Document:

EX-10.4

 

Exhibit 10.4

NYMAGIC, INC.

2004 AMENDED AND RESTATED LONG-TERM INCENTIVE PLAN

PERFORMANCE SHARE AWARD AGREEMENT

     THIS AGREEMENT, made as of this 18th day of April, by and between NYMAGIC, INC. (the
“Company”), having its principal place of business in 919 Third Avenue, 10th Floor, New
York, NY 10022

     and

     George R. Trumbull, III (the “Grantee”), the Chairman of the Company.

WITNESSETH THAT:

     WHEREAS, the Grantee is now employed by the Company (the “Company” when used herein with
reference to employment of the Grantee, shall include any Affiliate of the Company as defined in
the Plan) as Chairman pursuant to an Employment Agreement (the “Employment Agreement”) between the
Grantee and the Company entered into contemporaneously with this Award Agreement; and

     WHEREAS, the Company has adopted the NYMAGIC, INC. 2004 Amended and Restated Long-Term
Incentive (the “Plan”) under which the Company may grant to key employees awards of Restricted
Shares as defined in the Plan, providing the Grantee with shares of common stock, par value $1 per
share, of the Company (the “Shares”) subject to restrictions set forth in the Plan and in this
Award Agreement; and

WHEREAS, the Company desires to grant to the Grantee an award of Restricted Shares;

     NOW THEREFORE, in consideration of the covenants and agreements herein contained and intending
to be legally bound, the parties hereto hereby agree with each other as follows:

     1. Grant. Subject to the terms and conditions set forth herein and to the terms of
the Plan, and in order to provide an incentive for the Grantee, as a key employee, to work for the
long-range success of the Company, the Company hereby awards to the Grantee 5,000 Restricted
Shares, subject to adjustment as provided in the Plan.

     2. Vesting. The Shares underlying the Restricted Shares awarded to the Grantee under
this Award Agreement shall vest on December 31, 2006 if the Grantee is, and has been, since the
date of this Agreement employed by the Company on that date. If the Grantee’s employment with the
Company terminates prior to December 31, 2006, the Shares underlying the Restricted Shares awarded
to the Grantee under this Award Agreement shall be forfeited unless otherwise provided in
accordance with the terms of the Employment Agreement.

     3. Issuance. The Shares underlying the Restricted Shares subject to this Award
Agreement will be issued in accordance with the terms of the Plan.

 

 

          4. Binding Effect. Except as otherwise provided in this Award Agreement or in
the Plan, every covenant, term, and provision of this Award Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors, transferees, and
assigns.

          5. No Additional Rights. In no event shall the award of the Restricted Shares
hereunder or the acceptance of this Award Agreement by the Grantee give or be deemed to give the
Grantee any right to continued retention as an independent contractor, service provider, or
employee by the Company or any affiliate of the Company.

          6. Severability. If any part or parts of this Award Agreement or the Plan shall be
held illegal or unenforceable by any court or administrative body of competent jurisdiction, such
determination shall not affect the remaining provisions of this Award Agreement or the Plan which
shall remain in full force and effect.

          7. Governing Law. This Award Agreement shall be governed by and construed in
accordance with the laws of the state of New York, without regard to the conflicts of law
principles thereof.

          8. Counterparts. This Award Agreement may be executed in one or more counterparts,
each of which shall be deemed an original and all of which together shall be considered one and the
same agreement. 

          9. Taxes. By signing this Award Agreement, the Grantee acknowledges that he shall be
solely responsible for the satisfaction of any taxes that may arise with respect to the Restricted
Shares, and that the Company shall have no obligation whatsoever to pay such taxes.

[SIGNATURE PAGE FOLLOWS]

2

 

          IN WITNESS WHEREOF, the undersigned have executed this Award Agreement as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	NYMAGIC, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul J. Hart
 

	 	 
	 

	 	Name:
	 	Paul J. Hart	 	 
	 

	 	Title:
	 	Senior Vice President,	 	 
	 

	 	 	 	General Counsel and Secretary	 	 

The undersigned hereby accepts the terms of this Award Agreement and the Plan.

	 	 	 	 	 	 	 
	 	 	GRANTEE:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ George R. Trumbull, III
 

	 	 
	 

	 	Name:
	 	George R. Trumbull, III	 	 
	 

	 	Title:
	 	ChairmanExhibit 4.1

    
      

      

    

     

     

    SECOND
      SUPPLEMENTAL JUNIOR SUBORDINATED INDENTURE

     

    DATED
      AS
      OF APRIL 20, 2006

     

    BETWEEN

     

    LINCOLN
      NATIONAL CORPORATION

     

    AS
      ISSUER

     

    AND

     

    J.P.
      MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

     

    AS
      TRUSTEE

     

     

    

    
      

      

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF
      CONTENTS

    

    
      	
              ARTICLE
                I

            
	
              DEFINITIONS

            
	 
	
              Section
                1.1

            	
              Definition
                of Terms.

            	
              1

            
	 	 	 
	
              ARTICLE
                II

            
	
              GENERAL
                TERMS AND CONDITIONS OF THE CAPITAL SECURITIES

            
	 
	
              Section
                2.1

            	
              Designation
                and Principal Amount.

            	
              8

            
	
              Section
                2.2

            	
              Maturity.

            	
              8

            
	
              Section
                2.3

            	
              Form
                and Payment.

            	
              9

            
	
              Section
                2.4

            	
              Interest.

            	
              9

            
	 	 	 
	
              ARTICLE
                III

            
	
              REDEMPTION
                OF THE CAPITAL SECURITIES

            
	 
	
              Section
                3.1

            	
              Optional
                Redemption.

            	
              10

            
	
              Section
                3.2

            	
              Redemption
                Procedure for Capital Securities.

            	
              10

            
	
              Section
                3.3

            	
              Payment
                of Securities Called for Redemption.

            	
              11

            
	
              Section
                3.4

            	
              No
                Sinking Fund.

            	
              11

            
	 	 	 
	
              ARTICLE
                IV

            
	
              OPTIONAL
                DEFERRAL OF INTEREST AND TRIGGER EVENTS

            
	 
	
              Section
                4.1

            	
              Optional
                Deferral of Interest.

            	
              12

            
	
              Section
                4.2

            	
              Notices
                of Deferral and Trigger Period.

            	
              12

            
	
              Section
                4.3

            	
              Trigger
                Events.

            	
              12

            
	 	 	 
	
              ARTICLE
                V

            
	
              EVENTS
                OF DEFAULT

            
	 
	
              Section
                5.1

            	
              Events
                of Default.

            	
              13

            
	 	 	 
	
              ARTICLE
                VI

            
	
              COVENANTS

            
	 
	
              Section
                6.1

            	
              Limitation
                on Payment of Current Interest when Optionally Deferred Interest
                is
                Outstanding.

            	
              15

            
	
              Section
                6.2

            	
              Certain
                Restrictions During Optional Deferral Periods or Following a Trigger
                Event.

            	
              15

            
	
              Section
                6.3

            	
              Obligation
                to Effect Certain Sales of Qualifying Securities; Alternative Coupon
                Satisfaction Mechanism.

            	
              16

            
	
              Section
                6.4

            	
              Payment
                of Expenses.

            	
              18

            
	
              Section
                6.5

            	
              Payment
                Upon Resignation or Removal.

            	
              18

            
	 	 	 

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

    
      	
              ARTICLE
                VII

            
	
              SUBORDINATION

            
	 
	
              Section
                7.1

            	
              Agreement
                to Subordinate.

            	
              18

            
	
              Section
                7.2

            	
              Liquidation;
                Dissolution; Bankruptcy.

            	
              18

            
	
              Section
                7.3

            	
              Default
                on Senior Indebtedness.

            	
              19

            
	
              Section
                7.4

            	
              When
                Distribution Must Be Paid Over.

            	
              19

            
	
              Section
                7.5

            	
              Subrogation.

            	
              19

            
	
              Section
                7.6

            	
              Relative
                Rights.

            	
              20

            
	
              Section
                7.7

            	
              Rights
                of the Trustee; Holders of Senior Indebtedness.

            	
              20

            
	
              Section
                7.8

            	
              Subordination
                May Not Be Impaired.

            	
              21

            
	
              Section
                7.9

            	
              Distribution.

            	
              21

            
	
              Section
                7.10

            	
              Authorization
                to Effect Subordination.

            	
              21

            
	 	 	 
	
              ARTICLE
                VIII

            
	
              NOTICE

            
	 
	
              Section
                8.1

            	
              Notice
                by the Company.

            	
              21

            
	 	 	 
	
              ARTICLE
                IX

            
	
              FORM
                OF CAPITAL SECURITY

            
	 
	
              Section
                9.1

            	
              Form
                of Capital Security.

            	
              22

            
	 	 	 
	
              ARTICLE
                X

            
	
              ORIGINAL
                ISSUE OF CAPITAL SECURITIES

            
	 
	
              Section
                10.1

            	
              Original
                Issue of Capital Securities.

            	
              31

            
	 	 	 
	
              ARTICLE
                XI

            
	
              LIMITATION
                ON CLAIMS

            
	 
	
              Section
                11.1

            	
              Limitation
                on Claim for Deferred Interest Due to a Trigger Event in
                Bankruptcy.

            	
              31

            
	 	 	 
	
              ARTICLE
                XII

            
	
              CONCERNING
                THE HOLDERS

            
	 
	
              Section
                12.1

            	
              Acts
                of Holders.

            	
              32

            
	
              Section
                12.2

            	
              Proof
                of Ownership; Proof of Execution of Instruments by Holder.

            	
              32

            
	
              Section
                12.3

            	
              Persons
                Deemed Owners.

            	
              32

            
	
              Section
                12.4

            	
              Revocation
                of Consents; Future Holders Bound.

            	
              33

            
	 	 	 
	
              ARTICLE
                XIII

            
	
              HOLDERS’
                MEETINGS

            
	 
	
              Section
                13.1

            	
              Purposes
                of Meetings.

            	
              33

            
	
              Section
                13.2

            	
              Call
                of Meetings by Trustee.

            	
              34

            

    

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    
      	
              Section
                13.3

            	
              Call
                of Meetings by Company or Holders.

            	
              34

            
	
              Section
                13.4

            	
              Qualifications
                for Voting.

            	
              34

            
	
              Section
                13.5

            	
              Regulations.

            	
              34

            
	
              Section
                13.6

            	
              Voting.

            	
              35

            
	 	 	 
	
              ARTICLE
                XIV

            
	
              MISCELLANEOUS

            
	 
	
              Section
                14.1

            	
              Ratification
                of Indenture.

            	
              35

            
	
              Section
                14.2

            	
              Capital
                Securities Unaffected by First Supplemental Indenture.

            	
              36

            
	
              Section
                14.3

            	
              Trustee
                Not Responsible for Recitals.

            	
              36

            
	
              Section
                14.4

            	
              Governing
                Law.

            	
              36

            
	
              Section
                14.5

            	
              Separability.

            	
              36

            
	
              Section
                14.6

            	
              Counterparts.

            	
              36

            
	 	 	 

    

    

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

    SECOND
      SUPPLEMENTAL JUNIOR SUBORDINATED INDENTURE, dated as of April 20, 2006 (the
      “Second Supplemental Subordinated Indenture”), between Lincoln National
      Corporation, a corporation duly organized and existing under the laws of the
      State of Indiana (the “Company”), and J.P. Morgan Trust Company, National
      Association (as successor in interest of Bank One Trust Company, National
      Association and the First National Bank of Chicago), as trustee (the “Trustee”),
      supplementing the Junior Subordinated Indenture, dated as of May 1, 1996
      (the “Base Indenture”). 

     

    WHEREAS,
      the Company executed and delivered the Base Indenture to the Trustee to provide
      for the future issuance of the Company’s junior subordinated debentures, notes
      or other evidence of indebtedness (the “Securities”), to be issued from time to
      time in one or more series as might be determined by the Company under the
      Base
      Indenture;

     

    WHEREAS,
      pursuant to the terms of the Base Indenture and this Second Supplemental
      Subordinated Indenture (together, the “Indenture”), the Company desires to
      provide for the establishment of a new series of its Securities to be known
      as
      its 6.75% Capital Securities due 2066 (the “Capital Securities”), which shall be
      in the form of junior subordinated debentures, with specific terms and
      provisions, the form and substance of such Capital Securities and the terms,
      provisions and conditions thereof to be set forth as provided in the Indenture;
      and

     

    WHEREAS,
      the Company has requested that the Trustee execute and deliver this Second
      Supplemental Subordinated Indenture, and all requirements necessary to make
      this
      Second Supplemental Subordinated Indenture a valid instrument in accordance
      with
      its terms, and to make the Capital Securities, when executed by the Company
      and
      authenticated and delivered by the Trustee, the valid obligations of the
      Company, have been done and performed, and the execution and delivery of this
      Second Supplemental Subordinated Indenture has been duly authorized in all
      respects:

     

    NOW
      THEREFORE, in consideration of the purchase and acceptance of the Capital
      Securities by the Holders thereof, and for the purpose of setting forth, as
      provided in the Indenture, the form and substance of the Capital Securities
      and
      the terms, provisions and conditions thereof, the Company covenants and agrees
      with the Trustee as follows:

     

     

    ARTICLE
      I

    DEFINITIONS

     

    Section
      1.1     Definition
      of Terms. 

