Document:

Coinsurance Agreement

 Exhibit 10.26 
 EXECUTION COPY 
 COINSURANCE AGREEMENT 

between the 

AETNA LIFE INSURANCE AND ANNUITY COMPANY 
 (referred to as the Company) 
 and 

LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK 
 (referred to as the Reinsurer) 
 Dated as of October 1, 1998 

 INDEX OF SCHEDULES 

 

			
		
	Schedule 1.1(A)	 	Policy Forms
		
	Schedule 1.1(B)	 	Separate Account Assets
		
	Schedule 1.1(C)	 	Separate Accounts
		
	Schedule 1.1(D)	 	Third-Party Reinsurance

 INDEX OF EXHIBITS 

 

			
		
	Exhibit A	  	Recapture Fee Formula
		
	Exhibit B	  	Form of Security Trust Agreement
		
	Exhibit C	  	Closing Date Liabilities Methodology Calculation
		
	Exhibit D	  	Calculation of Reinsurance Trust Required Balance

 TABLE OF CONTENTS 

 

							
	  	 	 	  	Page	 
			
	 ARTICLE I
	 	DEFINITIONS	  	 	1	  
	 1.1
	 	Definitions	  	 	1	  
			
	 ARTICLE II
	 	BASIS OF COINSURANCE AND BUSINESS COINSURED	  	 	9	  
	 2.1
	 	Coinsurance	  	 	9	  
	 2.2
	 	Reinsurer Extra Contractual Obligations	  	 	10	  
	 2.3
	 	Reinstatements, Conversions and Exchanges	  	 	10	  
	 2.4
	 	Certain Policy Elements	  	 	10	  
	 2.5
	 	Reserves	  	 	10	  
	 2.6
	 	Separate Account Reserves	  	 	11	  
	 2.7
	 	Policy Changes or Reductions	  	 	11	  
			
	 ARTICLE III
	 	ACCOUNTINGS AND TRANSFER OF ASSETS	  	 	11	  
	 3.1
	 	Ceding Commission	  	 	11	  
	 3.2
	 	Transfer of Assets	  	 	11	  
	 3.3
	 	Post-Closing Adjustments	  	 	12	  
	 3.4
	 	Interim Monthly Accountings	  	 	12	  
	 3.5
	 	Monthly Accountings	  	 	12	  
	 3.6
	 	Monthly Payments	  	 	13	  
	 3.7
	 	Delayed Payments	  	 	13	  
	 3.8
	 	Offset Rights	  	 	13	  
	 3.9
	 	Premium Taxes and Assessments	  	 	13	  
			
	 ARTICLE IV
	 	POLICY ADMINISTRATION	  	 	14	  
	 4.1
	 	Interim Servicing	  	 	14	  
	 4.2
	 	Transfer of Servicing Obligations	  	 	14	  
	 4.3
	 	Regulatory Matters	  	 	14	  
	 4.4
	 	Policy Changes	  	 	14	  
			
	 ARTICLE V
	 	OVERSIGHTS	  	 	15	  
	 5.1
	 	Oversights	  	 	15	  
			
	 ARTICLE VI
	 	CONDITIONS PRECEDENT	  	 	15	  
	 6.1
	 	Conditions Precedent	  	 	15	  
			
	 ARTICLE VII
	 	DUTY OF COOPERATION	  	 	15	  
	 7.1
	 	Cooperation	  	 	15	  
			
	 ARTICLE VIII
	 	DAC TAX	  	 	15	  
	 8.1
	 	Ejection	  	 	15	  
			
	 ARTICLE IX
	 	INDEMNIFICATION AND RECAPTURE	  	 	17	  
	 9.1
	 	Reinsurer’s Obligation to Indemnify	  	 	17	  
	 9.2
	 	Company’s Obligation to Indemnify	  	 	17	  

  
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	 9.3
	 	Certain Definitions and Procedures	  	 	17	  
	 9.4
	 	Security Trust Account and Recapture Rights	  	 	17	  
			
	 ARTICLE X
	 	DISPUTE RESOLUTION	  	 	23	  
	 10.1
	 	Other Disputes over Calculations	  	 	23	  
			
	 ARTICLE XI
	 	INSOLVENCY	  	 	24	  
	 11.1
	 	Insolvency Clause	  	 	24	  
			
	 ARTICLE XII
	 	DURATION	  	 	24	  
	 12.1
	 	Duration	  	 	24	  
	 12.2
	 	Reinsurer’s Liability	  	 	24	  
	 12.3
	 	Survival	  	 	25	  
			
	 ARTICLE XIII
	 	MISCELLANEOUS	  	 	25	  
	 13.1
	 	Notices	  	 	25	  
	 13.2
	 	Confidentiality	  	 	26	  
	 13.3
	 	Entire Agreement	  	 	26	  
	 13.4
	 	Waivers and Amendments	  	 	26	  
	 13.5
	 	No Third Party Beneficiaries	  	 	26	  
	 13.6
	 	Assignment	  	 	26	  
	 13.7
	 	Governing Law	  	 	26	  
	 13.8
	 	Counterparts	  	 	27	  
	 13.9
	 	Severability	  	 	27	  
	 13.10
	 	Schedules, Exhibits and Paragraph Headings	  	 	27	  
	 13.11
	 	Expenses	  	 	27	  
	 13.12
	 	No Prejudice	  	 	27	  

  
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 COINSURANCE AGREEMENT 

THIS COINSURANCE AGREEMENT (the “Agreement”) made by and between Aetna Life Insurance and Annuity Company, a Connecticut
domiciled stock life insurance company (the “Company”) and Lincoln Life & Annuity Company of New York, a New York domiciled stock life insurance company (the “Reinsurer”). 

WHEREAS, the Company has issued or reinsured from other insurance companies, including Aetna Life Insurance Company, a Connecticut
domiciled stock life insurance company (“ALIC”), certain Policies (as defined below); 
 WHEREAS, the Company, ALIC,
the Reinsurer, and The Lincoln National Life Insurance Company, a stock life insurance company organized under the laws of the State of Indiana, have entered into a Second Amended and Restated Asset Purchase Agreement, dated as of May 21,1998
(the “Asset Purchase Agreement”), pursuant to which the Company has agreed to cede and transfer to the Reinsurer certain liabilities arising under the Policies (as defined below) and the Post-Closing Policies (as defined below) for the
consideration specified herein and the Reinsurer has agreed to reinsure such liabilities on the terms and conditions set forth herein; and 
 WHEREAS, the Company desires that the Reinsurer perform certain administrative functions on behalf of the Company with respect to the Policies, and the Company, ALIC and Reinsurer have entered into the NY
Administrative Services Agreement of even date herewith (the “NY Administrative Services Agreement”) pursuant to which the Reinsurer shall provide such administrative services. 

NOW, THEREFORE, in consideration of the mutual and several promises and undertakings herein contained, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Reinsurer agree as follows: 

ARTICLE I 

DEFINITIONS 
 1.1 Definitions. The following terms shall have the respective meanings set forth below throughout this Agreement: 
 “Accounting” means an Interim Monthly Accounting or a Monthly Accounting, as applicable. 
 “Affiliate” means, with respect to any Person, at the time in question, any other Person Controlling, Controlled by or under common Control with such Person. “Control” (including the
terms “Controlling,” “Controlled by” and “under common Control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, the holding of policyholders’ proxies by contract other than a commercial contract for goods or non-management services, or otherwise, unless the power is the result of an official position with or corporate
office held by the Person. Except as provided otherwise in this Agreement, control is presumed to exist if any Person, directly or indirectly, owns, controls, holds with the power to vote, or holds shareholders’ proxies representing 25% or more
of the voting securities of any other Person, or holds or controls sufficient policyholders’ proxies, or is entitled by contract or otherwise, to nominate, appoint or to elect the majority of the board of directors or comparable governing body
of any other Person. 

 “ALIAC” means Aetna Life Insurance and Annuity Company, a stock life Insurance
company organized under the laws of the State of Connecticut. 
 “ALIC” means Aetna Life Insurance Company, a stock
life Insurance company organized under the laws of the State of Connecticut. 
 “Ancillary Agreements” means the
various agreements collectively defined as “Ancillary Agreements” in the Asset Purchase Agreement. 
 “Annual
Statement” means the Company’s convention form statutory annual statement, together with all required schedules and supplements thereto, as filed with the Insurance Department of the State of Connecticut. 

“Applicable Law” means any domestic or foreign federal, state or local statute, law, ordinance or code, or any written rules,
regulations or administrative interpretations issued by any Governmental Authority pursuant to any of the foregoing, and any order, writ, injunction, directive, judgment or decree of a court of competent jurisdiction applicable to the parties
hereto. 
 “Asset Purchase Agreement” means the Second Amended and Restated Asset Purchase Agreement by and among the
Company, ALIC, the Reinsurer and The Lincoln National Life Insurance Company, dated as of May 21, 1998. 
 “Books and
Records” means the originals or copies of all customer lists, policy information, policy forms and rating plans, disclosure and other documents and filings, including statutory filings, required under all Applicable Laws, administrative
records, reinsurance records, claim records, sales records, underwriting records, financial records, Tax records and compliance records in the possession or control of the Company and relating principally to the operation of the Business including,
without limitation, any database, magnetic or optical media (to the extent not subject to licensing restrictions) and any other form of recorded, computer generated or stored information or process, but excluding: (a) the Company’s
original certificate of incorporation, bylaws, corporate seal, licenses to do business, minute books and other corporate records relating to corporate organization and capitalization; (b) original Tax and corporate accounting records relating
to the Business; (c) any original books and records relating to the Retained Liabilities; (d) any records that are subject to attorney-client privilege; and (e) the Retained Contracts and any records relating thereto. 

“Business” means marketing, issuing and administering the Policies in the United States and the other business activities
reasonably related thereto, in each case as currently conducted by the Company or, where so specified herein, as to be conducted by the Reinsurer following the Closing Date. 

  
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 “Business Day” means any day other than a Saturday, Sunday, a day on which banking
institutions in the State of Connecticut are permitted or obligated by Applicable Law to be closed or a day on which the New York Stock Exchange is closed for trading. 
 “Ceding Commission” means the aggregate ceding allowance payable by the Reinsurer to the Company in connection with the reinsurance of the Policies hereunder. 

“Closing” means the closing of the transactions contemplated by this Agreement. 

“Closing Balance Sheet” means the pro forma balance sheet of the Business as of the last day of the second month preceding the
month in which the Closing shall occur, which shall be prepared and delivered by the Company to the Reinsurer not later than the fifth day prior to the Closing Date in accordance with Article II of the Asset Purchase Agreement. 

“Closing Date” means the date on which the Closing occurs. 

“Closing Date Liabilities” means, as of any date, the General Account Reserves and other statutory liabilities relating to the
Business, which shall be (a) estimated and reflected in the Closing Balance Sheet as of the last day of the second month preceding the month in which the Closing shall occur; and (b) subsequently adjusted and reflected in the Revised
Closing Balance Sheet and Final Closing Balance Sheet as of 11:59 p.m. Eastern Time on the last day of the month immediately preceding the month in which the Closing Date falls. The Closing Date Liabilities shall be determined and reported in
accordance with the methodology set forth on Exhibit C. 
 “Code” means the Internal Revenue Code of 1986, as amended,
and the rules and regulations thereunder. 
 “Commissions” mean all commissions, expense allowances, benefit credits
and other fees and compensation payable to Producers. 
 “Connecticut SAP” means the statutory accounting principles
and practices prescribed or permitted by the Insurance Department of the State of Connecticut. 
 “Contract Date”
means May 21, 1998. 
 “Distribution Agreements” mean the agreements between the Company, on one hand, and
Producers, on the other, with respect to the Policies as of April 13, 1998. 
 “Effective Date” means
12:01 a.m. Eastern Time on October 1, 1998. 
 “Election Notice” means a notice given by the Company to the
Reinsurer with respect to the exercise of recapture or Security Trust remedies pursuant to Section 9.4 hereof. 

“Event of Default” means any event described in Section 9.4 hereof which gives rise to Recapture Rights or other remedy.

  
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 “Extra Contractual Obligations” means all liabilities or obligations arising under
the Policies and Post-Closing Policies, exclusive of liabilities or obligations arising under the express terms and conditions of the Policies and Post-Closing Policies and the other Liabilities, but including, without limitation, any liability for
fines, penalties, forfeitures, punitive, special, exemplary or other form of extra-contractual damages, which liabilities or obligations arise from any act, error or omission, whether or not intentional, negligent, in bad faith or otherwise relating
to: (a) the marketing, sale, underwriting, production, issuance, cancellation or administration of the Policies or Post-Closing Policies; (b) the investigation, defense, trial, settlement or handling of claims, benefits, or payments under
the Policies or Post-Closing Policies; or (c) the failure to pay, the delay in payment, or errors in calculating or administering the payment of benefits, claims or any other amounts due or alleged to be due under or in collection with the
Policies or Post-Closing Policies. 
 “Final Closing Balance Sheet” means the final pro forma balance sheet of the
Business as of the Closing Date prepared in accordance with Article II of the Asset Purchase Agreement. 
 “GAAP”
means United States generally accepted accounting principles as in effect from time to time. 
 “General Account
Reserves” means the general account statutory reserves of the Company before reduction for accrued for expense allowances recognized in Separate Account Reserves (without regard to the transactions contemplated by this Agreement) with respect
to the Policies or Post-Closing Policies, as applicable, determined in accordance with Connecticut SAP. 
 “Governmental
Authority” means any court, administrative or regulatory agency or commission, or other federal, state or local governmental authority or instrumentality or the National Association of Securities Dealers or national securities exchanges having
jurisdiction over any party hereto. 
 “Interim Monthly Accounting” shall mean a monthly accounting prepared in
accordance with Connecticut SAP and delivered by the Company to the Reinsurer in accordance with the provisions of Section 3.4 hereof. 
 “Liabilities” means all gross liabilities and obligations arising out of or relating to the Policies and Post-Closing Policies, other than the Retained Liabilities and Extra Contractual
Obligations. The Liabilities shall include, without limitation: (a) the General Account Reserves; (b) all liabilities for incurred but not reported claims, benefits, interest on death claims or other payments arising under or relating to
the Policies and Post-Closing Policies, whether or not (i) included within the General Account Reserves, or (ii) incurred before or after the Effective Date; (c) all liabilities arising out of any changes to the terms and conditions
of the Policies and Post-Closing Policies mandated by Applicable Law whether or not incurred before or after the Effective Date; (d) premium Taxes due in respect of Premiums paid on or after the Effective Date (without giving effect to any
credits due to the Company for any guaranty fund assessments paid by the Company prior to Closing), and all other Tax liabilities arising out of or relating to the Business or Post-Closing Policies for periods commencing on or after the Effective
Date (except for income Taxes imposed on the Company under Subtitle A of the Code); (e) assessments and similar charges in connection with participation by the Company or Reinsurer, whether voluntary or involuntary, in any guaranty association
established or governed by any state or other jurisdiction, arising on account of direct Premiums paid on or after the Effective Date; (f) Commissions payable with respect to the Policies and Post-Closing Policies to or for the benefit of the
Producers who marketed or produced the Policies, in any case payable on or after the Effective Date; (g) any liability arising under the Transferred Contracts; (h) premiums, payments, fees or other consideration or amounts due on or after
the Effective Date under any Third Party Reinsurance Agreements which are included with the Transferred Contracts; (i) all liabilities for amounts payable on or after the Effective Date for returns or refunds of Premiums; (j) all
liabilities which relate to (i) amounts transferred from the Separate Accounts to the Company’s general accounts pending distribution to owners of the Variable Policies; and (ii) amounts held in the Company’s general account
pending transfer to the Separate Accounts; (iii) any insurance liabilities or obligations arising under the Variable Policies (including any Variable Policies included within the Post-Closing Policies) that are not payable out of the assets of
the Company’s Separate Account; and (k) all unclaimed property liabilities arising under or relating to the Policies and Post-Closing Policies. 

  
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 “LIBOR” means a rate per annum equal to the three month London Interbank Offered
Rate as published in The Wall Street Journal, Eastern Edition, in effect on the Closing Date. 
 “Market Value” means
the market value of the assets held in a Security Trust, determined pursuant to Section 4.01 of the Security Trust Agreement. 
 “Monthly Accounting” shall mean a monthly accounting prepared in accordance with Connecticut SAP and delivered by the Reinsurer to the Company in accordance with the provisions of
Section 3.5 hereof. 
 “NAIC” means the National Association of Insurance Commissioners. 

“Non-Guaranteed Elements” mean cost of insurance charges, loads and expense charges, credited interest rates, mortality and
expense charges, administrative expense risk charges, variable premium rates and variable paid-up amounts, as applicable, under the Policies and Post-Closing Policies. 
 “NY Administrative Services Agreement” means the NY Administrative Services Agreement by and between the Company, ALIC and the Reinsurer of even date herewith. 

“NY Modified Coinsurance Agreement” means the Modified Coinsurance Agreement between the Company and the Reinsurer in the form
of Exhibit Q to the Asset Purchase Agreement. 
 “Other Assets” mean the specific assets of the Company listed in
Schedule1.1(A) to the Asset Purchase Agreement and such other fixed assets as may be mutually agreed among the parties. 

  
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 “Person” means any individual, corporation, partnership, firm, joint venture,
association, joint-stock company, limited liability company, trust, unincorporated organization, governmental, judicial or regulatory body, business unit, division or other entity. 

“Policies” mean all of the Company’s individual universal life, individual corporate owned life, individual traditional
life, sponsored life and individual participating life insurance policies and participating annuities, together with all related binders, slips and certificates (including applications therefor and all supplements, endorsements, riders and
agreements in connection therewith) that were delivered or issued for delivery to policyowners that were New York residents, and which have been issued or reinsured by the Company in connection with the Business (in accordance with, and as
determined by reference to, the Company’s historical practices), which policies shall include, but not be limited to (a) all policies issued on the policy forms included in the list of base codes set forth on Schedule 1.1(A) and
which: (i) are effected, bound or issued on or prior to the Effective Date; and (ii) are in force as of the Effective Date; or (iii) are subject to being renewed or reinstated in accordance with their terms on the Effective Date; and
(b) all individual life policies which are required to be issued by the Company prior to or after the Effective Date following the exercise of conversion rights in accordance with the terms of the individual life policies coinsured by the
Reinsurer under this Agreement. 
 “Policyholders” means policyholders, insureds and assignees under the Policies and
Post-Closing Policies. 
 “Post-Closing Policies” means the policies issued by ALIAC after the Effective Date pursuant
to Article V of the Asset Purchase Agreement. 
 “Premiums” means premiums, considerations, deposits and similar
receipts with respect to the Policies or Post-Closing Policies. 
 “Producers” mean all LBMs, MGAs, brokers, agents,
general agents, COLI speciality brokers, re-enrollers under the Company’s sponsored life products, broker-dealers, producers or other Persons who market or produce the Policies and who (a) have been appointed by the Company, and
(b) are entitled to receive Commissions from the Company. 
 “Recapture Fee” means the amount determined in
accordance with the formula set forth on Exhibit A hereto, which is payable by the Reinsurer to the Company in connection with recapture of the Policies and Post-Closing Policies by the Company pursuant to Section 9.4 hereof. 

“Recapture Rights” mean the right of the Company to recapture the Policies and Post Closing Policies pursuant to
Section 9.4 hereof. 
 “Reinsured Liabilities” means the Liabilities reinsured pursuant to this Agreement.

