedures for the conduct of the business of
Lincoln as are now established and as may be reasonably established by
Lincoln in the future, and upon issuance of contracts by Lincoln, the
Representative shall be entitled, subject to the terms and conditions of
the Agreement, to the applicable service fees set forth in the attached
Compensation Schedule(s) or revisions of such Compensation Schedule(s) and
all amendments, changes, and replacements thereof, as may be made at the
exclusive discretion of Lincoln. These Compensation Schedule(s) are made a
part of this Agreement. Revised Compensation Schedules shall apply to
policies issued and service fees earned after the date that said schedules
are adopted by Lincoln. In the case of any violation of any of the terms of
this Agreement, Lincoln shall be allowed to retain service fees earned but
not yet paid by Lincoln. Lincoln has the right to deduct damages and
expenses from such retained service fees. If Representative
CP Agreement NY (11/2003)
LNYCPSG
sells in an unauthorized market, or without pre-approval of Lincoln where
necessary, such Representative forfeits all compensation under this
Agreement from such unauthorized sale.
The Representative shall be solely responsible for all compensation paid to
its agents and all related tax reporting that may be required under
applicable law.
7. EXCLUSIVE RIGHTS OF SOLICITATION AND SERVICE
a. Where the Representative establishes a relationship with an
organization for the purpose of selling Lincoln contracts, no other
entity with authorization by Lincoln may approach, solicit, or
otherwise contact such organization for the purpose of selling or
servicing Lincoln contracts as long as the Representative is actively
and effectively selling and servicing Lincoln contracts, subject to
the terms of Section 7(d).
b. The Representative may not establish a relationship with an
organization for the purpose of selling or servicing Lincoln contracts
if another entity with authorization from Lincoln has already
established such relationship with said employer. Any exceptions to
this must be requested by the Representative and reviewed and approved
in writing by an officer of Lincoln.
c. Notwithstanding anything to the contrary contained in (a) or (b)
above, the parties expressly agree that the Representative may
represent any other insurance carriers and offer any other insurance,
lines, products, or business, whether or not such other carrier lines,
products or business compete directly or indirectly with Lincoln.
x. Xxxxxxx shall be the sole arbitrator in these matters, and further,
reserves the right to withdraw the exclusive rights of any entity, at
the complete discretion of Lincoln.
8. ADVERTISING AND MARKETING MATERIAL
a. The Representative shall cooperate with Lincoln in preparing
advertising, solicitation brochures, and other marketing materials to
be used by Representative to sell Lincoln contracts. No promotional
and marketing material shall be used by Representative to sell Lincoln
contracts unless such material has received the prior written approval
of Lincoln and had been filed with the appropriate governmental and
regulatory agencies. No promotional and marketing material shall be
disseminated or used in any manner unless Lincoln's express written
approval has been given hereto.
b. The Representative shall train and supervise all of his/her/its
employees, agents and other third parties involved in the
solicitation, sale and deliver of the contracts.
c. The Representative agrees to indemnify and hold Lincoln harmless from
any liability resulting from the negligent, improper, unauthorized, or
illegal use of sales, marketing, solicitation, or other materials.
d. Upon termination of this Agreement, all records, unused supplies,
Lincoln provided software, and all other material furnished by Lincoln
in the Representative's possession shall be returned to Lincoln upon
request.
9. PROSPECTUS (if applicable)
a. Lincoln agrees to deliver to the Representative current LNY
prospectuses. The Representative agrees to destroy and dispose of all
prior prospectuses immediately upon receipt of the current
prospectuses.
b. LNY shall be liable for all statements contained in the current
prospectus. The Representative shall be liable for all statements made
by the Representative, his/her/its agents, or employees, if
applicable, which are not contained in the current prospectus.
10. PURCHASE PAYMENTS
All initial Purchase Payments shall be made payable to LNY and shall be
delivered together with all applications and related information in
accordance with procedures established by Lincoln.
Any subsequent Purchase Payments received by the Representative on behalf
of LNY shall be forwarded promptly to LNY.
