<DOCUMENT>
<TYPE>EX-99.4.K
<SEQUENCE>3
<FILENAME>dex994k.txt
<DESCRIPTION>AMENDMENT #7 (I4L-Q)
<TEXT>
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Variable Annuity Income Rider
Income4Life(SM) Solution
This Rider is made a part of the Contract to which it is attached. The Rider
Effective Date is the [ Periodic Income Commencement Date ] [ Contract Date ]
shown on the contract data page(s). The provisions contained here within apply
in lieu of any provisions in the Contract to the contrary, except for
attachments to the Contract that are Qualified Contract Amendments or
Endorsements. This Rider will only be attached to Qualified Contracts. While
this Rider is in effect, additional Purchase Payments to the Contract will be
accepted only during the Access Period.
Defined Terms
Access Period - The length of time in whole years, measured from the Periodic
Income Commencement Date shown on the contract data page(s), during which the
Owner may elect to surrender the Contract or make Withdrawals from the Contract.
The maximum length of the Access Period will be set so that the Periodic Income
payment meets the minimum distribution requirement of Section 401(a)(9) of the
Code for the assets of this Contract. During the Access Period and subject to
LNL's approval, [once] each Contract Year the Access Period may be extended or
shortened within the minimum and maximum lengths available at the time of
change. Written notice of the change request must be sent to LNL. If the Access
Period is changed, subsequent Periodic Income payments will be adjusted
accordingly.
Account Value - During the Access Period, on any valuation date a value equal to
the sum of the values of all the Accumulation Units attributable to the Contract
plus the value of the Fixed Account(s), if any, in the Contract. State and local
government premium tax, if applicable, will be deducted from the Account Value
when incurred by LNL, or at another time of LNL's choosing.
Assumed Interest Rate - The interest rate used in calculating the Initial
Periodic Income Payment. This rate may be [3%, 4%, 5%, 6% or 7%] as selected by
the Owner/Annuitant at the Rider Effective Date. The Assumed Interest Rate
selected is shown on the contract data page(s). During the Access Period and
subject to LNL's approval, [once] each Contract Year the Assumed Interest Rate
may be changed.
Lifetime Income Period - The period that begins after the Access Period,
provided the Owner/Annuitant is still living and the Contract has not been
surrendered. If a joint life income has been selected, the Owner/Annuitant's
spouse will become the joint Annuitant for the Lifetime Income Period unless a
different joint Annuitant is named at the end of the Access Period. The Lifetime
Income Period will continue for as long as any Annuitant is living.
Lifetime Income Guaranteed Period - The period, if any, commencing at the start
of the Lifetime Income Period in which Periodic Income payments are guaranteed
regardless of whether any Annuitant is still surviving. The length of the
Lifetime Income Guaranteed Period is determined as of the Rider Effective Date
and is shown on the contract data page(s).
Periodic Income - The variable, periodic income amounts paid under this Rider to
the Owner or the Owner's designated Beneficiary, during the Access Period, the
Lifetime Income Guaranteed Period, if applicable, and the Lifetime Income
Period. Periodic Income payments may be made monthly, quarterly, semi-annually
or annually, as selected by the Owner. The frequency of the Periodic Income
payments is shown on the contract data page(s).
Periodic Income Commencement Date - The valuation date on which the Initial
Periodic Income Payment under this Rider is calculated. The due date of the
Initial Periodic Income Payment will be no more than [14] calendar days after
the Periodic Income Commencement Date. The Periodic Income Commencement Date is
shown on the contract data page(s).
Surrender Value - During the Access Period, the Account Value less any
applicable Contingent Deferred Sales Charges. The Contract and this Rider will
terminate upon payment of the full Surrender Value.
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Withdrawals - Additional income amounts from the Account Value requested by, and
paid to, the Owner during the Access Period.
Determination of the Initial Periodic Income Payment
The Initial Periodic Income Payment will be determined by dividing the Account
Value as of the prior December 31 by 1000 and multiplying this result by an
annuity factor. The annuity factor is based upon, as of the Periodic Income
Commencement Date, the gender and age of the Owner/Annuitant if a single life
income is selected or the genders and ages of the Owner/Annuitant and the
Owner/Annuitant's spouse if a joint life income is selected, the frequency of
the Periodic Income payment, the length of the Access Period, the length of the
Lifetime Income Guaranteed Period, the Assumed Interest Rate and the [ 1983 `a'
Individual Annuity Mortality Table ], modified.