 “Reinsurer Extra Contractual Obligations” means: (a) all Extra Contractual Obligations to the extent such
obligations arise out of acts, errors or omissions occurring (or, in the case of omissions, failing to occur) at any time on or after the Effective Date by any of the Reinsurer or its directors, officers, employees, Affiliates, agents,
representatives, successors and assigns; (b) all of the Sellers’ Extra Contractual Obligations except to the extent otherwise provided in Articles VIII and IX of the Asset Purchase Agreement; and (c) all liabilities and obligations
(exclusive of obligations rising under the express terms and conditions of the Policies and Post-Closing Policies and the other Liabilities) to the extent such obligations arise out of or relate to the Company’s administration of claims,
Non-Guaranteed Elements, and other aspects of or relating to the Policies or the Post-Closing Policies on and after the Effective Date pursuant to the recommendations from the Reinsurer pursuant to this Agreement, the NY Administrative Services
Agreement or the Transition Services Agreement. 

  
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 “Required Balance” means one hundred percent (100%) of the amount equal to
(a) the Reserves on the Policies and Post-Closing Policies, plus (b) other liabilities relating to the. Policies and Post-Closing Policies, which shall be calculated in accordance with the methodology set forth on Exhibit D hereto, minus
(c) the amount of outstanding loans under the Policies and Post-Closing Policies (to the extent such loans constitute admitted assets under Connecticut SAP). 
 “Reserves” means the sum of all reserves and liabilities required to be maintained by the Company for the Policies and Post-Closing Policies issued or reinsured by it, calculated consistent with
(a) the reserve requirements, statutory accounting rules and actuarial principles applicable to the Company under the law of each state in which the Policies and Post-Closing Policies were issued or delivered, and (b) otherwise in
accordance with the methodologies used by the Company to calculate the reserves and liabilities for the Policies and Post-Closing Policies in accordance with Connecticut SAP and sound actuarial principles and any valuation bases and methods of
determining reserves as provided in the forms of Policies and Post-Closing Policies, as applicable; provided, however, the term “Reserves” shall not include the Separate Account Reserves. 

“Retained Contracts” means all contracts, agreements, leases, software licenses, rights, obligations or other commitments of
the Company that (a) arise out of or are related exclusively to any business or operation of the Company other than the Business, or (b) arise out of or are related in any way to the Business and which, in the case of both clauses
(a) and (b) herein, are not Transferred Contracts. 
 “Retained Liabilities” means the liabilities of the
Company arising solely from any of the following: (a) premium taxes due in respect of Premiums paid prior to the Effective Date; (b) amounts payable prior to the Effective Date for returns or refunds of Premiums; (c) Commissions
payable with respect to the Policies to or for the benefit of Producers, in any case payable prior to the Effective Date; (d) assessments and similar charges in connection with participation by the Company, whether voluntary or involuntary, in
any guaranty association established or governed by any state or other jurisdiction, arising on account of direct Premiums paid prior to the Effective Date; (e) the Retained Contracts; (t) premiums, payments, fees or other consideration or
amounts due. prior to the Effective Date under the Third-Party Reinsurance Agreements; (g) death claims under the Policies which are reported prior to the Closing Date; (h) the pending litigation described on Schedule 3.03 to the
Asset Purchase Agreement; (i) interest stabilization reserve relating to the Policies; G) liabilities or obligations relating to the Business to the extent such liabilities or obligations have been accrued for on Company’s books and
records as of 11:59 p.m. Eastern Time on the day immediately preceding the Effective Date in accordance with Connecticut SAP but are not reflected on the Final Closing Balance Sheet; and (k) all other liabilities, obligations or
indemnities expressly assumed by the Company under the terms of the Asset Purchase Agreement, this Agreement or any Ancillary Agreement. 

  
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 “Revised Closing Balance Sheet” means the pro forma balance sheet of the Business
as of the Closing Date prepared and delivered by the Company to the Reinsurer in accordance with Article II of the Asset Purchase Agreement. 
 “Secured Policies” means the Policies and Post-Closing Policies secured by the Security Trust established under Section 9.4 hereof. 

“Security Trust” means a trust account established with a Trustee for the purpose of securing the Reinsurer’s obligations
to the Company in accordance with Article IX hereof. 
 “Security Trust Agreement” means the trust agreement governing
the Security Trust, which shall be substantially in the form of Exhibit B hereto. 
 “Sellers’ Extra Contractual
Obligations” means all Extra Contractual Obligations to the extent such obligations arise out of acts, errors or omissions occurring (or, in the case of omissions, failing to occur) at any time prior to the Effective Date by the Company or its
directors, officers, employees, Affiliates, agents or representatives. 
 “Separate Account Assets” means the assets
described on Schedule 1.1(B) hereto which constitute the Separate Accounts. 
 “Separate Account Reserves” means
the reserves associated with the Variable Policies which are held in the Company’s Separate Accounts, determined in accordance with Connecticut SAP. 
 “Separate Accounts” means the specific separate accounts of the Company identified in Schedule 1.1(C) hereto. 
 “Taxes” (or “Tax” as the context may require) means any tax, however denominated, imposed by any federal, state, local, municipal, territorial, provincial or foreign government or any
agency or political subdivision of any such government (a “Taxing Authority”), including, without limitation, any tax imposed under Subtitle A of the Code and any net income, alternative or add-on minimum tax, gross income, gross receipts,
sales, use, gains, goods and services, production, documentary, recording, social security, unemployment, disability, workers’ compensation, estimated, ad valorem, value added, transfer, franchise, profits, license, withholding, payroll,
employment, excise, severance, stamp, capital stock, occupation, personal or real property, environmental or windfall profit tax, premiums, custom, duty or other tax, governmental fee or other like assessment or charge of any kind whatsoever,
together with any interest, penalty, addition to tax or additional amount imposed by any Taxing Authority relating thereto. 

  
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 “Termination Date” shall mean the date on which this Agreement is terminated in
accordance with the terms and conditions of Article XII hereof. 
 “Third-Party Reinsurance Agreements” means the
reinsurance agreements identified on Schedule 1.1(D) hereto under which the Company has ceded liabilities to non-Affiliated reinsurers with respect to the Policies. 
 “Transferred Assets” means: (a) cash or cash equivalents equal to the amount as of the Closing Date of (A) the Closing Date Liabilities, minus (B) the amount of outstanding loans
under the Policies (to the extent such loans constitute admitted assets under Connecticut SAP), minus (C) the aggregate amounts ascribed to the Other Assets in the Closing Balance Sheet, Revised Closing Balance Sheet or Final Closing Balance
Sheet, as applicable, and minus (D) the Ceding Commission; (b) as between the parties hereto, all of the Company’s rights and interests under the Policies to receive principal and interest paid on policy loans on or after the
Effective Date; and (c) as between the parties hereto, all of the Company’s rights and interests to premiums due or to become due, premiums deferred and uncollected, premium adjustments and any and all amounts, payments or consideration
which are or were held, received or collected by the Company on or after the Effective Date, or which are now due or will become due from any source under or in connection with the Policies except, however, to the extent that any such premiums,
adjustments, amounts, payments or consideration are included within clause (a) herein. 
 “Transferred Contracts”
means: (a) the contracts, agreements, leases, software licenses, rights, obligations or other commitments of the Company (to the extent freely assignable) used exclusively by the Company in the Business (but excluding the Policies and the
Distribution Agreements); and (b) contracts, agreements, leases, software licenses, rights, obligations, and other commitments relating to the Business (but excluding the Policies and the Distribution Agreements) identified on
Schedule 3.17 to the Asset Purchase Agreement or listed on the supplement to such Schedule 3.17 contemplated by the Asset Purchase Agreement. 
 “Transition Services Agreement” means the Transition Services Agreement among the Company, ALIC, The Lincoln National Life Insurance Company and the Reinsurer. 

“Trustee” means a bank or trust company reasonably acceptable to the parties to this Agreement, which acts as trustee of a
Security Trust pursuant to the terms and conditions of a Security Trust Agreement; provided, however, that such bank or trust company shall (a) possess assets of at least $10 billion; and (b) be rated at least Al by each of Moody’s
Investors Services, Inc. and A+ by Standard & Poor’s Corporation. 
 “Variable Policies” means the
individual variable life insurance policies issued by the Company, which are funded, in whole or in part, by the Separate Accounts. 
 ARTICLE II 
 BASIS OF COINSURANCE AND BUSINESS COINSURED 

2.1 Coinsurance. Subject to the terms and conditions of this Agreement, the Company hereby cedes or retrocedes, as the case may
be, on a coinsurance basis to the Reinsurer as of the Effective Date, and the Reinsurer hereby accepts and agrees to indemnity reinsure on a coinsurance basis as of the Effective Date, one hundred percent (100%) of all Liabilities arising under
or relating to the Policies and the Post-Closing Policies. This Agreement shall not continue or create any legal relationship whatsoever between the Reinsurer and Persons who own or are insured under the Policies and the Post-Closing Policies.
Except as expressly provided herein, this Agreement does not reinsure any policy written by the Company or the Reinsurer after the Effective Date. The reinsurance effected under this Agreement shall be maintained in force, without reduction, unless
such reinsurance is terminated, reduced or recaptured as provided herein. 

  
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 2.2 Reinsurer Extra Contractual Obligations. In addition to the Reinsurer’s
coinsurance of Liabilities, the Reinsurer hereby accepts and agrees to assume and discharge one hundred percent (100%) of all Reinsurer Extra Contractual Obligations. 
 2.3 Reinstatements, Conversions and Exchanges. In no event shall the coinsurance provided hereunder with respect to a particular Policy be in force and binding unless such Policy is in force and
binding as of the Effective Date; provided, however that the Policies and Post-Closing Policies reinsured shall include (a) all Post-Closing Policies; (b) all lapsed or surrendered Policies or Post-Closing Policies reinstated in
accordance with their terms on and after the Effective Date; and (c) all Policies or Post-Closing Policies issued on and after the Effective Date pursuant to (i) any option provided under the terms of any Variable Policy issued at any time
by the Company for the exchange of such contract for a non-variable life insurance contract; or (ii) any option provided under the terms of any of the Policies or Post-Closing Policies for the conversion of such Policies or Post-Closing
Policies to an individual life insurance policy. Upon the reinstatement of any lapsed or surrendered Policy or Post-Closing Policy, or the issuance of any exchange or converted life insurance Policy or Post-Closing Policy, such Policy or
Post-Closing Policy shall be automatically reinsured hereunder. If the Company collects Premiums in arrears from a Policyholder or ceding company of a reinstated Policy or Post-Closing Policy, the Company shall pay to the Reinsurer all Premiums so
collected. 
 2.4 Certain Policy Elements. From and after the Effective Date, the Reinsurer may make recommendations to
the Company with respect to (a) the Non-Guaranteed Elements of the Policies and the Post-Closing Policies; and (b) the reserving methodology related to the Policies and the Post-Closing Policies (including changes required by Applicable
Law, GAAP or Connecticut SAP). The Company shall set all Non-Guaranteed Elements of the Policies and the Post-Closing Policies, taking into account the recommendations of the Reinsurer with respect thereto. Notwithstanding the foregoing, however,
the Reinsurer hereby acknowledges and agrees that any claim, liability or obligation, to the extent such claim, liability or obligation arises out of or relates to the Company’s establishment of Non-Guaranteed Elements pursuant to the
Reinsurer’s recommendations with respect thereto. is included within the Reinsurer Extra Contractual Obligations that the Reinsurer has expressly assumed pursuant to the Asset Purchase Agreement, this Agreement and the other Ancillary
Agreements and for which the Reinsurer has agreed to indemnify the Company pursuant to Article IX of the Asset Purchase Agreement and Article IX of this Agreement. 
 2.5 Reserves. On and after the Closing Date, the Reinsurer shall establish and maintain as a liability on its statutory financial statements Reserves for the Policies and the Post-Closing Policies
ceded hereunder, calculated consistent with (a) the reserve requirements, statutory accounting rules and actuarial principles applicable to the Company under the law of the State of New York and each state in which the Policies and the
Post-Closing Policies were issued or delivered; and (b) otherwise in accordance with the methodologies used by the Company to calculate the reserves and liabilities for the Policies and the Post-Closing Policies in accordance with Connecticut
SAP and sound actuarial principles and any valuation bases and methods of determining reserves as provided in the forms of Policies and Post-Closing Policies. The Reinsurer shall provide the Company, not less than annually, with copies of all
actuarial opinions and actuarial memoranda and all reserve evaluations pertaining to the Reserves, including, without limitation, any actuarial opinions and reserve evaluations performed by independent actuaries, auditors or other outside
consultants. At the option of the Company, the Company may, at its own cost at any time following the Closing, examine the Books and Records maintained by the Reinsurer and review its reserve procedures. If the results of such examination are not
reasonably satisfactory to the Company, the Reinsurer shall, at the Company’s request and expense, obtain and deliver to the Company an actuarial opinion as to the adequacy of the Reserves, produced by an independent actuary acceptable to the
Company. The Reinsurer shall promptly adjust the amount of the Reserves and implement appropriate changes to its reserve procedures if an actuarial opinion, reserve evaluation or review, including, without limitation, any evaluation or review made
by the Company, reasonably indicates an inadequacy in the Reserves or in the Reinsurer’s reserve procedures. 

  
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 2.6 Separate Account Reserves. Notwithstanding anything to the contrary herein,
effective as of the Effective Date the Company and the Reinsurer shall reinsure the Separate Account Reserves on a modified coinsurance basis, subject to the execution and delivery of the NY Modified Coinsurance Agreement; provided, however,
that the Company shall retain, control and own all Separate Account Assets and Separate Account Reserves whether or not the NY Modified Coinsurance Agreement is executed and delivered. 

2.7 Policy Changes or Reductions. In the event of a material change in the provisions and conditions of a Policy or a Post-Closing
Policy (provided that such change is not in violation of Section 4.4 hereof), a corresponding change in the related coinsurance and appropriate cash adjustments shall be made consistent with the policy change rules of the Company. If the face
amount of a Policy or a Post-Closing Policy is reduced or increased, the amount coinsured by the Reinsuer shall be reduced or increased accordingly. 
 ARTICLE III 
 ACCOUNTINGS AND TRANSFER OF ASSETS 

3.1 Ceding Commission. The Reinsurer shall pay to the Company on the Closing Date a Ceding Commission in the amount of
$116,487,000. The Ceding Commission shall be credited to the Company as a reduction in the amount of cash or cash equivalents included within the Transferred Assets to be transferred by the Company to the Reinsurer at Closing in accordance with the
provisions of Sections 3.2 hereof. 
 3.2 Transfer of Assets. On the Closing Date, the Company shall sell, assign
and transfer to the Reinsurer as reinsurance premium all of the Company’s right, title and interest in the Transferred Assets, including, without limitation, cash or cash equivalents in an aggregate amount (subject to adjustment pursuant to
Section 3.3 hereof) equal to the amount as of the 

  
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Closing Date of: (A) Closing Date Liabilities, minus (B) the amount of outstanding loans under the Policies (to the extent such loans constitute admitted assets under Connecticut SAP),
minus (C) the aggregate amounts ascribed to the Other Assets, and minus (D) the Ceding Commission, all as reflected on that part of the Closing Balance Sheet relating to the Policies reinsured hereunder. 

3.3 Post-Closing Adjustments. (a) In the event that the aggregate amount of cash or cash equivalents transferred by the
Company to the Reinsurer on the Closing Date is less than the amount of (A) Closing Date Liabilities, minus (B) the amount of outstanding loans under the Policies (to the extent that such loans constitute admitted assets under Connecticut
SAP), minus (C) the aggregate amounts ascribed to the Other Assets, and minus (D) the Ceding Commission, all as reflected on that part of the Final Closing Balance Sheet relating to the Policies reinsured hereunder, the Company shall
transfer to the Reinsurer additional cash or cash equivalents equal to the amount of such difference, together with interest thereon from and including the Closing Date to, but not including the date of, such transfer computed at LIBOR. 

(b) In the event that the aggregate amount of cash or cash equivalents transferred to the Reinsurer on the Closing Date is greater than
the amount of (A) Closing Date Liabilities, minus (B) the amount of outstanding loans under the Policies (to the extent that such loans constitute admitted assets under Connecticut SAP), minus (C) the aggregate amounts ascribed to the
Other Assets, and minus (D) the Ceding Commission, all as reflected on the portion of the Final Closing Balance Sheet relating to the Policies reinsured hereunder, the Reinsurer shall transfer to the Company cash or cash equivalents equal to
the amount of such difference, together with interest thereon from and including the Closing Date to, but not including the date of , such transfer computed at LIBOR. 
 3.4 Interim Monthly Accountings. The Company shall provide the Reinsurer with an Interim Monthly Accounting as of the end of each calendar month, no later than fifteen (15) Business Days after
the end of such month; provided, however, that the first Interim Monthly Accounting shall be provided to the Reinsurer no later than fifteen (15) Business Days after the end of the month in which the Closing Date fell and the final
Interim Monthly Accounting shall be delivered no later than fifteen (15) Business Days after the date on which the Company is no longer providing accounting services under the Transition Services Agreement. The Company shall provide such
Accounting in a format that is mutually acceptable to the Company and the Reinsurer. 
 3.5 Monthly Accountings.
Beginning with and after the first calendar month during which the Company is no longer providing accounting services under the Transition Services Agreement, the Reinsurer shall provide the Company with a Monthly Accounting as of the end of each
calendar month, no later than fifteen (15) Business Days after the end of such month; provided, however, that the first Monthly Accounting shall be provided to the Company no later than fifteen (15) Business Days after the end of
the first calendar month during which the Company is no longer providing accounting services pursuant to the Transition Services Agreement and the Reinsurer shall deliver the final Monthly Accounting no later than fifteen (15) Business Days
after the Termination Date; provided, further, that in the event that subsequent data or calculations require revision of the final Monthly Accounting, the required revision and any appropriate payments shall be made in cash by the parties
five (5) Business 
 Days after they mutually agree as to the appropriate revision. The Reinsurer shall provide such Accounting in a format
that is mutually acceptable to the Company and the Reinsurer. 

  
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 3.6 Monthly Payments. If an Accounting reflects a balance due to the party to which
the Accounting is delivered and/or the Security Trust, the amount(s) shown as due shall be paid within five (5) Business Days of the delivery of the Accounting. If (a) an Accounting reflects a balance due the party that prepared the
Accounting or the Security Trust and (b) the party receiving the Accounting does not object to the Accounting within five (5) Business Days of its delivery, the amount(s) shown as due shall be paid within seven (7) Business Days after
the date on which the Accounting was delivered. Any dispute over any amount shown on an Accounting that cannot be amicably resolved by the parties shall be resolved pursuant to the procedures set forth in Article X. If the Security Trust is
established while the Company is collecting funds pursuant to the Transition Services Agreement, the Company may remit directly to the Trustee on behalf of the Reinsurer that portion of any amount due the Reinsurer needed to fully fund the Security
Trust and the balance only of any amount due the Reinsurer shall be remitted to the Reinsuer. 
 3.7 Delayed Payments. If
there is a delayed settlement of any payment due hereunder, interest will accrue on such payment at the three month London Interbank Offering Rate (LIBOR) as published in The Wall Street Journal, Eastern Edition, in effect on the day such payment is
due. For purposes of this Section 3.7, a payment will be considered overdue, and such interest will begin to accrue, on the date which is five (5) Business Days after the date such payment is due. 

3.8 Offset Rights. Any debts or credits incurred on and after the Effective Date in favor of or against either the Company or
Reinsurer with respect to this Agreement are deemed mutual debts or credits, as the case may be, and shall be set off, and only the balance shall be allowed or paid. 
 3.9 Third-Party Reinsurance. In the event the Reinsurer desires to retrocede to any third-party reinsurer (whether or not Affiliated with the Reinsurer) any portion of the Liabilities reinsured by
it under this Agreement, the Reinsurer shall be responsible for obtaining such retrocessional coverage at its sole expense. 

