EX-99.B(4)(QQ) 2 a2191207zex-99_b4qq.txt EX-99.B(4)(QQ) Exhibit(4)(qq) VARIABLE ANNUITY LIVING BENEFITS RIDER Rider Date: [January 20, 2009] Guaranteed Maximum Rider Charge: [1.50%] Initial GMWB Charge: [0.85%] This optional Rider is made a part of the entire Contract to which it is attached. Except as stated in this Rider, it is subject to all provisions contained in the Contract. Coverage under this Rider begins on the Rider Date shown above. SUMMARY OF RIDER PROVISIONS GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB): This Provision provides that the Owner may withdraw an amount up to the Maximum Annual Withdrawal Amount (MAW) for the lifetime(s) of the Measuring Life(s), if certain conditions are met as described. GUARANTEED INCOME BENEFIT (GIB): This Provision provides that if the Owner elects to discontinue the GMWB Provision and begin receiving variable Periodic Income Payments payable under the Variable Annuity Payment Option Rider attached to this Contract, such payments are guaranteed not to fall below the Guaranteed Income Benefit (GIB), if certain conditions are met as described. VARIABLE ANNUITY PAYMENT OPTION RIDER AVAILABILITY RESTRICTION The Owner may not elect to begin receiving variable Periodic Income Payments payable under the Variable Annuity Payment Option Rider attached to this Contract unless (a) this Rider has terminated, or (b) the GIB Provision of this Rider is concurrently elected. ALLOCATION While this Rider is in effect, the subaccounts available for allocation may be limited if the Allocation Amendment is attached to this Rider and the Contract. DEFINITIONS GOP DEATH BENEFIT is a Death Benefit provided by Contract, Endorsement, or Rider that is the greater of (a) the Contract Value and (b) the sum of all Purchase Payments minus Bonus Credits minus all Death Benefit Reductions. GUARANTEED AMOUNT (GA) is the value used to calculate the MAW, the GMWB Charge, and the initial GIB. MEASURING LIFE is a natural person used to determine the benefits under this Rider. PURCHASE PAYMENTS, for the purpose of this Rider, mean the amounts paid into the Contract by the Owner including Bonus Credits, if any, before deduction of any Sales Charges. SPOUSE means an individual who would be recognized as a Spouse under federal law. CONFORMING WITHDRAWALS are (i) all MAW-Eligible Withdrawals to the extent that the cumulative dollar amount withdrawn (including the current Withdrawal) from the Contract in that Benefit Year is equal to or less than the MAW (including any Nursing Home MAW Enhancement), (ii) Systematic RMD, except after an additional Withdrawal is made during that Benefit Year, to the extent that the cumulative dollar amount withdrawn (including all Systematic RMD) from the Contract in that Benefit Year is greater than the MAW, and (iii) Periodic Income Payments. EXCESS WITHDRAWALS are all (i) pre-MAW Eligible Withdrawals, (ii) MAW-Eligible Withdrawals to the extent that the cumulative dollar amount withdrawn (including the current Withdrawal) from the Contract in that Benefit Year is greater than the MAW, (iii) Systematic RMD after an additional Withdrawal is made during that Benefit Year, to the extent that the cumulative dollar amount withdrawn (including all Systematic RMD) from the Contract in that Benefit Year is greater than the MAW, and (iv) Withdrawals under the GIB Provision of this Rider. 1 GUARANTEED MINIMUM WITHDRAWAL BENEFIT GMWB PROVISION DATA Enhancement Rate: [5]% Enhancement Period: [10] Years MAW Rate: [5]% One Time Step-Up Percentage: [200]% GMWB Measuring Life Option: [Single] DEFINITIONS ANNUITANT is the natural person used to determine the benefits under this Provision if the Single Measuring Life Option of this Provision is in effect. The Annuitant is one of two natural persons used to determine the benefits under this Provision if the Joint Measuring Life Option of this Provision is in effect. The Annuitant may not be changed. SECONDARY LIFE is the second natural person used to determine the benefits under this Provision if the Joint Measuring Life Option of this Provision is in effect. On the Rider Date any Secondary Life must be the Annuitant's Spouse. The Secondary Life may not be changed except due to death or divorce in accordance with requirements as described herein. BENEFIT YEAR means each 12 month