Determination of Subsequent Periodic Income Payments during Access Period
Subsequent payments made in the same calendar year as the Initial Periodic
Income Payment will be equal to the Initial Periodic Income Payment. The first
Periodic Income payment due in each subsequent calendar year will be determined
by dividing the Account Value as of the prior December 31 by 1000 and
multiplying this result by a revised annuity factor.
Provided no Withdrawals are made during a calendar year, any subsequent Periodic
Income payment made during the calendar year will be equal to the first Periodic
Income payment made in the calendar year. If a Withdrawal is made during the
calendar year, Periodic Income payments for the remainder of the year will be
reduced in the same proportion the Withdrawal bears to the Account Value as of
the prior December 31.
Prior to the death of the Owner/Annuitant (or the Owner/Annuitant's spouse if a
joint life income was selected) the revised annuity factor is based upon, as of
the valuation date of the Periodic Income payment, the gender(s) and age(s) of
the Owner/Annuitant (and the Owner/Annuitant's spouse), the frequency of the
Periodic Income payment, the length of time remaining in the Access Period, the
length of the Lifetime Income Guaranteed Period, the Assumed Interest Rate and
when applicable the [ 1983 `a' Individual Annuity Mortality Table ], modified.
After receipt of due proof of death of the Owner/Annuitant, Periodic Income
payments will cease and this Rider will terminate.
If a joint life income was selected, after receipt of due proof of death of the
Owner/Annuitant's spouse, the next Periodic Income payment will be compared to a
Periodic Income payment calculated by substituting the gender and age of the
Owner/Annuitant for the genders and ages of the Owner/Annuitant and the
Owner/Annuitant's spouse in the revised annuity factor described above. If the
resulting Periodic Income payment is larger than the Periodic Income payment
determined by using the genders and ages of both individuals, then the next
Periodic Income payment and each subsequent Periodic Income payment will be
determined by substituting the gender and age of the Owner/Annuitant for the
genders and ages of both individuals in the revised annuity factor described
above. Otherwise, the genders and ages of both individuals will continue to be
used in calculating the revised annuity factor.
Determination of Subsequent Periodic Income Payments during Lifetime Income
Period
On the valuation date for the final Periodic Income payment during the Access
Period, provided that the Owner/Annuitant is still living, the Periodic Income
payment attributable to a Variable Subaccount will be converted to annuity units
based on the then current annuity unit value for each applicable Variable
Subaccount. If a withdrawal is made subsequent to this last valuation date, then
the number of annuity units per payment from a Variable Subaccount will be
reduced in proportion to the Account Value withdrawn from that Variable
Subaccount. The Periodic Income payment attributable to a Fixed Subaccount will
be converted to a fixed dollar amount.
Each Periodic Income payment during the Lifetime Income Period and Lifetime
Income Guaranteed Period will be calculated by multiplying the number of annuity
units per payment for each applicable Variable Subaccount by the corresponding
annuity unit value and adding the results. After the Access Period, all Periodic
Income payments
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made during a calendar year which are attributable to a Variable Subaccount will
vary based upon the net investment performance as described below.
The annuity unit value for any valuation period for any Variable Subaccount is
determined by multiplying the annuity unit value for the immediately preceding
valuation period by `A' divided by `B', where
`A' is a Variable Subaccount's accumulation unit value as of the end of the
current valuation period divided by the accumulation unit value of the same
Variable Subaccount as of the end of the immediately preceding valuation
period.
`B' is the `Daily Factor' raised to a power equal to the number of days in
the current valuation period, and
the `Daily Factor' is equal to (1 + Assumed Interest Rate) raised to the
power of (1/365).
Account Value
During the Access Period the Account Value will be increased/decreased by any
net investment gains/losses and will be reduced by Periodic Income payments made
and any Withdrawals taken. At the end of the Access Period, any remaining
Account Value will be applied to continue the Periodic Income payments for the
Lifetime Income Guaranteed Period and the Lifetime Income Period. There will no
longer be an Account Value after the Access Period.