3.9 Premium Taxes and Assessments. The Reinsurer shall pay the Company on a monthly basis an amount equal to two percent
(2%) of the gross Premiums on the Policies and the Post-Closing Policies collected by the Reinsurer, as an advance against the Reinsurer’s liabilities for premium Taxes payable by the Company and assessments to the Company by state
guaranty or insolvency or similar associations or funds, to the extent that such Taxes and assessments are allocable to Premiums paid on or after the Effective Date. Amounts payable pursuant to this Section 3.10 shall be reflected on the
Accountings delivered hereunder and shall be paid pursuant to the provisions of Section 3.6. Not later than June 30 after each calendar year falling within the term of this Agreement, the Company shall provide the Reinsurer with an
accounting of its actual premium Tax and guaranty fund assessment liability with respect to the Policies and the Post-Closing Policies for such calendar year (without giving effect to any credits due to the Company for any guaranty fund assessments
paid by the Company prior to Closing). If such accounting reflects amounts owed to the Reinsurer, the Company shall pay such amounts in cash to the Reinsurer with the accounting. If it reflects amounts owed to the Company (including any interest or
penalties relating to underpayment of estimated Taxes based on information provided by the Reinsurer), the Reinsurer shall pay such amounts in cash to the Company within five (5) Business Days of receiving the accounting. The Company shall
payor provide the Reinsurer with the benefit of guaranty fund assessments previously reimbursed by the Reinsurer to the extent such payments were actually utilized to reduce the Company’s tax liabilities. The utilization of any outstanding
assessments by the Company shall be determined on a FIFO basis (those assessments made in earlier years shall be considered used first). 

  
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 ARTICLE IV 
 POLICY ADMINISTRATION 
 4.1 Interim Servicing. During the period
from the Effective Date through the termination of the Transition Services Agreement with respect to each service provided by the Company thereunder, the Company has agreed to continue to provide certain Policyholder services for the Policies and
the Post-Closing Policies. 
 4.2 Transfer of Servicing Obligations. On and after the date on which a service is no
longer being provided pursuant to the Transition Services Agreement, and pursuant to the NY Administrative Services Agreement, the Reinsurer has agreed to provide Policyholder service for the Policies and the Post-Closing Policies and to supply to
the Company on a timely basis copies of accounting and other records pertaining to such service. The parties hereby agree that the Policies and the Post-Closing Policies shall be administrated pursuant to the NY Administrative Services Agreement.
Reinsurer’s compensation for all services provided to the Company pursuant to the NY Administrative Services Agreement shall be included in the reinsurance premium paid by the Company to Reinsurer pursuant to Section 3.2 above and the
Company shall not be obligated to pay any additional monies to Reinsurer for such administrative services. 
 4.3 Regulatory
Matters. If the Company or the Reinsurer receives notice of, or otherwise becomes aware of any regulatory inquiry, investigation or proceeding relating to the Policies or the Post-Closing Policies, the Company or the Reinsurer, as applicable,
shall promptly notify the other party thereof, whereupon the parties shall cooperate in good faith and use their respective commercially reasonable efforts to resolve such matter in a mutually satisfactory manner, in light of all the relevant
business, regulatory and legal facts and circumstances. The parties recognize that, as the issuing company, the Company retains ultimate responsibility for resolution of the matters described in this section. 

4.4 Policy Changes. Neither the Company nor the Reinsurer shall make any changes to the Company’s policy forms except with
the express written consent of the other party (which consent shall not be unreasonably withheld) or if (a) the changes are required by Applicable Law and (b) the Reinsurer gives the Company prior notice in writing of the nature of such
required changes in the manner provided by the NY Administrative Services Agreement. 

  
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 ARTICLE V 
 OVERSIGHTS 
 5.1 Oversights. Inadvertent delays, errors or omissions
made in connection with this Agreement or any transaction hereunder shall not relieve either party from any liability which would have attached had such delay, error or omission not occurred, provided always that such error or omission is rectified
as soon as possible after discovery, and provided that the party making such error or omission or responsible for such delay shall be responsible for any additional liability which attaches as a result. 

ARTICLE VI 

CONDITIONS PRECEDENT 
 6.1 Conditions Precedent. This Agreement shall not become effective unless and until (a) all state insurance regulatory authorities whose approval is required shall have approved this
Agreement in writing, and (b) all applicable waiting periods under any federal or state statute or regulation shall have expired or been terminated. 
 ARTICLE VII 
 DUTY OF COOPERATION 

7.1 Cooperation. Each party hereto shall cooperate fully with the other in all reasonable respects in order to accomplish the
objectives of this Agreement. 
 ARTICLE VIII 
 DAC TAX 
 8.1 Ejection. In accordance with Treasury Regulations
Section 1.848-2(g)(8), the Company and Reinsurer hereby elect to determine specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(I) of the Code.

 (a) All uncapitalized terms used herein shall have the meanings set forth in the regulations under Section 848 of the
Code. 
 (b) The party with net positive consideration under this Agreement for each taxable year shall capitalize specified
policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848( c)(1) of the Code. 
 (c) Both parties agree to exchange information pertaining to the amount of net consideration under this Agreement each year to ensure consistency. 

(d) The Company shall submit a schedule to the Reinsurer by May 1 of each year of its calculation of the net consideration under
this Agreement for the preceding taxable year. This schedule of calculations shall be accompanied by a statement signed by an authorized representative of the Company stating that the Company shall report such net consideration in its federal income
tax return for the preceding taxable year. 

  
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 (e) The Reinsurer may contest such calculation by providing an alternative calculation to
the Company in writing within thirty (30) days after the date on which the Reinsurer receives the Company’s calculation. If the Reinsurer does not so notify the Company, the Reinsurer shall report the net consideration under this Agreement
as determined by the Company in the Reinsurer’s federal income tax return for the preceding taxable year. 
 (f) If
Reinsurer contests the Company’s calculation of the net consideration under this Agreement, the parties shall act in good faith to reach an agreement as to the correct amount of net consideration within thirty (30) days after the date on
which the Reinsurer submits its alternative calculation. If Reinsurer and the Company reach agreement as to the amount of net consideration under this Agreement, each party shall report such amount in its federal income tax return for the preceding
taxable year. 
 If, during such period, Reinsurer and the Company are unable to reach agreement, they shall promptly thereafter
cause independent accountants of nationally recognized standing reasonably satisfactory to Reinsurer and the Company (who shall not have any material relationship with Reinsurer or the Company), promptly to review (which review shall commence no
later than five (5) days after the selection of such independent accountants), this Agreement and the calculations of Reinsurer and the Company for the purpose of calculating the net consideration under this Agreement. In making such
calculation, such independent accountants shall consider only those items or amounts in the Company’s calculation as to which the Reinsurer has disagreed. 
 Such independent accountants shall deliver to Reinsurer and the Company, as promptly as practicable (but no later than sixty (60) days after the commencement of their review), a report setting forth
such calculation, which calculation shall result in a net consideration between the amount thereof shown in the Company’s calculation delivered pursuant to Section 8.1(d) and the amount thereof shown in Reinsurer’s calculation
delivered pursuant to Section 8.1(e). Such report shall be final and binding upon Reinsurer and the Company. The fees, costs and expenses of such independent accountant shall be borne (i) by the Company if the difference between the net
consideration as calculated by the independent accountants and the Company’s calculation delivered pursuant to Section 8.1(d) is greater than the difference between the net consideration as calculated by the independent accountants and
Reinsurer’s calculation delivered pursuant to Section 8.1(e), (ii) by the Reinsurer if the first such difference is less than the second such difference, and (iii) otherwise equally by Reinsurer and the Company. 

(g) This election shall be effective for the 1998 taxable year and for all subsequent taxable years for which this Agreement remains in
effect. 
 (h) Both parties agree to attach a schedule to their respective federal income tax returns for the first taxable year
ending after the date on which this election becomes effective which identifies this Agreement as a reinsurance agreement for which an election has been made under Treasury Regulations Section 1.848-2(g)(8). 

  
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 ARTICLE IX 
 INDEMNIFICATION AND RECAPTURE 
 9.1 Reinsurer’s Obligation to
Indemnify. Subject to any limitation contained in the Asset Purchase Agreement, Reinsurer hereby agrees to indemnify, defend and hold harmless the Company and its directors, officers, employees, representatives (excluding the Producers),
Affiliates, successors and permitted assigns (collectively, the “Company Indemnified Parties”) from and against all Losses asserted against, imposed upon or incurred by any Company Indemnified Party arising from: (i) the Liabilities;
(ii) the Reinsurer Extra Contractual Obligations (including, but not limited to, all claims that constitute Sellers’ Extra Contractual Obligations but for which the Company’s indemnification obligation has expired pursuant to
Section 8.01(c) of the Asset Purchase Agreement); (iii) any breach or nonfulfillment by Reinsurer of, or any failure by Reinsurer to perform, any of the covenants, terms or conditions of, or any duties or obligations under, this
Agreement; and (iv) any enforcement of this indemnity. 
 9.2 Company’s Obligation to Indemnify. Subject to any
limitation contained in the Asset Purchase Agreement, the Company hereby agrees to indemnify, defend and hold harmless the Reinsurer and its directors, officers, employees, representatives (excluding the Producers), Affiliates, successors and
permitted assigns (collectively, the “Reinsurer Indemnified Parties”) from and against all Losses asserted against, imposed upon or incurred by any Reinsurer Indemnified Party arising from: (i) the Retained Liabilities;
(ii) Sellers’ Extra Contractual Obligations (but only to the extent that the Company’s indemnification obligation for Sellers’ Extra Contractual Obligations has not expired pursuant to Section 8.01(c) of the Asset
Purchase Agreement); (iii) any breach or nonfulfillment by the Company of, or any failure by the Company to perform, any of the covenants, terms or conditions of, or any duties or obligations under, this Agreement; and (iv) any enforcement
of this indemnity. 
 9.3 Certain Definitions and Procedures. For purposes of this Article IX, “Loss” or
“Losses” shall mean actions, claims, losses, liabilities, damages, costs, expenses (including reasonable attorneys’ fees), interest and penalties. In the event either Reinsurer or the Company shall have a claim for indemnity against
the other party under the terms of this Agreement, the parties shall follow the procedures set forth in Sections 9.02, 9.03 and 9.04 of the Asset Purchase Agreement. 
 9.4 Security Trust Account and Recapture Rights. 
 (a) Events of
Default. From and after the Closing Date, any of the following occurrences shall constitute an event that entitles the Company to require the Reinsurer to deposit and maintain assets in a Security Trust in accordance with the terms and
conditions of this Section 9.4 (individually or collectively, as the context indicates, an “Event of Default”): 
  

	 	(i)	the Reinsurer ceases to maintain any of (A) an A.M. Best Company rating of at least B++, (B) a Standard & Poor’s Corporation insurer financial
strength rating of at least BBB-, and (C) Moody’s Investors Services, Inc. claims-paying ability rating of at least Baa3; or 

  
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	 	(ii)	the Reinsurer fails to (A) maintain a ratio of (i) Total Adjusted Capital (as defined in the Risk-Based Capital (RBC) Model Act or in the rules and procedures
prescribed by the NAIC with respect thereto, in each case as in effect as of December 31, 1997) to (ii) the Company Action Level RBC (as defined in the Risk-Based Capital (RBC) Model Act or in the rules and procedures prescribed by the
NAIC with respect thereto, in each case as in effect as of December 31, 1997) of at least 185 percent, or (B) maintain a Standard & Poor’s Corporation’s capital adequacy ratio (calculated in accordance with the rules and
procedures in effect on the Contract Date) of at least 115 percent; or 

  

	 	(iii)	(A) the Reinsurer ceases to be licensed as a life insurer or ceases to qualify as an accredited reinsurer in a particular jurisdiction under circumstances that would
cause the Company to be denied credit for reinsurance ceded hereunder on the financial statements filed by the Company in said jurisdiction, or (B) the Company is denied credit for reinsurance ceded hereunder on the financial statements filed
by the Company in any jurisdiction; or 

  

	 	(iv)	a petition for insolvency, rehabilitation, conservation, supervision, liquidation or similar proceeding is filed by or against the Reinsurer or its statutory
representative in any jurisdiction; or 

  

	 	(v)	any Person other than one of the Affiliates of the Reinsurer in existence on the Closing Date acquires or assumes (A) Control of the Reinsurer, whether by merger,
consolidation, stock acquisition, or otherwise (including, without limitation, the acquisition or assumption of the power to direct the Reinsurer’s management and policies by means of a management or services agreement or other contractual
arrangement) or (B) all or substantially all of the assets or liabilities of the Reinsurer by reinsurance (whether indemnity or assumption) or otherwise; 

 

	 	(vi)	this Agreement is terminated in accordance with its terms; or 

  

	 	(vii)	an Event of Default occurs pursuant to Section 9.07(a)(vii) of the Asset Purchase Agreement. 

The occurrence of any Event of Default shall entitle the Company to elect to require the Reinsurer to establish a Security Trust regardless of whether or
not such an occurrence constitutes a Recapture Event, provided, that the Company has not delivered an Election Notice electing recapture. 
 (b) Recapture Events. From and after the Closing Date, and whether or not an Event of Default has occurred or Security Trust has been established pursuant to Section 9.4(a) hereof, any of
the following occurrences shall constitute an event that entitles the Company to exercise the recapture remedy set forth in this Section 9.4 (individually or collectively, as the context indicates, a “Recapture Event”): 

  
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	 	(i)	Reinsurer ceases to maintain any of (A) an A.M. Best Company rating of at least B+, (B) a Standard & Poor’s Corporation insurer financial
strength rating of at least BB+, and (C) a Moody’s Investors Services, Inc. claims-paying ability rating of at least Bal; or 

  

	 	(ii)	Reinsurer fails to (A) maintain a ratio of (i) Total Adjusted Capital (as defined in the Risk-Based Capital (RBC) Model Act or in the rules and procedures
prescribed by the NAIC with respect thereto, in each case as in effect as of December 31, 1997) to (ii) the Company Action Level RBC (as defined in the Risk-Based Capital (RBC) Model Act or in the rules and procedures prescribed by the
NAIC with respect thereto, in each case as in effect as of December 31, 1997) of at least 160 percent; or (B) maintain a Standard & Poor’s Corporation’s capital adequacy ratio (calculated in accordance with the rules and
procedures in effect on the Contract Date) of at least 100 percent; or 

  

	 	(iii)	a petition for insolvency, rehabilitation, conservation, supervision, liquidation or similar proceeding is filed by or against the Reinsurer or its statutory
representative in any jurisdiction; or 

  

	 	(iv)	within thirty (30) calendar days of its receipt of a demand therefor delivered pursuant to Section 9A(d), Reinsurer fails to execute the Security Trust
Agreement or deposit and maintain asset in trust on the terms provided in Section 9A(f) and in the Security Trust Agreement, provided, however, that the Company executes such Security Trust Agreement contemporaneously with the delivery of
the demand; or 

  

	 	(v)	this Agreement is terminated in accordance with its terms; or 

  

	 	(vi)	within thirty (30) calendar days of the termination of the NY Administrative Services Agreement in accordance with its terms, (A) Reinsurer does not take all
steps necessary to arrange for a third-party administrator acceptable to the Company in its sole discretion, reasonably exercised, to provide all administrative services to be provided pursuant to the terminated NY Administrative Services Agreement
at the cost of Reinsurer or (B) such third-party administrator fails to enter into an administrative service agreement with the Company, satisfactory in form and substance to the Company in its sole discretion, reasonably exercised; or

  
 -19-

	 	(vii)	a judgment or order is entered by a court of competent jurisdiction declaring the invalidity of the Security Trust or finding that the assets held in a Security Trust
are general assets of Reinsurer or otherwise do not constitute a “secured claim” within the meaning of the laws of the Reinsurer’s domiciliary state; or 

 

	 	(viii)	a Security Trust is established for the benefit of the Company pursuant to Section 9.4(a)(iii) and the Company is denied credit on its financial statements
filed in any jurisdiction with respect to the reinsurance provided by the Reinsurer, and the Reinsurer does not take all steps necessary to enable the Company to obtain credit on its financial statements within thirty (30) calendar days of the
Reinsurer’s receipt of written notice from the Company as to the occurrence described herein; or 

  

	 	(ix)	a Recapture Event occurs pursuant to Section 9.07(b)(ix) of the Asset Purchase Agreement. 

 The occurrence of any Recapture Event shall entitle the Company to elect recapture remedies hereunder regardless of whether (1) such an occurrence also constitutes an Event of Default, (2) the
Reinsurer has previously established a Security Trust or (3) the Company has previously delivered an Election Notice requiring Reinsurer to establish a Security Trust. 
 (c) Notice to The Company. The Reinsurer shall provide the Company with: 
  

	 	(i)	written notice of any downgrade in the Reinsurer’s A. M. Best Company rating or its Standard & Poor’s Corporation insurer financial strength rating
or its Moody’s Investors Services, Inc. claims-paying ability rating within three (3) Business Days after the Reinsurer’s receipt of notice of such adjustment; 

 

	 	(ii)	a written report of the calculation of the Reinsurer’s Total Adjusted Capital and Authorized Control Level RBC (based on the Risk-Based Capital (RBC) Model Act
and/or the rules and procedures in effect as of December 31, 1997) and Standard & Poor’s Corporation’s capital adequacy ratio (based on the rules and procedures in effect on the Contract Date) as of the end of each calendar
quarter within fifteen (15) Business Days after the end of such quarter; 

  

	 	(iii)	written notice of the occurrence of any Event of Default or Recapture Event within two (2) Business Days after its occurrence; and 

 

	 	(iv)	not less than annually, a written report, in form reasonably satisfactory to the Company, certifying that no Event of Default or Recapture Event has occurred during the
period covered by such report or is continuing as of the last day of such period, together with the appropriate calculations and back up reasonably necessary to substantiate the basis of the Reinsurer’s certification. 

  
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 The Company may, at its own expense, review the Reinsurer’s books and records to confirm the risk based
capital calculations provided by the Reinsurer pursuant to Section 9.4(c)(ii). In addition, Reinsurer shall (A) cooperate fully with the Company and promptly respond to the Company’s inquiries from time to time concerning the
Reinsurer’s financial condition, operating results and any events, occurrences or other matters which arise on and after the Effective Date and which reasonably relate to the Business or Reinsurer’s ability to perform and discharge its
obligations under the Asset Purchase Agreement, this Agreement or the Ancillary Agreements and (B) provide to the Company such financial statements, reports, internal control letters and reports prepared by auditors and other third parties,
SAS-70 reports and other documents of the Reinsurer as the Company may reasonably request from time to time. 
 (d) Election
of Remedies. Upon the occurrence of any Event of Default, the Company may elect to require the Reinsurer to maintain assets in a Security Trust for the purpose of securing the Reinsured Liabilities under the Policies and Post-Closing Policies
ceded to it pursuant to this Agreement. Upon the occurrence of any Recapture Event, the Company may elect to recapture, subject to the terms and conditions set forth below all, but not less than all, of the Policies and the Post-Closing Policies
ceded hereunder. The Company shall give the Reinsurer written notice of its election (the “Election Notice”) specifying (x) the grounds for the exercise of its remedies pursuant to this Section 9.4 and either (y) if it
elects to recapture the Policies and Post-Closing Policies, the fact of recapture, and the effective date of recapture or (z) if it elects a Security Trust, the fact that the Reinsurer is obligated to execute the Security Trust Agreement and to
deposit and maintain assets in the Security Trust for the purpose of securing such Reinsured Liabilities (the “Secured Policies”). The Reinsurer may unwind and terminate a Security Trust if, prior to the second anniversary of the date on
which the Event of Default which originally gave rise to the establishment of such Security Trust occurred, both (A) the original Event of Default has been cured or remediated, and (B) no new Event of Default or Recapture Event has
occurred; provided that (i) prior to such second anniversary date, the Company has not properly provided an Election Notice to recapture the Policies and Post-Closing Policies ceded by it; and (ii) the termination of the Security Trust
shall not prejudice or be deemed a waiver of the Company’s right to demand the establishment of a new Security Trust or elect recapture upon the occurrence of any other or new Event of Default or Recapture Event. 