period starting with the Rider Date and each Rider Date anniversary thereafter. WITHDRAWAL means the gross amount of the Withdrawal before any applicable charges and/or Interest Adjustment/Market Value Adjustment. MAW-ELIGIBLE means the Annuitant is at least age [59 1/2] when the Single Measuring Life Option is in effect or both Measuring Lives are at least age [65] when the Joint Measuring Life Option is in effect. PRE-MAW-ELIGIBLE means the Annuitant is not at least age [59 1/2] when the Single Measuring Life Option is in effect or any Measuring Life is not at least age [65] when the Joint Measuring Life Option is in effect. SYSTEMATIC RMD means systematic monthly or quarterly installments withdrawn via LNL's automatic withdrawal service of the amount needed to satisfy the required minimum distribution as determined by LNL in accordance with the IRC Section 401(a)(9), as amended from time to time, for the Contract to which this Rider is attached. 2 GUARANTEED AMOUNT (GA) INITIAL GA If the Rider Date is the Contract Date, then the Initial GA will be equal to the initial Purchase Payment. If the Rider Date is not the Contract Date, then the Initial GA will be equal to the Contract Value on the Rider Date. MAXIMUM GA The GA is subject to a $[10,000,000] maximum of the combined GA values for all LNL annuity contracts, including annuity contracts with an affiliated company, for which the Annuitant and Secondary Life, if applicable, is a Measuring Life. ADJUSTMENT FOR ADDITIONAL PURCHASE PAYMENTS Upon our acceptance of a Purchase Payment after the Rider Date, the GA will be recalculated on the Valuation Date following receipt of the Purchase Payment to equal the GA immediately prior to receipt of the additional Purchase Payment, plus the additional Purchase Payment. If the Contract Value reduces to $0, then no additional Purchase Payments will be accepted. Additional Purchase Payments may affect the GMWB Charge pursuant to the GMWB Charge section below. ADJUSTMENT FOR WITHDRAWALS Upon each Excess Withdrawal, the GA will be reduced in the same proportion that the Withdrawal reduced the Contract Value (pro rata). Upon each Conforming Withdrawal, the GA will be reduced dollar-for-dollar. ENHANCEMENT (to the GA) On the first Valuation Date of each Benefit Year after the first Benefit Year, the GA will automatically be increased by the GA times the Enhancement Rate if each of the following conditions is satisfied: a) The preceding Benefit Year is during the Enhancement Period, which begins on the Rider Date and restarts upon an Automatic Annual Step-Up of the GA. b) No Withdrawal occurred in the preceding Benefit Year. c) All Measuring Lives are under age [86]. d) An Automatic Annual Step-Up (of the GA), as described below, has occurred since the most recent pre-MAW-Eligible Withdrawal, if any. Any Purchase Payments received in the Benefit Year preceding the Enhancement are not eligible for the Enhancement for that Benefit Year except any Purchase Payments made within the first 90 days after the effective date of the Rider. AUTOMATIC ANNUAL STEP-UP (of the GA) Upon an Automatic Annual Step-Up, the GA is increased to equal the Contract Value. Any Automatic Annual Step-Up will occur after determination of any Enhancement and One Time Step-Up, if any, that may occur on the first Valuation Date of each Benefit Year after the first Benefit Year. An Automatic Annual Step-Up will occur only if each the following conditions are satisfied: a) All Measuring Lives as of that Valuation Date are under age [86]. b) The Contract Value as of that Valuation Date is greater than the GA after any Enhancement and any One Time Step-Up. Upon an Automatic Annual Step-Up, the GMWB Charge rate will be adjusted to the current GMWB Charge rate. If this rate adjustment is an increase, the Owner may decline to accept the Automatic Annual Step-Up by notifying us, in writing, within 30 days of the effective date of the Step-Up. Future Automatic Annual Step-Ups are not voided or otherwise modified by the declination of an Automatic Annual Step-Up. 3 ONE TIME STEP-UP (of the GA) Upon a One Time Step-Up, the GA is increased to the sum of (i) Initial GA, plus (ii) Purchase Payments received by us within 90 days after the Rider Date, less (iii) any Conforming Withdrawals after the Rider Date ((i)+(ii)-(iii)), times