     

    Unless
      the context otherwise requires:

     

    (a) a
      term
      not defined herein that is defined in the Base Indenture has the same meaning
      when used in this Second Supplemental Subordinated Indenture;

     

    (b) the
      definition of any term in this Second Supplemental Subordinated Indenture that
      is also defined in the Base Indenture shall supersede the definition of such
      term in the Base Indenture;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) a
      term
      defined anywhere in this Second Supplemental Subordinated Indenture has the
      same
      meaning throughout;

     

    (d) the
      singular includes the plural and vice versa;

     

    (e) headings
      are for convenience of reference only and do not affect
      interpretation;

     

    (f) the
      following terms have the meanings given to them in this
      Section 1.1(e):

     

    “Adjusted
      Shareholders’ Equity Amount” means, as of any quarter end, subject to the
      provisos to the definition of “Trigger Event,” the shareholders’ equity of the
      Company as reflected on the Company’s consolidated GAAP balance sheet as of such
      quarter end, minus
      (i) accumulated other comprehensive income as reflected on such
      consolidated balance sheet, and (ii) any increase in shareholders’ equity
      resulting from the issuance of preferred stock during such quarter.

     

    “Alternative
      Coupon Satisfaction Mechanism” has the meaning provided in Section 6.3(a)
      hereof.

     

    “Annual
      Statement” means, as to a Life Insurance Subsidiary, the annual statement of
      such Life Insurance Subsidiary containing its statutory balance sheet and income
      statement as required to be filed by it with one or more state insurance
      commissioners or other state insurance regulatory authorities.

     

    “Authorized
      Control Level RBC” has the meaning specified in subsection J of Section 1
      (or the relevant successor section, if any) of the Model Act.

     

    “Benchmark
      Quarter” means, with respect to any completed quarter, the quarter that is ten
      fiscal quarters prior to such completed quarter.

     

    “Business
      Day” means
      any
      day which is not a Saturday, a Sunday, a legal holiday or a day on which banking
      institutions or trust companies located in New York City are authorized or
      obligated by law to close.

     

    “Capital
      Securities” shall have the meaning set forth in the recitals of this Second
      Supplemental Subordinated Indenture.

     

    “Commercially
      Reasonable Efforts” has the meaning provided in Section 6.3(a)
      hereof.

     

    “Company”
      shall have the meaning set forth in the preamble of this Second Supplemental
      Subordinated Indenture.

     

    “Company
      Action Level RBC” has the meaning specified in subsection J of Section 1
      (or the relevant successor section, if any) of the Model Act.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    “Compounded
      Interest” means accrued and unpaid interest on the Capital Securities, together
      with interest thereon, to the extent permitted by applicable law, compounded
      quarterly at the Coupon Rate.

     

    “Coupon
      Rate” has the meaning provided in Section 2.4(a) hereof.

     

    “Covered
      Life Insurance Subsidiaries” means, as of any year end, Life Insurance
      Subsidiaries that collectively account for 80% or more of the combined General
      Account Admitted Assets of the Company’s Life Insurance Subsidiaries as of such
      year end. The Company’s Covered Life Insurance Subsidiaries as of a year end
      will be identified by first ranking the Life Insurance Subsidiaries from largest
      to smallest based upon the amount of each Life Insurance Subsidiary’s General
      Account Admitted Assets and then, beginning with the Life Insurance Subsidiary
      that has the largest amount of General Account Admitted Assets as of such year
      end, identifying such Life Insurance Subsidiaries as Covered Life Insurance
      Subsidiaries until the ratio of the combined General Account Admitted Assets
      of
      the Life Insurance Subsidiaries so identified to the combined General Account
      Admitted Assets of all of the Life Insurance Subsidiaries as of such year end
      equals or exceeds 80%.

     

    “Covered
      Life Insurance Subsidiaries’ Most Recent Weighted Average NAIC RBC Ratio” means,
      as of any date, an amount (expressed as a percentage) calculated
      as:

     

    (x) the
      sum
      of the Total Adjusted Capital of each of the Covered Life Insurance Subsidiaries
      shown on such Covered Life Insurance Subsidiaries’ most recently filed Annual
      Statement, divided by

     

    (y) the
      sum
      of the Company Action Level RBC of each of the Covered Life Insurance
      Subsidiaries shown on such Covered Life Insurance Subsidiaries’ most recently
      filed Annual Statement.

     

    “Depositary”,
      with respect to the Capital Securities, means The Depository Trust Company
      or
      any successor clearing agency.

     

    “Fifth
      Deferral Anniversary” has the meaning provided in Section 6.3(a)
      hereof.

     

    “First
      Supplemental Indenture” means the First Supplemental Indenture dated as of
      August 14, 1998 between the Company as issuer and The First National Bank
      of Chicago as trustee.

     

    “Foregone
      Interest” has the meaning provided in Section 11.1 hereof.

     

    “GAAP”
      means, at any date or for any period, U.S. generally accepted accounting
      principles as in effect on such date or for such period.

     

    “General
      Account Admitted Assets” means, as to a Life Insurance Subsidiary as of any year
      end, the total admitted assets of such Life Insurance Subsidiary as reflected
      on
      the balance sheet included in its statutory financial statements as of such
      year
      end minus the separate account assets reflected on such balance
      sheet.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    “Indenture”
      has the meaning set forth in the preamble of this Second Supplemental
      Subordinated Indenture.

     

    “Interest
      Payment Date” means
      each January 20, April 20, July 20 and October 20, commencing July 20, 2006;
      provided that if any such day is not Business Day, then the Interest Payment
      Date shall be the immediately succeeding Business Day.

     

    “Interest
      Payment Period” means the quarterly period from and including an Interest
      Payment Date to but not including the next succeeding Interest Payment Date,
      except for the First Interest Payment Period which shall be determined from
      and
      including the date of initial issuance of the Capital Securities (subject to
      Section 2.1(b)) to but not including July 20, 2006.

     

    “Life
      Insurance Subsidiary” means any of the Company’s subsidiaries that is organized
      under the laws of any state in the United States and is licensed as a life
      insurance company in any state in the United States but does not include any
      subsidiary of a Life Insurance Subsidiary.

     

    “Market
      Disruption Event” means the occurrence or existence of any of the following
      events or circumstances:

    
      

        
          	 	
                  (i)

                   

                	
                  trading
                    in securities generally on the principal exchange on which the
                    Company’s
                    securities are then listed and traded shall have been suspended
                    or the
                    settlement of such trading generally shall have been materially
                    disrupted
                    or minimum prices shall have been established on any such exchange
                    or
                    market by the Securities and Exchange Commission, by such exchange
                    or by
                    any other regulatory body or governmental authority having
                    jurisdiction;

                   

                
	 	
                  (ii)

                   

                	
                  a
                    material disruption or banking moratorium occurs or has been
                    declared in
                    commercial banking or securities settlement or clearance services
                    in the
                    United States;

                   

                
	 	
                  (iii)

                   

                	
                  there
                    is such a material adverse change in general domestic or international
                    economic, political or financial conditions, including without
                    limitation
                    as a result of terrorist activities, or the effect of international
                    conditions on the financial markets in the United States is such,
                    as to
                    make it, in the Company’s judgment, impracticable to proceed with the
                    offer and sale of its common stock; or

                   

                
	 	
                  (iv)

                   

                	
                  an
                    event occurs and is continuing as a result of which the offering
                    document
                    for such offer and sale of securities would, in the judgment
                    of the
                    Company, contain an untrue statement of a material fact or omit
                    to state a
                    material fact required to be stated therein or necessary to make
                    the
                    statements therein not misleading and either (1) the disclosure of
                    that event at such time, in the judgment of the Company, would
                    have a
                    material adverse effect on the Company's business or (2) the
                    disclosure relates to a previously undisclosed proposed or pending
                    material development or business transaction, and the Company
                    has a bona
                    fide 

                

        

         

      

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
      
        	 	 	business
                reason for
                keeping the same confidential or the disclosure of which would impede
                the
                Company’s ability to consummate such transaction, provided that no single
                suspension period contemplated by this paragraph (iv) may exceed
                ninety
                consecutive days and multiple suspension periods contemplated by
                this
                paragraph (iv) may not exceed an aggregate of 180 days in any 360-day
                period.

      

       
“Maturity
      Date” means the date on which the Capital
      Securities mature as specified in Section 2.2 hereof and on which the
      principal shall be due and payable together with all accrued and unpaid interest
      thereon including Compounded Interest.

     

    “Model
      Act” means the NAIC Risk-Based Capital (RBC) for Insurers Model Act as included
      in the NAIC’s Model Laws, Regulations and Guidelines as of April 12, 2006 and as
      hereinafter amended, modified or supplemented.

     

    “NAIC”
      means the National Association of Insurance Commissioners.

     

    “Optional
      Deferral” has the meaning provided in Section 4.1 hereof.

     

    “Optional
      Deferral Period” has the meaning provided in Section 4.1
      hereof.

     

    “Optionally
      Deferred Interest” has the meaning provided in Section 4.1
      hereof.

     

    “Other
      Covenant Default” has the meaning provided in Section 5.1(b)
      hereof.

     

    “Other
      Covenant Default Notice” has the meaning provided in Section 5.1(c)
      hereof.

     

    “Parity
      Debt Securities” has the meaning provided in Section 6.2(b)
      hereof.

     

    “Parity
      Guarantees” has the meaning provided in Section 6.2(c) hereof.

     

    “Qualifying
      Securities” means the Company’s common stock, including treasury shares and
      shares of common stock sold pursuant to any dividend reinvestment plan or
      employee benefit plan of the Company.

     

    “Registered
      Security” means any Security in the form established pursuant to
      Section 9.1 hereof which is registered as to principal and interest in the
      Securities Register.

     

    “Risk-Based
      Capital Ratio” means the ratio (expressed as a percentage) of an insurance
      company’s “total adjusted capital,” calculated in accordance with prescribed
      procedures set forth in the Model Act, relative to the company’s “company action
      level risk-based capital” as defined in subsection J of Section 1 (or the
      relevant successor section, if any) of the Model Act.

     

    “Second
      Supplemental Subordinated Indenture” has the meaning provided in the preamble
      hereto.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    “Securities”
      has the meaning set forth in the recitals of this Second Supplemental
      Subordinated Indenture.

     

    “Securities
      Act” means the Securities Act of 1933, as amended.

     

    “Senior
      Indebtedness” means principal of, and interest and premium, if any, in
      respect of (i) all
      indebtedness of the Company, whether outstanding on the date of the issuance
      of
      the Capital Securities or thereafter created, incurred or assumed, which is
      for
      money borrowed (including, without limitation, trust preferred securities of
      statutory trusts and related subordinated debentures and guarantees of the
      Company issued under the Indenture), or which is evidenced by a note or similar
      instrument given in connection with the acquisition of any business, properties
      or assets, including securities;
      (ii) 
      obligations of the Company under leases required or permitted to be capitalized
      under GAAP; (iii) all
      indebtedness referred to in clause (i) of other Persons the payment of
      which the Company is responsible or liable as guarantor or otherwise; and (iv)
      amendments, modifications, renewals, extensions, deferrals and refundings of
      any
      of the above types of indebtedness; provided, however, that Senior Indebtedness
      shall not include: (x) indebtedness incurred for the purchase of goods or
      materials or for services obtained in the ordinary course of business;
      (y) any indebtedness which by its terms is expressly made equal in rank and
      payment with or subordinated to the Capital Securities; and (z) any
      indebtedness owed by the Company to any of its subsidiaries.
      Senior
      Indebtedness will continue to be Senior Indebtedness and entitled to the
      benefits of the subordination provisions irrespective of any amendment,
      modification or waiver of any term of the Senior Indebtedness or extension
      or
      renewal of the Senior Indebtedness.

     

    “Tax
      Event” means, with respect to the Capital Securities, the receipt by the Company
      of an opinion of counsel, rendered by a law firm with experience in such
      matters, to the effect that, as a result of (a) any amendment to, or change
      (including any announced prospective change) in, the laws (or any regulations
      thereunder) of the United States or any political subdivision or taxing
      authority thereof or therein, (b) any official administrative pronouncement
      (including a private letter ruling, technical advice memorandum or similar
      pronouncement) or judicial decision interpreting or applying such laws or
      regulations, or (c) a threatened challenge asserted in connection with an
      audit of the Company or any of the Company’s subsidiaries, or a threatened
      challenge asserted in writing against any other taxpayer that has raised capital
      through the issuance of securities that are substantially similar to the Capital
      Securities, which amendment or change is effective or which pronouncement or
      decision is announced or which challenge occurs on or after the date hereof,
      there is more than an insubstantial increase in the risk that interest accruing
      or payable by the Company on the Capital Securities is not or, at any time
      subsequent to the Company’s receipt of such opinion, will not be, wholly
      deductible by the Company for United States federal income tax
      purposes.

     

    “Total
      Adjusted Capital” has the meaning specified in subsection M or Section 1
      (or the relevant successor section, if any) of the Model Act.

     

    “Trailing
      Four Quarters Consolidated Net Income Amount” means, for any fiscal quarter,
      subject to the provisos to the definition of “Trigger Event,” the sum of the
      Company’s consolidated GAAP net income for the four fiscal quarters ending as of
      the last day of such fiscal quarter.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    “Trigger
      Determination Date” has the meaning provided in Section 6.3(a)
      hereof.

