Document:

Exhibit 10.2

    Exhibit
      10.2

    

    LTIP
      AWARD AGREEMENT

    2006
      - 2008 Performance Cycle

    (Senior
      Management Committee)

    

    This
      award agreement (“Agreement”), by and between Lincoln National Corporation
      (“LNC”) and     
      (“Grantee”), evidences the grant by LNC on April 12, 2006, of a long-term
      incentive award to Grantee and Grantee’s acceptance of the award in accordance
      with and subject to the provisions of the Lincoln National Corporation Incentive
      Compensation Plan (“Plan”) and this Agreement. LNC and Grantee agree as
      follows:

    

    1.
      Form
      of Award.
      The
      award shall equal one-half of Grantee’s long-term incentive target value, and
      shall be paid in shares of LNC common stock; provided, however, that if Grantee
      has satisfied the terms of LNC’s share ownership requirements, Grantee may
      elect, by no later than May
      12, 2006,
      to
      receive the award as follows: 100% in the form of shares of LNC common stock
      or
      75% in the form of shares of LNC common stock and 25% in cash (if the election
      is not timely made, the form shall be 100% shares). If Grantee has not made
      a
      valid election by May 12, 2006, the Grantee will receive his or her LTIP award,
      if any, in 100% performance shares. During the performance cycle, the share
      component of such award shall consist of LNC stock units but any actual award
      shall be payable in shares of LNC common stock. Grantee’s actual award, if any,
      will be determined based on performance during the performance cycle in
      accordance with the terms of the Plan and the 2006-2008 Long-Term Incentive
      Plan
      (“2006-2008 LTIP”) approved by the Compensation Committee of the LNC Board of
      Directors (“Committee”). The Committee shall determine if and when any award is
      payable under the Plan and reserves the right to adjust the target award or
      payout amount of any award under the Plan at any time. The number of shares
      under this Agreement, if any, shall be adjusted appropriately in the event
      of a
      stock split, reverse stock split, stock dividend, or other similar event.

    

    2.
      Dividend
      Equivalents.
      If an
      award becomes payable in shares of LNC common stock under this Agreement,
      Grantee shall also receive an amount equal to the dividends that would have
      been
      paid on such shares of LNC common stock had Grantee held such shares from the
      above date of grant through the date the award becomes payable. Such dividend
      equivalent amount shall be paid in shares of LNC common stock based on the
      Fair
      Market Value (as defined in the Plan) of LNC common stock on the date the award
      becomes payable (with fractional shares paid in cash).

    

    3.
      Full
      or Pro-Rata Awards Upon Certain Events. Except
      as
      provided in this section and section 5, if during the performance cycle
      Grantee’s employment (with LNC and all subsidiaries of LNC) terminates for any
      reason, Grantee shall not be entitled to any award under this Agreement. In
      the
      case of a Grantee's removal from the 2006-2008 LTIP because of a change in
      responsibilities (including, but not limited to, transfer from employee status
      to agent or planner status), death, Total Disability, Retirement, or involuntary
      termination of employment with LNC and all affiliates without Cause, Grantee
      (or
      Grantee's beneficiary, if applicable) shall receive a pro-rated award based
      on
      the ratio of: (a) days of employment during the performance cycle (January
      12,
      2006 though December 31, 2008) to (b) the number of total days in the
      performance cycle (1,083). Any such award shall be paid at the same time
      long-term incentive awards are normally paid to employees who are employed
      at
      the end of the performance cycle. Notwithstanding the foregoing, in the case
      of
      such involuntary termination, any award shall be contingent on Grantee's release
      of claims against LNC and its affiliates (in form and substance satisfactory
      to
      LNC) and shall not be paid unless such release shall have become effective;
      except that such a release shall not be required when such termination is by
      reason of the sale or disposition of the business in which Grantee is
      employed.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.
      Tax
      Withholding.
      In
      reference to a share award, Grantee must remit to LNC an amount equal to the
      required tax withholding on the value of the shares payable under this Agreement
      at such time as they are taxable to Grantee; and Grantee may elect to surrender
      shares of LNC stock (including shares that are a part of this award) to satisfy
      all or part of the required tax withholding. In reference to a cash award,
      LNC
      will withhold any required taxes from the award (federal, state, and local
      income, employment, and any other taxes).