the One Time Step-Up Percentage shown in this Rider, if any. The One Time Step-Up occurs after determination of any Enhancement on the later of (i) the [10th] Benefit Year anniversary, or (ii) the Benefit Year anniversary after the [65th] birthday of the younger Measuring Life. The One Time Step-Up will not occur if any of the following conditions is satisfied: a) The One Time Step-Up would not be an increase of the GA. b) The total amount of Conforming Withdrawals between the Rider Date and the date of the One Time Step-Up is greater than [10]% of the initial GA plus Purchase Payments received by us within 90 days after the Rider Date. c) Any Excess Withdrawals have been taken. MAXIMUM ANNUAL WITHDRAWAL (MAW) AMOUNT The MAW is an amount that may be withdrawn from the Contract by the Owner each Benefit Year after the contract becomes MAW-Eligible. On the Rider Date, the MAW is equal to the GA times the MAW Rate. The MAW will be adjusted as described below. As long as the MAW is greater than $0, then the MAW will continue during the lifetime(s) of all Measuring Lives. MAXIMUM MAW The combined MAW for all LNL annuity contracts, including annuity contracts with an affiliated company, for which the Annuitant and Secondary Life, if applicable, is a Measuring Life, is subject to a maximum of the MAW Rate times the Maximum GA. ADJUSTMENT FOR ADDITIONAL PURCHASE PAYMENTS If an additional Purchase Payment is accepted, the MAW will be reset to equal the additional Purchase Payment times the MAW Rate plus the MAW immediately prior to receipt of the additional Purchase Payment. ADJUSTMENT FOR WITHDRAWALS Upon each Excess Withdrawal, the MAW will be reset to equal the GA after the Withdrawal times the MAW Rate. If the GA after the Withdrawal equals $0, this Rider will terminate. Upon each Conforming Withdrawal, the MAW will remain unchanged. ADJUSTMENT FOR INCREASED GA The MAW will reset on the Valuation Date of an increase of the GA to equal the greater of: a) the MAW immediately prior to the increase of the GA; or b) the increased GA times the MAW Rate. 4 CONTRACT VALUE REDUCES TO $0 Even if the Contract Value declines to $0, as long as the MAW is not $0 and this Contract is MAW-Eligible, an amount equal to the MAW will continue for the lifetime(s) of the Measuring Life(s). The Owner may elect to receive the MAW at any frequency LNL offers, subject to minimum payment amount rules then if effect, but no less frequently than annually. After the Contract Value declines to $0, the MAW may change only as described in the Nursing Home MAW Enhancement section, below. If the Contract Value is $0 and the Contract terminates due to the death of all Measuring Lives, no Death Benefit will be paid. However, unless the currently effective death benefit option is the Account Value Death Benefit Option, [a final payment will be made under this Rider. Such payment] (not to be less than $0) shall be equal to (A) minus (B) minus (C), where: (A) is equal to the sum of all Purchase Payments minus Bonus Credits, if the Rider Date is the Contract Date. If the Rider Date is after the Contract Date then (A) is equal to the GOP Death Benefit Amount on the Rider Date, plus subsequent Purchase Payments minus subsequent Bonus Credits. (B) is the sum of all Final Payment Reductions through the Valuation Date upon which the Contract Value reduces to $0. Final Payment Reductions are made whenever a Withdrawal is taken. Upon Excess Withdrawals, Final Payment Reductions are calculated proportionately; the percentage reduction of the Contract Value due to the Withdrawal will be applied to the Purchase Payments minus Bonus Credits as the Final Payment Reduction. Upon Conforming Withdrawals, Final Payment Reductions will be calculated dollar-for-dollar; the dollar reduction of the Contract Value due to the Withdrawal will be applied to the Purchase Payments minus Bonus Credits as the Final Payment Reduction. (C) is the sum of all Conforming Withdrawals after the Valuation Date upon which the Contract Value reduces to $0. MAW ANNUITY PAYMENT OPTION This MAW Annuity Payment Option is effective only if MAW-Eligible Withdrawals are available. The MAW Annuity Payment Option may be irrevocably elected by the Owner upon Written Notice to LNL. If elected, the Owner will receive payment equal to the MAW each