11. INDEMNIFICATION
a. The Representative shall be solely responsible for the malicious,
intentional, reckless, knowing, or negligent acts or omissions of
his/her/its employees, officers, agents, and sales persons for the
business covered under this Agreement and shall indemnify and hold
harmless Lincoln from any claims, demands, actions, judgements, loss,
cost or expense, including attorney fees, court costs, and punitive
damages incurred by Lincoln by reason of such acts or omissions.
x. Xxxxxxx shall be solely responsible for the negligent acts or
omissions of its employees, officers, agents, and sales persons for
the business covered under this Agreement and shall indemnify and hold
harmless the Representative from any claims, demands, liabilities,
actions, judgements,
CP Agreement NY (11/2003)
loss, cost, or expense, including attorney fees and court costs
incurred by the Representative which are caused by or arise out of any
negligent acts or omissions of Lincoln, its employees, officers,
agents, or sales persons.
c. The Representative, not Lincoln, is solely responsible for all
statements, written or oral, acts, or representations, whether
expressed or implied, made by his/her/its agents, or employees and is
responsible for notifying his/her/its agents or employees of the terms
and conditions of this Agreement.
d. The Representative, (unless acting for Lincoln in its capacity as a
Broker/Dealer) not Lincoln, is solely responsible as to the
suitability of sale of the Lincoln contracts to individual persons.
e. The Representative is solely responsible for performing the Maximum
Exclusion Allowance calculations for any 403(b) sales.
f. The Representative shall immediately notify Lincoln of any and all
complaints about Lincoln contracts received by the Representative.
12. ASSIGNMENTS/MODIFICATION
a. Lincoln and the Representative shall make no assignment or transfer of
this Agreement or of any benefits or obligations hereunder, either in
whole or in part, without the prior written consent of the other. Any
such assignee or transferee shall be properly licensed, including
pursuant to Section 1 of this Agreement, to perform its function under
this Agreement prior to the assignment to transfer. All terms and
conditions of this Agreement are applicable to any assignment or
transfer.
b. This Agreement embodies the entire Agreement of the parties relative
to the matters with which it deals and is intended to be the entire
and exclusive embodiment thereof. Neither the Representative nor
Lincoln shall be bound by any promise, agreement, understanding, or
representation heretofore or hereafter made relative to the subject
matter of this Agreement except for any amendment under this paragraph
12.b. or a change, revision, or addition to the attached Compensation
Schedule(s) as provided in Section 6.
This Agreement may be amended or revised at any time by Lincoln, upon notice to
you and, unless the Representative notifies us to the contrary within 10
calendar days of the mailing date of any such amendment, Representatives will be
deemed to have accepted that amendment or modification.
13. INDEBTEDNESS OF REPRESENTATIVE
Lincoln shall have first lien on all service fees and other compensation
payable hereunder for any debt due from the Representative to Lincoln or
any of its affiliates, including charges relating to certain cancellations,
rejections, or reissues of contracts. Lincoln may at this time deduct or
set off from any moneys payable under this Agreement, or from any other
source, any such debt or debts at the legal rate. This lien shall not be
extinguished by the termination of the Representative's authority. This
provision shall not be construed in any way to limit any indebtedness of
the Representative to the value of the service fees and other compensation
payable under this Agreement. In the event of the termination of the
Representative's authority, the unpaid balance of the Representative's
indebtedness shall be immediately due and payable without demand or notice.
14. TERMINATION OF AGREEMENT
The Representative or Lincoln may terminate the Representative's
appointment under this Agreement, with or without cause, by notice sent by
ordinary mail to the last known address of the other party. Terminations of
appointment as used in this Agreement shall mean termination of authority
either through cancellation of the appropriate license or registration as
required by this paragraph or through termination of this entire Agreement.
However, Lincoln reserves the right, rather than to completely terminate
this Agreement, to suspend the right of the representative to sell new
business, including taking applications on existing contracts, but still
allow the representative to service existing business. This right shall
exist provided that it does not violate any applicable state or federal law
or regulation. Lincoln will provide evidence of servicing relationship in
writing to representative. Lincoln reserves the right to terminate the
service agreement pursuant to the terms of this Agreement.
If the Representative's right to sell new business, including taking
applications on existing contracts, is suspended by Lincoln while still
allowing representative to service existing business, then all compensation
as provided by this agreement shall continue to be payable to
representative as long as representative remains broker of record and
unless otherwise provided in this Agreement.
15. CUSTOMER CONFIDENTIALITY
The parties hereto understand and acknowledge that they may come into
possession of certain information, including "nonpublic personal
information" as described in the Xxxxx-Xxxxx-Xxxxxx Act ("GLB") about
persons who are current contractholders of Lincoln Life or who may become
CP Agreement NY (11/2003)
contractholders of Lincoln Life through the operation of this Agreement. As
such information ("Customer Information") may be utilized by the parties to
perform services on behalf of Lincoln Life for the benefit of such
contractholders, the parties agree to the following:
a. To comply with all applicable laws, rules, regulations and ordinances
relating to privacy, confidentiality, security, data security and the
handling of consumer and/or customer information which may be
established from time to time.
b. To use Customer Information only as necessary to perform services
required by this Agreement and not to disclose or otherwise make
available to any other party.
c. To require their respective officers, directors, partners, employees,
agents and representatives to maintain the confidentiality of the
Customer Information.
d. To take all reasonable precautions to safeguard and protect the
Customer Information and agree to monitor their use of Customer
Information to ensure compliance with this Agreement.