     

    A
      “Trigger Event” will have occurred if the Company makes a determination that one
      of the following conditions exists as of the thirtieth day prior to an Interest
      Payment Date:

     

    
      	 	
              (i)

            	
              the
                Covered Life Insurance Subsidiaries’ Most Recent Weighted Average NAIC RBC
                Ratio was less than 175%; or

            

    

     

    
      	 	
              (ii)

            	
              (x) the
                Trailing Four Quarters Consolidated Net Income Amount for the period
                ending on the quarter that is two quarters prior to the most recently
                completed quarter prior to such Interest Payment Date, is zero or
                a
                negative amount, and (y) the Adjusted Shareholders’ Equity Amount as
                of the most recently completed quarter and as of the end of the quarter
                that is two quarters before the most recently completed quarter,
                has
                declined by 10% or more as compared to the Adjusted Shareholders’ Equity
                Amount at the end of the Benchmark Quarter with respect to the most
                recently completed quarter; 

            

    

     

    provided,
      however,
      that

     

    
      	 	
              (A)

            	
              If,
                because of a change in GAAP that results in a cumulative effect of
                a
                change in an accounting principle or a restatement, the Company’s
                consolidated net income is higher or lower than it would have been
                absent
                such change, then for purposes of making the calculations described
                in
                clause (ii) above, commencing with the fiscal quarter for which such
                change in GAAP becomes effective, such consolidated net income will
                be
                calculated on a pro forma basis as if such change had not
                occurred;

            

    

     

    
      	 	
              (B)

            	
              If,
                because of a change in GAAP that results in a cumulative effect of
                a
                change in an accounting principle or a restatement, the Adjusted
                Shareholders’ Equity Amount as of a quarter end is higher or lower than it
                would have been absent such change, then for purposes of making the
                calculations described in clause (ii) above, commencing with the
                fiscal quarter for which such change in GAAP becomes effective, the
                Adjusted Shareholders’ Equity Amount will be calculated on a pro forma
                basis as if such change had not occurred;
                and

            

    

     

    
      	 	
              (C)

            	
              If,
                because of a change in the Model Act that results in (i) a change in
                the mathematical relationship between the Company Action Level RBC
                and the
                Authorized Control Level RBC or (ii) any similar recalibration or
                re-scaling of the levels of Total Adjusted Capital that a life insurance
                company must possess in order to avoid triggering particular company
                action or regulatory action (whether mandatory or authorized) under
                the
                Model Act, then for purposes of making the calculations described
                in
                clause (i) above commencing with the first year for which such change
                becomes 

            

    

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    
      	 	 	effective, the conditions for the occurrence of
              a Trigger
              Event will be changed to maintain consistency with the 175% Covered
              Life
              Insurance Subsidiaries’ Most Recent Weighted Average NAIC RBC Ratio set
              forth in such clause (i), as determined and verified by a nationally
              recognized independent actuarial consulting firm that is designated
              by a
              nationally recognized accounting firm that is not the independent
              registered public accounting firm that is the Company’s auditors at the
              time of such designation.

    

     

    “Trigger
      Period” has the meaning provided in Section 4.3 hereof.

     

    “Trustee”
      shall have the meaning set forth in the preamble of this Second Supplemental
      Subordinated Indenture.

     

    “Underwriting
      Agreement” means the Underwriting Agreement, dated April 12, 2006, among the
      Company and the underwriters of the Capital Securities therein
      named.

     

     

    ARTICLE
      II

    GENERAL
      TERMS AND CONDITIONS OF THE CAPITAL SECURITIES 

     

    Section
      2.1     Designation
      and Principal Amount. 

     

    (a) There
      is
      hereby authorized a series of Securities designated the 6.75% Capital Securities
      due 2066, which shall be in the form of junior subordinated debentures issued
      by
      the Company under the Indenture, limited in aggregate principal amount to
      $275,000,000, which amount shall be as set forth in any written order of the
      Company for the authentication and delivery of Capital Securities pursuant
      to
      Section 3.3 of the Base Indenture. 

     

    (b) The
      Company may, from time to time, subject to compliance with any other applicable
      provisions of this Second Supplemental Subordinated Indenture but without the
      consent of the Holders, create and issue pursuant to this Second Supplemental
      Subordinated Indenture an unlimited principal amount of additional Securities
      (in excess of any amounts theretofore issued) having the same terms and
      conditions to those of the other outstanding Securities, except that any such
      additional Securities (i) may have a different issue date and issue price
      from other outstanding Securities and (ii) may have a different amount of
      interest payable on the first Interest Payment Date after issuance than is
      payable on other outstanding Securities. Such additional Securities shall
      constitute part of the same series of Securities hereunder, unless any such
      adjustment pursuant to this Section 2.1(b) shall cause such additional
      Securities to constitute, as determined pursuant to an opinion of counsel,
      a
      different class of securities than the original series of Securities for U.S.
      federal income tax purposes.

     

    Section
      2.2     Maturity. 

     

    The
      Maturity Date will be April 20, 2066. Notwithstanding the preceding sentence,
      in
      the event that the Maturity Date is not a Business Day, then the Maturity Date
      will be the next succeeding day which is a Business Day.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    Section
      2.3     Form
      and
      Payment. 

     

    Except
      as
      provided in Section 2.4, the Capital Securities shall be issued in fully
      registered certificated form without interest coupons in denominations of $25
      and any integral multiple thereof, bearing identical terms. Principal and
      interest on the Capital Securities issued in certificated form will be payable,
      the transfer of such Capital Securities will be registrable and such Capital
      Securities will be exchangeable for Capital Securities bearing identical terms
      and provisions at the office or agency of the Trustee; provided, however, that
      payment of interest may be made at the option of the Company by check mailed
      to
      the Holder at such address as shall appear in the Security
      Register.

     

    Section
      2.4     Interest. 

     

    (a) From
      the
      date of issuance up to but not including maturity or earlier redemption, as
      applicable, the Capital Securities will bear interest, accruing from the date
      of
      initial issuance (except as further described in the following sentence), at
      the
      per annum rate of 6.75% (the “Coupon Rate”), payable quarterly on each January
      20, April 20, July 20 and October 20, commencing on July 20, 2006. In the case
      of Capital Securities issued pursuant to the exercise of the over-allotment
      option under the Underwriting Agreement by the underwriters of the Capital
      Securities therein named, the date of initial issuance shall be deemed to be
      April 20, 2006.

     

    (b) Interest
      payments will include accrued interest from and including the last date in
      respect of which interest has been duly paid or provided for to, but not
      including, the next succeeding Interest Payment Date or the date of redemption,
      as the case may be. The amount of interest payable for any full Interest Payment
      Period will be computed on the basis of a 360-day year of twelve thirty-day
      months, and the amount of interest payable for any period shorter than a full
      Interest Payment Period for which interest is computed will be computed on
      the
      basis of thirty-day months and, for periods of less than a thirty-day month,
      the
      actual number of days elapsed per thirty-day month. 

     

    (c) Otherwise
      than in connection with the maturity or early redemption of the Capital
      Securities or the payment in whole or in part of deferred or overdue interest
      on
      the Capital Securities, interest on the Capital Securities may be paid only
      on
      an Interest Payment Date. Notwithstanding the preceding sentence, in the event
      that any Interest Payment Date is not a Business Day, then payment of interest
      payable on such Interest Payment Date will be made on the next succeeding day
      which is a Business Day (and without any interest or other payment in respect
      of
      such delay).

     

    (d) To
      the
      extent permitted by applicable law, interest not paid when due hereunder,
      including, without limitation, all Optionally Deferred Interest, will accrue
      and
      compound quarterly at the Coupon Rate on each Interest Payment Date until paid.
      References to “interest” in the Indenture and this Second Supplemental
      Subordinated Indenture include references to such Compounded
      Interest.

     

    (e) The
      interest installment so payable, and punctually paid or duly provided for,
      on
      any Interest Payment Date will, as provided in the Base Indenture, be paid
      to
      the Person in whose name the Capital Securities (or one or more Predecessor
      Securities) is registered at the 

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    close
      of
      business on the day next preceding the Interest Payment Date; provided, that
      in
      the event the Capital Securities will not continue to remain in book-entry
      form
      or are not in the form of a Global Certificate,
      the
      record date for each Interest Payment Date shall be the first day of the month
      in which such Interest Payment Date occurs.
      Any
      such interest installment not punctually paid or duly provided for shall
      forthwith cease to be payable to the registered Holders on such record date,
      and
      may be paid to the Person in whose name the Capital Securities (or one or more
      Predecessor Securities) is registered at the close of business on a special
      record date to be fixed by the Trustee for the payment of such defaulted
      interest after the Company has deposited with the Trustee an amount of money
      equal to the aggregate amount proposed to be paid in respect of such defaulted
      interest, notice whereof shall be given to the registered Holders of this series
      of Capital Securities not less than ten days prior to such special record date,
      or may be paid at any time in any other lawful manner not inconsistent with
      the
      requirements of any securities exchange on which the Capital Securities may
      be
      listed, and upon such notice as may be required by such exchange. 

     

     

    ARTICLE
      III

    REDEMPTION
      OF THE CAPITAL SECURITIES 

     

    Article
      XI of the Base Indenture shall be superseded by this Article III with respect
      to
      the Capital Securities.

     

    Section
      3.1     Optional
      Redemption. 

     

    The
      Company shall have the right to redeem the Capital Securities for cash, in
      whole
      or in part, on or after April 20, 2011. Prior to April 20, 2011, the Company
      shall have the right to redeem the Capital Securities in whole but not in part
      and only after the occurrence of a Tax Event. The redemption price in each
      case
      will be 100% of the principal amount of the Capital Securities to be redeemed
      plus accrued and unpaid interest, together with any Compounded Interest, to
      the
      date of redemption; provided, that if the Capital Securities are not redeemed
      in
      whole, the Company may not effect such redemption unless at least $50,000,000
      aggregate principal amount of Capital Securities, excluding any Capital
      Securities held by the Company or any of its Affiliates, remains outstanding
      after giving effect to such redemption. With respect to any redemption of
      Capital Securities as a result of a Tax Event, the date fixed for such
      redemption will be within 180 days following the occurrence of such Tax Event;
      provided, however, that if at that time the Company is able to eliminate, within
      the 180-day period, the Tax Event by taking some ministerial action (such as
      making an election or filing a form) that has no adverse effect on the Company
      or the Holders of the Capital Securities, the Company will pursue such action
      in
      lieu of redemption. The Company will have no right or obligation to redeem
      the
      Capital Securities while pursuing such measure.

     

    Section
      3.2     Redemption
      Procedure for Capital Securities. 

     

    The
      Company will mail, or cause the Trustee to mail, notice of every redemption
      of
      Capital Securities by first class mail, postage prepaid, addressed to the
      Holders of record of the Capital Securities to be redeemed at such Holder’s
      respective last address appearing on the Company’s books. Any redemption
      pursuant to this Article III will be made upon not less than fifteen days nor
      more than sixty days notice before the date fixed for redemption to the
      registered 

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    Holder
      of
      the Capital Securities. If the Capital Securities are to be redeemed in part
      pursuant to Section 3.1, the Capital Securities will be redeemed pro rata
      or by lot or by any other method utilized by the Trustee that the Trustee shall
      deem fair and appropriate. Any notice mailed as provided in this
      Section 3.2 shall be conclusively presumed to have been duly given, whether
      or not the Holder receives such notice, but failure duly to give such notice
      by
      mail, or any defect in such notice or in the mailing thereof, to any Holder
      of
      the Capital Securities designated for redemption shall not affect the validity
      of the proceedings for the redemption of any other Capital Securities. Each
      such
      notice given to a Holder shall state: (i) the date of redemption;
      (ii) the redemption price; (iii) that the Capital Securities are being
      redeemed pursuant to the Indenture or the terms of the Capital Securities
      together with the facts permitting such redemption; (iv) if less than all
      outstanding Capital Securities are to be redeemed, the identification (and,
      in
      the case of partial redemption, the principal amounts) of the particular capital
      securities to be redeemed; (v) the place or places where the Capital
      Securities are to be redeemed; and (vi) that interest on the Capital
      Securities to be redeemed will cease to accrue on the date of redemption.
      Notwithstanding the foregoing, if the Capital Securities are issued in
      book-entry form through The Depository Trust Company or any other similar
      facility, notice of redemption may be given to the Holders of Capital Securities
      at such time and in any manner permitted by such facility. The redemption price
      shall be paid prior to 12:00 noon, New York City time, on the date of such
      redemption or at such earlier time as the Company determines and specifies
      in
      the notice of redemption. The Company shall deposit with the Trustee or with
      a
      Paying Agent an amount of money sufficient to pay the redemption price of such
      Capital Securities or any portion thereof which are to be redeemed on that
      date.

     

    Section
      3.3     Payment
      of Securities Called for Redemption. 

     

    If
      any
      notice of redemption has been given as provided in Section 3.2, the Capital
      Securities or portion of the Capital Securities with respect to which such
      notice has been given shall become due and payable on the date and at the place
      or places stated in such notice at the applicable redemption price. From and
      after such date, the Capital Securities to be redeemed shall cease to bear
      interest. If any Capital Securities called for redemption shall not be so paid
      upon surrender thereof for redemption, the principal of and premium, if any,
      on
      such Capital Securities shall, until paid, bear interest from the date of
      redemption at the Coupon Rate. On presentation and surrender of such Capital
      Securities at a place of payment in said notice specified, the said securities
      or the specified portions thereof shall be paid and redeemed by the Company
      at
      the applicable redemption price. Upon presentation of any Capital Securities
      redeemed in part only, the Company shall execute and the Trustee shall
      authenticate and deliver to the Holder thereof, at the expense of the Company,
      new Capital Securities of the same series, of authorized denominations, in
      aggregate principal amount equal to the unredeemed portion of the Capital
      Securities so presented and having the same original issue date, Maturity Date
      and terms. If a Global Security is so surrendered, such new Capital Securities
      will also be a new Global Security.