Benefit Year for the lifetime(s) of all Measuring Lives. The Owner may elect to receive the MAW at any frequency LNL offers, subject to minimum payment amount rules then if effect, but no less frequently than annually. After election of this Annuity Payment Option, the MAW may change only as described in the Nursing Home MAW Enhancement section, below. If this MAW Annuity Payment Option is in effect no Death Benefit will be paid. However, if the death benefit option prior to the Annuity Commencement Date was not the Account Value Death Benefit Option, [a final payment will be made under this Rider. Such payment] (not to be less than $0) shall be equal to (A) minus (B) minus (C), where: (A) is equal to the sum of all Purchase Payments minus Bonus Credits, if the Rider Date is the Contract Date. If the Rider Date is after the Contract Date then (A) is equal to the GOP Death Benefit Amount on the Rider Date, plus subsequent Purchase Payments minus subsequent Bonus Credits. (B) is the sum of all Final Payment Reductions prior to the MAW Annuity Payment Option Effective Date. Final Payment Reductions are made whenever a Withdrawal is taken. Upon Excess Withdrawals, Final Payment Reductions are calculated proportionately; the percentage reduction of the Contract Value due to the Withdrawal will be applied to the Purchase Payments minus Bonus Credits as the Final Payment Reduction. Upon Conforming Withdrawals, Final Payment Reductions will be calculated dollar-for-dollar; the dollar reduction of the Contract Value due to the Withdrawal will be applied to the Purchase Payments minus Bonus Credits as the Final Payment Reduction. (C) is the sum of all Conforming Withdrawals on and after the MAW Annuity Payment Option Effective Date. 5 NURSING HOME MAW ENHANCEMENT The benefit described in this section is not available until this Contract is MAW-Eligible. The MAW will be doubled each Benefit Year that each of the following conditions is satisfied: a) The applicable Measuring Life has been confined to a Nursing Home, as defined, for at least one day of the applicable Benefit Year, pursuant to a plan of care provided by a licensed health care practitioner. LNL reserves the right to require proof of the continuation of confinement under a current plan of care each Benefit Year. b) The applicable Measuring Life has never been confined to any Nursing Home within 12 months before or [60] months after the Rider Date. c) Confinement of the Measuring Life has continued for at least [90] consecutive days. A Nursing Home does not mean or include an assisted living facility, a residential care or a retirement facility. A Nursing Home (i) is a facility or distinctly separate part of a hospital or other institution, (ii) that is in the United States, and (iii) is licensed by the appropriate state licensing agency as a Nursing Home, if the state licenses such facilities. If the state does not license Nursing Homes, then the facility must meet all of the following criteria: a) It must provide 24 hour a day nursing service under a planned program of policies and procedures which were developed with the advice of, and is periodically reviewed and executed by a professional group of at least one physician and one nurse; b) It must have a physician available to furnish medical care in case of emergency; c) It must have at least one nurse who is employed there full time (or at least 24 hours per week if the facility has less than 10 beds); d) It must have a nurse on duty or on call at all times; e) It must maintain clinical records for all patients; and f) It must have appropriate methods and procedures for handling and administering drugs and biologicals. EFFECT OF DEATH OR DIVORCE In the event of a divorce, if the Joint Measuring Life Option is in effect the Owner may terminate this Rider. If this Rider is so terminated, the Owner may purchase a new Variable Annuity Living Benefits Rider, if available. Alternatively, the Owner may continue this Rider in force under the Joint Measuring Life Option. Upon the death of the Annuitant if the Single Measuring Life Option is in effect, this Rider will terminate. Upon the first death of a Measuring Life if the Joint Measuring Life Option is in effect, the Owner may continue the contract and this Rider in force under the Joint Measuring Life Option. If