AGREEMENT
---------
Effective ____________________________, The Lincoln National Life Insurance
Company, member NASD, and/or Lincoln Financial Advisors Corp. (LFA) member, NASD
(hereinafter "Lincoln National") appoints _________________________________ of
______________________as a Broker and/or Registered Representative and/or
Corporate Insurance Broker and/or Broker/Dealer (hereinafter "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 National
contracts in 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 National 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 National without its express written consent; to
make, modify, or discharge any contract on behalf of Lincoln National by
any statement, promise, representation or transaction; to waive, alter,
modify or change any of the terms, rates, or conditions of the Lincoln
National contracts; or to receive any monies or Purchase Payments (except
for the sole purpose of forwarding monies or Purchase Payments to Lincoln
National).
5. RELATIONSHIP OF PARTIES
In the performance of all of his/her/its duties under this Agreement, the
relationship of the Representative to Lincoln National 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 National.
6. COMPENSATION
Upon submission of applications for Lincoln National 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 National as are now established and as may be reasonably
established by Lincoln National in the future, and upon issuance of
contracts by Lincoln National, 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
National. These Compensation Schedule(s) are made a part of this Agreement.
Revised
CP Agreement with Affiliates 11/03 Page 1
LLCPSGA
Compensation Schedules shall apply to policies issued and service fees
earned after the date that said schedules are adopted by Lincoln National.
In the case of any violation of any of the terms of this Agreement, Lincoln
National shall be allowed to retain service fees earned but not yet paid by
Lincoln National. Lincoln National has the right to deduct damages and
expenses from such retained service fees. If Representative sells in an
unauthorized market, or without pre-approval of Lincoln National 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 National contracts, no
other entity with authorization by Lincoln National may approach,
solicit, or otherwise contact such organization for the purpose of
selling or servicing Lincoln National contracts as long as the
Representative is actively and effectively selling and servicing
Lincoln National 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 National
contracts if another entity with authorization from Lincoln National
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 National.
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
National.
x. Xxxxxxx National 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 National.
8. ADVERTISING AND MARKETING MATERIAL
a. The Representative shall cooperate with Lincoln National in preparing
advertising, solicitation brochures, and other marketing materials to
be used by Representative to sell Lincoln National contracts. No
promotional and marketing material shall be used by Representative to
sell Lincoln National contracts unless such material has received the
prior written approval of Lincoln National 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 National'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 delivery of the contracts.
c. The Representative agrees to indemnify and hold Lincoln National
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 National provided software, and all other material furnished
by Lincoln National in the Representative's possession shall be
returned to Lincoln National upon request.
9. PROSPECTUS (if applicable)
a. Lincoln National agrees to deliver to the Representative current
Lincoln National prospectuses. The Representative agrees to destroy
and dispose of all prior prospectuses immediately upon receipt of the
current prospectuses.
x. Xxxxxxx National 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 Lincoln National and
shall be delivered together with all applications and related information
in accordance with procedures established by Lincoln National.
Any subsequent Purchase Payments received by the Representative on behalf
of Lincoln National shall be forwarded promptly, but under no circumstances
in more than two (2) business days, in gross amount, to Lincoln National.
11. INDEMNIFICATION
CP Agreement with Affiliates 11/03 Page 2
a. The Representative shall be responsible to Lincoln National 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 National from any claims, demands,
actions, judgements, loss, cost or expense, including attorney fees,
court costs, and punitive damages incurred by Lincoln National by
reason of such acts or omissions.
x. Xxxxxxx National 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, 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 National, its
employees, officers, agents, or sales persons.
c. The Representative, not Lincoln National, 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 National in its
capacity as a Broker/Dealer) not Lincoln National, is solely
responsible as to the suitability of sale of the Lincoln National
contracts to individual persons.
e. The Representative is solely responsible for performing the Maximum
Exclusion Allowance calculations for any 403b sales.
f. The Representative shall immediately notify Lincoln National of any
and all complaints about Lincoln National contracts received by the
Representative.
12. ASSIGNMENTS/MODIFICATION
a. Lincoln National 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 National 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 National,
upon notice to you and, unless you notify us to the contrary within 10
calendar days of the mailing date of any such amendment, you will be deemed
to have accepted that amendment or modification.