     

    Section
      3.4     No
      Sinking Fund. 

     

    The
      Capital Securities are not entitled to the benefit of any sinking
      fund.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV

    OPTIONAL
      DEFERRAL OF INTEREST AND TRIGGER EVENTS

     

    Section 3.11
      of the Base Indenture shall be superseded by this Article IV with respect to
      the
      Capital Securities.

     

    Section
      4.1     Optional
      Deferral of Interest. 

     

    So
      long
      as no Event of Default or Trigger Event has occurred and is continuing under
      the
      Indenture, the Company may elect at any time during the term of the Capital
      Securities, and from time to time, to defer one or more payments of interest
      on
      such Capital Securities (an “Optional Deferral” and any such deferred interest,
“Optionally Deferred Interest”) for up to five years (excluding any time an
      Optional Deferral is suspended pursuant to Section 4.3 hereof). During any
      Optional Deferral (an “Optional Deferral Period”), the Company may pay
      Optionally Deferred Interest out of any source of funds. Optionally Deferred
      Interest will continue to accrue and compound quarterly on each Interest Payment
      Date, to the extent permitted by applicable law, at the Coupon Rate. If Optional
      Deferral has continued beyond the Fifth Deferral Anniversary (as defined in
      Section 6.3), then the provisions of Section 6.3 hereof will apply,
      and the Company must (except upon an Event of Default with respect to the
      Capital Securities) make Commercially Reasonable Efforts to sell certain
      Qualifying Securities and may pay Optionally Deferred Interest only out of
      the
      net proceeds from the sale of such Qualifying Securities. Additionally, during
      any Optional Deferral Period, the restrictions on payment by the Company of
      dividends and other distributions on capital stock pursuant to Section 6.2
      hereof will apply. There is no limit on the number of Optional Deferral Periods
      that the Company may begin.

     

    Section
      4.2     Notices
      of Deferral and Trigger Period. 

     

    (a) The
      Company shall provide a notice of any Optional Deferral no more than sixty
      and
      no fewer than fifteen days prior to the relevant Interest Payment Date. Subject
      to Section 4.2(b) hereof, a notice of Optional Deferral, once given, will
      be irrevocable and the deferral of payments on the related Interest Payment
      Date
      will be considered an Optional Deferral, unless a Trigger Event has occurred
      as
      of the thirtieth day prior to such Interest Payment Date.

     

    (b) By
      not
      later than the fifteenth day prior to each Interest Payment Date during a
      Trigger Period, the Company will give notice of the continuance of such Trigger
      Period to the Holders of the Capital Securities. Such notice will, depending
      on
      which condition is relied upon in determining that a Trigger Event has occurred,
      set forth either (x) the Covered Life Insurance Subsidiaries’ Most Recent
      Weighted Average NAIC RBC Ratio or (y) the Trailing
      Four Quarters Consolidated Net Income Amount
      and the
      Adjusted Shareholders’ Equity Amount, as applicable, and the extent to which
      these amounts must increase in order for payments of interest from sources
      other
      than pursuant to Section 6.3 hereof to resume.

     

    Section
      4.3     Trigger
      Events. 

     

    (a) If
      and to
      the extent that a Trigger Event has occurred and is continuing, and regardless
      of any notice of Optional Deferral that has been previously delivered, the
      

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    Company
      may pay interest on the Capital Securities (other than any interest that had
      accrued during an Optional Deferral Period prior to the Fifth Deferral
      Anniversary and prior to the occurrence of a Trigger Event) only to the extent
      that such interest is paid in accordance with the Alternative Coupon
      Satisfaction Mechanism. Any interest that is accrued and unpaid during a period
      when a Trigger Event has occurred and is continuing (a “Trigger Period”) will
      continue to accrue and compound quarterly, to the extent permitted by applicable
      law, at the Coupon Rate. Non-payment of interest may not continue for more
      than
      ten consecutive years or extend beyond the Maturity Date of, or the redemption
      date for, the Capital Securities. If a Trigger Event occurs after commencement
      of an Optional Deferral, the Optional Deferral will be deemed suspended during
      the Trigger Period. After the Trigger Period is no longer continuing, the
      Optional Deferral will resume and any accrued time during the Optional Deferral
      Period prior to such suspension will be counted toward the five year limitation
      set forth in Section 4.1.

     

    (b) In
      the
      event that a Trigger Period is no longer continuing and at the termination
      of
      the Trigger Period there is no unpaid interest from an Optional Deferral Period
      that had continued beyond the Fifth Deferral Anniversary, the Company may pay
      subsequent interest in cash from any source of funds. Notwithstanding the
      foregoing, any unpaid interest, together with any Compounded Interest, that
      accrued during the continuance of a Trigger Period may only be satisfied in
      accordance with the provisions of the Alternative Coupon Satisfaction Mechanism,
      except upon an Event of Default with respect to the Capital Securities;
      provided, however, that any accrued and unpaid interest will in all events
      be
      due and payable upon maturity or redemption of the Capital Securities, except
      for Foregone Interest (if any).

     

    (c) During
      such Trigger Period, the restrictions on interest payments from sources other
      than the Alternative Coupon Satisfaction Mechanism will continue until neither
      of the conditions in clauses (i) and (ii) of the definition of “Trigger
      Event” exists as of the thirtieth day prior to an Interest Payment Date. In
      addition, in the case of a restriction arising under clause (ii) of the
      definition of “Trigger Event,” such restrictions will continue until neither of
      the conditions in clauses (i) and (ii) of the definition of “Trigger Event”
exists as of the thirtieth day prior to an Interest Payment Date and the
      Company’s Adjusted Shareholders’ Equity Amount has increased or has declined by
      less than 10%, in either case as compared to the Adjusted Shareholders’ Equity
      Amount at the end of the Benchmark Quarter for each Interest Payment Date as
      to
      which interest payment restrictions were imposed under clause (ii) of the
      definition of “Trigger Event” and Section 4.3(a) hereof.

     

     

    ARTICLE
      V

    EVENTS
      OF DEFAULT

     

    Section
      5.1     Events
      of Default. 

     

    (a) Section 5.1
      of the Base Indenture is hereby amended and supplemented with respect to the
      Capital Securities by deleting clauses (1) and (3) thereof and adding the
      following additional Events of Default:

     

    (i) default
      for thirty calendar days in the payment of any interest on the Capital
      Securities when it becomes due and payable (whether or not such payment is
      prohibited by the subordination provisions); however, a default 

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    under
      this provision will not arise if the Company has properly deferred the interest
      in connection with an Optional Deferral Period or when the provisions of
      Section 6.3 hereof apply, or the Company has not paid the interest on an
      Interest Payment Date that occurs during a Trigger Period.

     

    (ii) any
      non-payment of interest, whether due to an Optional Deferral, during a Trigger
      Period or otherwise, that continues for ten consecutive years or extends beyond
      the Maturity Date of, or the redemption date for, the Capital Securities,
      without all accrued and unpaid interest (including Compounded Interest) having
      been paid in full.

     

    (b) For
      the
      avoidance of doubt, Events of Default with respect to the Capital Securities
      do
      not include failure to comply with or breach of the Company’s other covenants
      set forth in Article VI hereof with respect to the Capital Securities (an “Other
      Covenant Default”), including the covenant to sell Qualifying Securities through
      the Alternative Coupon Satisfaction Mechanism to meet certain interest payment
      obligations.

     

    (c) Holders
      of the Capital Securities may not themselves institute a proceeding against
      the
      Company on account of an Other Covenant Default unless the Trustee fails to
      institute such a proceeding. However, the Holders of a majority in principal
      amount of the Capital Securities may direct the Trustee to bring such a
      proceeding if an Other Covenant Default continues for a period of ninety days
      after delivery of written notice to the Company from the Trustee or to the
      Company and the Trustee from the Holders of a majority in principal amount
      of
      the Capital Securities (“Other Covenant Default Notice”), subject to the terms
      hereof. Except with respect to the covenants contained in Article X of the
      Base
      Indenture, the Trustee shall not be required to take any action in case of
      an
      Other Covenant Default (other than to give notice of such default to the Holders
      of the Capital Securities) unless so directed by the Holders. In the case of
      an
      Other Covenant Default resulting from the Company’s breach of its covenants
      contained in Article X of the Base Indenture, such Other Covenant Default,
      after
      its continuance for ninety days after delivery of the Other Covenant Default
      Notice, will be treated as an Event of Default with respect to the Capital
      Securities, and the Trustee will have all of the rights, duties and obligations,
      and the Holders of the Capital Securities will have all of the rights, in
      respect of such Other Covenant Default as if such Other Covenant Default were
      such an Event of Default, except that there will be no right to accelerate
      the
      payment of the Capital Securities.

     

    (d) Subject
      to the provisions of Section 5.1(c) hereof, as to Other Covenant Defaults,
      the
      provisions of Section 5.7 of the Base Indenture shall apply with respect to
      limitations on suits, proceedings and remedies.

     

    (e) Within
      ninety days after an Event of Default, the Trustee must give to the Holders
      of
      the Capital Securities notice of all uncured and unwaived defaults by the
      Company known to it. However, except in the case of default in payment or
      interest, the Trustee may withhold such notice if it determines that such
      withholding is in the interest of such Holders.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VI

    COVENANTS

     

    Article
      X
      of the Base Indenture is hereby supplemented with respect to the Capital
      Securities by the following additional covenants of the Company:

     

    Section
      6.1     Limitation
      on Payment of Current Interest when Optionally Deferred Interest is
      Outstanding. 

     

    The
      Company may not pay on any Interest Payment Date interest that has accrued
      on
      any Capital Security during the Interest Payment Period immediately preceding
      such Interest Payment Date, unless the Company pays therewith all Optionally
      Deferred Interest at such time outstanding on such Capital Security. The
      foregoing covenant shall not be construed to limit the ability of the Holders
      of
      the Capital Securities to recover amounts in case of any receivership,
      insolvency, liquidation,
      bankruptcy, reorganization, readjustment, arrangement, composition or judicial
      proceeding affecting the Company and its property.

     

    Section
      6.2     Certain
      Restrictions During Optional Deferral Periods or Following a Trigger
      Event. 

     

    On
      any
      date on which accrued interest through the most recent Interest Payment Date
      has
      not been paid in full, whether because of an Optional Deferral, the consequences
      of a Trigger Event or otherwise, the Company will not, and will not permit
      any
      subsidiary to:

     

    (a) declare
      or pay any dividends on, make distributions regarding, or redeem, purchase,
      acquire or make a liquidation payment with respect to, any shares of capital
      stock of the Company, other than:

     

    (i) purchases
      of the capital stock of the Company in connection with employee or agent benefit
      plans or the satisfaction of its obligations under any contract or security
      then
      outstanding requiring the Company to purchase capital stock or under any
      dividend reinvestment plan;

     

    (ii) in
      connection with the reclassifications of any class or series of the Company’s
      capital stock, or the exchange or conversion of one class or series of the
      Company’s capital stock for or into another class or series of the Company’s
      capital stock;

     

    (iii) the
      purchase of fractional interests in shares of the Company’s capital stock in
      connection with the conversion or exchange provisions of that capital stock
      or
      the security being converted or exchanged;

     

    (iv) dividends
      or distributions of the Company’s capital stock, or rights to acquire common
      stock, or repurchases or redemptions of common stock solely from the issuance
      or
      exchange of common stock;

     

    (v) any
      declaration of a dividend in connection with the implementation of a
      shareholders rights plan, or issuances of capital stock under any such plan
      in
      the 

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    future,
      or redemptions or repurchases of any rights outstanding under a shareholder
      rights plan; or

     

    (vi) acquisitions
      of the Company’s common stock in connection with acquisitions of businesses made
      by the Company (which acquisitions are made by the Company’s in connection with
      the satisfaction of indemnification obligations of the sellers of such
      businesses);

     

    (b) make
      any
      payment of interest, principal or premium, if any, on or repay, repurchase
      or
      redeem any debt securities issued by the Company that rank equally with or
      junior to the Capital Securities, other than any payment, repurchase or
      redemption in respect of debt securities that rank equally with the Capital
      Securities (“Parity Debt Securities”) made ratably and in proportion to the
      respective amount of (i) accrued and unpaid amounts on such Parity Debt
      Securities, on the one hand, and (ii) accrued and unpaid amounts on the
      Capital Securities, on the other hand; and

     

    (c) make
      any
      guarantee payments with respect to any guarantee by the Company of the debt
      securities of any subsidiary, if such guarantee ranks equally with or junior
      to
      the Capital Securities, other than any payment in respect of guarantees that
      rank equally with the Capital Securities (“Parity Guarantees”) made ratably and
      in proportion to the respective amount of (i) accrued and unpaid amounts on
      such Parity Guarantees, on the one hand, and (ii) accrued and unpaid
      amounts on the Capital Securities, on the other hand.

     

    Section
      6.3     Obligation
      to Effect Certain Sales of Qualifying Securities; Alternative Coupon
      Satisfaction Mechanism. 