    

    5.
      Change
      in Control. Upon
      a
      Change in Control of LNC (as defined in the Plan), the Committee (as it shall
      have existed on the day immediately preceding such Change in Control) shall
      determine what, if any, award under this Agreement shall be provided to Grantee.
      In making such determination, the Committee shall consider the nature of such
      Change in Control, whether continuation of the Plan and payment of awards for
      this performance cycle are feasible, and whether the resulting corporate entity
      offers or commits to offer awards of comparable economic value; provided,
      however, that the Committee’s determination shall be consistent with existing
      LNC plans such as the LNC Incentive Compensation Plan and the LNC Executives’
Severance Benefit Plan.

     

    6.
      Transferability.
      This
      award may not be transferred, sold, pledged, or otherwise encumbered, except
      by
      will or the laws of descent and distribution.

    

    7.
      Consequences
      of Competitive and Other Activity.
      Any
      award under this Agreement is subject to the following
      requirements:

    

    (a)
      Noncompetition. 
      Grantee
      may not render services for any organization or engage directly or indirectly
      in
      any business that, in the sole judgment of the Chief Executive Officer of LNC
      or
      other senior officer designated by the Committee, is or becomes competitive
      with
      LNC. If Grantee has terminated employment, Grantee shall be free, however,
      to
      purchase, as an investment or otherwise, stock or other securities of such
      organization or business so long as they are listed upon a recognized securities
      exchange or traded over-the-counter and such investment does not represent
      a
      greater than five percent equity interest in the organization or business.
      

    

    (b)
      Nondisclosure.
      Grantee
      shall not, without prior written authorization from LNC, disclose to anyone
      outside of LNC, or use in other than LNC’s business, any confidential
      information or material relating to the business of LNC that is acquired by
      Grantee either during or after employment with LNC.

    

    (c)
      Inventions
      or Ideas.
      Grantee
      shall disclose promptly and assign to LNC all right, title, and interest in
      any
      invention or idea, patentable or not, made or conceived by Grantee during
      employment by LNC, relating in any manner to the actual or anticipated business,
      research or development work of LNC and shall do anything reasonably necessary
      to enable LNC to secure a patent where appropriate in the United States and
      in
      foreign countries. 

    Grantee
      must provide LNC with a certification of compliance with these provisions prior
      to the payment of any cash or share award. Failure to comply with these
      provisions at any time prior to, or during the six months after, any such
      payment shall cause such payment to be rescinded. LNC must notify Grantee in
      writing of any such rescission. LNC, in its discretion, may waive compliance
      in
      whole or part in any individual case. Within ten days after receiving a
      rescission notice from LNC, Grantee must pay LNC the amount of any payment
      received (net of any withholding or other taxes paid by Grantee) as a result
      of
      the rescinded payment. Such payment by Grantee must be made either in cash
      or by
      returning the shares Grantee received in connection with the rescinded payment.
      However, if Grantee’s employment is terminated by LNC and its subsidiaries other
      than for fraud or other fidelity crimes, a failure of Grantee to comply with
      the
      noncompetition provisions after such termination shall not in itself cause
      rescission if the payment was made before the termination.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.
      Definitions.
      As used
      in this Agreement: 

     

    

    “Total
      Disability” means (as determined by the Committee) a disability that results in
      Grantee being unable to engage in any occupation or employment for wage or
      profit for which Grantee is, or becomes, reasonably qualified by training,
      education or experience. In addition, the disability must be a disability that
      has lasted six months, is expected to continue for an additional six months
      or
      longer or to result in death, and must meet the definition of “disabled” under
      Internal Revenue Code Section 409A (as amended from time to time), and any
      applicable federal taxation rules. 

    

    “Retirement”
      means,
      for purposes of this Agreement, Grantee’s retirement from LNC or a subsidiary at
      age 65 or older with at least five years of service (with LNC or a subsidiary)
      or, with the approval of Grantee’s employer, at age 55 or older with at least
      five years of such service.

    

    “Cause”
      means (as determined by the Committee): (1) a conviction of a felony, or other
      fraudulent or willful misconduct by Grantee that is materially and demonstrably
      injurious to the business or reputation of LNC, or (2) the willful and continued
      failure of Grantee to substantially perform Grantee’s duties with LNC or a
      subsidiary (other than such failure resulting from incapacity due to physical
      or
      mental illness), after a written demand for substantial performance is delivered
      to Grantee by Grantee’s manager which specifically identifies the manner in
      which the manager believes that Grantee has not substantially performed
      Grantee’s duties.

    

     

    IN
      WITNESS WHEREOF, LNC, by its duly authorized officer has signed this Agreement
      as of the first date set forth above.