13. INDEBTEDNESS OF REPRESENTATIVE
Lincoln National shall have first lien on all service fees and other
compensation payable hereunder for any debt due from the Representative to
Lincoln National or any of its affiliates, including charges relating to
certain cancellations, rejections, or reissues of contracts. Lincoln
National 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 National 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 National 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 National will provide evidence of
servicing relationship in writing to representative. Lincoln National
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
CP Agreement with Affiliates 11/03 Page 3
Lincoln National 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
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 National 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 National expressly agree that in the case of
any disputes arising under this Agreement, said Agreement shall be
construed under Indiana Law.
LINCOLN NATIONAL
By:
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Assistant Secretary
Date:
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REPRESENTATIVE
By:
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Corporate Insurance Broker
or Broker/Dealer
By:
------------------------------------
Authorized Officer
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Tax Identification Number
Date:
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Address:
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Phone:
---------------------------------
Fax:
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INSURANCE AFFILIATES TIN#
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CP Agreement with Affiliates 11/03 Page 4
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 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:
The Lincoln National Life Insurance (Broker/Dealer full legal name)
Company
By: By:
---------------------------------- ----------------------------------
Printed Name: Printed Name:
------------------------ ------------------------
Title: Title:
------------------------------- -------------------------------
Date: Date:
-------------------------------- --------------------------------
CP Agreement with Affiliates 11/03 Page 5
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 with Affiliates 11/03 Page 6
COMPENSATION SCHEDULE
Lincoln ChoicePlusII
This compensation schedule applies to the Lincoln ChoicePlusII product and
should be attached to your current Agreement with Lincoln National Life
Insurance Company.
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 - 90 3.00% 0.00% 0.00%
2 ** 81 4.00% 0.50% 0.50%
81 - 85 2.50% 0.50% 0.50%
86 - 90 1.50% 0.50% 0.50%
3 ** 81 4.75% 0.25% 0.65%
81 - 85 3.25% 0.25% 0.65%
86 - 90 2.25% 0.25% 0.65%
4 ** 81 5.25% 0.25% 0.25%
81 - 85 3.75% 0.25% 0.25%
86 - 90 2.50% 0.25% 0.25%
-----------------------------------------------------------------------------
* Based on age of owner(s).
** Is less than
(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.
CP Agreement with Affiliates 11/03 Page 7
Lincoln ChoicePlusII Bonus
This compensation schedule applies to the Lincoln ChoicePlusII Bonus product and
should be attached to your current Agreement with Lincoln National Life
Insurance Company.
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 (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 - 90 2.50% 0.00% 0.00%
2 ** 81 5.35% 0.25% 0.25%
81 - 85 3.50% 0.00% 0.00%
86 - 90 2.50% 0.00% 0.00%
3 ** 81 4.75% 0.25% 0.65%
81 - 85 3.50% 0.00% 0.00%
86 - 90 2.50% 0.00% 0.00%
------------------------------------------------------------------------------
* Based on age of owner(s)
** Is less than
(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.
CP Agreement with Affiliates 11/03 Page 8
Lincoln ChoicePlusII Advance
This compensation schedule applies to the Lincoln ChoicePlusII Advance product
and should be attached to your current Agreement with Lincoln National Life
Insurance Company.
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.
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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%
-----------------------------------------------------------------------------
* Based on age of owner(s)
** Is less than
(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.
CP Agreement with Affiliates 11/03 Page 9
Lincoln ChoicePlus II Access
This compensation schedule applies to the Lincoln ChoicePlus Assurance (C Share)
product and should be attached to your current Agreement with Lincoln National
Life Insurance Company.
Separate commission arrangements, as described in this document, apply to
Contracts that have been annuitized or elected i4Life.
---------------------------------------------------------------
Compensation Attained Age At Cash Trail Compensation
Schedule Time of Deposit Flow (1) Years 2 + (2)
---------------------------------------------------------------
1 ** 81 1.25% 1.00%
81 - 90 1.00% 1.00%
---------------------------------------------------------------
** 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.
CP Agreement with Affiliates 11/03 Page 10
ChoicePlus
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
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 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%
----------------------------------------------------------------
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. 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 with Affiliates 11/03 Page 11
ChoicePlus
i4Life Advantage
Income4Life Solution (for contracts issued on or after November 4, 2002)
If either Income4Life option is being selected at issue of a ChoicePlus,
ChoicePlusII, ChoicePlus Bonus or ChoicePlusII Bonus contract, an additional
commission option is available for each product.