so continued, the MAW will continue for the life of the surviving Measuring Life. Alternatively, the Owner may terminate this Rider and purchase a new Variable Annuity Living Benefits Rider, if available. Upon the death of the surviving Measuring Life, this Rider will terminate. If the Joint Measuring Life Option is in effect and no Withdrawal has been taken since the Rider Date, upon the Owner's request a new Spouse may replace a Measuring Life under this Rider. Once any Withdrawal has been taken, LNL will not accept a request to change a Measuring Life. 6 GMWB CHARGE While the GMWB Provision is in effect, the Rider Charge rate is the GMWB Charge. The Initial Rider Charge annual rate is shown on Page 1 of this Rider. The GMWB Charge rate may change as described, but the Charge may never exceed the Guaranteed Maximum Rider Charge rate shown on Page 1 of this Rider. A quarterly Rider Charge is deducted from the Contract Value on the first Valuation Date of every third month following the Rider Date. The quarterly rate is the annual rate divided by four. The amount of the quarterly Rider Charge is the quarterly Rider Charge rate times the GA on the Valuation Date the charge is deducted. Quarterly Rider Charges will be deducted from each Variable Subaccount and any DCA Fixed Account on a proportional basis. A pro-rata Rider Charge amount will be deducted upon termination of the GMWB Provision, except if this Contract is terminated due to death. GMWB CHARGE CHANGE A change to the GMWB Charge rate will occur only on a Benefit Year anniversary. The GMWB Charge rate change is to the GMWB Charge rate in effect for new purchases of this Rider on the Benefit Year anniversary of the change. A GMWB Charge rate change will be triggered by an Automatic Annual Step-Up. Any Automatic Annual Step-Up may be declined if the GMWB Charge rate change triggered thereby would be an increase. If the GMWB Charge rate change would be a decrease, the Automatic Annual Step-Up will not be waivable. A GMWB Charge rate increase may be triggered by a Purchase Payment in the Benefit Year preceding the applicable Benefit Year anniversary. Purchase Payments received during the first Benefit Year do not trigger a GMWB Charge change. Purchase Payments received after the first Benefit Year anniversary do trigger a GMWB Charge rate change, if such change is an increase, once the cumulative total of such post-first Benefit Year Purchase Payments equals or exceeds $100,000. A GMWB Charge rate change shall not result from an Enhancement or a One Time Step-Up. Any GMWB Charge rate change shall occur on a non-discriminatory basis. WAIVERS WAIVER OF CONTINGENT DEFERRED SALES CHARGE OR CDSC / SURRENDER CHARGE (IF APPLICABLE) No Contingent Deferred Sales Charge or CDSC/Surrender Charge will apply to Conforming Withdrawals. Excess Withdrawals will be subject to any applicable Contingent Deferred Sales Charge or CDSC/Surrender Charge to the extent that the total amount of Withdrawals in the Contract Year exceeds the Free Withdrawal Amount for that year. WAIVER OF INTEREST ADJUSTMENT/MARKET VALUE ADJUSTMENT (IF APPLICABLE) No Interest Adjustment/Market Value Adjustment will apply to Conforming Withdrawals. Excess Withdrawals will be subject to any applicable Interest Adjustment/Market Value Adjustment to the extent that the total amount of Withdrawals in the Contract Year exceeds the Free Withdrawal Amount for that year. TERMINATION OF THE GMWB The entire GMWB Provision of this Rider will irrevocably terminate (a) if this Rider terminates, or (b) upon the election of the Variable Annuity Payment Option Rider and commencement of the GIB Provision of this Rider. 7 GUARANTEED INCOME BENEFIT (GIB) This GIB Provision is effective upon the concurrent Variable Annuity Payment Option Rider (VAPOR) effective date and irrevocable termination of the GMWB Provision of this Rider. The VAPOR effective date is shown on the Contract Benefit Data pages issued upon the Owner's election of benefits under the VAPOR. This Provision provides that variable Periodic Income Payments payable under VAPOR are guaranteed not to fall below this GIB. If this is a Qualified Contract, the commencement of Periodic Income Payments under the VAPOR is available subject to our maximum VAPOR age limits. These maximum age limits are necessary to