    

    
      	 	
              LINCOLN
                NATIONAL CORPORATION

            
	 	 	 
	 	 	 
	 	
              By:

            	 
	 	 	
              Jon
                A. Boscia

            
	 	 	
              Chairman
                and Chief Executive OfficerExhibit 10.3

    Exhibit
      10.3

    

    NONQUALIFIED
      STOCK OPTION AGREEMENT

     

    This
      Nonqualified Stock Option Agreement (the “Agreement”) evidences the terms of the
      grant by Lincoln National Corporation (“LNC”) of a Nonqualified Stock Option
      (the “Option”) to _______________________ (“Grantee”) on April 12, 2006 (the
“Date of Grant”), and Grantee’s acceptance of the Option in accordance with and
      subject to the provisions of the Lincoln National Corporation Incentive
      Compensation Plan (the “Plan”) and this Agreement. LNC and Grantee agree as
      follows:

    

    1. Shares
      Optioned and Option Price

    

    Grantee
      shall have an Option to purchase _________ shares of LNC common stock (the
      “Shares”) for $_____________ (United States dollars) for each Share.

    

    2.
       Vesting
      Dates

    

    The
      Option for unvested Shares shall be forfeited upon Grantee’s termination of
      employment except as provided below. During Grantee’s employment, Shares shall
      vest as follows:

    

    

    

    

    In
      addition, unvested Shares shall be deemed vested as of:

    

    
      
        (a) 
          the
          date
          of Grantee’s death; 

      

    

    

    
      
        (b) 
          the
          date
          of Grantee’s termination of employment as a result of Total Disability
(as
          defined below); 

      

    

    

    (c) the
      date
      of Grantee’s Retirement (as defined below); 

     

    (d) the
      date
      of Grantee’s involuntary termination of employment with LNC and all
      subsidiaries, other than for Cause (as defined below), including the sale or
      disposition of the business that includes Grantee’s employment; provided,
      however, that Grantee executes an Agreement, Waiver and General Release, in
      form
      and substance satisfactory to LNC, in connection with such termination of
      employment (other than a termination due to the sale or disposition of the
      business that includes Grantee’s employment), in which case the Shares shall
      vest on the later of the date of such involuntary termination of employment
      and
      the date such agreement shall have become effective; or 

     

    
      
        (e) 
          the
          date
          of a Change of Control of LNC as defined in the Plan (“Change of Control”).

      

    

    

    “Total
      Disability” means (as determined by the Secretary of LNC) a disability that
      results in Grantee being unable to engage in any occupation or employment for
      wage or profit for which Grantee is, or becomes, reasonably qualified by
      training, education or experience. In addition, the disability must have lasted
      six months and be expected to continue for at least six more months or be
      expected to continue unto death. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Retirement”
      means,
      for purposes of this Agreement, Grantee’s retirement from LNC or a subsidiary at
      age 65 or older with at least five years of service (with LNC or a subsidiary)
      or, with the approval of Grantee’s employer, at age 55 or older with at least
      five years of such service.

    

    “Cause”
      means (as determined by LNC in its sole discretion): (1) a conviction of a
      felony, or other fraudulent or willful misconduct by Grantee that is materially
      and demonstrably injurious to the business or reputation of LNC, or (2) the
      willful and continued failure of Grantee to substantially perform Grantee’s
      duties with LNC or a subsidiary (other than such failure resulting from
      incapacity due to physical or mental illness), after a written demand for
      substantial performance is delivered to Grantee by Grantee’s manager which
      specifically identifies the manner in which the manager believes that Grantee
      has not substantially performed Grantee’s duties.

    

    3.
       Exercise
      Period

    

    Grantee
      may exercise all or part of the Option for vested Shares on any LNC business
      day
      at LNC’s executive offices until the first to occur of: 

    

    
      	
              (a)

            	
              the
                tenth anniversary of the Date of
                Grant;

            

    

    

    
      	
              (b)

            	
              the
                first anniversary of the date of Grantee’s termination of employment with
                LNC and all subsidiaries on account of death or Total Disability;
                

            

    

    

    
      	
              (c)

            	
              the
                fifth anniversary of Grantee’s
                Retirement;

            

    

    

    
      	
              (d)

            	
              the
                date three months after Grantee’s involuntary termination of employment
                with LNC and all subsidiaries (other than a termination on account
                of
                fraud or other fidelity crimes), including the sale or disposition
                of the
                business that includes Grantee’s employment;
                or

            

    

    

    
      	
              (e)

            	
              the
                date that Grantee’s employment with LNC and all subsidiaries terminates
                for any reason other than those described in (b), (c), or (d) of
                this
                paragraph.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LNC
      shall
      determine what constitutes termination of employment but for purposes of this
      Agreement (i) such termination shall not occur if Grantee has a full-time
      agent’s contract with LNC or a subsidiary and (ii) “subsidiary” shall include
      any corporation in which LNC has ownership of at least twenty-five
      percent.