     

    (a) Commencing
      with the first to occur of:

     

    (i) if
      any
      Optionally Deferred Interest is outstanding due to an Optional Deferral, the
      date that is five years after the first Interest Payment Date as of which the
      Company deferred payment of interest on the Capital Securities (excluding any
      time an Option Deferral is suspended pursuant to Section 4.3 hereof),
      and
      for which Optionally Deferred Interest remains outstanding (the “Fifth Deferral
      Anniversary”), or

     

    (ii) if
      a
      Trigger Event has occurred and is continuing as of the thirtieth day prior
      to an
      Interest Payment Date (regardless of whether a notice of an Optional Deferral
      has been delivered) (the “Trigger Determination Date”),

     

    the
      Company shall make Commercially Reasonable Efforts to effect sales of Qualifying
      Securities in an amount that will generate sufficient net proceeds to enable
      the
      Company to pay interest in full on the Capital Securities (the “Alternative
      Coupon Satisfaction Mechanism”); provided that the Company’s obligation to make
      Commercially Reasonable Efforts to sell its Qualifying Securities to satisfy
      its
      obligation to pay interest is subject to Market Disruption Events, does not
      apply to interest that has accrued during an Optional Deferral Period prior
      to
      the Fifth Deferral Anniversary, and does not apply if an Event of Default with
      respect to the Capital Securities has occurred and is continuing.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    The
      net
      proceeds received by the Company from the issuance of Qualifying Securities
      (i) during
      the 180 days prior to any Interest Payment Date on which the Company is required
      to use the Alternative Coupon Satisfaction Mechanism and (ii) designated
      by the Company at or before the time of such issuance as available to pay
      interest on the Capital Securities will, at the time such proceeds are delivered
      to the Trustee to satisfy the relevant interest payment, be deemed to satisfy
      the Company’s obligations to pay interest on the Capital Securities pursuant to
      the Alternative Coupon Satisfaction Mechanism.

     

    As
      used
      in this Section 6.3, the term “Commercially Reasonable Efforts” means
      commercially reasonable efforts on the part of the Company to complete the
      offer
      and sale of shares of its Qualifying Securities to third parties that are not
      subsidiaries of the Company in public offerings or private placements, provided
      that the Company will be deemed to have made such commercially reasonable
      efforts during a Market Disruption Event regardless of whether the Company
      makes
      any offers or sales during such Market Disruption Event. The Company will not
      be
      considered to have made such Commercially Reasonable Efforts to effect a sale
      of
      stock if it determines to not pursue or complete such sale solely due to pricing
      considerations.

     

    (b) Following
      the Fifth Deferral Anniversary or the Trigger Determination Date, the Company
      shall apply the net proceeds received by it from sales of shares of its
      Qualifying Securities to the payment of interest, with net proceeds to be paid
      promptly after receipt until all interest amounts owing have been paid in
      full.

     

    (c) In
      the
      event that net proceeds received by the Company from one or more sales of shares
      of its Qualifying Securities following such Fifth Deferral Anniversary or the
      Trigger Determination Date are not sufficient to satisfy the full interest
      amount, such net proceeds will be paid to the Holders of the Capital Securities
      on a pro rata basis.

     

    (d) Any
      interest payment made pursuant to the provisions of this Section 6.3 will
      first be allocated to payment of the interest due on the next Interest Payment
      Date. Any payment of interest in excess of the amount of the interest due on
      that Interest Payment Date will be applied first against any then existing
      accrued and unpaid interest, in chronological order beginning with the earliest
      unpaid Interest Payment Date, and then against any accrued and unpaid Compounded
      Interest. If
      the
      Company has outstanding at such time any debt securities ranking pari
      passu
      with the
      Capital Securities under the terms of which the Company is obligated to sell
      Qualifying Securities and apply the net proceeds to payment of deferred interest
      on such pari
      passu
      securities and the Company at such time is required to apply such proceeds
      to
      pay deferred interest on such pari
      passu
      securities, then on any date and for any period the amount of net proceeds
      received by the Company from such sales and available for payment of such
      deferred interest shall be applied to the Capital Securities and such
pari
      passu
      securities on a pro rata basis. Notwithstanding
      the foregoing, a partial payment will be applied (i) to Optionally Deferred
      Interest but only to the extent that the source of such partial payment is
      other
      than the sale of Qualifying Securities, and (ii) first to interest that is
      unpaid during a Trigger Period and second to Optionally Deferred Interest,
      to
      the extent that the source of such partial payment is the sale of Qualifying
      Securities.

     

    
      
        
        

      

      
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    Section
      6.4     Payment
      of Expenses. 

     

    In
      connection with the offering, sale and issuance of the Capital Securities,
      the
      Company, in its capacity as borrower with respect to the Capital Securities,
      shall pay all costs and expenses relating to the offering, sale and issuance
      of
      the Capital Securities, including commissions to the underwriters payable
      pursuant to the Underwriting Agreement and compensation of the Trustee under
      the
      Indenture in accordance with the provisions of Section 6.7 of the Base
      Indenture.

     

    Section
      6.5     Payment
      Upon Resignation or Removal. 

     

    Upon
      termination of this Second Supplemental Subordinated Indenture or the Base
      Indenture or the removal or resignation of the Trustee, the Company shall pay
      to
      the Trustee all amounts accrued to the date of such termination, removal or
      resignation. 

     

     

    ARTICLE
      VII

    SUBORDINATION

     

    Article
      XIII of the Base Indenture shall be superseded by this Article VII with respect
      to the Capital Securities.

     

    Section
      7.1     Agreement
      to Subordinate. 

     

    The
      Company agrees, and each Holder by accepting any Capital Securities agrees,
      that, unless otherwise specified pursuant to Section 3.1 hereof with
      respect to any series of Capital Securities, the indebtedness evidenced by
      the
      Capital Securities is subordinated in right of payment, to the extent and in
      the
      manner provided in this Article VII, to the prior payment in full of all Senior
      Indebtedness, and that the subordination is for the benefit of, and shall be
      enforceable directly by, the Holders of Senior Indebtedness, without any act
      or
      notice of acceptance hereof or reliance hereon.

     

    Section
      7.2     Liquidation;
      Dissolution; Bankruptcy. 

     

    In
      the
      event of:

     

    (a) any
      insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment,
      composition or other similar proceeding relating to the Company, its creditors
      or its property;

     

    (b) any
      proceeding for the liquidation, dissolution or other winding up of the Company,
      voluntary or involuntary, whether or not involving insolvency or bankruptcy
      proceedings;

     

    (c) any
      assignment by the Company for the benefit of creditors; or

     

    (d) any
      other
      marshalling of the assets of the Company,

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    all
      Senior Indebtedness (including, without limitation, interest accruing after
      the
      commencement of any such proceeding, assignment or marshalling of assets) shall
      first be paid in full before any payment or distribution, whether in cash,
      securities or other property, shall be made by the Company on account of the
      Capital Securities. In
      any
      such event, any payment or distribution, whether in cash, securities or other
      property, which would otherwise (but for the provisions of this Article VII)
      be
      payable or deliverable in respect of the Capital Securities (including any
      such
      payment or distribution which may be payable or deliverable by reason of the
      payment of any other indebtedness of the Company being subordinated to the
      payment of the Securities) shall be paid or delivered directly to the Holders
      of
      Senior Indebtedness, or to their representatives, in accordance with the
      priorities then existing among such Holders until all Senior Indebtedness shall
      have been paid in full. Payments on the Capital Securities in the form of other
      securities of the Company or those of any other corporation provided for by
      a
      plan of reorganization or a readjustment, the payment of which is subordinate,
      at least to the extent provided in the subordination provisions of this
      Indenture with respect to the indebtedness evidenced by the Capital Securities,
      to the payment of all Senior Indebtedness at the time outstanding and to any
      securities issued in respect thereof under any such plan of reorganization
      or
      readjustment, shall be paid or delivered directly to the Holders of Senior
      Indebtedness and then, if any amounts remain, to the Holders of Capital
      Securities.

     

    Section
      7.3     Default
      on Senior Indebtedness. 

     

    If
      (i) the Company defaults in the payment of any principal (or premium, if
      any) or interest on any Senior Indebtedness, whether at maturity or at a date
      fixed for prepayment or declaration or otherwise or (ii) an event of
      default occurs with respect to any Senior Indebtedness permitting any Holder
      thereof to accelerate the maturity thereof and written notice of such event
      of
      default (requesting that payments on the Capital Securities cease) is given
      to
      the Company by the Holders of Senior Indebtedness, then unless and until such
      default in payment or event of default shall have been cured or waived or shall
      have ceased to exist, no direct or indirect payment (in cash, property or
      securities, by set-off or otherwise) may be made or agreed to be made on account
      of the Capital Securities or interest thereon or in respect of any repayment,
      redemption, retirement, purchase or other acquisition of the Capital
      Securities.

     

    Section
      7.4     When
      Distribution Must Be Paid Over. 

     

    Unless
      otherwise specified pursuant to Section 3.1 hereof with respect to any
      series of Capital Securities, if a distribution is made to the Trustee or any
      Holder at a time when a Responsible Officer of the Trustee or such Holder has
      actual knowledge that because of this Article VII such distribution should
      not
      have been made to it, the Trustee or such Holder who receives the distribution
      shall hold it in trust for the benefit of, and, upon written request, shall
      pay
      it over to, the Holders of Senior Indebtedness as their interests may appear,
      or
      their agents or representatives, for application to the payment of all
      principal, premium, if any, and interest then payable with respect to any Senior
      Indebtedness.

     

    Section
      7.5     Subrogation. 

     

    Senior
      Indebtedness shall not be deemed to have been paid in full unless the Holders
      thereof shall have received cash, securities or other property equal to the
      amount of such Senior Indebtedness then outstanding. After all Senior
      Indebtedness is paid in full and until the 

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    Capital
      Securities are paid in full, Holders shall be subrogated (equally and ratably
      with all other indebtedness as to which the right to receive payment is pari
      passu with the Capital Securities) to the rights of Holders of Senior
      Indebtedness to receive distributions applicable to Senior Indebtedness to
      the
      extent that distributions otherwise payable to the Holders have been applied
      to
      the payment of Senior Indebtedness, and such payments or distributions received
      by any Holder of Securities, by reason of such subrogation, of cash, securities
      or other property which otherwise would be paid or distributed to the Holders
      of
      Senior Indebtedness, shall, as between the Company and its creditors other
      than
      the Holders of Senior Indebtedness, on the one hand, and the Holders of Capital
      Securities, on the other, be deemed to be a payment by the Company on account
      of
      Senior Indebtedness, and not on account of Capital Securities.

     

    Section
      7.6     Relative
      Rights. 

     

    This
      Article VII defines the relative rights of Holders and Holders of Senior
      Indebtedness. Unless otherwise specified in Article XI hereof or pursuant to
      Section 3.1 hereof with respect to any series of Capital Securities,
      nothing in this Indenture shall:

     

    (a) impair,
      as between the Company and Holders, the obligation of the Company, which is
      absolute and unconditional, to pay principal of and interest on the Capital
      Securities in accordance with their terms;

     

    (b) affect
      the relative rights of Holders other than their rights in relation to Holders
      of
      Senior Indebtedness; or

     

    (c) prevent
      the Trustee or any Holder from exercising its available remedies upon a Default,
      an Other Covenant Default or Event of Default, subject to the rights of Holders
      and owners of Senior Indebtedness to receive distributions and payments
      otherwise payable to Holders.

     

    If
      the
      Company fails because of this Article VII to pay principal of or interest on
      Capital Securities on the due date, subject to Section 5.1 hereof the
      failure is still a Default and such Default if not cured for thirty calendar
      days shall constitute an Event of Default.

     

    Section
      7.7     Rights
      of the Trustee; Holders of Senior Indebtedness. 

     

    With
      respect to the Holders of Senior Indebtedness of the Company, the Trustee
      undertakes to perform or to observe only such of its covenants and obligations
      as are specifically set forth in this Article VII, and no implied covenants
      or
      obligations with respect to the Holders of such Senior Indebtedness shall be
      read into this Indenture against the Trustee. The Trustee shall not be deemed
      to
      owe any fiduciary duty to the Holders of such Senior Indebtedness and, subject
      to the provisions of Section 6.1 of the Base Indenture, the Trustee shall
      not be liable to any Holder of such Senior Indebtedness if it shall pay over
      or
      deliver to Holders of Capital Securities, the Company or any other Person money
      or assets to which any Holder of such Senior Indebtedness shall be entitled
      by
      virtue of this Article VII or otherwise.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    Section
      7.8     Subordination
      May Not Be Impaired. 

     

    No
      present or future Holder of any Senior Indebtedness shall be prejudiced in
      the
      right to enforce subordination of the indebtedness constituting the Securities
      by any act or failure to act on the part of the Company.

     

    Section
      7.9     Distribution. 

     

    Upon
      any
      payment or distribution of assets of the Company referred to in this Article
      VII, the Trustee and the Holders shall be entitled to rely upon any order or
      decree made by any court of competent jurisdiction or upon any certificate
      of
      the liquidating trustee or agent or other Person making any distribution to
      the
      Trustee or to the Holders for the purpose of ascertaining the Persons entitled
      to participate in such distribution, the Holders of the Senior Indebtedness
      and
      other Debt of the Company, the amount thereof or payable thereon, the amount
      or
      amounts paid or distributed thereon and all other facts pertinent thereto or
      to
      this Article VII.

     

    Section
      7.10     Authorization
      to Effect Subordination. 

     

    Each
      Holder of Capital Securities by his acceptance thereof authorizes and directs
      the Trustee on his behalf to take such action as may be necessary or appropriate
      to effectuate the subordination as provided in this Article VII (to the extent
      the same may be modified pursuant to Section 3.1 hereof with respect to any
      series of Capital Securities), and appoints the Trustee his attorney-in-fact
      for
      any and all such purposes.

     

     

    ARTICLE
      VIII

    NOTICE

     

    Section
      8.1     Notice
      by the Company. 