--------------------------------------------------------------
Attained Age Trail
at Cash Commissions
Product Time of Deposit Flow Years 2+ (1)
--------------------------------------------------------------
ChoicePlus or ** 81 2.00% 1.00%
ChoicePlus II 81 - 90 1.00% 1.00%
--------------------------------------------------------------
ChoicePlus Bonus or ** 81 2.00% 1.00%
ChoicePlus II Bonus 81 - 90 1.00% 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.
CP Agreement with Affiliates 11/03 Page 12
ChoicePlus
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 a ChoicePlus contract is issued, the I4L commissions will be:
--------------------------------------------------------------------
Trail
Cash Commissions
ChoicePlus Product Flow (1) Years 2+ (2)
--------------------------------------------------------------------
ChoicePlus or ChoicePlusII 1.00% 1.00%
ChoicePlus Bonus or ChoicePlusII Bonus 1.00% 1.00%
ChoicePlus II Advance 1.00% 1.00%
ChoicePlus Access or ChoicePlusII Access 1.00% 1.00%
--------------------------------------------------------------------
(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, ChoicePlusII,
ChoicePlus Bonus, or ChoicePlusII Bonus 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 ChoicePlusII Advance, 84
months (7 years) for ChoicePlus or ChoicePlusII, or 108 months (9 years)
for ChoicePlus Bonus or ChoicePlusII Bonus. 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 ChoicePlus Advance or
ChoicePlusII Advance; 84 months for ChoicePlus or ChoicePlusII and 108
months for ChoicePlus Bonus or ChoicePlusII Bonus.
. 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 a ChoicePlus Access or
ChoicePlus II Access 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.
The I4L commission schedule applies only to I4L and is payable in lieu of any
other commissions.
CP Agreement with Affiliates 11/03 Page 13
ChoicePlus
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 with Affiliates 11/03 Page 14
Schedule B
Commissions for Contracts that are no longer be actively sold to new customers
Lincoln ChoicePlus
This compensation schedule applies to the Lincoln ChoicePlus product and should
be attached to your current Agreement with Lincoln National Life Insurance
Company.
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.
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Trail Compensation
Compensation Attained Age At -------------------------------
Schedule Time of Deposit* Cash Flow Years 2 - 7 (1) Years 8 + (2)
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1 ** 81 6.50% 0.00% 0.00%
81 - 85 4.50% 0.00% 0.00%
86 - 90 3.00% 0.00% 0.00%
2 ** 81 4.00% 0.50% 0.50%
81 - 85 2.50% 0.50% 0.50%
86 - 90 1.50% 0.50% 0.50%
3 ** 81 4.75% 0.25% 0.65%
81 - 85 3.25% 0.25% 0.65%
86 - 90 2.25% 0.25% 0.65%
4 ** 81 5.25% 0.25% 0.25%
81 - 85 3.75% 0.25% 0.25%
86 - 90 2.50% 0.25% 0.25%
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* Based on age of owner(s)
** Is less than
(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.
CP Agreement with Affiliates 11/03 Page 15
Lincoln ChoicePlus Bonus
This compensation schedule applies to the Lincoln ChoicePlus Bonus product and
should be attached to your current Agreement with Lincoln National Life
Insurance Company.
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 (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 - 90 2.50% 0.00% 0.00%
2 ** 81 5.35% 0.25% 0.25%
81 - 85 3.50% 0.00% 0.00%
86 - 90 2.50% 0.00% 0.00%
3 ** 81 4.75% 0.25% 0.65%
81 - 85 3.50% 0.00% 0.00%
86 - 90 2.50% 0.00% 0.00%
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* Based on age of owner(s)
** Is less than
(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.
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.
CP Agreement with Affiliates 11/03 Page 16
Lincoln ChoicePlus Access
This compensation schedule applies to the Lincoln ChoicePlus Access product and
should be attached to your current Agreement with Lincoln National Life
Insurance Company.
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 Trail Compensation
Schedule Time of Deposit Flow (1) Years 2 + (2)
--------------------------------------------------------------
1 ** 81 2.00% 1.00%
81 - 90 1.00% 1.00%
--------------------------------------------------------------
** Is less than
(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 Trail Compensation
Schedule Time of Deposit Flow (1) Years 1 + (2)
--------------------------------------------------------------
2 ** 81 1.00% 1.00%
81 - 90 1.00% 1.00%
--------------------------------------------------------------
** Is less than
(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.
CP Agreement with Affiliates 11/03 Page 17