However, nothing in this Agreement shall prevent the parties from selling
or offering to sell other investment products or services to the
contractholders described herein, provided such contractholder is made
known to any party through means other than this Agreement.
In all other respects, the Agreement among the parties remains the same.
16. FORBEARANCE
Forbearance or neglect of Lincoln to insist upon performance of this
Agreement shall not constitute a waiver of its rights and privileges.
17. CHOICE OF LAW
The Representative and Lincoln expressly agree that in the case of any
disputes arising under this Agreement, said Agreement shall be construed
under New York Law.
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
By:
------------------------------------
Assistant Secretary
Date:
----------------------------------
LINCOLN FINANCIAL ADVISORS
By:
------------------------------------
Assistant Secretary
Date:
----------------------------------
By:
------------------------------------
Corporate Insurance Broker or
Broker/Dealer
By:
------------------------------------
Authorized Officer
----------------------------------------
Tax Identification Number
Date:
----------------------------------
Address:
-------------------------------
----------------------------------------
Phone:
---------------------------------
Fax:
-----------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
CP Agreement NY (11/2003)
ADDENDUM
This addendum ("Addendum") adds to the Selling Agreement between Lincoln Life &
Annuity Company of New York ("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 and Obstruct 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:
Lincoln Life & Annuity Company of (Broker/Dealer full legal name)
New York
By: By:
------------------------------- -------------------------------
Printed Name: Printed Name:
--------------------- ---------------------
Title: Title:
---------------------------- ----------------------------
Date: Date:
----------------------------- -----------------------------
CP Agreement NY (11/2003)
COMPENSATION SCHEDULE
Lincoln ChoicePlusII (New York)
This compensation schedule applies to the Lincoln ChoicePlusII product and
should be attached to your current Agreement with Lincoln Life & Annuity Company
of New York.
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 elected Income4Life or i4Life.
-------------------------------------------------------------------------------
Trail Compensation
Compensation Attained Age At --------------------------------
Schedule Time of Deposit* Cash Flow Years 2 - 7 (1) Years 8 + (2)
-------------------------------------------------------------------------------
1 ** 81 6.50% 0.00% 0.00%
81 - 85 4.50% 0.00% 0.00%
86 - 89 3.00% 0.00% 0.00%
2 ** 81 4.00% 0.50% 0.50%
81 - 85 2.50% 0.50% 0.50%
86 - 89 1.50% 0.50% 0.50%
3 ** 81 4.75% 0.25% 0.65%
81 - 85 3.25% 0.25% 0.65%
86 - 89 2.25% 0.25% 0.65%
4 ** 81 5.25% 0.25% 0.25%
81 - 85 3.75% 0.25% 0.25%
86 - 89 2.50% 0.25% 0.25%
-------------------------------------------------------------------------------
* Based on age of owner(s).
(1) 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.
(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 84 months. Trail compensation is paid on the quarter ending
account value less any deposits made within the prior 84 months.
** denotes less than
CP Agreement NY (11/2003)
Lincoln ChoicePlusII Bonus (New York)
This compensation schedule applies to the Lincoln ChoicePlusII Bonus product and
should be attached to your current Agreement with Lincoln Life & Annuity Company
of New York.
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 elected Income4Life or i4Life.
-------------------------------------------------------------------------------
Trail Compensation
Compensation Attained Age At Cash Flow --------------------------------
Schedule Time of Deposit* (1) Years 2 - 9 (2) Years 10 + (3)
-------------------------------------------------------------------------------
1 ** 81 6.50% 0.00% 0.00%
81 - 85 3.50% 0.00% 0.00%
86 - 89 2.50% 0.00% 0.00%
2 ** 81 5.35% 0.25% 0.25%
81 - 85 3.50% 0.00% 0.00%
86 - 89 2.50% 0.00% 0.00%
3 ** 81 4.75% 0.25% 0.65%
81 - 85 3.50% 0.00% 0.00%
86 - 89 2.50% 0.00% 0.00%
-------------------------------------------------------------------------------
* Based on age of owner(s)
(1) In the event a deposit qualifies for the 5% bonus credit, the cash flow
amount will be reduced by .50%. All deposits in the first year will be
aggregated together to determine whether the 5% bonus credit and the
reduced cash flow compensation apply.
(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.