     

    Subject
      to Section 4.2 hereof, the Company shall give prompt written notice to a
      Responsible Officer of the Trustee of any fact known to the Company that would
      prohibit the making of any payment of monies to or by the Trustee in respect
      of
      the Capital Securities pursuant to the provisions of Article VII hereof;
      provided that failure to give such notice shall not affect the subordination
      of
      the Capital Securities to the Senior Indebtedness as provided in Article VII
      hereof. Notwithstanding any of the provisions of the Base Indenture and this
      Second Supplemental Subordinated Indenture, the Trustee shall not be charged
      with knowledge of the existence of any facts that would prohibit the making
      of
      any payment of monies to or by the Trustee in respect of the Capital Securities
      pursuant to the provisions of the Base Indenture; provided, however, that if
      the
      Trustee shall not have received the notice provided for in this Article VIII
      at
      least two Business Days prior to the date upon which by the terms hereof any
      money may become payable for any purpose (including, without limitation, the
      payment of the principal of (or premium, if any) or interest on any Capital
      Securities), then, anything herein contained to the contrary notwithstanding,
      the Trustee shall have full power and authority to receive such money and to
      apply the same to the purposes for which they were received, and shall not
      be
      affected by any notice to the contrary that may be received by it within two
      Business Days prior to such date.

     

    
      
        
        

      

      
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    ARTICLE
      IX

    FORM
      OF CAPITAL SECURITY

     

    Section
      9.1     Form
      of Capital Security. 

     

    The
      Capital Securities and the Trustee’s Certificate of Authentication to be
      endorsed thereon are to be substantially in the following forms:

     

     

    (FORM
      OF
      FACE OF DEBENTURE)

     

    [IF
      THE
      DEBENTURE IS TO BE A GLOBAL SECURITY, INSERT - THIS DEBENTURE IS A GLOBAL
      SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
      REGISTERED IN THE NAME OF THE CLEARING AGENCY OR A NOMINEE OF THE CLEARING
      AGENCY. THIS DEBENTURE IS EXCHANGEABLE FOR DEBENTURES REGISTERED IN THE NAME
      OF
      A PERSON OTHER THAN THE CLEARING AGENCY OR ITS NOMINEE ONLY IN THE LIMITED
      CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS DEBENTURE
      (OTHER THAN A TRANSFER OF THIS DEBENTURE AS A WHOLE BY THE CLEARING AGENCY
      TO A
      NOMINEE OF THE CLEARING AGENCY OR BY A NOMINEE OF THE CLEARING AGENCY TO THE
      CLEARING AGENCY OR ANOTHER NOMINEE OF THE CLEARING AGENCY) MAY BE REGISTERED
      EXCEPT IN LIMITED CIRCUMSTANCES.]

     

    [UNLESS
      THIS DEBENTURE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY DEBENTURE ISSUED
      IS
      REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON
      IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
      OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.]

     

     

    LINCOLN
      NATIONAL CORPORATION

     

    ____%
      Capital Securities due 2066

     

    
      	
              No.
                R-1

            	
              $__________

            
	 	
              CUSIP
                No. ____________

            

    

    

    LINCOLN
      NATIONAL CORPORATION, a corporation organized and existing under the laws of
      Indiana (hereinafter called the “Company”, which term includes any successor
      corporation under the Indenture hereinafter referred to), for value received,
      hereby promises to pay to _____________________________________________________,
      or registered assigns, the principal sum of __________________________ dollars
      ($____________) on ____________, 2066 (the “Maturity Date”). Notwithstanding the
      preceding sentence, in the 

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    event
      that the Maturity Date is not a Business Day, then the Maturity Date will be
      the
      next succeeding day which is a Business Day. The Company further promises to
      pay
      interest on said principal sum from April 20, 2006 or from the most recent
      interest payment date to which interest has been paid or duly provided for.
      Until the Maturity Date or earlier redemption, each Outstanding Capital Security
      will bear interest at the per annum rate of ___% (the “Coupon Rate”) payable
      (subject to the interest deferral provisions of Article IV of the Second
      Supplemental Junior Subordinated Indenture) quarterly in arrears on January
      20,
      April 20, July 20 and October 20 of each year (each such date, an “Interest
      Payment Date”), commencing on July 20, 2006, and (to the extent that payment of
      such interest is enforceable under applicable law) on any overdue installment
      of
      interest at such interest rate, compounded quarterly. Interest payments will
      include accrued interest from and including the last date in respect of which
      interest has been duly paid or provided for to, but not including, the next
      succeeding Interest Payment Date or the date of redemption, as the case may
      be.
      The amount of interest payable for any full Interest Payment Period will be
      computed on the basis of a 360-day year of twelve thirty-day months, and the
      amount of interest payable for any period shorter than a full Interest Payment
      Period for which interest is computed will be computed on the basis of
      thirty-day months and, for periods of less than a thirty-day month, the actual
      number of days elapsed per thirty-day month. In the event that any date on
      which
      interest is payable on this Capital Security is not a Business Day, then payment
      of interest payable on such date will be made on the next succeeding day which
      is a Business Day (and without any interest or other payment in respect of
      such
      delay). The interest installment so payable, and punctually paid or duly
      provided for, on any Interest Payment Date will, as provided in the Base
      Indenture, be paid to the Person in whose name this Capital Security (or one
      or
      more Predecessor Securities, as defined in said Base Indenture) is registered
      at
      the close of business on the day next preceding the Interest Payment Date;
      provided, that in the event the Capital Securities will not continue to remain
      in book-entry form or are not in the form of a Global Certificate, the record
      date for each Interest Payment Date shall be the first day of the month in
      which
      such Interest Payment Date occurs. Any such interest installment not punctually
      paid or duly provided for shall forthwith cease to be payable to the registered
      Holders on such record date, and may be paid to the Person in whose name this
      Capital Security (or one or more Predecessor Securities) is registered at the
      close of business on a special record date to be fixed by the Trustee for the
      payment of such defaulted interest after the Company has deposited with the
      Trustee an amount of money equal to the aggregate amount proposed to be paid
      in
      respect of such defaulted interest, notice whereof shall be given to the
      registered Holders of this series of Capital Securities not less than ten days
      prior to such special record date, or may be paid at any time in any other
      lawful manner not inconsistent with the requirements of any securities exchange
      on which the Capital Securities may be listed, and upon such notice as may
      be
      required by such exchange, all as more fully provided in the Indenture. The
      principal of (and premium, if any) and the interest (including Compounded
      Interest) on this Capital Security shall be payable at the office or agency
      of
      the Trustee maintained for that purpose in the United States, in any coin or
      currency of the United States of America which at the time of payment is legal
      tender for payment of public and private debts; provided, however, that payment
      of interest may be made at the option of the Company by check mailed to the
      registered Holder at such address as shall appear in the Security
      Register.

     

    The
      indebtedness evidenced by this Capital Security is, to the extent provided
      in
      the Indenture, subordinate and junior in right of payment to the prior payment
      in full of all Senior Indebtedness, and this Capital Security is issued subject
      to the provisions of the Indenture with 

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    respect
      thereto. Each Holder of this Capital Security, by accepting the same,
      (a) agrees to and shall be bound by such provisions, (b) authorizes
      and directs the Trustee on his behalf to take such action as may be necessary
      or
      appropriate to acknowledge or effectuate the subordination so provided and
      (c) appoints the Trustee his attorney-in-fact for any and all such
      purposes. Each Holder hereof, by his acceptance hereof, hereby waives all notice
      of the acceptance of the subordination provisions contained herein and in the
      Indenture by each Holder of Senior Indebtedness, whether now outstanding or
      hereafter incurred, and waives reliance by each such Holder upon said
      provisions.

     

    Reference
      is hereby made to the further provisions of this Capital Security set forth
      on
      the reverse hereof, which further provisions shall for all purposes have the
      same effect as if set forth at this place.

     

    Unless
      the certificate of authentication hereon has been executed by the Trustee
      referred to on the reverse hereof by manual signature, this Capital Security
      shall not be entitled to any benefit under the Indenture or be valid or
      obligatory for any purpose.

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this instrument to be duly executed
      under its corporate seal.

     

    Dated:
      April ___, 2006

     

    
      	
              LINCOLN
                NATIONAL CORPORATION

               

            
	
              By:
                

            	 
	
              Name:

            
	
              Title:
                

            

    

    

    

    
      	
              Attest:
                

            
	 
	
              Name:
                

            
	
              Title:
                

            

    

    

    This
      is
      one of the Debentures referred to in the within mentioned
      Indenture.

     

    
      	
              J.P.
                MORGAN TRUST COMPANY, 

              NATIONAL
                ASSOCIATION, as 

              Trustee

            
	 
	
              By:

            	 
	
              Authorized
                Officer

            

    

    

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

     

    [REVERSE
      OF DEBENTURE]

     

    This
      Debenture is one of a duly authorized issue of securities of the Company (herein
      called the “Capital Securities”), issued and to be issued in one or more series
      under a Junior Subordinated Indenture, dated as of May 1, 1996 (herein
      called the “Base Indenture”), between the Company and J.P. Morgan Trust Company,
      National Association (herein called the “Trustee”, which term includes any
      successor trustee under the Indenture), as supplemented by a Second Supplemental
      Junior Subordinated Indenture, dated as of ___, 2006 (the “Second Supplemental
      Junior Subordinated Indenture” and the Base Indenture as so supplemented, the
“Indenture”), to which Indenture and all indentures supplemental thereto
      reference is hereby made for a statement of the respective rights, limitations
      of rights, duties and immunities thereunder of the Trustee, the Company and
      the
      Holders of the Capital Securities, and of the terms upon which the Capital
      Securities are, and are to be, authenticated and delivered. This Capital
      Security is one of the series designated on the face hereof, limited in
      aggregate principal amount to $__________.

     

    All
      terms
      used in this Capital Security that are defined in the Indenture shall have
      the
      meanings assigned to them in the Indenture.

     

    Notwithstanding
      the provisions of Article XI of the Base Indenture, the Company shall have
      the
      right to redeem the Capital Securities for cash, in whole or in part, on or
      after April 20, 2011. Prior to April 20, 2011, the Company shall have the right
      to redeem the Capital Securities in whole but not in part and only after the
      occurrence of a Tax Event. The redemption price in each case will be 100% of
      the
      principal amount of the Capital Securities to be redeemed plus accrued and
      unpaid interest, together with any Compounded Interest, to the date of
      redemption; provided, that if the Capital Securities are not redeemed in whole,
      the Company may not effect such redemption unless at least $50,000,000 aggregate
      principal amount of Capital Securities, excluding any Capital Securities held
      by
      the Company or any of its Affiliates, remains outstanding after giving effect
      to
      such redemption. With respect to any redemption of Capital Securities as a
      result of a Tax Event, the date fixed for such redemption will be within 180
      days following the occurrence of such Tax Event; provided, however, that if
      at
      that time the Company is able to eliminate, within the 180-day period, the
      Tax
      Event by taking some ministerial action (such as making an election or filing
      a
      form) that has no adverse effect on the Company or the Holders of the Capital
      Securities, the Company will pursue such action in lieu of redemption. The
      Company will have no right or obligation to redeem the Capital Securities while
      pursuing such measure.

     

    Any
      redemption will be made upon not less than fifteen days nor more than sixty
      days
      notice before the date fixed for redemption to the registered Holder of the
      Capital Securities. If the Capital Securities are to be redeemed in part, the
      Capital Securities will be redeemed pro rata or by lot or by any other method
      utilized by the Trustee that the Trustee shall deem fair and appropriate. Any
      notice mailed as provided herein shall be conclusively presumed to have been
      duly given, whether or not the Holder receives such notice, but failure duly
      to
      give such notice by mail, or any defect in such notice or in the mailing
      thereof, to any Holder of the Capital Securities designated for redemption
      shall
      not affect the validity of the proceedings for the redemption of any other
      Capital Securities. Each such notice given to a Holder shall state: (i) the
      date of redemption; (ii) the redemption price; (iii) that the Capital
      Securities are being 

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

    redeemed
      pursuant to the Indenture or the terms of the Capital Securities together with
      the facts permitting such redemption; (iv) if less than all outstanding
      Capital Securities are to be redeemed, the identification (and, in the case
      of
      partial redemption, the principal amounts) of the particular capital securities
      to be redeemed; (v) the place or places where the Capital Securities are to
      be redeemed; and (vi) that interest on the Capital Securities to be
      redeemed will cease to accrue on the date of redemption. Notwithstanding the
      foregoing, if the Capital Securities are issued in book-entry form through
      The
      Depository Trust Company or any other similar facility, notice of redemption
      may
      be given to the Holders of Capital Securities at such time and in any manner
      permitted by such facility. The redemption price shall be paid prior to 12:00
      p.m., New York City time, on the date of such redemption or at such earlier
      time
      as the Company determines and specifies in the notice of redemption. The Company
      shall deposit with the Trustee or with a Paying Agent an amount of money
      sufficient to pay the redemption price of such Capital Securities or any portion
      thereof which are to be redeemed on that date.

     

    If
      any
      notice of redemption has been given as provided herein, the Capital Securities
      or portion of the Capital Securities with respect to which such notice has
      been
      given shall become due and payable on the date and at the place or places stated
      in such notice at the applicable redemption price. From and after such date,
      the
      Capital Securities to be redeemed shall cease to bear interest. If any Capital
      Securities called for redemption shall not be so paid upon surrender thereof
      for
      redemption, the principal of and premium, if any, on such Capital Securities
      shall, until paid, bear interest from the date of redemption at the Coupon
      Rate.
      On presentation and surrender of such Capital Securities at a place of payment
      in said notice specified, the said securities or the specified portions thereof
      shall be paid and redeemed by the Company at the applicable redemption price.
      Upon presentation of any Capital Securities redeemed in part only, the Company
      shall execute and the Trustee shall authenticate and deliver to the Holder
      thereof, at the expense of the Company, new Capital Securities of the same
      series, of authorized denominations, in aggregate principal amount equal to
      the
      unredeemed portion of the Capital Securities so presented and having the same
      original issue date, Maturity Date and terms. If a Global Security is so
      surrendered, such new Capital Securities will also be a new Global
      Security.