Valuation of Accumulation Units
The daily charge imposed in a Variable Subaccount for any valuation period this
Rider is in effect represents the daily mortality and expense risk charge and
the daily administrative charge adjusted for the number of calendar days in the
valuation period. During the Access Period, this daily charge will not exceed
[2.10%] on an annual basis. After the Access Period, this daily charge will not
exceed [2.10%] on an annual basis. This daily charge will replace any prior
daily charge provided in the Contract. This daily charge will begin on the Rider
Effective Date.
Withdrawal Option
During the Access Period the Owner may make Withdrawals of amounts up to the
Surrender Value. Withdrawals will be subject to the terms of the Withdrawal
Option and the Contingent Deferred Sales Charges provisions of the Contract.
Withdrawals will immediately reduce the Account Value and will reduce subsequent
Periodic Income payments. (See: Determination of Subsequent Periodic Income
Payments during Access Period)
Surrender Option
During the Access Period, the Owner may surrender the Contract for the Surrender
Value. A surrender of the Contract will be subject to the terms of the Surrender
Option and Contingent Deferred Sales Charge provisions of the Contract. If the
Contract is surrendered, no further Periodic Income payments will be made and
the Contract and this Rider will terminate.
Transfer Option
During the Access Period the Owner may direct a transfer between the Fixed
and/or Variable Subaccounts of any portion of the Account Value, subject to the
terms of the Transfer Option provisions of the Contract. After the Access
Period, the Owner may direct a transfer between the Variable Subaccounts of any
portion of the Periodic Income payment, subject to the terms of the Transfer
Option provisions of the Contract.
Waiver of Contingent Deferred Sales Charges
During the Access Period, in addition to the waiver of Contingent Deferred Sales
Charges provisions in the Contract, Contingent Deferred Sales Charges will not
apply to Periodic Income payments.
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Survivor Benefit
On the Rider Effective Date any Death Benefit previously in effect [and its
daily charge, if applicable,] will terminate.
Prior to the Lifetime Income Period.
The Survivor Benefit will be equal to the Account Value as of the date the death
claim is approved by LNL for payment. Complete distribution of the Survivor
Benefit will terminate the Contract and this Rider.
After receipt of due proof of death of the Owner/Annuitant, Periodic Income
payments will cease and this Rider will terminate. Any available contract option
that is in compliance with Section 401(a)(9) of the Code may be elected for
payment of the Survivor Benefit.
After the Access Period.
Upon notification to LNL of any death, the Periodic Income payments may be
temporarily suspended until the death claim is approved as described in the
Contract. If Periodic Income payments are continued, a lump-sum payment for the
value of the suspended payments as of the date the death claim is approved by
LNL for payment will be made.
Upon the first death of a joint Annuitant, if applicable, Periodic Income
payments will be made for as long as the surviving joint Annuitant is living.
Upon the death of the single Annuitant or last surviving joint Annuitant,
Periodic Income payments will be made for the remainder, if any, of the Lifetime
Income Guaranteed Period. In lieu of continuing to receive the Lifetime Income
Guaranteed Period payments, a lump sum commuted value may be selected. If there
are no remaining Lifetime Income Guaranteed Period payments, then the Contract
and this Rider will terminate.
The Lincoln National Life Insurance Company
/s/ Mark E. Reynolds
Mark E. Reynolds
SVP & Chief Administrative Officer
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CONTRACT BENEFIT DATA
INCOME4LIFE(SM) SOLUTION
Contract Number : [99-9999999]
Annuitant : [OWNER/ANNUITANT]
Age Nearest Birthday : [65]
[Joint Life] : [SPOUSE]
[Age Nearest Birthday] : [62]
Initial Periodic Income Payment : [$2,000.00]
Periodic Income Frequency : [MONTHLY]
Initial Periodic Income Payment Date : [JULY 1, 2001]
Access Period : [30 YEARS]
[Lifetime Income Guarantee Period] : [10 YEARS]
Periodic Income Commencement Date : [JUNE 18, 2001]
Assumed Interest Rate : [4.00%]
BENEFICIARY DESIGNATION
As named in the application or subsequent written designation.
Page 3B
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