ensure that Periodic Income Payments meet the amount needed to satisfy the required minimum distribution as determined by LNL in accordance with the IRC Section 401(a)(9), as amended from time to time, for the Contract to which this Rider is attached. DEFINITIONS ANNUITANT: The Measuring Life upon which the Periodic Income Payments will be contingent. The Contract may only have one Annuitant on and after the VAPOR Rider Date. The Annuitant may not be changed. SECONDARY LIFE: If any, the Measuring Life designated by the Owner upon which the Periodic Income Payments will also be contingent during the Lifetime Income Period. The designation of a Secondary Life results in a joint life payout. The Secondary Life must be designated upon the election of the VAPOR and may not be changed after the VAPOR Rider Date. If this is a Qualified Contract, the Measuring Life must be the Annuitant's Spouse. GUARANTEED INCOME BENEFIT (GIB): The minimum amount payable for each Periodic Income Payment made under a VAPOR. GIB STEP-UP DATE: The date on which an Automatic Step-up of the GIB occurs. For Non-qualified contracts, it is the next Valuation Date after each consecutive [1 year] period measured from the date a GIB Step-up Period begins. For Qualified contracts, it is the Valuation Date of the first Periodic Income Payment date in the calendar year of every [1 year] period measured from the date a GIB Step-up Period begins. GIB STEP-UP PERIOD: Each [5 year] period during which the GIB will automatically step-up on a GIB Step-up Date as described in the Automatic Step-Up of the GIB subsection below. The initial GIB Step-up Period begins on the Valuation Date of the Periodic Income Commencement Date anniversary on or immediately following the VAPOR Rider Date. WITHDRAWALS: While the GIB Provision and VAPOR are in effect, Withdrawals means all additional amounts from the Account Value requested In Writing by the Owner, other than Periodic Income Payments. 8 GIB GENERAL If this Rider is in effect on the Valuation Date the Initial Periodic Income Payment is determined, then the Guaranteed Income Benefit will be the greater of (A) and (B), divided by $1000 and multiplied by the annuity rate per $1000 as shown in the Guaranteed Income Benefit Table for the age and sex of the Measuring Life(s), where (A) is the Account Value on the Periodic Income Commencement Date and (B) is the GA. On each subsequent Valuation Date that a Periodic Income Payment under the VAPOR is determined, the amount that will be paid will be the greater of (a) the Periodic Income Payment, or (b) the GIB. The initial Guaranteed Income Benefit is shown on the Contract Benefit Data pages issued upon the Periodic Income Commencement Date. If this is a Qualified Contract issued under an employee benefit plan, the female rates for Single Life Payout shown in the Guaranteed Income Benefit Table apply regardless of the actual sex of the Measuring Life. AUTOMATIC STEP-UP OF THE GIB On each GIB Step-up Date, the GIB will automatically step-up to the greater of: a) [75]% of the Periodic Income Payment; or b) the GIB on the Valuation Date immediately prior to the GIB Step-up Date. The Owner may elect a new GIB Step-up Period by Written Request as long as a Measuring Life is still living. If the Written Request is received by LNL at least 30 days prior to the end of a GIB Step-up Period, a new GIB Step-up Period will begin on the date the then-current GIB Step-up Period ends. If the Written Request is received by LNL less than 30 days prior to the end of a GIB Step-up Period, the new GIB Step-up Period will begin on the next Periodic Income Commencement Date anniversary Valuation Date following receipt of the request. ADJUSTMENTS TO THE GIB Each Withdrawal will reduce the GIB in the same proportion as the amount withdrawn reduces the Account Value on the Valuation Date of the Withdrawal. An increase in the length of the Access Period will decrease the GIB in the same proportion as the Periodic Income Payment decreases. Any such change will be effective on the Valuation Date of the next Periodic Income Commencement Date anniversary. Any increase in the length of the Access Period is subject to a [5 year] minimum increase. EFFECT OF GIB DURING ACCESS PERIOD During the Access Period, payment of the GIB reduces the Account Value. If