     

    The
      Capital Securities are not entitled to the benefit of any sinking
      fund.

     

    If
      an
      Event of Default with respect to Capital Securities of this series shall occur
      and be continuing, the principal of the Capital Securities of this series may
      be
      declared due and payable in the manner, with the effect and subject to the
      conditions provided in the Indenture.

     

    The
      Indenture contains provisions for satisfaction, discharge and defeasance at
      any
      time of the entire indebtedness of this Capital Security upon compliance by
      the
      Company with certain conditions set forth in the Indenture.

     

    The
      Indenture permits, with certain exceptions as therein provided, the Company
      and
      the Trustee at any time to enter into a supplemental indenture or indentures
      for
      the purpose of modifying in any manner the rights and obligations of the Company
      and of the Holders of the Securities, with the consent of the Holders of not
      less than a majority in principal amount of the Outstanding Securities of each
      series to be affected by such supplemental indenture. The Indenture also
      contains provisions permitting Holders of specified percentages in principal
      

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    amount
      of
      the Securities of each series at the time Outstanding, on behalf of the Holders
      of all Securities of such series, to waive compliance by the Company with
      certain provisions of the Indenture and certain past defaults under the
      Indenture and their consequences. Any such consent or waiver by the Holder
      of
      this Capital Security shall be conclusive and binding upon such Holder and
      upon
      all future Holders of this Capital Security and of any Capital Security issued
      upon the registration of transfer hereof or in exchange herefor or in lieu
      hereof, whether or not notation of such consent or waiver is made upon this
      Capital Security.

     

    So
      long
      as no Event of Default or Trigger Event has occurred and is continuing under
      the
      Indenture, the Company may elect at any time during the term of the Capital
      Securities, and from time to time, to defer one or more payments of interest
      on
      such Capital Securities (an “Optional Deferral” and any such deferred interest,
“Optionally Deferred Interest”) for up to five years (excluding any time an
      Optional Deferral is suspended pursuant to Section 4.3 of the Second
      Supplemental Junior Subordinated Indenture). During any period of Optional
      Deferral (an “Optional Deferral Period”), the Company may pay Optionally
      Deferred Interest out of any source of funds. Optionally Deferred Interest
      will
      continue to accrue and compound quarterly on each Interest Payment Date, to
      the
      extent permitted by applicable law, at the Coupon Rate. If Optional Deferral
      has
      continued beyond the Fifth Deferral Anniversary (as defined in Section 6.3
      of the Second Supplemental Junior Subordinated Indenture), then the provisions
      of Section 6.3 of the Second Supplemental Junior Subordinated Indenture
      will apply, and the Company must (except upon an Event of Default with respect
      to the Capital Securities) make Commercially Reasonable Efforts to sell certain
      Qualifying Securities and may pay Optionally Deferred Interest only out of
      the
      net proceeds from the sale of such Qualifying Securities. Additionally, during
      any Optional Deferral Period, the restrictions on payment by the Company of
      dividends and other distributions on capital stock pursuant to Section 6.2
      of the Second Supplemental Junior Subordinated Indenture will apply. There
      is no
      limit on the number of Optional Deferral Periods that the Company may
      begin.

     

    The
      Company shall provide a notice of any Optional Deferral no more than sixty
      and
      no fewer than fifteen days prior to the relevant Interest Payment Date. Subject
      to Section 4.2(b) of the Second Supplemental Junior Subordinated Indenture,
      a notice of Optional Deferral, once given, will be irrevocable and the deferral
      of payments on the related Interest Payment Date will be considered an Optional
      Deferral, unless a Trigger Event has occurred as of the thirtieth day prior
      to
      such Interest Payment Date.

     

    By
      not
      later than the fifteenth day prior to each Interest Payment Date during a
      Trigger Period, the Company will give notice of the continuance of such Trigger
      Period to the Holders of the Capital Securities. Such notice will, depending
      on
      which condition is relied upon in determining that a Trigger Event has occurred,
      set forth either (x) the Covered Life Insurance Subsidiaries’ Most Recent
      Weighted Average NAIC RBC Ratio or (y) the Trailing
      Four Quarters Consolidated Net Income Amount
      and the
      Adjusted Shareholders’ Equity Amount, as applicable, and the extent to which
      these amounts must increase in order for payments of interest from sources
      other
      than pursuant to Section 6.3 of the Second Supplemental Junior Subordinated
      Indenture to resume.

     

    If
      and to
      the extent that a Trigger Event has occurred and is continuing, and regardless
      of any notice of Optional Deferral that has been previously delivered, the
      Company 

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    may
      pay
      interest on the Capital Securities (other than any interest that had accrued
      during an Optional Deferral Period prior to the Fifth Deferral Anniversary
      and
      prior to the occurrence of a Trigger Event) only to the extent that such
      interest is paid in accordance with Section 6.3 of the Second Supplemental
      Junior Subordinated Indenture. Any interest that is accrued and unpaid during
      a
      period when a Trigger Event has occurred and is continuing (a “Trigger Period”)
      will continue to accrue and compound quarterly, to the extent permitted by
      applicable law, at the Coupon Rate.

     

    In
      the
      event that a Trigger Period is no longer continuing and at the termination
      of
      the Trigger Period there is no unpaid interest from an Optional Deferral Period
      that had continued beyond the Fifth Deferral Anniversary, the Company may pay
      subsequent interest in cash from any source of funds. Notwithstanding the
      foregoing, any unpaid interest, together with any Compounded Interest, that
      accrued during the continuance of a Trigger Period may only be satisfied in
      accordance with the provisions of Section 6.3 of the Second Supplemental
      Junior Subordinated Indenture, except upon an Event of Default; provided,
      however, that any accrued and unpaid interest will in all events be due and
      payable upon maturity or redemption of the Capital Securities, except for
      Foregone Interest if certain events of bankruptcy, insolvency or receivership,
      whether voluntary or not, occur with respect to the Company prior to the
      maturity or redemption of the Capital Securities.

     

    During
      such Trigger Period, the restrictions on interest payments from sources other
      than the Alternative Coupon Satisfaction Mechanism will continue until neither
      of the conditions in clauses (i) and (ii) of the definition of “Trigger
      Event” exists as of the thirtieth day prior to an Interest Payment Date. In
      addition, in the case of a restriction arising under clause (ii) of the
      definition of “Trigger Event,” such restrictions will continue until neither of
      the conditions in clauses (i) and (ii) of the definition of “Trigger Event”
exists as of the thirtieth day prior to an Interest Payment Date and the
      Company’s Adjusted Shareholders’ Equity Amount has increased or has declined by
      less than 10%, in either case as compared to the Adjusted Shareholders’ Equity
      Amount at the end of the Benchmark Quarter for each Interest Payment Date as
      to
      which interest payment restrictions were imposed under clause (ii) of the
      definition of “Trigger Event” and Section 4.3(a) of the Second Supplemental
      Junior Subordinated Indenture.

     

    The
      Company may not pay on any Interest Payment Date interest that has accrued
      on
      any Capital Security during the Interest Payment Period immediately preceding
      such Interest Payment Date, unless the Company pays therewith all Optionally
      Deferred Interest at such time outstanding on such Capital Security. The
      foregoing covenant shall not be construed to limit the ability of the Holders
      of
      the Capital Securities to recover amounts in case of any receivership,
      insolvency, liquidation,
      bankruptcy, reorganization, readjustment, arrangement, composition or judicial
      proceeding affecting the Company and its property.

     

    Each
      Holder of a Capital Security, by such Holder’s acceptance thereof, agrees that
      upon any payment or distribution of assets to creditors of the Company upon
      any
      liquidation, dissolution, winding up, reorganization, or in connection with
      any
      insolvency, receivership or proceeding with respect to the Company, such Holder
      shall not have a claim for, and thus no right to receive, interest that is
      unpaid due to certain consequences of a Trigger Event (including Compounded
      Interest) and has not been settled through the application of the Alternative
      Coupon Satisfaction Mechanism, to the extent that the aggregate amount thereof
      (including 

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

    Compounded
      Interest) exceeds 25% of the original principal amount of such Capital Security
      in respect of which such interest was deferred.

     

    Except
      as
      provided in the immediately preceding paragraph and Article XI of the Second
      Supplemental Junior Subordinated Indenture, no reference herein to the Indenture
      and no provision of this Capital Security or of the Indenture shall alter or
      impair the obligation of the Company, which is absolute and unconditional,
      to
      pay the principal of (and premium, if any) and interest on this Capital Security
      at the times, place and rate, and in the coin or currency, herein
      prescribed.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Capital Security is registrable in the Securities Register,
      upon surrender of this Capital Security for registration of transfer at the
      office or agency of the Company maintained under Section 10.2 of the Base
      Indenture duly endorsed by, or accompanied by a written instrument of transfer
      in form satisfactory to the Company and the Securities Registrar duly executed
      by, the Holder hereof or his attorney duly authorized in writing, and thereupon
      one or more new Capital Securities of this series, of authorized denominations
      and for the same aggregate principal amount, will be issued to the designated
      transferee or transferees. No service charge shall be made for any such
      registration of transfer or exchange, but the Company may require payment of
      a
      sum sufficient to cover any tax or other governmental charge payable in
      connection therewith.

     

    Prior
      to
      due presentment of this Capital Security for registration of transfer, the
      Company, the Trustee and any agent of the Company or the Trustee may treat
      the
      Person in whose name this Capital Security is registered as the owner hereof
      for
      all purposes, whether or not this Capital Security be overdue, and neither
      the
      Company, the Trustee nor any such agent shall be affected by notice to the
      contrary.

     

    The
      Capital Securities are issuable only in registered form without coupons in
      denominations of $25 and any integral multiple thereof. This Global Security
      is
      exchangeable for Capital Securities in definitive form only under certain
      limited circumstances set forth in the Indenture. Capital Securities so issued
      are issuable only in registered form without coupons in denominations of $25
      and
      any integral multiple thereof. As provided in the Base Indenture and subject
      to
      certain limitations therein set forth, Capital Securities are exchangeable
      for a
      like aggregate principal amount of Capital Securities of a different authorized
      denomination, as requested by the Holder surrendering the same.

     

    No
      recourse shall be had for the payment of the principal of or the interest on
      this Capital Security, or for any claim based hereon, or otherwise in respect
      hereof, or based on or in respect of the Indenture, against any incorporator,
      shareholder, officer or director, past, present or future, as such, of the
      Company or of any predecessor or successor corporation, whether by virtue of
      any
      constitution, statute or rule of law, or by the enforcement of any assessment
      or
      penalty or otherwise, all such liability being, by the acceptance hereof and
      as
      part of the consideration for the issuance hereof, expressly waived and
      released.

     

    The
      Company agrees and, by its acceptance of this Capital Security or a beneficial
      interest therein, the Holder of, and any Person that acquires a beneficial
      interest in, this Capital 

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

    Security
      agrees to treat this Capital Security as indebtedness for United States federal,
      state and local tax purposes.

     

    THE
      INDENTURE AND THIS CAPITAL SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
      ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
      AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

     

     

    ARTICLE
      X

    ORIGINAL
      ISSUE OF CAPITAL SECURITIES

     

    Section
      10.1     Original
      Issue of Capital Securities. 

     

    Capital
      Securities in the aggregate principal amount not to exceed $275,000,000, except
      as provided in Section 2.1(b) hereof, may, upon execution of this Second
      Supplemental Subordinated Indenture, be executed by the Company and delivered
      to
      the Trustee for authentication, and the Trustee shall thereupon authenticate
      and
      deliver said Capital Securities to or upon the written order of the Company,
      signed by its Chief Executive Officer, its President, or any Vice President
      and
      its Treasurer or an Assistant Treasurer, without any further action by the
      Company.

     

    The
      Company shall file with the Trustee promptly at the end of each calendar year
      (i) a written notice specifying the amount of original issue discount
      (including daily rates and accrual periods) accrued on Outstanding Securities
      as
      of the end of the year and (ii) such other specific information relating to
      such original issue discount as may then be relevant under the Internal Revenue
      Code of 1986, as amended from time to time.

     

     

    ARTICLE
      XI

    LIMITATION
      ON CLAIMS

     

    Section
      11.1     Limitation
      on Claim for Deferred Interest Due to a Trigger Event in
      Bankruptcy. 

     

    Each
      Holder of a Capital Security, by such Holder’s acceptance thereof, agrees that
      upon any payment or distribution of assets to creditors of the Company upon
      any
      liquidation, dissolution, winding up, reorganization, or in connection with
      any
      insolvency, receivership or proceeding with respect to the Company, such Holder
      shall not have a claim for, and thus no right to receive, interest that is
      unpaid due to certain consequences of a Trigger Event (including Compounded
      Interest) and has not been settled through the application of the Alternative
      Coupon Satisfaction Mechanism, to the extent that the aggregate amount thereof
      (including Compounded Interest) exceeds 25% of the original principal amount
      of
      such Capital Security in respect of which such interest was deferred. Amounts
      to
      which the Holders of the Capital Securities would have been entitled to receive
      hereunder, but for operation of this Section 11.1 are referred to as
“Foregone Interest.”