(3) 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 108 months (i.e. 9 years). Trail compensation is paid on the
quarter ending account value less any deposits made within the prior 108
months.
** denotes less than
CP Agreement NY (11/2003)
Lincoln ChoicePlusII Advance (New York)
This compensation schedule applies to the Lincoln ChoicePlusII Advance product
and should be attached to your current Agreement with Lincoln Life & Annuity
Company of New York. It will be effective October 1, 2003.
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 elected Income4Life or i4Life.
-------------------------------------------------------------------------------
Trail Compensation
Compensation Attained Age At --------------------------------
Schedule Time of Deposit* Cash Flow Years 2 - 4 (1) Years 5 + (2)
-------------------------------------------------------------------------------
1 ** 81 5.00% 0.00% 1.00%
81 - 85 3.85% 0.00% 1.00%
86 - 90 3.25% 0.00% 1.00%
2 ** 81 4.00% 0.40% 1.00%
81 - 85 3.00% 0.40% 1.00%
86 - 90 2.50% 0.40% 1.00%
3 ** 81 2.65% 1.00% 1.00%
81 - 85 1.80% 1.00% 1.00%
86+ 1.45% 1.00% 1.00%
Years 2 - 3 (1) Years 4 + (3)
--------------------------------
4 ** 81 4.25% 0.00% 1.00%
81 - 85 3.15% 0.00% 1.00%
86+ 2.60% 0.00% 1.00%
-------------------------------------------------------------------------------
* Based on oldest age of owner(s) or annuitant
(1) 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.
(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 48 months. Trail compensation is paid on the quarter ending
account value less any deposits made within the prior 48 months.
(3) 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 36 months. Trail compensation is paid on the quarter ending
account value less any deposits made within the prior 36 months.
** denotes less than
CP Agreement NY (11/2003)
Lincoln ChoicePlusII Access (New York)
This compensation schedule applies to the Lincoln ChoicePlus Assurance (C Share)
product and should be attached to your current Agreement with Lincoln Life &
Annuity Company of New York.
Separate commission arrangements, as described in this document, apply to
Contracts that have been annuitized or elected i4Life.
-----------------------------------------------------------------
Compensation Attained Age At Cash Flow Trail Compensation
Schedule Time of Deposit (1) Years 2 + (2)
-----------------------------------------------------------------
1 ** 81 1.25% 1.00%
81 - 89 1.00% 1.00%
-----------------------------------------------------------------
(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 months 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.
** denotes less than
CP Agreement NY (11/2003)
i4Life Advantage
Income4Life Solution (for contracts issued on or after November 4, 2002)
New York
If an i4Life Advantage or Income4Life Solution option is elected, cash flow
commissions will be paid according to the commission option selected for the
ChoicePlus 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:
----------------------------------------------------------------
Annual Trail
Commission Commission Payable
Product (New York) Option after the CDSC
----------------------------------------------------------------
ChoicePlus or ChoicePlusII (1) 1 0.50%
2 0.75%
3 1.00%
4 1.00%
----------------------------------------------------------------
ChoicePlus Bonus or 1 0.50%
ChoicePlusII Bonus (1) 2 0.75%
3 1.00%
----------------------------------------------------------------
ChoicePlusII Advance (1) 1 1.00%
2 1.00%
3 1.00%
4 1.00%
----------------------------------------------------------------
ChoicePlus Access or 1 1.00%
ChoicePlusII Access (2) 2 1.00%
----------------------------------------------------------------
(1) Trail commissions shown are payable quarterly beginning on the calendar
quarter end immediately after the contract has been in force for: 84 months
for ChoicePlus or ChoicePlus II; 108 months for ChoicePlus Bonus or
ChoicePlusII Bonus; or 48 months for ChoicePlusII Advance (36 months for
option 4). 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.
(2) Trail commissions shown are payable quarterly beginning on the calendar
quarter end immediately after the contract has been in force for 15 months
for option 1 and for 3 months under option 2. Trail commissions are paid on
the quarter ending account value less any deposits made within the prior 15
months for option 1 or within the prior 3 months for option 2.
CP Agreement NY (11/2003)
ChoicePlus
Income4Life Solution (New York)
(for contracts issued prior to November 4, 2002)
If the Income4Life ("I4L") Solution option is elected at issue or within twelve
(12) months from the time a ChoicePlus or ChoicePlusII contract is issued, the
I4L commissions will be:
----------------------------------------------------------
Trail Commissions
Product Cash Flow Years 2 + (1)
----------------------------------------------------------
ChoicePlus or ChoicePlusII 1.00% 1.00%
(New York)
----------------------------------------------------------
(1) If cash flow commissions were initially paid under the deferred annuity
schedule or a different option for the ChoicePlus 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.
