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Variable Annuity Amendment
Made a part of the Contract to which it is attached. ("this Contract")
The following definition shall be added to ARTICLE 1:
1.36
PERSISTENCY CREDIT--The additional amount credited to this Contract by LNL
beginning three months after the 15th anniversary of the Contract Date and
each subsequent three-month period thereafter. Persistency Credits are not
considered Purchase Payments.
The following provision shall be added to ARTICLE 2:
2.04 PERSISTENCY CREDIT
A Persistency Credit, if one is determined to be payable according to the
calculation described below, is paid into this Contract beginning three
months after the 15th anniversary of the Contract Date and at the end of
each subsequent three-month period thereafter. The amount of the
Persistency Credit is calculated by multiplying the Contract Value, less
any Purchase Payments that have not been invested in this Contract for a
minimum of 15 years, by the quarterly Persistency Credit percentage of
[0.05%].
No additional charge will be assessed for the Persistency Credit. The
Persistency Credit will be allocated to the Variable Sub-accounts and Fixed
Sub-accounts of this Contract in proportion to the value in each Variable
Sub-account and Fixed Sub-accounts at the time the Persistency Credit is
paid into this Contract. The Persistency Credits will purchase Accumulation
Units from the Variable Sub-accounts at the Accumulation Unit values as of
the Valuation Date the Persistency Credits are paid into the Contract.
If, upon the death of the Owner, the surviving spouse elects to continue
this Contract as the new Owner, as described in Section 6.01 of this
Contract, the Persistency Credit will be paid into this Contract as though
the surviving spouse were the original Owner.
The language "and Persistency Credits (if any)" shall be added to part c.2. of
the fourth paragraph of Section 5.02. The fourth paragraph as revised reads:
For purposes of calculating the CDSC on withdrawals, LNL assumes that:
a. The Free Amount will be withdrawn from Purchase Payments on a
"first in-first out" (FIFO) basis.
b. Prior to the [ninth] anniversary of the Contract Date, any amount
withdrawn above the Free Amount during a Contract Year will be
withdrawn in the following order:
1. from Purchase Payments (FIFO) until exhausted; then
2. from Earnings until exhausted; then
3. from Bonus Credits.
c. On or after the [ninth] anniversary of this Contract Date, any
amount withdrawn above the Free Amount during a Contract Year
will be withdrawn in the following order:
1. from Purchase Payments (FIFO) to which a CDSC no longer
applies until exhausted; then
2. from Earnings and Persistency Credits (if any) until
exhausted; then
3. from Bonus Credits paid into this Contract at the same time
as Purchase Payments to which a CDSC no longer applies until
exhausted; then
4. from Purchase Payments (FIFO) to which a CDSC still applies
until exhausted; then
5. from Bonus Credits paid into this Contract at the same time
as Purchase Payments to which a CDSC still applies.
The Lincoln National Life Insurance Company
/s/ Nancy J. Alford
Nancy J. Alford, Vice President
Form PCA30295 07/00