the Account Value is reduced to $0, the Access Period will end and the Lifetime Income Period will begin on the Valuation Date the Account Value equals $0. Each subsequent Periodic Income Payment during the Lifetime Income Period will be equal to the GIB. 9 EFFECT OF GIB DURING LIFETIME INCOME PERIOD During the Lifetime Income Period, if a Periodic Income Payment is less than the GIB, the excess of the GIB over the Periodic Income Payment will reduce the number of Annuity Units per Variable Subaccount payable in each subsequent Periodic Income Payment. The reduction to the number of Annuity Units per payment will be determined by first dividing (A) by (B) where: (A) is the amount of the excess of the GIB over the Periodic Income Payment; and (B) is the applicable annuity factor; and then dividing this result by the Annuity Unit value as of the Valuation Date of the Periodic Income Payment. If payment of the GIB reduces the number of Annuity Units per payment to zero during the Lifetime Income Period, then each subsequent Periodic Income Payment during the remainder of the Lifetime Income Period will be equal to the GIB. LIMITATION ON CERTAIN CHANGES The Owner may not, within 3 years of the effective date of this GIB Provision: a) terminate the Variable Annuity Payment Option Rider attached to this Contract, b) request a change in the Periodic Income Payment Mode, or c) request a decrease in the length of the Access Period. ADDITIONAL PURCHASE PAYMENTS While this GIB Provision and the VAPOR are in effect, additional Purchase Payments to the Contract may not be made. GIB CHARGE While the GIB Provision is in effect, the Rider Charge is the GIB Charge. The initial GIB Charge will be included in the Contract Mortality and Expense Risk Charge and Administrative Charge as shown on the Contract Benefit Data pages, which is deducted from the Variable Account while this GIB Provision is in effect. Upon the concurrent termination of the GMWB Provision and election of the VAPOR attached to this Contract, and any time the Owner elects a new GIB Step-up Period, LNL may change the GIB Charge, subject to the Guaranteed Maximum Rider Charge shown on Page 1 of this Rider. Any change to the GIB Charge will be effective on the VAPOR Rider Date or the applicable Valuation Date the new GIB Step-up Period begins. TERMINATION OF THE GIB This GIB Provision of this Rider will terminate for any of the following reasons: a) a decrease in the length of the Access Period; b) a change in the Periodic Income Payment Mode; c) election of an Annuity Payment Option provided under the Contract other than VAPOR; and d) the death of the Annuitant, or the death of the last surviving Measuring Life if a joint payout was elected. Termination of the GIB Provision due to a decrease in the length of the Access Period or a change in the Periodic Income Payment Mode will be effective on the Valuation Date of the Periodic Income Commencement Date anniversary following such event. Termination of the GIB Provision due to death will be effective on the Valuation Date on which such death occurs. 10 GUARANTEED INCOME BENEFIT TABLE Guaranteed Income Benefit under a Variable Annuity Payment Option Rider with a 4.0% Assumed Investment Return, 1983 'a' Individual Annuity Mortality Table, modified. DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT PURCHASED WITH EACH $1,000 APPLIED
SINGLE LIFE PAYOUT -------------------------------------------------------------------------------------------------------- 15 YEAR ACCESS PERIOD 20 YEAR ACCESS PERIOD 25 YEAR ACCESS PERIOD 30 YEAR ACCESS PERIOD ADJUSTED --------------------------------------------------------------------------------------------- AGE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE --------------------------------------------------------------------------------------------- 60 n/a n/a n/a n/a 3.41 3.34 3.26 3.23 61 n/a n/a n/a n/a 3.43 3.37 3.27 3.24 62 n/a n/a n/a n/a 3.45 3.40 3.28 3.26 63 n/a n/a n/a n/a 3.47 3.42 3.30 3.27 64 n/a n/a n/a n/a 3.49 3.44 3.31 3.29 65 n/a n/a 3.73 3.64 3.51 3.47 3.32 3.30 66 n/a n/a 3.76 3.67 3.53 3.49 3.33 3.31 67 n/a n/a 3.79 3.71 3.55 3.51 3.35 3.33 68 n/a n/a 3.82 3.75 3.57 3.53 3.36 3.34 69 n/a n/a 3.85 3.78 3.58 3.55 3.38 3.36 70 4.20 4.06 3.88 3.82 3.60 3.57 3.39 3.38 71 4.25 4.12 3.91 3.85 3.62 3.59 3.40 3.39 72 4.30 4.18 3.93 3.88 3.64 3.61 3.41 3.40 73 4.35 4.23 3.96 3.91 3.66 3.63 3.42 3.41 74 4.40 4.29 3.99 3.94 3.68 3.66 3.43 3.42 75 4.44 4.35 4.01 3.97 3.71 3.68 3.44 3.43