    

    4.
       Manner
      of Exercise

    

    To
      exercise an option, Grantee must, on an LNC business day, (1) deliver, mail
      or
      fax written notice of the exercise (in the form specified by LNC) to the LNC
      stock option administrative group and (2) submit full payment of the exercise
      price and the certification of compliance described below. Payment may be made
      in any combination of cash, personal check, or Shares. Such Shares must be
      owned
      for at least six months and will constitute payment to the extent of their
      Fair
      Market Value (as defined in the Plan). 

    

    5.
       Transfer
      of Shares Upon Exercise

    

    As
      soon
      as practicable after the exercise date, LNC shall cause the appropriate number
      of Shares to be issued to Grantee. LNC shall not issue Shares until any required
      tax withholding payments are remitted to LNC by Grantee; and LNC may permit
      Grantee to surrender Shares or withhold Shares (from those that would otherwise
      be issued on exercise of the Option) to satisfy tax withholding
      obligations.

    

    6.
       Transferability

    

    No
      rights
      under this Agreement may be transferred except by will or the laws of descent
      and distribution. The rights under this Agreement may be exercised during the
      lifetime of Grantee only by Grantee. After Grantee’s death, the Option may be
      exercised by the person or persons to whom the Option was transferred by will
      or
      the laws of descent or distribution. 

    

    7. Consequences
      of Competitive and Other Activity

    

    The
      grant
      and exercise of this Option are subject to the following
      requirements:

    

    
      	
              (a)

            	
              Grantee
                may not render services for any organization or engage directly or
                indirectly in any business which, in the sole judgment of the Chief
                Executive Officer of LNC or other senior officer designated by the
                Compensation Committee of the LNC Board of Directors, is or becomes
                competitive with LNC. If Grantee has terminated employment, Grantee
                shall
                be free, however, to purchase, as an investment or otherwise, stock
                or
                other securities of such organization or business so long as they
                are
                listed upon a recognized securities exchange or traded over-the-counter
                and such investment does not represent a greater than five percent
                equity
                interest in the organization or business.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              (b)

            	
              Grantee
                shall not, without prior written authorization from LNC, disclose
                to
                anyone outside of LNC, or use in other than LNC’s business, any
                confidential information or material relating to the business of
                LNC that
                is acquired by Grantee either during or after employment with
                LNC.

            

    

    

    
      	
              (c)

            	
              Grantee
                shall disclose promptly and assign to LNC all right, title, and interest
                in any invention or idea, patentable or not, made or conceived by
                Grantee
                during employment by LNC, relating in any manner to the actual or
                anticipated business, research or development work of LNC and shall
                do
                anything reasonably necessary to enable LNC to secure a patent where
                appropriate in the United States and in foreign
                countries.

            

    

    

    
      	
              (d)

            	
              Upon
                exercise of the Option, Grantee shall certify compliance with the
                terms
                and conditions in this paragraph. Failure to comply with this paragraph
                at
                any time prior to, or during the six months after any exercise of
                this
                Option, shall cause such Option and any related exercise to be rescinded.
                LNC must notify Grantee in writing of any such rescission. LNC, in
                its
                discretion, may waive compliance in whole or part in any individual
                case.
                Within ten days after receiving a rescission notice from LNC, Grantee
                must
                pay LNC the amount of any gain realized or payment received (net
                of any
                withholding or other taxes paid by Grantee) as a result of the rescinded
                exercise. Such payment must be made either in cash or by returning
                the
                Shares Grantee received in connection with the rescinded exercise.
                If
                Grantee’s employment is terminated by LNC and its subsidiaries other than
                for fraud or other fidelity crimes, however, a failure of Grantee
                to
                comply with the provisions of 7(a) above after such termination shall
                not
                in itself cause rescission to the extent the Option was exercised
                before
                the termination.

            

    

     

    

    

    IN
      WITNESS WHEREOF, the Chairman and Chief Executive Officer of Lincoln National
      Corporation has signed this Agreement as of the day and year first above
      written.

    

    
      	 	
              LINCOLN
                NATIONAL CORPORATION

            
	 	 
	 	 
	 	 
	 	 
	 	
              Jon
                A. Boscia

            
	 	
              Chairman
                and Chief Executive Officer

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