(e) Recapture. Any recapture by the Company shall not be deemed to have been consummated until (i) the Company has given the
Reinsurer an Election Notice pursuant to Section 9.4(d); and (ii) the Company has received payment of the entire Recapture Fee as determined in accordance with Exhibit A hereto. If the Reinsured Liabilities under the Policies and
Post-Closing Policies to be recaptured are secured pursuant to a Security Trust established pursuant to Section 9.4(f), the Company may, in its sole discretion, withdraw assets from the Security Trust having an aggregate Market Value
(determined pursuant to the Security Trust Agreement governing such Security Trust) not to exceed the amount of the Recapture Fee. The Reinsurer shall promptly pay the Company the full amount of the Recapture Fee, reduced by the amount, if any,
withdrawn from the Security Trust. Following the consummation of the recapture of Policies and Post-Closing Policies pursuant to this Section 9.4(e), no additional premiums, deposits or other amounts payable under such Policies and Post-Closing
Policies shall be ceded to the Reinsurer hereunder. 

  
 -21-

 (f) Security Trust. (i) Establishment of the Trust Account. Within thirty
(30) calendar days of the Company’s delivery to the Reinsurer of an Election Notice requiring that the Reinsurer secure the Reinsured Liabilities ceded by the Company with a Security Trust, the Reinsurer shall execute the Security Trust
Agreement and deposit into an account with the Trustee (the “Security Trust”), naming the Company as the sole beneficiary thereof, assets having a market value in an amount no less than the Required Balance, for the purpose of securing the
Reinsured Liabilities under Secured Policies. The Security Trust Agreement shall be substantially in the form of Exhibit B hereto. 
 (ii) Trust Assets. At the direction of the Reinsurer, the assets held in the Security Trust shall be held in the form of (A) cash and cash-equivalents, (B) certificates of deposit,
(C) obligations of the United States Government or its agencies, (D) investment grade bonds, (E) whole (not participations) investment grade (as determined in accordance with the Reinsurer’s internal rating systems) commercial
mortgages; provided that the aggregate market value of such commercial mortgages held in the Security Trust shall not exceed 15 percent of the aggregate market value of the assets held in the Security Trust, and (F) straight Ginnie Mae, Freddie
Mac and Fannie Mae 30-year mortgage-backed securities rated AA+ and above; provided that the aggregate market value of such mortgage-backed securities held in the Security Trust shall not exceed 15 percent of the aggregate market value of the assets
held in the Security Trust; and provided, further, that in the event a Security Trust is established pursuant to Section 9.4(a)(v), the assets held in the Security Trust may be invested in accordance with the Reinsurer’s internal
investment policies for its individual life insurance business, a copy of which has been provided to the Company. The aggregate Market Value of the assets held in the Security Trust shall at all times be at least equal to the Required Balance. As
long as the Security Trust Agreement remains in force, the Reinsurer shall calculate the Required Balance as of the last day of each calendar month and report the amount of the Required Balance to the Company and the Trustee within ten
(10) Business Days after the end of such month. In connection with such calculation, the Company shall direct the Trustee to make the payment to the Reinsurer of any amounts in the Security Trust which exceed the Required Balance, and Reinsurer
shall promptly deposit such additional permitted assets as may be necessary to increase the Market Value of the Security Trust assets to the Required Balance. The form and duration of assets to be held in the Security Trust shall be appropriate in
light of the Reinsured Liabilities under the Secured Policies. Prior to delivering any assets for deposit in the Security Trust, the Reinsurer shall execute assignments or endorsements in blank of all of the Reinsurer’s right, title and
interest in such assets (according to procedures set forth in the Security Trust Agreement), so that the Company, or the Trustee upon the Company’s direction, may whenever necessary negotiate title to any such assets without consent or
signature from the Reinsurer or any other entity. 
 (iii) Permitted Withdrawals. The Company may withdraw assets from
the Security Trust at any time and from time to time, notwithstanding any other provisions of the Asset Purchase Agreement, this Agreement or any other Ancillary Agreement, and such assets may be utilized and applied by the Company, or any successor
by operation of law of the Company, including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company, without diminution because of insolvency on the part of the Company or Reinsurer; provided, however, that the
Company may only withdraw such assets for one or more of the following purposes: 

  
 -22-

	 	(A)	to reimburse the Company for any Reinsured Liabilities under the Secured Policies paid by the Company to the extent not paid by the Reinsurer when due;

  

	 	(B)	to make payment to the Reinsurer of any amounts that exceed the Required Balance; 

 

	 	(C)	to pay all or any portion of any Recapture Fee due in connection with the recapture of the Secured Policies; or 

 

	 	(D)	to pay any other amounts that are due to the Company under this Agreement, the Asset Purchase Agreement or any of the Ancillary Agreements to the extent not paid
directly to Company by Reinsurer when due. 

 (g) Resort to Collateral. Notwithstanding the remedies
contemplated by this Section 9.4, the other Ancillary Agreements and the Asset Purchase Agreement, the Company may, in its sole discretion, require direct payment by the Reinsurer of any sum in default under the Asset Purchase Agreement, this
Agreement or any other Ancillary Agreement in lieu of exercising the remedies in this Section 9.4, and it shall be no defense to any such claim that the Company might have had recourse to the Security Trust or recapture remedy. 

(h) Certain Remedies. The Company and Reinsurer acknowledge that any damage caused to the Company by reason of the breach by the
Reinsurer or any of its successors in interest of this Section 9.4 could not be adequately compensated for in monetary damages alone; therefore, each party agrees that, in addition to any other remedies at law or otherwise, the Company shall be
entitled to specific performance of this Section 9.4 or an injunction to be issued by a court of competent jurisdiction pursuant to Section 13.7 hereof restraining and enjoining any violation of this Section 9.4, in addition to such
other equitable or legal remedies as such court may determine. The Company and Reinsurer hereby release, waive and discharge any and all claims and causes of action asserting in any way that: (a) any Security Trust is not valid, binding or
enforceable; and (b) any remedy of the Company including, without limitation, the Company’s recapture and Security Trust remedies hereunder and under Article IX of the Asset Purchase Agreement is not valid, binding or enforceable. The
Company and the Reinsurer are forever estopped and barred from making any such assertion in any context or. forum whatsoever. 

ARTICLE X 

DISPUTE RESOLUTION 
 10.1 Other Disputes over Calculations. After the Closing Date, any dispute between the parties with respect to the calculation of amounts which are to be calculated, reported, or which may be
audited pursuant to this Agreement (other than disputes relating to: (i) the Closing Balance Sheet, which shall be resolved in accordance with the Asset Purchase Agreement; or (ii) calculations relating to DAC tax, which shall be resolved
in accordance with Article VIII hereof), which cannot be resolved by the parties within sixty (60) calendar days, shall be referred to an independent accounting firm of national recognized standing (which shall not have any material
relationship with the Reinsurer or the Company) mutually agreed to by the parties; provided, however, that where the dispute involves an actuarial issue, the dispute shall instead be referred to an independent actuarial firm of national
recognized standing (which shall not have any material relationship with the Reinsurer or the Company) mutually agreed to by the parties. There shall be no appeal from the decision made by such firm except that, pursuant to Section 11.07 of the
Asset Purchase Agreement, either party may petition a court having jurisdiction over the parties and subject matter to reduce the arbitrator’s decision to judgment. The fees charged by the accounting firm or actuarial firm, as applicable, to
resolve the dispute shall be allocated between the Company and the Reinsurer by such firm in accordance with its judgment as to the relative merits of the parties’ positions in respect of the dispute. 

  
 -23-

 ARTICLE XI 
 INSOLVENCY 
 11.1 Insolvency Clause. In the event of the insolvency
of the Company, all coinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by the Reinsurer directly to the Company or to its liquidator, receiver or statutory successor on the basis of the liability
of the Company under the Policies and Post-Closing Policies without diminution because of the insolvency of the Company. It is understood, however, that in the event of the insolvency of the Company, the liquidator or receiver or statutory successor
of the Company shall give written notice of the pendency of a claim against the Company on a Policy or Post-Closing Policy within a reasonable. period of time after such claim is filed in the insolvency proceedings and that during the pendency of
such claim the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated any defense or defenses which it may deem available to the Company or its liquidator or receiver or
statutory successor. It is further understood that the expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the Company as part of the expense of liquidation to the extent of a proportionate share of the
benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. 
 ARTICLE XII 

DURATION 

12.1 Duration. This Agreement shall continue in force until such time that the Reinsurer’s liability with respect to all
Policies and Post-Closing Policies reinsured hereunder is terminated pursuant to Section 12.2. 
 12.2 Reinsurer’s
Liability. The liability of the Reinsurer under this Agreement with respect to any Policy or Post-Closing Policy will begin simultaneously with that of the Company, but not prior to the Effective Date. The Reinsurer’s liability with respect
to any Policy will terminate on the earliest of: (a) the date such Policy or Post-Closing Policy is recaptured in accordance with Section 9.4; or (b) the date the Company’s liability on such Policy or Post-Closing Policy is
terminated in accordance with its terms. Termination of the Reinsurer’s liability under clauses (a) and (b) herein is subject to the Company’s actual receipt of payments 
 which discharge such liability in full in accordance with the provisions of this Agreement. In no event shall the interpretation of this Section 12.2 imply a unilateral right of the Reinsurer to
terminate this Agreement. 

  
 -24-

 12.3 Survival. Notwithstanding the other provisions of this Article XII, the terms
and conditions of Article I, VIII, IX and X and Section 13.2 shall remain in full force and effect after the Termination Date. 
 ARTICLE XIII 
 MISCELLANEOUS 

13.1 Notices. Any notice or other communication required or permitted under this Agreement shall be in writing and shall be deemed
to have been duly given when (a) mailed by United States registered or certified mail, return receipt requested, (b) mailed by overnight express mail or other nationally recognized overnight or same-day delivery service or
(c) delivered in person to the parties at the following addresses: 
 If to the Company, to: 

Aetna Life Insurance and Annuity Company 
 151 Farmington Avenue 
 Hartford, Connecticut 06156 

Attention: Chief Financial Officer 
 With copies (which shall not constitute notice) to: 
 Aetna Retirement Services,
Inc. 
 151 Farmington Avenue 
 Hartford, Connecticut 06156 
 Attention: General Counsel 

Lord, Bissell & Brook 
 115 South LaSalle Street 
 Chicago, Illinois 60603 

Attention: James R. Dwyer 
 If to the Reinsurer, to: 
 Lincoln Life & Annuity Company of New York

 120 Madison Street, Suite 1700 
 Syracuse, NY 13202 
 Attention: Philip L. Holstein 

  
 -25-

 With a copy (which shall not constitute notice) to: 

Sutherland, Asbill & Brennan LLP 
 1275 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004 

Attention: David A. Massey 

Either party may change the names or addresses where notice is to be given by providing notice to the other party of such change in accordance with this
Section 13.1. 
 13.2 Confidentiality. Each of the parties shall maintain the confidentiality of all information
related to the Policies and Post-Closing Policies and all other information denominated as confidential by the other party provided to it in connection with this Agreement, and shall not disclose such information to any third parties without prior
written consent of the other party, except as may be permitted by Sections 5.18 and 11.02 of the Asset Purchase Agreement. 

13.3 Entire Agreement. This Agreement, the other Ancillary Agreements, the Asset Purchase Agreement, the other agreements
contemplated hereby and thereby, and the Exhibits and the Schedules hereto and thereto contain the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements, written or oral, with respect
thereto. 
 13.4 Waivers and Amendments. Any term or condition of this Agreement may be waived at any time by the party
that is entitled to the benefit thereof. Such waiver must be in writing and must be executed by an executive officer of such party. A waiver on one occasion shall not be deemed to be a waiver of the same or any other term or condition on a future
occasion. This Agreement may be modified or amended only by a writing duly executed by an executive officer of the Company and the Reinsurer, respectively. 
 13.5 No Third Party Beneficiaries. This Agreement constitutes an indemnity reinsurance agreement solely between the Company and the Reinsurer, and is intended solely for the benefit of the parties
hereto and their permitted successors and assigns, and it is not the intention of the parties to confer any rights as a third-party beneficiary to this Agreement upon any other Person as to the Transferred Assets or any other term, condition or
provision of this Agreement. 
 13.6 Assignment. This Agreement shall not be assigned by either of the parties hereto
without the prior written approval of the other party. 
 13.7 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CONNECTICUT, WITHOUT REGARD TO ITS CONFLICTS OF LAW DOCTRINE. ALL ISSUES RELATING TO VENUE AND JURISDICTION SHALL BE GOVERNED BY SECTION 11.07 OF THE ASSET PURCHASE AGREEMENT. 

  
 -26-

 13.8 Counterparts. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 
 13.9
Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future law or if determined by a court of competent jurisdiction to be unenforceable, and if the rights or obligations of
the Company or the Reinsurer under this Agreement will not be materially and adversely affected thereby, such provision shall be fully severable, and this Agreement will be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom.

 13.10 Schedules, Exhibits and Paragraph Headings. Schedules and Exhibits attached hereto are made a part of this
Agreement. Paragraph headings are provided for reference purposes only and are not made a part of this Agreement. 
 13.11
Expenses. Except as explicitly provided to the contrary herein or in the Asset Purchase Agreement, each party shall be solely responsible for all expenses it incurs in connection with this Agreement or in consummating the transactions
contemplated hereby or performing the obligations imposed hereby, including, without limitation, the cost of its attorneys, accountants and other professional advisors. 
 13.12 No Prejudice. The parties agree that this Agreement has been jointly negotiated and drafted by the parties hereto and that the terms hereof shall not be construed in favor of or against any
party on account of its participation in such negotiations and drafting. 

  
 -27-

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed effective this 1st day of October, 1998. 
  

			
	 AETNA LIFE INSURANCE AND
 ANNUITY COMPANY

		
	By:	 	
	Title:	 	
	
	 LINCOLN LIFE & ANNUITY COMPANY
 OF NEW YORK

		
		 	 /s/ Philip L. Holstein

	By:	 	Philip L. Holstein
	Title:	 	President

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed effective this 1st day of October, 1998.

  

			
	 AETNA LIFE INSURANCE AND
 ANNUITY COMPANY

		
		 	 /s/ Catherine H. Smith

	By:	 	Catherine H. Smith
	Title:	 	Chief Financial Officer
	
	LINCOLN LIFE & ANNUITY COMPANY
OF NEW YORK
		
	By:	 	
	Title:	 	

 EXHIBIT A 
 Recapture Fee 
 The amount of the Recapture Fee shall be determined
in accordance with the formula set forth below by Tillinghast-Towers Perrin (“Tillinghast”), or such other nationally recognized actuarial consulting firm as may be agreed by the Reinsurer and the Company and which shall not be affiliated
with either the Reinsurer or the Company. Tillinghast shall determine the amount of the Recapture Fee, unless the Reinsurer and the Company reach an agreement in writing on the use of another actuarial firm within 30 Business Days of the delivery of
an Election Notice electing recapture. The actuarial firm selected to calculate the amount of the Recapture Fee is referred to hereinafter as the “Actuary.” 
 The Recapture Fee shall be equal to (a) + (b) - (c), where (a) is the Required Balance (as defined in the Asset Purchase Agreement and the Coinsurance Agreement to which this Exhibit
is attached) as of the date on which the recapture is consummated (the “Recapture Date”), (b) is the amount of the Penalty Fee as determined below and (c) is the amount of the Ceding Commission as determined below. 

Penalty Fee. The Penalty Fee shall consist of 105 percent of (a) the incremental, onetime fee (estimated by the
Actuary if necessary) of a third-party administrator (to be selected by the Company in its sole discretion) charged by such administrator in connection with assuming responsibility for all the administrative services to be provided under the
Administrative Services Agreement for the Policies, Post-Closing Policies and Separate Accounts subject to recapture (the “Recaptured Business”), 12.lm (b) the fees and costs (estimated by the Actuary if necessary) of the Actuary for
its work in calculating the Recapture Fee and of any attorneys or other outside consultants advising the Company in connection with the recapture. 
 Ceding Commission. The Ceding Commission shall be equal to the Appraisal Value of the Recaptured Business as of the Recapture Date, adjusted for Taxes as provided below. 

Appraisal Value. The Appraisal Value of the Recaptured Business shall be equal to the present value (calculated at a 13.5
percent interest rate) as of the Recapture Date of the following values for the Recaptured Business: (a) After Tax Statutory Profits, (b) After Tax Interest on Required Surplus, minus or (c) the Increase or Decrease in Required
Surplus, minus (d) the Required Surplus as of the Recapture Date. 
 For these purposes, Required Surplus shall be
calculated on the assumption that Total Adjusted Capital to Company Action Level RBC, in each case with respect to the Recaptured Business, shall be 200 percent (Both Total Adjusted Capital and Company Action Level RBC shall be determined as
provided in the Risk-Based Capital (RBC) Model Act or the NAIC’s rules with respect thereto in effect as of the Recapture Date). In fixing the other values required by the above formula, the Actuary shall use its best estimates of future
mortality, earned and credited interest rates, lapses and surrenders, premium persistency, producer compensation, 

 
other taxes, licenses and fees; provided, however, that the Actuary shall assume that the unit cost of providing administrative services for the Recaptured Business shall increase by three
percent per year over the estimated cost of such services for the twelve months immediately following the Recapture Date. 

Tax Adjustments. The Ceding Commission shall be calculated net of any Federal or state income Tax credits and charges
incurred by the Company as a result of the recapture of the Recaptured Business. 
 If the Tax adjustments contemplated by the
preceding paragraph were made pursuant to the Code provisions in effect as of the Closing, the Company would realize a Tax credit for (a) the Ceding Commission adjusted for the difference between statutory and Tax reserves and (b) the
present value of the Tax charge for the DAC Taxes (determined under Section 848 of the Code) generated by the recapture. The present value of the DAC Tax charge shall be calculated at a 13.5 percent interest rate and shall take into account the
amount and timing of anticipated Tax deductions attributable to amortization of specified policy acquisition costs pursuant to Section 848 of the Code. The Ceding Commission would equal the Appraisal Value net of such credits and charges.

 In the event that the Code is amended prior to a Recapture Date, the Actuary shall make the appropriate adjustment (if any)
to the calculations set forth in the preceding paragraph in order to preserve the parties’ intent that the Ceding Commission be calculated net of any Federal or state income tax credits as a result of the recapture. 

 EXHIBIT C 

Closing Date Liabilities 
 AETNA LIFE INSURANCE AND ANNUITY COMPANY 
 ALIAC’s Closing Date
Liabilities shall consist of all liabilities listed below with respect to the Policies issued by ALIAC, determined as of 11:59 p.m. Eastern Time on the day immediately preceding the Effective Date in accordance with Connecticut SAP. 

Liabilities with Respect to Policies and Post-Closing Policies 
 Aggregate Reserves for Life Policies 
 Policy and Contract Claims 

Premiums Received in Advance 
 Liability for
Premium and Other Fund Deposits 
 Cost of Collection 
 Separate Account Liabilities 

 EXHIBIT D 

Required Balance 
 AETNA LIFE INSURANCE AND ANNUITY COMPANY 
 The Required Balance with
respect to the Policies and Post-Closing Policies issued by ALIAC as of any date shall be computed as the excess of (a) all liabilities listed below with respect to such Policies and Post-Closing Policies, determined under Connecticut SAP as of
such date, over (b) the aggregate amount of the policy loans (including accrued interest thereon) under such Policies and Post-Closing Policies, determined under Connecticut SAP as of such date. 