     

    
      
        
        

      

      
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    ARTICLE
      XII

    CONCERNING
      THE HOLDERS

     

    Section
      12.1     Acts
      of Holders. 

     

    Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Holders of the Capital
      Securities may be embodied in and evidenced by one or more instruments of
      substantially similar tenor signed by such Holders in person or by an agent
      or
      proxy duly appointed in writing; and, except as herein otherwise expressly
      provided, such action shall become effective when such instrument or instruments
      are delivered to the Trustee, and, where it is hereby expressly required, to
      the
      Company. Whenever in this Indenture it is provided that the Holders of a
      specified percentage in aggregate principal amount of the Outstanding Securities
      of any series may take any Act, such Act may be evidenced by:
      (a) instruments executed by Holders; (b) the record of Holders voting
      in favor thereof at any meeting of such Holders; or (c) a combination of
      such instruments and any such record of such a meeting of Holders.

     

    Section
      12.2     Proof
      of Ownership; Proof of Execution of Instruments by Holder. 

     

    The
      ownership of Registered Securities of any series shall be proved by the
      Securities Register for such series or by a certificate of the Securities
      Registrar for such series.

     

    Subject
      to the provisions of Sections 6.1 and 6.3 of the Base Indenture and
      Section 13.5 hereof, proof of the execution of a writing appointing an
      agent or proxy and of the execution of any instrument by a Holder or his agent
      or proxy shall be sufficient and conclusive in favor of the Trustee and the
      Company if made in the following manner:

     

    The
      fact
      and date of the execution by any such Person of any instrument may be proved
      by
      the certificate of any notary public or other officer authorized to take
      acknowledgements of deeds, that the Person executing such instrument
      acknowledged to him the execution thereof, or by an affidavit of a witness
      to
      such execution sworn to before any such notary or other such officer. Where
      such
      execution is by an officer of a corporation or association or a member of a
      partnership on behalf of such corporation, association or partnership, as the
      case may be, or by any other Person acting in a representative capacity, such
      certificate or affidavit shall also constitute sufficient proof of his
      authority.

     

    The
      record of any Holders’ meeting shall be proved in the manner provided in
      Section 13.6 hereof.

     

    The
      Trustee may in any instance require further proof with respect to any of the
      matters referred to in this Section so long as the request is a reasonable
      one.

     

    Section
      12.3     Persons
      Deemed Owners. 

     

    The
      Company, the Trustee and any agent of the Company or the Trustee may treat
      the
      Person in whose name any Registered Security is registered as the owner of
      such
      Registered Security for the purpose of receiving payment of the principal (and
      premium, if any) and (subject to Section 3.7 of the Base Indenture)
      interest, if any, on such Registered Security and for all 

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

    other
      purposes whatsoever, whether or not such Registered Security be overdue, and
      neither the Company, the Trustee nor any agent of the Company or the Trustee
      shall be affected by notice to the contrary. All payments made to any Holder,
      or
      upon his order, shall be valid, and, to the extent of the sum or sums paid,
      effectual to satisfy and discharge the liability for moneys payable upon such
      Security.

     

    Section
      12.4     Revocation
      of Consents; Future Holders Bound. 

     

    At
      any
      time prior to (but not after) the evidencing to the Trustee, as provided in
      Section 12.1 hereof, of the taking of any Act by the Holders of the
      percentage in aggregate principal amount of the Outstanding Securities specified
      in this Indenture in connection with such Act, any Holder of a Security the
      number, letter or other distinguishing symbol of which is shown by the evidence
      to be included in the Securities the Holders of which have consented to such
      Act
      may, by filing written notice with the Trustee at the Corporate Trust Office
      and
      upon proof of ownership as provided in Section 12.2 hereof, revoke such Act
      so far as it concerns such Security. Except as aforesaid, any such Act taken
      by
      the Holder of any Security shall be conclusive and binding upon such Holder
      and,
      subject to the provisions of Section 5.8 of the Base Indenture, upon all
      future Holders of such Security and of any Securities issued on transfer or
      in
      lieu thereof or in exchange or substitution therefor, irrespective of whether
      or
      not any notation in regard thereto is made upon such Security or such other
      Securities.

     

     

    ARTICLE
      XIII

    HOLDERS’
      MEETINGS

     

    Section
      13.1     Purposes
      of Meetings. 

     

    A
      meeting
      of Holders of any or all series may be called at any time and from time to
      time
      pursuant to the provisions of this Article XIII for any of the following
      purposes:

     

    (a) to
      give any notice to the Company or to the Trustee for such series, or to give
      any
      directions to the Trustee for such series, or to consent to the waiving of
      any
      default hereunder and its consequences, or to take any other action authorized
      to be taken by Holders pursuant to any of the provisions of Article V of the
      Base Indenture;

     

    (b) to
      remove the Trustee for such series and appoint a successor Trustee pursuant
      to
      the provisions of Article VI of the Base Indenture;

     

    (c) to
      consent to the execution of an indenture or indentures supplemental hereto
      pursuant to the provisions of Section 9.2 of the Base Indenture;
      or

     

    (d) to
      take any other action authorized to be taken by or on behalf of the Holders
      of
      any specified aggregate principal amount of the Outstanding Securities of any
      one or more or all series, as the case may be, under any other provision of
      this
      Indenture or under applicable law.

     

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

    Section
      13.2     Call
      of Meetings by Trustee. 

     

    The
      Trustee for any series may at any time call a meeting of Holders of such series
      to take any action specified in Section 13.1 hereof, to be held at such
      time or times and at such place or places as the Trustee for such series shall
      determine. Notice of every meeting of the Holders of any series, setting forth
      the time and the place of such meeting and in general terms the action proposed
      to be taken at such meeting, shall be given to Holders of such series in the
      manner and to the extent provided in Section 1.6 of the Base Indenture.
      Such notice shall be given not less than ten days nor more than ninety days
      prior to the date fixed for the meeting.

     

    Section
      13.3     Call
      of Meetings by Company or Holders. 

     

    In
      case
      at any time the Company, pursuant to a Board Resolution, or the Holders of
      at
      least 20% in aggregate principal amount of the Outstanding Securities of a
      series or of all series, as the case may be, shall have requested the Trustee
      for such series to call a meeting of Holders of any or all such series by
      written request setting forth in reasonable detail the action proposed to be
      taken at the meeting, and the Trustee shall not have given the notice of such
      meeting within ten days after the receipt of such request, then the Company
      or
      such Holders may determine the time or times and the place or places for such
      meetings and may call such meetings to take any action authorized in
      Section 13.1 hereof, by giving notice thereof as provided in
      Section 13.2 hereof.

     

    Section
      13.4     Qualifications
      for Voting. 

     

    To
      be
      entitled to vote at any meeting of Holders a Person shall be (a) a Holder
      of a Security of the series with respect to which such meeting is being held
      or
      (b) a Person appointed by an instrument in writing as agent or proxy by
      such Holder. The only Persons who shall be entitled to be present or to speak
      at
      any meeting of Holders shall be the Persons entitled to vote at such meeting
      and
      their counsel and any representatives of the Trustee for the series with respect
      to which such meeting is being held and its counsel and any representatives
      of
      the Company and its counsel.

     

    Section
      13.5     Regulations. 

     

    Notwithstanding
      any other provisions of this Indenture, the Trustee for any series may make
      such
      reasonable regulations as it may deem advisable for any meeting of Holders
      of
      such series, in regard to proof of the holding of Securities of such series
      and
      of the appointment of proxies, and in regard to the appointment and duties
      of
      inspectors of votes, the submission and examination of proxies, certificates
      and
      other evidence of the right to vote, and such other matters concerning the
      conduct of the meeting as it shall deem appropriate.

     

    The
      Trustee shall, by an instrument in writing, appoint a temporary chairman of
      the
      meeting, unless the meeting shall have been called by the Company or by Holders
      of such series as provided in Section 13.3 hereof, in which case the
      Company or the Holders calling the meeting, as the case may be, shall in like
      manner appoint a temporary chairman. A permanent chairman and a permanent
      secretary of the meeting shall be elected by a majority vote of the
      meeting.

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

    Subject
      to the provisos in the definition of “Outstanding,” at any meeting each Holder
      of a Security of the series with respect to which such meeting is being held
      or
      proxy therefor shall be entitled to one vote for each $1,000 principal amount,
      as applicable (or such other amount as shall be specified pursuant to
      Section 3.1 of the Base Indenture) of Securities of such series held or
      represented by him; provided, however, that no vote shall be cast or counted
      at
      any meeting in respect of any Security challenged as not Outstanding and ruled
      by the chairman of the meeting to be not Outstanding. The chairman of the
      meeting shall have no right to vote other than by virtue of Outstanding
      Debt.

     

    Securities
      of such series held by him or instruments in writing duly designating him as
      the
      Person to vote on behalf of Holders of Securities of such series. Any meeting
      of
      Holders with respect to which a meeting was duly called pursuant to the
      provisions of Section 13.2 or 13.3 hereof may be adjourned from time to
      time by a majority of such Holders present representing a majority of votes
      eligible to be cast at such meeting of the series with respect to which such
      meeting is being held and the meeting may be held as so adjourned without
      further notice.

     

    Section
      13.6     Voting. 

     

    The
      vote
      upon any resolution submitted to any meeting of Holders with respect to which
      such meeting is being held shall be by written ballots on which shall be
      subscribed the signatures of such Holders or of their representatives by proxy
      and the serial number or numbers of the Securities held or represented by them.
      The permanent chairman of the meeting shall appoint two inspectors of votes
      who
      shall count all votes cast at the meeting for or against any resolution and
      who
      shall make and file with the secretary of the meeting their verified written
      reports in duplicate of all votes cast at the meeting. A record in duplicate
      of
      the proceedings of each meeting of Holders shall be taken, and there shall
      be
      attached to said record the original reports of the inspectors of votes on
      any
      vote by ballot taken thereat and affidavits by one or more Persons having
      knowledge of the facts setting forth a copy of the notice of the meeting and
      showing that said notice was transmitted as provided in Section 13.2
      hereof. The record shall show the serial numbers of the Securities voting in
      favor of or against any resolution. The record shall be signed and verified
      by
      the affidavits of the permanent chairman and secretary of the meeting and one
      of
      the duplicates shall be delivered to the Company and the other to the Trustee
      to
      be preserved by the Trustee.

     

    Any
      record so signed and verified shall be conclusive evidence of the matters
      therein stated.

     

     

    ARTICLE
      XIV

    MISCELLANEOUS

     

    Section
      14.1     Ratification
      of Indenture. 

     

    The
      Base
      Indenture as supplemented by this Second Supplemental Subordinated Indenture,
      is
      in all respects ratified and confirmed, and this Second Supplemental
      Subordinated Indenture shall be deemed part of the Base Indenture in the manner
      and to the extent herein and therein provided.

     

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

    Section
      14.2     Capital
      Securities Unaffected by First Supplemental Indenture. 

     

    The
      First
      Supplemental Indenture does not apply to the Capital Securities. To the extent
      the terms of the Base Indenture are amended by the First Supplemental Indenture,
      no such amendment shall relate to the Capital Securities. To the extent the
      terms of the Base Indenture are amended as provided herein, no such amendment
      shall in any way affect the terms of the First Supplemental Indenture or any
      other series of Securities. This Second Supplemental Subordinated Indenture
      shall relate solely to the Capital Securities.

     

    Section
      14.3     Trustee
      Not
      Responsible for Recitals. 

     

    The
      recitals herein contained are made by the Company and not by the Trustee, and
      the Trustee assumes no responsibility for the correctness thereof.

     

    Section
      14.4     Governing
      Law. 

     

    This
      Second Supplemental Subordinated Indenture and each Capital Security shall
      be
      deemed to be a contract made under the laws of the State of New York, and for
      all purposes shall be construed in accordance with the laws of said State
      applicable to contracts made and to be performed entirely within said
      State.

     

    Section
      14.5     Separability. 

     

    In
      case
      any one or more of the provisions contained in this Second Supplemental
      Subordinated Indenture or in the Capital Securities shall for any reason be
      held
      to be invalid, illegal or unenforceable in any respect, such invalidity,
      illegality or unenforceability shall not affect any other provisions of this
      Second Supplemental Subordinated Indenture or of the Capital Securities, but
      this Second Supplemental Subordinated Indenture and the Capital Securities
      shall
      be construed as if such invalid or illegal or unenforceable provision had never
      been contained herein or therein.

     

    Section
      14.6     Counterparts. 

     

    This
      Second Supplemental Subordinated Indenture may be executed in any number of
      counterparts each of which shall be an original; but such counterparts shall
      together constitute but one and the same instrument.

     

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Second Supplemental
      Subordinated Indenture to be duly executed by their respective officers
      thereunto duly authorized, on the date or dates indicated in the acknowledgments
      and as of the day and year first above written.

     

    
      	
              LINCOLN
                NATIONAL CORPORATION, as Issuer

               

            
	
              By:

            	/s/
              Frederick J. Crawford
	 	
              Name:
                Frederick J. Crawford

            
	 	Title: Senior
              Vice President and Chief Financial Officer
	
               

            
	
              By:

            	/s/
              Duane Bernt
	 	
              Name:
                Duane Bernt

            
	 	Title: Vice
              President and Treasurer
	
               

            
	
              J.P.
                MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee 

               

            
	
              By:

            	/s/
              Janice Ott Rotunno
	 	Name: Janice
              Ott
              Rotunno
	 	Title:
              Vice
              President
	
               

            
	
               

            

    

     

     

     

    -37-

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