If I4L is elected more than 12 months after the date a ChoicePlus or
ChoicePlusII 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 84 months (7 years) for ChoicePlus or
ChoicePlusII. Trail commissions are paid quarterly and will be paid on
the quarter ending account value less any deposits made in the prior
84 months for ChoicePlus or ChoicePlusII.
. If the I4L annuitization option is discontinued, future commissions
will be based on the deferred annuity commission schedule initially
selected.
The I4L commission schedule applies only to I4L and is payable in lieu of any
other commissions.
CP Agreement NY (11/2003)
ChoicePlus (New York)
Annuitization
-----------------------------------------------------------------------
Variable Based Trail Fixed Basis
ChoicePlus Product Commissions(1) Cash Flow (2)
-----------------------------------------------------------------------
ChoicePlus or ChoicePlus II (3) 0.80% 3.00%
ChoicePlusII View (3) 1.00% 3.00%
ChoicePlusII Bonus (3) 0.80% 3.00%
ChoicePlus Access or
ChoicePlusII Access (4) 1.00% 3.00%
-----------------------------------------------------------------------
(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 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.
CP Agreement NY (11/2003)
Schedule B
Commissions for Contracts that are no longer be actively sold to new customers
Lincoln ChoicePlus (New York)
This compensation schedule applies to the Lincoln ChoicePlus product and should
be attached to your current Agreement with Lincoln Life & Annuity Company of New
York.
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 elected Income4Life or i4Life.
-------------------------------------------------------------------------------
Trail Compensation
Compensation Attained Age At --------------------------------
Schedule Time of Deposit* Cash Flow Years 2 - 7 (1) Years 8 + (2)
-------------------------------------------------------------------------------
1 ** 81 6.50% 0.00% 0.00%
81 - 85 4.50% 0.00% 0.00%
86 - 89 3.00% 0.00% 0.00%
2 ** 81 4.00% 0.50% 0.50%
81 - 85 2.50% 0.50% 0.50%
86 - 89 1.50% 0.50% 0.50%
3 ** 81 4.75% 0.25% 0.65%
81 - 85 3.25% 0.25% 0.65%
86 - 89 2.25% 0.25% 0.65%
4 ** 81 5.25% 0.25% 0.25%
81 - 85 3.75% 0.25% 0.25%
86 - 89 2.50% 0.25% 0.25%
-------------------------------------------------------------------------------
* Based on age of owner(s)
(1) 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.
(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 84 months. Trail compensation is paid on the quarter ending
account value less any deposits made within the prior 84 months.
** denotes less than
CP Agreement NY (11/2003)
Lincoln ChoicePlus Access (New York)
This compensation schedule applies to the Lincoln ChoicePlus Access product and
should be attached to your current Agreement with Lincoln Life & Annuity Company
of New York.
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 elected Income4Life or i4Life.
-----------------------------------------------------------------
Compensation Attained Age At Cash Flow Trail Compensation
Schedule Time of Deposit (1) Years 2 + (2)
-----------------------------------------------------------------
1 ** 81 2.00% 1.00%
81 - 89 1.00% 1.00%
-----------------------------------------------------------------
(1) Withdrawals of up to the greater of 10% of account value or of deposits are
allowed each contract year without resulting in a charge back. During the
first 12 months from the date a deposit is made, 100% of the cash flow
compensation will be charged back on withdrawals exceeding the stated
amount. During the next 12 months, 50% of the cash flow compensation will
be charged back on withdrawals exceeding the stated amount. Earnings will
be withdrawn first, then the 10% free amount, and then deposits 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 12 months from the date of receipt and 50%
on deposits surrendered or annuitized during the next 12 months.
(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.
-----------------------------------------------------------------
Compensation Attained Age At Cash Flow Trail Compensation
Schedule Time of Deposit (1) Years 1 + (2)
-----------------------------------------------------------------
2 ** 81 1.00% 1.00%
81 - 89 1.00% 1.00%
-----------------------------------------------------------------
(1) Withdrawals of up to the greater of 10% of account value or of deposits are
allowed each contract year without resulting in a charge back. During the
first 12 months from the date a deposit is made, 100% of the cash flow
compensation will be charged back on withdrawals exceeding the stated
amount. Earnings will be withdrawn first, then the 10% free amount, and
then deposits 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 12 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 3 months. Trail compensation is paid on the quarter ending
account value less any deposits made within the prior 3 months.
** denotes less than
CP Agreement NY (11/2003)
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.
CP Agreement NY (11/2003)