Liabilities with Respect to Policies and Post-Closing Policies 
 Aggregate Reserves for Life Policies 
 Policy and Contract Claims 

Premiums Received in Advance 
 Liability for
Premium and Other Fund Deposits 
 Cost of Collection 
 Separate Account Liabilities 

 SCHEDULE 1.1(A) 

[Page intentionally left blank]Amendment No. 1 to Coinsurance Agreement

 Exhibit 10.27 
 Amendment No. 1 to Coinsurance Agreement 
 Between 

ING Life Insurance and Annuity Company 
 (formerly Aetna Life Insurance and Annuity) 
 and 

Lincoln Life & Annuity Company of New York 
 Effective March 1, 2007 

 This Amendment No. 1 (“Amendment No. 1”) to Coinsurance Agreement (the
“Coinsurance Agreement”) dated October 1, 1998, between Aetna Life Insurance and Annuity Company, now known as ING Life Insurance and Annuity Company, (“ILIAC” or the “Company”) and The Lincoln National Life
Insurance Company (“LNL”), is entered into by ILIAC and Lincoln Life & Annuity Company of New York (“LNY”), successor to LNL as Reinsurer by assignment, and is entered into as of March 19, 2007 and effective as of
March 1, 2007. 
 WHEREAS, Company and LNL entered into the Coinsurance Agreement effective October 1, 1998;

 WHEREAS, LNL and LNY, LNL’s wholly owned subsidiary, has with ILIAC’s consent, entered into an Assignment and
Assumption Agreement, a copy of which is attached hereto as Exhibit A, pursuant to which LNL assigned all of its rights, title and interest in and to the Coinsurance Agreement and LNY assumed all of LNL’s obligations thereunder (except
the Retained Indemnification Obligations, as defined in the Assignment and Assumption Agreement) including the Reinsured Liabilities; 
 WHEREAS, as consideration for ILIAC’s consent to the assignment of the Reinsured Liabilities, LNY is establishing a Trust Account (as defined below) for the benefit of ILIAC with the Bank of New York
(“BNY”) to, among other things, secure the payment of amounts due under the Coinsurance Agreement; and 
 WHEREAS,
commensurate with the execution and delivery of this Amendment No. 1, LNY as grantor, Bank of New York, as trustee, and ILIAC, as beneficiary, are entering into a Grantor Trust Agreement (the “Trust Agreement”). 

NOW THEREFORE, to reflect the foregoing changes resulting from establishing the Trust Account, LNY and ILIAC agree to amend the
Coinsurance Agreement as follows. 
 I. Definitions: The following definitions are hereby amended and restated as
follows: 
 “Election Notice” means a notice given by the Company to the Reinsurer with respect to the exercise of
recapture remedies pursuant to Section 9.4 hereof. 
 “Market Value” means the market value of the assets held in
the trust account under the Trust Agreement. 
 “Secured Policies” means the Policies and Post-Closing Policies secured
by the Trust Account established under Section 9.4 hereof. 
 The definition of “Event of Default,” “Security Trust,”
“Security Trust Agreement” and “Trustee” are hereby deleted and the following definitions are added: 

“Recapture Event” means any event described in Section 9.4 hereof which gives rise to Recapture Rights or other remedy.

  
 2 

 “Trust Account” means a trust account established with the Trustee for the purpose
of securing the Reinsurer’s obligations to the Company in accordance with Article IX hereof. 
 “Trust Agreement”
means the Grantor Trust Agreement, a copy of which is attached to this Amendment No. 1 as Exhibit B. 
 “UCC”
means the New York Commercial Code. 
 In each and every place the words “Security Trust” and “Security Trust Agreement”
appear in the Coinsurance Agreement, as amended, they shall be replaced with “Trust Account” and “Trust Agreement” respectively. 
 II.(a) Section 3.5 is deleted in its entirety and replaced with the following: 
 Monthly Accountings. The Reinsurer shall provide the Company with a Monthly Accounting as of the end of each calendar month and shall use its commercially reasonable best efforts to provide the
Monthly Accounting by the date set by the Company to meet both its internal monthly reporting requirements and its quarterly and annual regulatory filing requirements. The Reinsurer shall in no event provide the Monthly Accounting later than 15
Business Days after the end of each calendar month; provided that in the event that subsequent data or calculations require revision of the final Monthly Accounting, the required revision and any appropriate payments shall be made in cash by the
parties five Business Days after they mutually agree as to the appropriate revision. The Reinsurer shall provide such Monthly Accountings in a format and containing the information reasonably requested by the Company. 

(b) Section 3.6 is amended by deleting (i) from the second line the words “and/or the Security Trust”; (ii) from
the fourth line “or the Security Trust”; and (iii) the last sentence. 
 III. Section 9.1 (iii) is
deleted and replaced with the following: 
 (iii) any breach or nonfulfillment by Reinsurer of, or any failure by Reinsurer to
perform, any of its covenants, terms or conditions of, or any duties or obligations under, this Agreement or the Trust Agreement. 
 IV. Section 9.4 (a) “Events of Default” is deleted in its entirety and replaced with the following: 
 (a) Security; Credit for Reinsurance. 
 (i) The Reinsurer, as grantor, is
creating the Trust Account with Bank of New York, naming the Company as sole beneficiary thereof. The Trust Account shall be funded as provided in the Trust Agreement. The Reinsurer hereby pledges the assets in the Trust Account, including its
residual interest therein, to perfect a first priority security interest in favor of the Company under Article 9 of the UCC. During the term of the Trust Agreement, the Reinsurer shall not, and shall direct that the Trustee will not, grant or cause
to be created in favor of any third person any security interest whatsoever in any of the assets in the Trust Account or in the residual interest therein. 

  
 3 

 (ii) In the event that the Company is denied credit for reinsurance ceded hereunder on the
financial statements filed by the Company in any jurisdiction, then within 30 days of the Reinsurer’s receipt of written notice by the Company informing them of such denial, the Reinsurer shall take all steps necessary to enable the Company to
obtain credit on its financial statement. 
 V. Sections 9.4(b), (c), (d) and (e) are deleted in their entirety and
replaced with the following: 
 (b) Recapture Events. From and after the Closing Date, any of the following occurrences
shall constitute an event that entitles the Company to exercise the recapture remedy set forth in this Section 9.4 (individually or collectively, as the context indicates, a “Recapture Event”): 

 

	 	(i)	Reinsurer ceases to maintain any of (A) an A.M. Best Company rating of at least B+, (B) a Standard & Poor’s Corporation insurer financial
strength rating of at least BB+, and (C) a Moody’s Investors Services, Inc. claims-paying ability rating of at least Ba1; or 

  

	 	(ii)	Reinsurer fails to (A) maintain a ratio of (i) Total Adjusted Capital (as defined in the Risk-Based Capital (RBC) Model Act or in the rules and procedures
prescribed by the NAIC with respect thereto, in each case as in effect as of December 31, 2006) to (ii) the Company Action Level RBC (as defined in the Risk-Based Capital (RBC) Model Act or in the rules and procedures prescribed by the
NAIC with respect thereto, in each case as in effect as of December 31, 2006) of at least 160 percent; or (B) maintain a Standard & Poor’s Corporation’s capital adequacy ratio (calculated in accordance with the rules and
procedures in effect as of December 31, 2006) of at least 100 percent; or 

  

	 	(iii)	a petition for insolvency, rehabilitation, conservation, supervision, liquidation or similar proceeding is filed by or against the Reinsurer or its statutory
representative in any jurisdiction; or 

  

	 	(iv)	intentionally left blank 

  

	 	(v)	this Agreement is terminated in accordance with its terms; or 

  

	 	(vi)	within thirty (30) calendar days of the termination of the Administrative Services Agreement in accordance with its terms, (A) Reinsurer does not take all
steps necessary to arrange for a third­ party administrator acceptable to the Company in its sole discretion, reasonably exercised, to provide all administrative services to be provided pursuant to the terminated Administrative Services
Agreement at the cost of Reinsurer or (B) such third-party administrator fails to enter into an administrative service agreement with the Company, satisfactory in form and substance to the Company in its sole discretion, reasonably exercised;
or 

  
 4 

	 	(vii)	a judgment or order is entered by a court of competent jurisdiction declaring the invalidity of the Trust or finding that the assets held in a Trust are general account
assets of Reinsurer or otherwise do not constitute a “secured claim” within the meaning of the laws of Reinsurer’s domiciliary state; or 

  

	 	(viii)	the Company is denied credit on its financial statements filed in any jurisdiction with respect to the reinsurance provided by the Reinsurer, and the Reinsurer does not
take all steps necessary to enable the Company to obtain credit on its financial statements within thirty (30) calendar days of the Reinsurer’s receipt of written notice from the Company as to the occurrence described herein;

  

	 	(ix)	intentionally left blank. 

 (c)
Notice to The Company. The Reinsurer shall provide the Company with: 
  

	 	(i)	written notice of any downgrade in the Reinsurer’s A. M. Best Company rating or its Standard & Poor’s Corporation insurer financial strength rating
or its Moody’s Investors Services, Inc. claims-paying ability rating within three (3) Business Days after the Reinsurer’s receipt of notice of such adjustment; 

 

	 	(ii)	a written report of the calculation of the Reinsurer’s Total Adjusted Capital and Authorized Control Level RBC (based on the Risk­ Based Capital (RBC) Model
Act and/or the rules and procedures in effect as of December 31, 2006) and Standard & Poor’s Corporation’s capital adequacy ratio (based on the rules and procedures in effect as of December 31, 2006) of each calendar
quarter within fifteen (15) Business Days after the end of such quarter; 

  

	 	(iii)	written notice of the occurrence of any Recapture Event within two (2) Business Days after its occurrence; and 

 

	 	(iv)	not less than annually, a written report, in form reasonably satisfactory to the Company, certifying that no Recapture Event has occurred during the period covered by
such report or is continuing as of the last day of such period, together with the appropriate calculations and back up reasonably necessary to substantiate the basis of the Reinsurer’s certification. 

The Company may, at its own expense, review the Reinsurer’s books and records to confirm the risk based capital calculations provided by the
Reinsurer pursuant to Section 9.4(c)(ii). In addition, Reinsurer shall (A) cooperate fully with the Company and promptly respond to the Company’s inquiries from time to time concerning the Reinsurer’s financial condition, operating
results and any events, occurrences or other matters which arise on and after the Effective Date and which reasonably relate to the Business or Reinsurer’s ability to perform and discharge its obligations under the Asset Purchase Agreement,
this Agreement or the Ancillary Agreements and (B) provide to the Company such financial statements, reports, internal control letters and reports prepared by auditors and other third parties, SAS-70 reports and other documents of the Reinsurer
as the Company may reasonably request from time to time. 

  
 5 

 (d) Election of Remedies. Upon the occurrence of any Recapture Event, the Company may
elect to recapture, subject to the terms and conditions set forth below all, but not less than all, of the Policies and the Post-Closing Policies ceded hereunder. The Company shall give the Reinsurer written notice of its election (the
“Election Notice”) specifying (x) the grounds for the exercise of its remedies pursuant to this Section 9.4 and (y) the effective date of recapture. 
 (e) Recapture. Any recapture by the Company shall not be deemed to have been consummated until (i) the Company has given the Reinsurer an Election Notice pursuant to Section 9.4(d); and
(ii) the Company has received payment of the entire Recapture Fee as determined in accordance with Exhibit A “Recapture Fee” to the Coinsurance Agreement. If the Reinsured Liabilities under the Policies and Post-Closing Policies to be
recaptured are secured by a Trust Account established in accordance with Section 9.4(a), the Company may, in its sole discretion, withdraw assets from the Trust Account having an aggregate Market Value (determined pursuant to the Trust
Agreement governing such Trust Account) not to exceed the amount of the Recapture Fee. The Reinsurer shall promptly pay the Company the full amount of the Recapture Fee, reduced by the amount, if any, withdrawn from the Trust Account. Following the
consummation of the recapture of Policies and Post-Closing Policies pursuant to this Section 9.4(e), no additional premiums, deposits or other amounts payable under such Policies and Post-Closing Policies shall be ceded to the Reinsurer
hereunder. 
 VI. Section 9.4(f) is deleted in entirety and intentionally left blank. 

VII. Section 9.4(i) is added as follows: 
 (i) Inconsistent Language. The parties acknowledge that this Section 9.4 has been amended since the execution of the Asset Purchase Agreement. Accordingly, to the extent there is anything
inconsistent between this Section 9.4 and Section 9.07 of the Asset Purchase Agreement, this Section 9.4 shall prevail. 
 VIII. Section 13.1 Notices is amended as follows: 
 Notices sent to
the Company shall be sent to: 
 ING Life Insurance and Annuity Company 

151 Farmington Avenue 
 Hartford, Connecticut 06156 
 Attention: Chief Financial Officer 

With copies (which shall not constitute notice) to: 
 ING North America Insurance Company 
 5780 Powers Ferry Road NW 

Atlanta, Georgia 30327-4390 
 Attention: Corporate General Counsel 

  
 6 

 And 
 ING Life Insurance and Annuity Company 
 151 Farmington Avenue 

Hartford, Connecticut 06156 
 Attention: MaryEllen Thibodeau TS31 
 Counsel 

Notices sent to LNY shall be sent to: 
 Lincoln Life & Annuity Company of New York 
 1300 S. Clinton Street

 Fort Wayne, IN 46802 
 Attention: Keith Ryan, Second Vice President 
 With a copy (which shall not
constitute notice) to: 
 Lincoln Life & Annuity Company of New York 

100 Madison Street 
 Suite 1860 
 Syracuse, NY 13202 

Attention: Robert Sheppard, Second Vice President and General Counsel 

IX. Exhibit B to the Coinsurance Agreement is deleted in its entirety and replaced with Exhibit B to this Amendment No. 1.

 Except as specifically changed by the express terms of this Amendment No. 1, the terms and provisions of the Coinsurance
Agreement remain unchanged and in full force and effect. 
 This Amendment No. 1 may be executed in counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument. 

  
 7 

 IN WITNESS WHEREOF, the parties have caused this Amendment No. 1
to be executed this 19th day of March, 2007 

 

					
	 LINCOLN LIFE & ANNUITY COMPANY
 OF NEW YORK

		
	By:	 	 
		 	Name:	 	Keith J. Ryan
		 	Title:	 	Second Vice President
	
	 ING LIFE INSURANCE AND ANNUITY
 COMPANY

		
	By:	 	 
		 	Name:	 	
		 	Title:	 	

 Exhibit A 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the
“Agreement”) is executed as of March 19, 2007 and effective as of March 1, 2007 by and between ING Life Insurance and Annuity Company (formerly named Aetna Life Insurance and Annuity Company (“ALIAC”)), a
Connecticut domiciled stock life insurance company (the “Company”), The Lincoln National Life Insurance Company, an Indiana domiciled stock life insurance company (the “Reinsurer”), and Lincoln Life &
Annuity Company of New York, a New York domiciled stock life insurance company (“LLANY”). 
 WHEREAS, the Company (then
ALIAC), Aetna Life Insurance Company (“ALIC”), the Reinsurer, and LLANY, entered into a Second Amended and Restated Asset Purchase Agreement, dated as of May 21, 1998 (the “Purchase Agreement”); 

WHEREAS, under the terms of the Purchase Agreement, ALIAC agreed to cede and transfer to Reinsurer certain liabilities pursuant to a Coinsurance
Agreement dated October 1, 1998 (the “Coinsurance Agreement”) and a Modified Coinsurance Agreement dated October 1, 1998 (the “Modco Agreement”); 
 WHEREAS, the Reinsurer agreed to perform certain administrative functions on behalf of ALIAC, pursuant to an Administrative Services Agreement dated October 1, 1998 (the
“Administrative Services Agreement”); 
 WHEREAS, the Company and Reinsurer entered into an Agreement effective as of
March 1, 2007 (“Optional Assignment Agreement”) pursuant to which Company granted the Reinsurer the right to assign to LLANY certain of its rights and delegate certain of its obligations existing under the LNL Coinsurance
Agreement, Modco Agreement, and Administrative Services Agreement (collectively the “Covered Agreements”), subject to certain specific conditions; 
 WHEREAS, consistent with the provisions of the Optional Assignment Agreement between the Company and the Reinsurer, the Reinsurer wishes to assign and delegate to LLANY and LLANY agrees to accept
and assume all of the transferred rights and obligations existing under the Covered Agreements as hereinafter set forth. 
 Capitalized terms
not defined herein shall have the meanings ascribed to them under the Coinsurance Agreement, the Modco Agreement or the Administrative Services Agreement, as applicable. 
 NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties agree as follows: 
 1. LLANY Representations and Warranties. LLANY represents and warrants that: 
  

	 	a)	LLANY is properly licensed as either a life insurance company or an accredited reinsurer in the States of Connecticut and New York; 

  
 1 

	 	b)	LLANY has a ratio of(i) Total Adjusted Capital (as defined in the Risk-Based Capital (RBC) Model Act or in the rules and procedures prescribed by the NAIC with respect
thereto, in each case as in effect as of December 31, 2006) to (ii) the Company Action Level RBC (as defined in the Risk-Based Capital (RBC) Model Act or in the rules and procedures prescribed by the NAIC with respect thereto, in each case
as in effect as of December 31, 2006), of at least 300 percent; 

  

	 	c)	LLANY has ratings no lower than those of Reinsurer from the following firms: (i) A.M. Best Company; (ii) Standard & Poor’s Corporation; and
(iii) Moody’s Investors Services, Inc.; 

  

	 	d)	LLANY is Controlled by or is under common Control with Reinsurer. 

 2. Assignment. As of the Effective Date, Reinsurer hereby assigns and transfers to LLANY all of Reinsurer’s right, title, and interest in and to, and delegates all its obligations and duties
under, the Covered Agreements other than the Retained Indemnification Obligations which it will retain (the “Transferred Rights and Obligations”). Retained Indemnification Obligations mean Reinsurer’s indemnification obligations under
(A) Section 9.1(ii) of the Coinsurance Agreement for Reinsurer Extra Contractual Obligations and Seller Extra Contractual Obligations; (B) Section 9.1(iii) of the Coinsurance Agreement for any breach, nonfulfillment or failure to
perform by Reinsurer prior to the Effective Date; and (C) Section 6.02 of the Administrative Services Agreement for any breach, nonfulfillment, performance, failure to perform or other act, error or omission by Reinsurer, in its role as
Administrator, prior to the Effective Date. 
 3. Assumption. As of the Effective Date, LLANY hereby assumes and agrees to pay, perform
and discharge in full all of the Transferred Rights and Obligations of Reinsurer under the Covered Agreements and releases Reinsurer from any and all such liabilities and obligations thereunder so as to result in the substitution of LLANY for
Reinsurer in Reinsurer’s name, place and stead except with respect to the Retained Indemnification Obligations. It is the intent of LLANY and Reinsurer to effect a novation of both the Coinsurance Agreement and the Modco Agreement with respect
to the Transferred Rights and Obligations but not the Retained Indemnification Obligations. 
 4. Ceding Commission. LLANY shall pay
Reinsurer a ceding commission equal to $156.4 million on the effective date of this Agreement. 
 5. Terms and Conditions. LLANY hereby
agrees to be bound by the terms and conditions of each and every Covered Agreement. 
 6. Company Consent to Assignment and Assumption.