JOINT LIFE PAYOUT ---------------------------------------------------------------------------------------- ADJUSTED AGE OF BOTH 15 YEAR ACCESS 20 YEAR ACCESS 25 YEAR ACCESS 30 YEAR ACCESS MEASURING LIVES PERIOD PERIOD PERIOD PERIOD ---------------------------------------------------------------------------------------- 60 n/a n/a 3.23 3.15 61 n/a n/a 3.26 3.16 62 n/a n/a 3.28 3.18 63 n/a n/a 3.31 3.20 64 n/a n/a 3.33 3.22 65 n/a 3.47 3.36 3.23 66 n/a 3.51 3.38 3.25 67 n/a 3.55 3.41 3.27 68 n/a 3.58 3.43 3.29 69 n/a 3.62 3.45 3.31 70 3.82 3.65 3.48 3.33 71 3.88 3.69 3.50 3.34 72 3.93 3.72 3.53 3.36 73 3.98 3.76 3.55 3.37 74 4.04 3.79 3.58 3.38 75 4.09 3.83 3.61 3.40
AGE ADJUSTMENT TABLE --------------------------------- YEAR OF BIRTH ADJUSTMENT TO AGE --------------------------------- Before 1940 0 1940 - 1949 -1 1950 - 1959 -2 1960 - 1969 -3 1970 - 1979 -4 1980 - 1989 -5 1990 - 1999 -6 2000 - 2009 -7 2010 - 2019 -8
11 GENERAL GOP DEATH BENEFIT AMOUNT A GOP Death Benefit is provided under the Guarantee of Principal (GOP), Enhanced Guaranteed Minimum Death Benefit (EGMDB) and Estate Enhancement Benefit (EEB) Death Benefit, one of which may be applicable to the Contract as shown in the Contract Specifications. This GOP Death Benefit Amount section does not apply if this Contract provides that all death benefits are reduced dollar-for-dollar for all Withdrawals. If the Contract includes a Death Benefit, including any Death Benefit Rider, that has a Death Benefit Amount defined as the sum of all Purchase Payments minus all death benefit reductions, and that such death benefit reductions of Purchase Payments "will be in proportion to the amount withdrawn" such Death Benefit Amount definition is hereby replaced, as long as this Rider is in force, with the following: The sum of all Purchase Payments, minus all Death Benefit Reductions and any Bonus Credits. Death Benefit Reductions are made whenever a Withdrawal is taken. Upon Excess Withdrawals, Death Benefit Reductions are calculated proportionately; the percentage reduction of the Contract Value (Account Value if the GIB Provision is in effect) due to the Withdrawal will be applied to the Purchase Payments as the Death Benefit Reduction. Upon Conforming Withdrawals, Death Benefit Reductions will be calculated dollar-for-dollar; the dollar reduction of the Contract Value (Account Value if the GIB Provision is in effect) due to the Withdrawal will be applied to the Purchase Payments as the Death Benefit Reduction. ASSIGNMENTS While this Rider is in effect, the Owner may not sell or assign the Contract other than to the Annuitant, nor may it be discounted or pledged as collateral for a loan or as a security for the performance of an obligation or any other purpose. TERMINATION OF THIS RIDER This Rider will terminate on the date the Contract to which this Rider is attached terminates. If the GMWB Provision is in effect, the Owner may terminate this Rider upon Written Request any time after the [7th] Benefit Year anniversary. If the GMWB Provision is in effect, Rider will also terminate as follows: a) on the Annuity Commencement Date except under the MAW Annuity Payment Option; b) on the date the Owner is changed due to death or pursuant to an enforceable divorce agreement or decree, except when Ownership is transferred to the surviving Secondary Life upon death of the Annuitant/Owner; c) on the death of the Annuitant if the Single Measuring Life Option is in effect, or on the death of the last surviving Measuring Life if the Joint Measuring Life Option is in effect; or d) on the date both the GA and MAW equal $0 as the result of a Withdrawal. If the GIB Provision is in effect, the Owner may terminate this Rider upon Written Request any time after the [3rd] anniversary of the effective date of the GIB Provision. The Rider will also terminate on the date the GIB Provision terminates. Upon termination of this Rider, the benefits and charges within this Rider will terminate and a pro-rata amount of the Rider Charge will be deducted. THE LINCOLN NATIONAL LIFE INSURANCE COMPANY /s/ Dennis R. Glass ---------------------------------------- President 12