  

	 	(a)	 Company hereby consents to the assignment and assumption set forth in Sections 2 and 3 hereof. Company, Reinsurer, and LLANY agree that such assignment
and assumption shall have the force and effect of creating a direct agreement between Company and LLANY with respect to the Transferred Rights and Obligations and that Reinsurer will remain directly liable to Company for the Retained Indemnification
Obligations. Reinsurer agrees that it will indemnify, defend and hold harmless Company against any 

  
 2 

	 	
Loss arising from (i) any degradation in service quality below the level described in Section 2.4 of the Administrative Services Agreement and (ii) LLANY’s failure to perform
any of its obligations under the Administrative Services Agreement. 

  

	 	(b)	Reinsurer agrees that it will indemnify, defend and hold harmless Company against any Loss arising from (i) any degradation in service quality below the level
described in Section 2.4 of the Administrative Services Agreement, (ii) any additional Tax liability incurred by Company directly related to Company’s execution of this Agreement, provided that Company grants Reinsurer the right to
control and manage any such tax controversy and cooperates in good faith with Reinsurer’s efforts to resolve any tax controversy with the Internal Revenue Service. 

 

	 	(c)	Reinsurer covenants and warrants that as long as the Coinsurance Agreement and the Modco Agreement remain in effect it shall remain responsible for services pursuant to
the terms of either the Interaffiliate Service Agreement entered into by LLANY and Reinsurer as of January 1, 2004, or a substantially similar agreement to be entered into between Reinsurer and LLANY and shall cause the services previously
provided by Reinsurer pursuant to the Administrative Service Agreement to continue to be performed at no lower level of quality than that which would have been required of Reinsurer. 

7. Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and to their successors and assigns.

 8. Notices. Any notice or other communication required or permitted under this Agreement shall be in writing and shall be deemed to
have been duly given when (a) mailed by United States registered or certified mail, return receipt requested, (b) mailed by overnight express mail or other nationally recognized overnight or same-day delivery service or (c) delivered
in person to the parties at the following addresses: 
 If to the Company, to: 

ING Life Insurance and Annuity Company 
 151 Farmington Avenue 
 Hartford, Connecticut 06156 

Attention: MaryEllen Thibodeau, Counsel 
 With a concurrent copy to: 
 ING North America Insurance Corporation 

5780 Powers Ferry Road 
 Atlanta, GA 30327-4390 
 Attention: Corporate General Counsel 

  
 3 

 If to the Reinsurer, to: 

The Lincoln National Life Insurance Company 
 1300 South Clinton Street 
 Fort Wayne, IN 46802 

Attention: Marcie Weber, Senior Counsel 
 If to LLANY, to: 
 Lincoln Life & Annuity Company of New York 

100 Madison Street 
 Suite 1860 
 Syracuse, NY 13202 

Attention: Robert Sheppard, Second Vice President and General Counsel 
 9. Waivers. Any term or condition of this Agreement may be waived at any time by the party that is entitled to the benefit thereof. Such waiver must be in writing and must be executed by an officer
of such party. A waiver on one occasion shall not be deemed to be a waiver of the same or any other term or condition on a future occasion. This Agreement may be modified or amended only by a writing duly executed by an officer of the Company, the
Reinsurer, and LLANY respectively. 
 10. Assignments. This Agreement (or any rights or obligations therein) shall not be assigned or
delegated by any of the parties hereto without the prior written approval of the other parties, and of the New York Insurance Department. Any attempted assignment or delegation in violation of this paragraph shall be invalid and void. 

11. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard of its
conflicts of law doctrine. 
 12. Counterparts. This Agreement may be executed simultaneously in any number of counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument. 
 13. Severability. If any provision
of this Agreement is held to be illegal, invalid or unenforceable under any present or future law or if determined by a court of competent jurisdiction to be unenforceable, and if the rights or obligations of the LLANY, the Company or the Reinsurer
under this Agreement will not be materially and adversely affected thereby, such provision shall be fully severable, and this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part
of this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. 

  
 4 

 IN WITNESS WHEREOF, the parties have entered into this Agreement as of the day and year first written
above. 
  

			
	ING LIFE INSURANCE AND ANNUITY COMPANY
		
	By:	 	 
		
	Name:	 	
		
	Title:	 	
	
	THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
		
	By:	 	 
		
	Name:	 	Keith J. Ryan
		
	Title:	 	Second Vice President
	
	LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
		
	By:	 	 
		
	Name:	 	Keith J. Ryan
		
	Title:	 	Second Vice President

 Exhibit B 
 GRANTOR TRUST AGREEMENT 
 Dated as of March 19, 2007 

and 

Effective as of March 1, 2007 
 Among 
 Lincoln Life & Annuity Company of New York

 as Grantor 
 ING Life Insurance and Annuity Company 
 as Beneficiary 

and 

The Bank of New York 
 as Trustee 
 and 

The Bank of New York 
 as Securities Intermediary 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
	Parties/Recitals	  	 	2	  
			
	1.	 	 Deposit of Assets to the Trust Account
	  	 	3	  
			
	2.	 	 Withdrawal of Assets from the Trust Account
	  	 	5	  
			
	3.	 	 Redemption, Investment and Substitution of Assets
	  	 	8	  
			
	4.	 	 Crediting of Income
	  	 	9	  
			
	5.	 	 Right to Vote Assets
	  	 	9	  
			
	6.	 	 Additional Rights and Duties of the Trustee
	  	 	10	  
			
	7.	 	 The Trustee’s Compensation, Expenses, etc.
	  	 	11	  
			
	8.	 	 Resignation or Removal of the Trustee
	  	 	12	  
			
	9.	 	 Termination of the Trust Account
	  	 	13	  
			
	10.	 	 Representations and Warranties
	  	 	13	  
			
	11.	 	 Definitions
	  	 	15	  
			
	12.	 	 Governing Law
	  	 	17	  
			
	13.	 	 UCC
	  	 	17	  
			
	14.	 	 Successors and Assigns
	  	 	17	  
			
	15.	 	 Severability
	  	 	17	  
			
	16.	 	 Entire Agreement
	  	 	17	  
			
	17.	 	 Amendments
	  	 	17	  
			
	18.	 	 Notices, etc.
	  	 	17	  
			
	19.	 	 Headings
	  	 	19	  
			
	20.	 	 Counterparts
	  	 	19	  

  
 1 

 GRANTOR TRUST AGREEMENT 

GRANTOR TRUST AGREEMENT, dated as of March 19, 2007 and effective as of March 1, 2007 (the “Effective Date”)
(the “Agreement”), by and among Lincoln Life & Annuity Company of New York, a stock insurance company organized and existing under the laws of and domiciled in the State of New York (hereinafter the “Grantor”),
ING Life Insurance and Annuity Company, a stock insurance company organized and existing under the laws of and domiciled in the State of Connecticut (such insurer and its successors by operation of law, including, without limitation, any liquidator,
rehabilitator, receiver or conservator thereof, being hereinafter referred to as the “Beneficiary”), The Bank of New York, a New York banking corporation as trustee and as secured party, for the benefit of the Beneficiary (such
bank, in its capacity as trustee and as secured party, being referred to as the “Trustee”), and The Bank of New York, a New York banking corporation, as securities intermediary, (such bank, in its capacity as securities
intermediary, being referred to as the “Securities Intermediary”). 
 WITNESSETH: 

WHEREAS, the Beneficiary (formerly named Aetna Life Insurance and Annuity Company) is a party to the Coinsurance Agreement dated
October 1, 1998, as amended effective March 1, 2007 (as amended, the “LNL Coinsurance Agreement”) with The Lincoln National Life Insurance Company (“LNL”); and 

WHEREAS, the Beneficiary is also a party to the Coinsurance Agreement dated October 1, 1998, as amended effective
March 1, 2007 (as amended, the “LLANY Coinsurance Agreement”) with the Grantor; and 
 WHEREAS, pursuant
to an Assignment and Assumption Agreement dated the date of this Agreement, the Grantor has succeeded to the interests of LNL under the LNL Coinsurance Agreement (except as otherwise specified in the Assignment and Assumption Agreement); and

 WHEREAS, as consideration for the Beneficiary’s consent to the assignment of the LNL Coinsurance Agreement
pursuant to the Assignment and Assumption Agreement, the Grantor agreed to secure payment of the Secured Obligations; and 

WHEREAS, the Grantor desires to establish with the Trustee a trust account (the “Trust Account”) and transfer to
the Trustee for deposit in the Trust Account cash and other Assets in an amount equal to the Required Amount in order to secure and to fund payment of the Secured Obligations; and 

WHEREAS, the Trustee has agreed to act as Trustee hereunder and, in accordance with the terms hereof, to hold cash or other Assets
in trust in the Trust Account on the terms herein set forth. 
 NOW, THEREFORE, for and in consideration of the premises
and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereby agree as follows: 

  
 2 

 1. Deposit of Assets in the Trust Account; Security Interest 

(a) Effective as of the Effective Date and upon delivery of this Agreement, the Grantor hereby establishes a Trust Account and the Trustee hereby accepts
the Trust Account herein created and declared upon the terms provided herein and shall administer the Trust Account as Trustee and, with respect to the security interest granted in Section l(h) hereof, as secured party for the exclusive benefit of
the Beneficiary. The Grantor shall establish and the Trustee shall maintain the Trust Account as a securities account at The Bank of New York as Securities Intermediary with regard to the Trust Account. The Trustee shall be the entitlement holder
with respect to the Trust Account. The Trust Account shall be subject to withdrawal by the Beneficiary and the Grantor as provided herein. The Trustee and its lawfully appointed successors are authorized and shall have power to receive such cash and
other Assets as the Grantor transfers to or vests in the Trustee or places under the Trustee’s possession and control, and to hold, invest, reinvest, manage and dispose of the same for the uses and purposes and in the manner and according to
the provisions hereinafter set forth. All such trusteed assets at all times shall be maintained as a trust account, separate and distinct from all other assets of the Trustee, and shall be continuously maintained by the Trustee. 

(b) Effective as of the Effective Date and upon delivery of this Agreement, the Grantor will transfer to the Trustee, for deposit to the Trust Account,
cash and such other Assets as may be designated by the Grantor in an amount equal to the Required Amount as of the calendar quarter immediately preceding the Effective Date, which the Grantor and the Beneficiary agree is USD$2,723,848,944. The
initial Assets are listed on Exhibit A. 
 (c) Within fifteen Business Days after the end of each calendar quarter: 

(i) the Grantor shall determine the Required Amount as of the last day of the calendar quarter just ended. For purposes of this
Agreement, the Required Amount shall be determined by the Grantor in accordance with the standards for calculating reserves set forth in Section 2.5 of the LNL Coinsurance Agreement and Section 2.5 of the LLANY Coinsurance Agreement;

 (ii) if the Valuation Report for the Assets as of the last day of the calendar quarter just ended shows that the fair market
value of the Assets is less than the Required Amount as of the last day of such quarter, then, within five Business Days after the later to occur of receipt of the Valuation Report and Grantor’s determination of the Required Amount, the Grantor
shall transfer cash or other Assets to the Trust Account in an amount equal to such deficiency; 
 (iii) the Grantor shall
provide both the Beneficiary and the Trustee a certificate signed by an authorized officer of Grantor setting forth the amounts described in (i) and (ii), if applicable, and including reasonable supporting detail of such computations and
certifying that the Assets in the Trust Account comply with the Investment Policy. 

  
 3 

 (d) To the extent that the Beneficiary disagrees with the Grantor’s calculation of the Required Amount
or the certification that the Assets comply with the Investment Policy, the Beneficiary shall notify both the Grantor and the Trustee in writing within ten Business Days of the Beneficiary’s receipt of the certificate described in
Section 1(c)(iii). If the Beneficiary and the Grantor resolve the dispute then Beneficiary will provide written notice of that fact to Trustee within three Business Days of the resolution of the dispute. If the Grantor and the Beneficiary
cannot resolve the disagreement within ten Business Days of the Beneficiary notifying the Grantor of its disagreement, such dispute between the Beneficiary and the Grantor regarding the Grantor’s determination of the Required Amount shall be
resolved pursuant to Article X of the LNL Coinsurance Agreement. The Trustee shall have no duty, responsibility or obligation whatsoever to participate in any such dispute resolution process between the Beneficiary and the Grantor. If the resolution
of any such dispute results in the Required Amount being increased above the Grantor’s determination, then within five Business Days following such resolution, the Grantor shall deposit into the Trust Account additional Assets in an amount
equal to such increase. 
 (e) The Grantor hereby represents, warrants and covenants (i) that any Assets transferred to the Trustee for
deposit to the Trust Account will be in such form that the Beneficiary, upon satisfaction of the conditions set forth in Section 2 (a), and the Trustee, upon written direction by the Beneficiary, may negotiate any such Assets without consent or
signature from the Grantor or any other person in accordance with the terms of this Agreement; and (ii) that all Assets transferred to the Trustee for deposit to the Trust Account will consist only of cash (United States legal tender) and
Eligible Securities. 
 (f) All Assets in the Trust Account shall be valued at their current fair market value in U.S. dollars as determined by
the Trustee exercised in a reasonable manner as described below. Within ten Business Days after the end of each month the Trustee shall send to the Beneficiary and the Grantor a written report regarding the valuation of the Assets at the end of such
month (the “Valuation Report”). Each report shall include a fair market value valuation of all Assets in the Trust Account in accordance with the asset prices provided by the market makers or such other appropriate independent
sources of valuation, by an independent nationally recognized pricing service to which the Trustee subscribes in the normal conduct of its business (e.g., Interactive Data, Merrill Lynch, Bloomberg, Lehman Brothers Inc., etc.). The Trustee shall not
be liable for an incorrect fair market valuation of Assets caused by the use of inaccurate or erroneous prices provided by such pricing services or sources. If the price is not available as set forth above, the Trustee can obtain the price by
retaining, at the expense of the Grantor and pursuant to the written recommendation of the Grantor’s investment manager, a major independent securities valuation firm to appraise the value of such Assets. If the Grantor or the Beneficiary
disputes the fair market value of the Assets in the Trust Account as set forth in the Valuation Report, then within ten Business Days following receipt of the Valuation Report, the Grantor or the Beneficiary, as the case may be, will notify the
other party of its dispute regarding the valuation (the “Valuation Dispute Notice”). The Valuation Dispute Notice shall contain sufficient information to support the disputing party’s valuation. The Trustee shall not be a party
to any dispute between the Grantor and Beneficiary relating to the valuation of Assets set forth in the Valuation Report, but shall be provided with a copy of any Valuation Dispute Notice delivered by the Grantor or Beneficiary under this provision.
The non-disputing party has five Business Days from the receipt of the Valuation Dispute Notice to agree with the disputing party’s valuation or provide its own reasonable valuation of the specific Assets in dispute (the “Asset
Response”). During no more than four Business Days after the Asset Response, the parties to the 

  
 4 

 
dispute will continue to work to resolve the disagreement, failing which they shall disclose to each other their final and last best proposal (“Proposal” as hereinafter defined)
no later than the end of such four Business Day period. For purposes hereof, a “Proposal” of a party to the dispute shall consist of the valuation correction and related information supporting the valuation correction. If no
resolution of disagreements is reached on or prior to the Business Day following such four Business Days, the parties to the dispute will on such next following Business Day submit their final and last best Proposal (previously disclosed to the
other party as provided above) to arbitration by a major independent securities valuation firm, the identity of which shall be mutually agreed, and the parties to the dispute will abide by the result of such arbitration, which arbitration process
shall require the arbitrator to select one of the two final and last best Proposals. The cost of such arbitration shall be shared equally by the Beneficiary and Grantor. To the extent feasible, and at the joint written direction of the Grantor and
the Beneficiary, the Trustee shall adopt the valuation methodology underlying the valuation adopted in arbitration or agreed to by the Beneficiary and the Grantor. 
 (g) Pending resolution of any dispute with respect to valuation of Assets, the Grantor and Beneficiary will continue to follow the requirements of this Agreement based on the Trustee’s Valuation
Report as submitted. Upon resolution of any dispute regarding the valuation, the Trustee will take the action hereunder that it would otherwise have been required to take, if any. If resolution of any such dispute results in the fair market value of
the Assets in the Trust Account being less than the Required Amount, then, within five Business Days of such resolution, the Grantor will transfer cash or other assets to the Trust Account in an amount equal to such deficiency. 

(h) In order to secure the timely and complete payment and performance of each and all of the Grantor’s Secured Obligations, the Grantor hereby
grants to the Trustee, as agent of and as secured party for the exclusive benefit of the Beneficiary, a security interest in the Grantor’s right, title and interest in the Trust Account and the Assets (including without limitation any residual
interest therein). The Trustee, as entitlement holder for the benefit of the Beneficiary of all rights associated with the Assets and the Trust Account, shall have control (as defined in the UCC) of the Assets and Trust Account for the purpose of
perfecting the interest granted hereby and shall issue entitlement orders to the Securities Intermediary as instructed by the Grantor and the Beneficiary in accordance with the terms of this Agreement. The Grantor hereby authorizes the Beneficiary
to file or to instruct the Trustee to file UCC-1 Financing Statements with respect to the Trust Account and the Assets for which such a financing statement is appropriate, and hereby appoints the Beneficiary as attorney-in-fact for the purpose of
signing Grantor’s name on any such financing statements. The Trustee shall, at the written direction of the Beneficiary, file the completed UCC-1 Financing Statements delivered to the Trustee by the Beneficiary with respect to the Security
Trust Account and the Assets. 
 2. Withdrawal of Assets from the Trust Account. 
 (a) The Beneficiary shall have the right, at any time and from time to time, to instruct the Trustee to withdraw Assets from the Trust Account for the reasons specified in Section 2(f) only, by
providing written notice to both the Grantor and the Trustee (the “Beneficiary Withdrawal Notice”), in an amount and for the reason as are specified in such Beneficiary Withdrawal Notice. The Beneficiary Withdrawal Notice may designate a
party (the “Designee”) other than the Beneficiary to whom Assets specified therein 

  
 5 

 
shall be delivered. The Beneficiary need present no statement or document in addition to a Beneficiary Withdrawal Notice in order to withdraw any Assets. A copy of the form of the Beneficiary
Withdrawal Notice is attached as Exhibit B. Such Beneficiary Withdrawal Notice shall be effective and shall be honored by the Trustee promptly after delivery to the Trustee. 
 (b) Upon a Beneficiary Withdrawal Notice becoming effective, the Trustee shall immediately take any and all steps necessary to transfer, absolutely and unequivocally, all right, title and interest in the
Assets specified in such Beneficiary Withdrawal Notice, and shall deliver such Assets to or for the account of the Beneficiary or such Designee as specified in such Beneficiary Withdrawal Notice. 

(c) If no Triggering Event has occurred and provided that any dispute with Beneficiary as described in Sections l(d) or l(f) has been satisfactorily
resolved, then no more than once per quarter, the Grantor shall have the right to instruct the Trustee to withdraw Assets from the Trust Account for the reason specified in Section 2(g)(l) only, upon written notice to the Trustee (the
“Grantor Withdrawal Notice”), in the amount specified in such Grantor Withdrawal Notice. The Grantor Withdrawal Notice may specify that the Assets are to be delivered to itself, a Designee or the Beneficiary. The Grantor need present no
statement or document in addition to a Grantor Withdrawal Notice in order to withdraw any assets. A copy of the Grantor Withdrawal Notice is attached as Exhibit D. Such Grantor Withdrawal Notice shall be effective and shall be honored by the Trustee
promptly after the latest to occur of the following: (i) the Grantor Withdrawal Notice is delivered to the Trustee; (ii) ten Business Days after the Grantor provides the certificate described in Section l(c)(iii) to both the Beneficiary
and the Trustee if the Beneficiary has not objected in writing as described in Section l(d) during that ten Business Day period; and (iii) if the Trustee has received a written notice of disagreement from Beneficiary as described in
Section 1(d), when the Trustee receives written notification from the Beneficiary that the dispute has been resolved. As part of the Grantor Withdrawal Notice, the Grantor shall certify that each withdrawal has been made for the purposes
specified in Section 2(g)(1). If a Beneficiary Withdrawal Notice is outstanding when the Trustee receives a Grantor Withdrawal Notice, then the Beneficiary Withdrawal Notice shall be honored first. 

(d) Upon a Grantor Withdrawal Notice becoming effective, the Trustee shall immediately take any and all steps necessary to transfer the Assets specified
in such Grantor Withdrawal Notice, and shall deliver such Assets to or for the account of the Grantor or such Designee as specified in such Grantor Withdrawal Notice. 
 (e) Except as expressly permitted by Section 3 of this Agreement, in the absence of a Beneficiary or Grantor Withdrawal Notice, the Trustee shall not allow substitutions or withdrawals of any Assets
from the Trust Account. 
 (f) The Beneficiary hereby covenants to the Grantor that it will use and apply any withdrawn assets, without
diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: 
 (1) to reimburse the
Beneficiary for any Reinsured Liabilities under the Policies and the Post Closing Policies reinsured under the LNL Coinsurance Agreement or the LLANY Coinsurance Agreement paid by the Beneficiary to the extent not paid by the Grantor when due;

  
 6 

 (2) to pay any amounts that are due to the Beneficiary under the LNL Coinsurance Agreement
or the LLANY Coinsurance Agreement to the extent not paid directly to the Beneficiary by the Grantor when due; 
 (3) to pay all
or any portion of the Recapture Fee due in connection with the recapture of the Policies and the Post Closing Policies under the LNL Coinsurance Agreement or the LLANY Coinsurance Agreement ; or 

(4) to pay any other amounts that are due to the Beneficiary under any of the Ancillary Agreements. 

(g) The Grantor hereby covenants to the Beneficiary that it will remove assets from the Trust Account for the following purposes only: 

(1) to reduce the amount held in the Trust Account by the excess, if any, of the fair market value of the Assets as shown in the Valuation
Report for the Assets as of the last day of the calendar quarter just ended, over the Required Amount as of the last day of such quarter in accordance with this Section 2; or 

(2) to substitute assets held in the Trust Account with other securities of equivalent or higher value and equivalent or higher quality in
accordance with Section 3 of this Agreement. 
 (h) Procedures for Withdrawals after Grantor Credit Event. 

(1) If Grantor ceases to maintain an A. M. Best Company financial strength rating of at least B++, a Grantor Credit Event shall have
occurred. 
 (2) After a Grantor Credit Event occurs and Beneficiary has received notice thereof pursuant to Section 9.1
(c) of the LNL Coinsurance Agreement and the LLANY Coinsurance Agreement, Beneficiary shall notify Trustee of the fact in writing, and the following procedures shall be used for withdrawals by Grantor. 

(a) Grantor shall provide each Grantor Withdrawal Notice to both the Trustee and the Beneficiary. 

(b) Trustee shall follow the procedures described in Sections 2(c) and 2(d) above except that a Grantor Withdrawal Notice shall not be
honored until Trustee shall have received a written confirmation permitting the withdrawal from the Beneficiary. 
 (c)
Beneficiary shall permit the withdrawal if (A) it receives written certification from the Grantor that such withdrawal is required to pay policy benefits pursuant to the LLANY Coinsurance Agreement and/or the LNL Coinsurance Agreement;
(B) the condition to withdrawal in Section 2(g)(l) has been met; and (C) no Recapture Event has occurred. 

  
 7 

 (i) Procedures for Withdrawals after Grantor Event of Default. 

(1) If Grantor’s ceases to maintain am A. M. Best Company financial strength rating of at least B+, a Grantor Event of Default shall
have occurred. 
 (2) After the occurrence of a Grantor Event of Default and Beneficiary has received notice thereof from the
Grantor pursuant to Section 9.1 (c) of the LNL Coinsurance Agreement and the LLANY Coinsurance Agreement, the Beneficiary shall notify Trustee of the fact in writing and the following procedures shall be followed for withdrawals by
Grantor. 
 (a) Grantor shall provide each Grantor Withdrawal Notice to both the Trustee and the Beneficiary. 

(b) Trustee shall follow the procedures described in Sections 2(c) and 2(d) above except that a Grantor Withdrawal Notice shall not be
honored until Trustee shall have received from the Beneficiary a written confirmation permitting the withdrawal. 
 (c) After
the occurrence of a Grantor Event of Default, Beneficiary may, in its sole discretion, decline to permit a withdrawal to be made pursuant to an outstanding Grantor Withdrawal Notice. 
 (j) The Trustee may rely and shall be protected in acting upon a Grantor Withdrawal Notice and/or Beneficiary Withdrawal Notice and shall not incur any liability to anyone resulting from actions taken by
the Trustee in reliance in good faith on such instructions. 
 (k) The Trustee shall have no responsibility whatsoever to determine that any
Assets withdrawn from the Trust Account pursuant to Section 2 of this Agreement will be used and applied in the manner contemplated by paragraphs (f) and (g) of this Section 2. 

(l) The Trustee shall be entitled to conclusively rely upon any notice of a Triggering Event that it reasonably believes to be from the Beneficiary. The
Trustee shall not be responsible to determine that a Triggering Event has occurred. 
 3. Redemption, Investment and Substitution of
Assets. 
 (a) The Trustee shall surrender for payment all maturing Assets and all Assets called for redemption and deposit the proceeds of
any such payment in the Trust Account. 
 (b) The Grantor hereby notifies the Trustee and the Beneficiary that it has retained the services of
Delaware Investment Advisors (“DIA”) as its investment manager for all Assets, which may be held in the Trust Account. The Grantor will cause DIA to follow the Investment Policy for Assets held in the Trust Account. The Grantor agrees that
all investments and substitutions of securities permitted by this Section will be and remain in compliance with the relevant limitations of the applicable insurance laws and the 

  
 8 

 
Investment Policy. The Trustee shall follow the instructions of DIA regarding the settlement of trades and not accept the direction of any other investment manager without the Grantor’s
prior written consent. The Trustee shall forward a copy of any notice, statement, or report that it is required to provide to the Grantor, to DIA also. Substitutions made pursuant to this Section 3, shall not be subject to the withdrawal
provisions of Section 2. 
 (c) The Grantor shall be responsible for investing and reinvesting Assets. From time to time, at the written
order and direction of the Grantor or DIA, the Trustee shall invest Assets as specified by the Grantor or DIA. 
 (d) From time to time, and
subject to all applicable provisions of this Agreement, the Grantor or DIA may direct the Trustee to substitute Assets of equivalent or higher value and quality for other Assets presently held in the Trust Account in accordance with the Investment
Policy and relevant limitations of applicable insurance laws. The Trustee shall have no responsibility whatsoever to determine the value of such substituted securities. 
 (e) Any instruction or order concerning such investments or substitutions of securities shall be referred to herein as an “Investment Order”. The Trustee shall execute Investment Orders and
settle securities transactions by itself or by means of an agent or broker. The Trustee shall not be responsible for any act or omission or for the solvency of any such agent or broker. The Trustee shall not be liable except for its own negligence,
willful misconduct or lack of good faith. 
 (f) When the Trustee is directed to deliver Assets against payment, delivery will be made in
accordance with generally accepted market practice. 
 (g) When Trustee is directed to deliver Assets against payment, delivery will be made in
accordance with generally accepted market practice. 
 (h) Any loss incurred from any investment pursuant to the terms of this Section 3
shall be borne exclusively by the Trust Account. 
 4. Crediting of Income. 
 All payments of interest, dividends and other income in respect of Assets in the Trust Account shall be posted and credited by the Trustee to the Trust Account. Trustee may debit the Trust Account to
recoup any interest, dividend or other income automatically posted and credited on the payment date to the Trust Account which is not subsequently received by the Trustee. 
 5. Right to Vote Assets. 
 The Trustee shall forward all annual and interim stockholder
reports and all proxies and proxy materials relating to the Assets in the Trust Account to the Grantor and DIA. The Grantor and/or DIA shall have the full and unqualified right to vote any Assets in the Trust Account and to exercise any and all
proprietary rights not inconsistent with this Agreement with respect to any securities or other property forming a part of the Trust Account. 

  
 9 

 6. Additional Rights and Duties of the Trustee and the Securities Intermediary. 

(a) The Trustee shall notify the Grantor and the Beneficiary in writing within ten (10) days following each deposit to, withdrawal from, or
substitution of Assets in, the Trust Account. 
 (b) Before accepting any Asset for deposit to the Trust Account, the Trustee shall determine
that such Asset is in such form that the Beneficiary or the Trustee, upon direction by the Beneficiary may, negotiate such Asset without consent or signature from the Grantor or any person other than the Trustee in accordance with the terms of this
Agreement. 
 (c) The Trustee shall have no responsibility whatsoever to determine that any Assets in the Trust Account are or continue to be
assets which comply with the Investment Policy, any terms or conditions of the LNL Coinsurance Agreement or the LLANY Coinsurance Agreement, or any applicable insurance laws. 
 (d) The Trustee shall hold all Assets in a safe place at the Trustee’s office in the United States, except that the Trustee may deposit any Assets in the Trust Account in a book-entry account
maintained at the Federal Reserve Bank of New York or in depositories such as the Depository Trust Company. Assets may be held in the name of a nominee maintained by the Trustee or by any such depository. 

(e) The Trustee shall accept and open all mail directed to the Grantor or the Beneficiary in care of the Trustee and shall forward such mail to the party
to whom it is directed. 
 (f) The Trustee shall furnish to the Grantor and the Beneficiary a statement of all Assets in the Trust Account at
the inception of the Trust Account and monthly, in accordance with Section l(f) hereof. 
 (g) The Trustee shall keep full and complete records
of the administration of the Trust Account. Upon the request of the Grantor or the Beneficiary, the Trustee shall promptly permit the Grantor or the Beneficiary, their respective agents, employees or independent auditors to examine, audit, excerpt,
transcribe, and copy, during the Trustee’s normal business hours, any books, documents, papers, and records relating to the Trust Account or the Assets. 
 (h) Unless otherwise provided in this Agreement, the Trustee is authorized to follow and rely upon all instructions given by officers named in incumbency certificates furnished to the Trustee from time to
time by the Grantor, DIA, and the Beneficiary, respectively, and by attorneys-in-fact acting under written authority furnished to the Trustee by the Grantor, DIA or the Beneficiary, including, without limitation, instructions given by letter,
facsimile transmission, telegram, teletype, cablegram or electronic media, if the Trustee reasonably believes such instructions to be genuine and to have been signed, sent or presented by the proper party or parties. The Trustee shall be liable only
for its own negligence, willful misconduct or lack of good faith and, except for such liability, will not incur any liability to anyone resulting from actions taken by the Trustee in reliance in good faith on such instructions given in accordance
with this Agreement, including without limitation, any liability in executing instructions (i) from any attorney-in-fact or investment manager prior to receipt by it of notice of the revocation of the written authority of the attorney-in-fact
or investment manager, or (ii) from any officer of the Grantor, the Beneficiary, or DIA named in an incumbency certificate delivered hereunder prior to receipt by it of a more current certificate. 

  
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 (i) The duties and obligations of the Trustee shall only be such as are specifically set forth in this
Agreement, as it may from time to time be amended, and no implied duties or obligations shall be read into this Agreement against the Trustee. The Trustee shall not be liable except for its own negligence, willful misconduct or lack of good faith,
and in no event shall the Trustee be liable for special, punitive, or consequential losses or damages arising in connection with this Agreement. 
 (j) No provision of this Agreement shall require the Trustee to take any action which, in the Trustee’s reasonable judgment, would result in any violation of this Agreement or any provision of law.
If any third party asserts a lien against any of the Assets, the Trustee shall promptly notify both the Grantor and the Beneficiary of such claim. 
 (k) The Trustee shall not be responsible for the existence, genuineness or value of any of the Assets or for the validity, perfection, priority or enforceability of the liens on any of the Assets, whether
impaired by operation of law or by reason of any action or omission to act on its part hereunder, except to the extent such action or omission constitutes negligence, lack of good faith or willful misconduct on the part of the Trustee, for the
validity of title to the Assets, for insuring the Assets or for the payment of taxes, charges, assessments or liens upon the Assets subject to the requirement of good faith, reasonableness and the lack of negligence or willful misconduct on the part
of the Trustee. 
 (l) The Trustee shall not incur any liability for not performing any act or fulfilling any duty, obligation, or
responsibility hereunder by reason of any occurrence beyond the control of Trustee including but not limited to any act or provision of any present or future law or regulator or governmental authority, terrorism, any act of God or war, or the
unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility. The Trustee will use everything within its reasonable control to bring its systems and operations back into operation in compliance with the terms of
this Agreement and in conjunction with Trustee’s operations contingency plan, an updated copy of which shall be provided to either the Grantor or the Beneficiary upon request. 
 (m) The Securities Intermediary agrees that it will comply with entitlement orders issued by the Trustee in accordance with the terms of this Agreement, and that such compliance is not subject to any
conditions, qualifications or further consents. The Securities Intermediary will not comply with entitlement orders issued by any other person. 

(n) The Securities Intermediary hereby waives any right of counterclaim, bankers’ liens, liens or perfection rights as securities intermediary with
respect to the Assets, the proceeds thereof and the Trust Account. 
 7. The Trustee’s Compensation, Expenses, etc. 

(a) The Grantor shall pay the Trustee, as compensation for its services under this Agreement, a fee which shall be mutually agreed upon in writing by the
Trustee and which shall be updated no more frequently than annually. The Grantor shall pay or reimburse the Trustee for all of the Trustee’s appropriate expenses and disbursements in connection with its duties under this Agreement (including

  
 11 

 
attorney’s fees and expenses), except any such expense or disbursement as may arise from the Trustee’s negligence, willful misconduct, or lack of good faith. The Trustee shall notify
the Grantor of all expenses and disbursements on a quarterly basis (“Trustee Invoice”). The Trustee Invoice shall state the nature and amount of such expenses and disbursements and such other information as the Grantor may reasonably
request to make such payment to the Trustee. The Grantor shall pay such expenses and disbursements within a reasonable period of time after its receipt and review of such Trustee Invoice, unless the Trustee and Grantor agree otherwise in writing.

 (b) The Trustee may not invade the Trust Account Assets for the purpose of paying compensation to or reimbursing expenses of the Trustee. The
Grantor hereby indemnifies the Trustee for, and holds it harmless against, any loss, liability, costs or expenses (including attorney’s fees and expenses) incurred or made without negligence, willful misconduct or lack of good faith on the part
of the Trustee, arising out of or in connection with the performance of its obligations in accordance with the provisions of this Agreement, including any loss, liability, costs or expenses arising out of or in connection with the status of the
Trustee and its nominee as the holder of record of the Assets. The Grantor hereby acknowledges that the foregoing indemnities shall survive the resignation or discharge of the Trustee or the termination of this Agreement. 

(c) No Assets shall be withdrawn from the Trust Account or used in any manner for paying compensation to, or reimbursement or indemnification of, the
Trustee. 
 8. Resignation or Removal of the Trustee. 
 (a) The Trustee may resign at any time by giving not less than 90 days written notice thereof to the Beneficiary and to the Grantor. The Trustee may be removed by the Grantor’s delivery of not less
than 30 days written notice of removal to the Trustee and the Beneficiary. Such resignation or removal shall become effective on the acceptance of appointment by a successor Trustee and the transfer to such successor Trustee of all Assets in the
Trust Account in accordance with paragraph (b) of this Section 8. 
 (b) Upon receipt by the Beneficiary and the Grantor of the
Trustee’s notice of resignation or by the Trustee and the Beneficiary of the Grantor’s notice of removal, the Grantor and the Beneficiary shall appoint a successor Trustee. Any successor Trustee shall be a bank that is a member of the
Federal Reserve System or chartered in the State of New York and shall not be a Parent, a Subsidiary or an Affiliate of the Grantor or the Beneficiary. Upon the acceptance of the appointment as Trustee hereunder by a successor Trustee and the
transfer to such successor Trustee of all Assets in the Trust Account, the resignation or removal of the Trustee shall become effective. Thereupon, such successor Trustee shall succeed to and become vested with all the rights, powers, privileges and
duties of the resigning or removed Trustee, and the resigning or removed Trustee shall be discharged from any future duties and obligations under this Agreement, but the resigning or removed Trustee shall continue to be entitled to the benefits of
the indemnities provided herein for the Trustee as well as responsible for its obligations, acts and omissions taken while acting as Trustee. 

  
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 9. Termination of the Trust Account. 
 Both Grantor and Beneficiary shall notify the Trustee in writing if (i) the Beneficiary exercises its right to recapture under the LNL Coinsurance Agreement and the LLANY Coinsurance Agreement, and
(ii) the Grantor pays the Beneficiary the Recapture Fee under the LNL Coinsurance Agreement and the LLANY Coinsurance Agreement. Upon receipt of such notice, this Trust Account shall automatically terminate. Barring such an automatic
termination event, this Agreement shall continue in effect as long as either the LNL Coinsurance Agreement or the LLANY Coinsurance Agreement remains in effect. The Grantor and the Beneficiary shall provide Trustee with at least 15 days written
notice prior to the effective date of any termination. Upon termination of this Agreement, after satisfaction of any outstanding Beneficiary Withdrawal Notices, or deduction of amounts required to satisfy any outstanding Beneficiary Withdrawal
Notices, and upon receipt of certification of the Beneficiary that the Grantor has no further obligation to maintain the Trust Account, all assets not previously withdrawn by the Beneficiary shall be delivered by the Trustee to the Grantor or to its
order. 
 10. Representations and Warranties. 
 (a) The Trustee represents and warrants that the Trustee is a corporation duly incorporated, validly existing and in good standing under the laws of New York and has the corporate power and authority to
carry on its business as now being conducted. The Trustee is duly qualified and authorized to do business and is in good standing as a banking corporation in each jurisdiction where the Assets are maintained. The Trustee is also a Securities
Intermediary, as defined by the Uniform Commercial Code, as adopted in each state in which the Trustee maintains Assets, and the Trustee is at all times acting in its capacity as a Securities Intermediary with respect to the Assets. In addition, the
Trustee is a member of the Federal Reserve System and is not an Affiliate of the Grantor or the Beneficiary. 
 (b) The Trustee represents and
warrants that the Trustee has all requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement. The execution, delivery and performance of this Agreement by the Trustee and the
consummation of the transactions contemplated by this Agreement by the Trustee have been duly and validly authorized by all necessary corporate action on the part of the Trustee. This Agreement constitutes the legal, valid and binding obligation of
the Trustee, enforceable against the Trustee in accordance with its terms, except as such enforceability may be limited by applicable laws relating to bankruptcy, insolvency, reorganization, or affecting creditors’ rights generally and except
to the extent that injunctive or other equitable relief is within the discretion of a court. 
 (c) The Trustee represents and warrants that the
execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement do not and will not (l) violate or conflict with the Trustee’s corporate charter or by-laws; or (2) violate
or conflict with any law or governmental regulation, or any judicial, administrative or arbitration order, award, judgment, writ, injunction or decree applicable to the Trustee. 
 (d) The Trustee represents and warrants that it is not an Affiliate of either the Grantor or the Beneficiary. 

  
 13 

 (e) The Grantor represents and warrants that the Grantor is a stock life insurance company duly
incorporated, validly existing and in good standing under the laws of New York and has the corporate power and authority to carry on its business as now being conducted. 
 (f) The Grantor represents and warrants that the Grantor has all requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement. The
execution, delivery and performance of this Agreement by the Grantor and the consummation of the transactions contemplated by this Agreement by the Grantor have been duly and validly authorized by all necessary corporate action on the part of the
Grantor. This Agreement constitutes the legal, valid and binding obligation of the Grantor, enforceable against the Grantor in accordance with its terms, except as such enforceability may be limited by applicable laws relating to bankruptcy,
insolvency, reorganization, or affecting creditors’ rights generally and except to the extent that injunctive or other equitable relief is within the discretion of a court. 
 (g) The Grantor represents and warrants that the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement do not and will not
(1) violate or conflict with the Grantor’s corporate charter or by-laws; or (2) violate or conflict with any law or governmental regulation, or any judicial, administrative or arbitration order, award, judgment, writ, injunction or
decree applicable to the Grantor. 
 (h) The Grantor represents and warrants that it has succeeded to The Lincoln National Life Insurance
Company’s interest in the LNL Coinsurance Agreement pursuant to the Assignment and Assumption Agreement. 
 (i) The Beneficiary represents
that it has entered into the Coinsurance Agreements listed on Exhibit C. 
 (j) The Beneficiary represents and warrants that the Beneficiary is
a stock life insurance company duly incorporated and validly existing under the laws of the State of Connecticut and has the corporate power and authority to carry on its business as now being conducted. 

(k) The Beneficiary represents and warrants that the Beneficiary has all requisite corporate power and authority to execute and deliver this Agreement
and to perform its obligations under this Agreement. The execution, delivery and performance of this Agreement by the Beneficiary and the consummation of the transactions contemplated by this Agreement by the Beneficiary have been duly and validly
authorized by all necessary corporate action on the part of the Beneficiary. This Agreement constitutes the legal, valid and binding obligation of the Beneficiary, enforceable against the Beneficiary in accordance with its terms, except as such
enforceability may be limited by applicable laws relating to bankruptcy, insolvency, reorganization, or affecting the rights of creditors of insurance companies generally and except to the extent that injunctive or other equitable relief is within
the discretion of a court. 
 (l) The Beneficiary represents and warrants that the execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated by this Agreement do not and will not (1) violate or conflict with the Beneficiary’s corporate charter or by-laws; or (2) violate or conflict with any law or governmental regulation, or
any judicial, administrative or arbitration order, award, judgment, writ, injunction or decree applicable to the Beneficiary. 

  
 14 

 11. Definitions. 
 Except as the context shall otherwise require, the following terms shall have the following meanings for all purposes of this Agreement (the definitions to be applicable to both the singular and the
plural forms of each term defined if both forms of such term are used in this Agreement): 
 The term “Affiliate” with respect to any
corporation shall mean a corporation which directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, such corporation. 
 The term “Assets” shall mean all cash and Eligible Securities deposited in the Trust Account by the Grantor or on the Grantor’s behalf, including proceeds from the disposition or
reinvestment of such deposits, plus interest, dividends, and any other income generated by such deposits, and the term “Asset” shall mean any individual one of the Assets. 
 The term “Asset Response” shall have the meaning set forth in Section l(f). 
 The term
“Assignment and Assumption Agreement shall have the meaning set forth in the recitals of this Agreement. 
 The term “Beneficiary
Withdrawal Notice” means a notice substantially in the form of the specimen notice attached to this Agreement as Exhibit B, signed by the Beneficiary. 
 The term “control” (including the related terms “controlled by” and “under common control with”) shall mean the ownership, directly or indirectly, of more than 10% of the
voting stock of a corporation. 
 The term “Designee” shall have the meaning set forth in Section 2(a). 

The term “DIA” shall have the meaning set forth in Section 3(b). 
 The term “Effective Date” shall mean March 1, 2007. 
 The term “Eligible
Securities” shall mean and include any and all securities and other investments that are permitted under New York insurance law as admitted assets in the preparation of the statutory annual statement filed by the Grantor, other than real
estate, and permitted pursuant to the investment policy included as Exhibit E. 
 The term “Grantor Withdrawal Notice” means a notice
substantially in the form of the specimen notice attached to this Agreement as Exhibit D, signed by the Grantor. 
 The term “Investment
Order” shall have the meaning set forth in Section 3(e). 
 The term “Investment Policy” shall mean the investment policy
set forth in Exhibit E. 

  
 15 

 The term “LLANY Coinsurance Agreement” shall have the meaning set forth in the recitals of this
Agreement. 
 The term “LNL” shall have the meaning set forth in the recitals of this Agreement. 

The term “LNL Coinsurance Agreement” shall have the meaning set forth in the recitals of this Agreement. 

The term “Parent” shall mean an institution that, directly or indirectly, controls another institution. 

The terms “person” shall mean and include an individual, a corporation, a partnership, an association, a trust, an unincorporated organization
or a government or political subdivision thereof. 
 The term “Proposal” shall have the meaning set forth in Section l(f). 

The term “Required Amount” shall mean 102% of the amount needed to fund all of the Reinsured Liabilities under the LNL Coinsurance Agreement
and the LLANY Coinsurance Agreement combined. 
 The term “Secured Obligations” shall mean any and all obligations, liabilities and
indebtedness of the Grantor to the Beneficiary of any and every kind and nature, howsoever created, arising or evidenced, whether now or hereafter existing, whether now due or to become due, whether primary, secondary, direct, indirect, absolute,
contingent or otherwise (including, without limitation, obligations of performance), whether several, joint or joint and several, and arising under or in connection with the LNL Coinsurance Agreement, LLANY Coinsurance Agreement, or any other
Ancillary Agreement. 
 The term “Subsidiary” shall mean an institution controlled, directly or indirectly, by another institution.

 The term “Triggering Event” shall mean any of the following: a Grantor Event of Default, a Recapture Event, or a Grantor Credit
Event. 
 The term “Trustee Invoice” shall have the meaning set forth in Section 7(a). 

The term “UCC” shall mean the Uniform Commercial Code. 
 The term “Valuation Dispute Notice” shall have the meaning set forth in Section l(f). 

The term “Valuation Report” shall have the meaning set forth in Section l(f). 
 Other capitalized terms shall have the meanings ascribed to them in the LNL Coinsurance Agreement and the LLANY Coinsurance Agreement, as applicable. 

  
 16 

 12. Governing Law. 
 This Agreement shall be subject to and governed by the laws of the State of New York, without giving effect to the conflict of laws provisions thereof; including, without limitation, matters related to
the security interest granted pursuant to this Agreement. Each party waives trial by jury in any judicial proceeding involving, directly or indirectly, any matter (whether sounding in tort, contract, or otherwise) in any way arising out of or
related to this Agreement or the relationship established hereunder. This provision is a material inducement for the parties to enter into this Agreement. 
 13. UCC. 
 This Trust Agreement is intended to be a Security Agreement under the UCC
for the purpose of creating a security interest in assets in the Trust Account. Such security interest shall not in any way limit the rights of the Grantor to withdraw assets from the Trust Account pursuant to the terms of Section 2.

 14. Successors and Assigns. 

Except as expressly permitted by Section 8 of this Agreement, no party to this Agreement may assign this Agreement or any of its rights or
obligations hereunder without the prior written consent of the parties. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective permitted successors and assigns including,
without limitation, those who become successors to the parties by operation of law. 
 15. Severability. 

In the event that any provision of this Agreement shall be declared invalid or unenforceable by any regulatory body or court having jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remaining portions of this Agreement. 
 16. Entire
Agreement. 
 This Agreement constitutes the entire agreement among the Parties, and there are no understandings or agreements, conditions or
qualifications relative to this Agreement other than those fully expressed in this Agreement. 
 17. Amendments. 

This Agreement may be modified or otherwise amended, and the observance of any term of this Agreement may be waived, only if such modification, amendment
or waiver is in writing and signed by the Parties. 
 18. Notices, etc. 
 Unless otherwise provided in this Agreement, all notices, directions, requests, demands, acknowledgments, notifications, and other communications required or permitted to be given or made under the terms
hereof shall be in writing and shall be delivered personally, sent by registered or certified mail, postage prepaid, or by overnight courier with written confirmation of delivery. Any such notice shall be deemed given when so delivered personally,
or if mailed, on the date shown the receipt thereof, or if sent by overnight courier, on the date shown on the written confirmation of delivery and when addressed as follows: 

  
 17 

 If to the Grantor: 
 Lincoln Life & Annuity Company of New York 
 1300 S. Clinton St.

 Fort Wayne, IN 46802 
 Attention: Keith Ryan, Second Vice President 
 Lincoln Life & Annuity
Company of New York 
 100 Madison Street 
 Suite 1860 
 Syracuse, N.Y. 13202 

Attention: Robert Sheppard, Second Vice President and General Counsel 

With a concurrent copy to DIA: 
 Delaware Investment Advisors 
 2005 Market Street 

Philadelphia, PA 19103 
 Attention: Rich Millard 
 If to the Beneficiary: 

ING Life Insurance and Annuity Company 
 c/o ING North American Insurance Corporation 
 5780 Powers Ferry Road 

Atlanta, GA 30327-4390 
 Attention: Treasurer 
 With a concurrent copy to: 

ING North American Insurance Corporation 
 5780 Powers Ferry Road 
 Atlanta, GA 30327-4390 

Attention: Corporate General Counsel 
 And 
 ING Life Insurance and Annuity Company 

151 Farmington Ave. 
 Hartford, CT 06156 
 Attention: MaryEllen Thibodeau TS31 

                 Counsel 

  
 18 

 If to the Trustee: 
 The Bank of New York 
 101 Barclay, 8W 

New York, New York 10286 
 Attention: Karen Vaporean 
 Facsimile: (212) 815-5877 

If to the Securities Intermediary: 
 The Bank of New York 
 101 Barclay, 8W 

New York, New York 10286 
 Attention: Karen Vaporean 
 Facsimile: (212) 815-5877 

Each Party may from time to time designate a different address for notices, directions, requests, demands, acknowledgments and other communications by
giving written notice of such change to the other Parties as provided in this section. 
 19. Headings. 

The headings of the Sections and the Table of Contents have been inserted for convenience of reference only and shall not be deemed to constitute a part
of this Agreement. 
 20. Counterparts. 
 This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall constitute an original, but such counterparts together shall constitute but one and the
same Agreement. 

  
 19 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and
delivered by their respective officers thereunto duly authorized as of the date first above written. 
  

			
	LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
		
	By:	 	  

	Name:	 	Keith J. Ryan
	Title:	 	Second Vice President
	
	ING LIFE INSURANCE AND ANNUITY COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	THE BANK OF NEW YORK, as Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	THE BANK OF NEW YORK, as Securities Intermediary
		
	By:	 	  

	Name:	 	
	Title:	 	

 EXHIBIT B 

Form of Beneficiary Withdrawal Notice 
 From: (“Beneficiary”) 
 To: The Bank of New York [or its successor] (the
“Trustee”] 
 Date: 
  

	Re:	Trust Agreement dated as of
                                        
among Lincoln Life & Annuity Company of New York (the “Grantor”), ING Life Insurance and Annuity Company (the “Beneficiary”), The Bank of New York, (the “Trustee”), and The Bank of New York (the
“Securities Intermediary”) (“Trust Agreement”) and Trust Account #                        

 Dear Sirs: 
 We
hereby give you notice pursuant to Section 2(a) of the Trust Agreement that the Beneficiary is entitled to withdraw the sum of
$                     from the Trust Account. Beneficiary hereby certifies that such withdrawal is for one or more of the purposes set forth
in Section 2(f) of the Trust Agreement. Payment should be immediately made to                      by the following method:
                                        .

 The Beneficiary hereby demands payment of the above-specified amount in accordance with Section 2(a) of the Trust Agreement. 

 

	
	Yours faithfully,
	
	  

	Name:
	Title:

 Name: 

Title: 
 For and on behalf of the
Beneficiary 

 EXHIBIT C 

Reinsurance Agreements 
 Coinsurance Agreement between the Aetna Life Insurance and annuity Company and The Lincoln National Life Insurance Company dated as of October 1, 1998. 

Coinsurance Agreement between the Aetna Life Insurance and Annuity Company and Lincoln Life & Annuity Company of New York dated as of
October 1, 1998. 

 EXHIBIT D 

Form of Grantor Withdrawal Notice 
 From: (“Grantor”) 
 To: The Bank of New York [or its successor] (the
“Trustee”] 
 Date: 
  

	Re:	Trust Agreement dated as of                      among the
Lincoln Life & Annuity Company of New York (the “Grantor”), ING Life Insurance and Annuity Company (the “Beneficiary”), The Bank of New York (the “Trustee” and The Bank of New York (the “Securities
Intermediary” (“Trust Agreement”) and Trust Account #                     

Dear Sirs: 
 We hereby give you notice pursuant
to Section 2(c) of the Trust Agreement that the Grantor is entitled to withdraw the sum of $                     from the Trust Account.
The Grantor hereby certifies that this withdrawal is for the purpose set out in Section (2)(g)(l) of the Trust Agreement. The Grantor certifies that this notice is being given more than 10 Business Days after the certification described in
Section 1(c)(iii) of the Trust Agreement was delivered to the Beneficiary, and, to the best of Grantor’s knowledge and belief, there is no dispute outstanding between the Beneficiary and the Grantor pursuant to either section 1(d) or 1(f)
of the Trust Agreement at the present time. Payment should be immediately made to
                                 by the following method:
                                         
                       . 

The Grantor hereby demands payment of the above-specified amount in accordance with Section 2(c) of the Trust Agreement. 

 

	
	Yours faithfully,
	
	  

	Name:
	Title:

 Name: 

Title: 
 For and on behalf of the Grantor

 EXHIBIT E 

INVESTMENT POLICY FOR TRUST ACCOUNT 
 Regulation: New York Investment Law 
 Portfolio Manager: Delaware Investment Advisers
(“Delaware”) 
 Company Description: 
 Lincoln Life & Annuity Company of New York (“LNY”) is a wholly owned-subsidiary of The Lincoln National Life Insurance Company, an insurance company headquartered in Fort Wayne,
Indiana. This Investment Policy applies to the trust account (“Trust Account”) established for the benefit of ING Life Insurance and Annuity Company with the Bank of New York as trustee. 

Investment Objective: 
 The primary
objective is to maximize GAAP investment income net of cost of capital, consistent with the long-term preservation of capital and due consideration given to the impact of income taxes. Overall investment strategy will be executed within the context
of prudent asset/liability management and the constraints of applicable law and regulation. 
  

					
	 Asset Categories:
	  	Maximum % of Admitted Assets1	 
	 Direct Short Term Investments2
	  	 	20	% 
	 Government Bonds
	  	 	100	% 
	 Corporate Bonds
	  	 	100	% 
	 Mortgage-Backed Securities
	  	 	20	%3 
	 Asset-Backed Securities
	  	 	20	% 
	 Convertible Bonds and Bonds w/Warrants
	  	 	5	% 
	 Convertible Preferreds
	  	 	5	% 
	 Total Global Limit for Convertibles
	  	 	5	% 
	 Less Liquid Investments:
	  			
	 Private Placements
	  	 	40	%4 

  

	1 	 Admitted assets are those assets reported as of the last day of the most recently concluded annual statement year adjusted pursuant to
Section 1405(b) of the New York Insurance Law. Non-admitted assets are assumed to have a market value of $0 for all mark-to-market calculations. 

	2 	 All direct short term investments should be A1/Pl. 

	3 	 Total for CMBS, agency and non-agency CMOs (excluding volatile tranches) and pass-throughs. 

	4 	 Must be Investment Grade at time of transfer to trust, subsequent downgrades accepted to BB. 

					
	 Mortgage Loans
	  	 	20	% 
	 Total Less Liquid Investments
	  	 	40	% 
		
	 I.       Equity-related Securities
	  			
	 Preferred Stocks
	  	 	10	% 
	 Total equity-related securities (including convertibles)
	  	 	12	% 
		
	 Tax-Advantaged Securities:
	  			
	 Tax Exempts
	  	 	2	% 
		
	 Foreign Investments:5
	  			
	 Canadian
	  	 	10	% 
	 Other Foreign
	  	 	9	% 
	 Additional Restrictions Below:
	  			
	 Jurisdictions with Top 3 Credit Ratings
	  	 	8	% 
		
	 Maximum per Country (Top 3 Ratings)
	  	 	6	% 
	 Jurisdictions with Other Ratings
	  	 	4	% 
	 Maximum per Country (Other Ratings)
	  	 	2	% 
		
	 Other Investments (Basket):6
	  			
	 Total non-New York and New York investments Combined
	  	 	10	% 
		
	 Mortgage Loan/Personal Property/Real Property or Interest therein/Equity
	  	 	5	% 
	 Foreign
	  	 	2	% 
		
	 High Yield Investments (non-convertible) [Applies to all Fixed Income Investments]:
	  			
	 NAIC Grade 3-4-5-6
	  	 	8	% 
	 NAIC Grade 4-5-6
	  	 	3	% 
	 NAIC Grade 5-6
	  	 	1	% 

  
  

	5 	 Foreign assets will either be dollar denominated or the foreign currency will be 100% hedged back to USD. The value of any such foreign currency hedge
will be counted as part of the foreign assets limit. 

	6 	 Basket transactions are not intended to be used to breach maximum limits listed in this Investment Policy but rather to provide the Investment Manager
the flexibility to consider innovative investments for inclusion in the trust. 

 Derivative Transactions Policy: Delaware will use derivative transactions on behalf of LNY in
accordance with the guidelines and restrictions of the LNY Statement of Policy, Guidelines and Internal control Procedures for Derivative Transactions, as in effect from time to time. 
 Permitted Investments: Any investment is allowed to the extent the investment is permitted by New York Insurance Investment Law and does not exceed the limitations in this policy statement.
Notwithstanding the foregoing, investments in affiliates of LNY are not permitted. 
 Diversification: 

Securities: 
  

	 	•	 	 The maximum investment in any one issuer, institution, real estate property, or borrower is limited to 2% of admitted assets with the exception of US
Government and Agency obligations and Agency Mortgage-Backed Securities (see attached table for single issuer limits by credit quality) 

  

	 	•	 	 The maximum exposure per sector (e.g., Financial, Utility, Industrial, etc.) is 40% of admitted assets 

 

	 	•	 	 The maximum exposure per industry (e.g. Banking, Electrical, Basic Industry, etc.) is 15% of admitted assets 

Mortgage Loans and Real Estate: 
  

	 	•	 	 No single mortgage loan acquisition may exceed 2% of admitted assets (see attached table for single issuer limits by credit quality).

  

	 	•	 	 No single acquisition may exceed $20 million without approval of the Chief Executive Officer or the Chief Financial Officer of LNY.

 Target Duration 
 The target duration of the Trust Account will be set at the individual portfolio policy statements and will be based on the characteristics of the liabilities in the particular portfolio. The duration
should be maintained within a range of the greater of .5yrs or 20% of the target duration. 

 
   Approved by: Lincoln Life & Annuity Company of New York Investment Committee 
   Date: 

 Proposed Single Issuer Limits by Credit Ratings: 

 

											
	 Rating
	  	Public and Private
Bonds
as a % of
AUM	 	 	Commercial
Mortgages
as a % of AUM	 	 	Rating
	 AAA
	  	 	1.5	% 	 	 	2.0	% 	 	1
	 AA
	  	 	1.5	% 	 	 	2.0	% 	 	2
	 A
	  	 	1.5	% 	 	 	2.0	% 	 	3
	 BBB
	  	 	1.0	% 	 	 	1.0	% 	 	4
	 BB
	  	 	0.5	% 	 	 	0.25	% 	 	5
	 B and below
	  	 	0.13	% 	 	 	0.07	% 	 	6-8

 Overall Portfolio Credit Quality by Linear Credit Rating: 

 

						
	 Rating
	  	% of portfolio
	 A- or higher
	  	 	 	50	%
	 BBB- or higher
	  	 	 	93	%

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