GOLDEN AMERICAN GUARANTEED DEATH BENEFIT
LIFE INSURANCE COMPANY AND TRANSFER ENDORSEMENT
Golden American is a stock company domiciled in Delaware.
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On the Endorsement Effective Date, the provisions of the Contract to which this
endorsement is attached are amended as follows. If no Endorsement Effective Date
is shown, the Endorsement Effective Date is the same as the Contract Date. Where
used in this Endorsement, the term Contract shall include any Certificate to
which this Endorsement is attached. Where the provisions of this Endorsement
conflict with the provisions of the Contract as of the Endorsement Effective
Date, the provisions of this Endorsement will control.
DEATH BENEFIT
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The Death Benefit is the greatest of (i) and (ii) below, where:
(i) is the Accumulation Value less any Credits applied within [12] months of
the date of death; and
(ii) is the Cash Surrender Value;
DEDUCTIONS FROM THE DIVISIONS
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MORTALITY AND EXPENSE RISK CHARGE - We deduct a charge from the assets in each
Separate Account division on a daily basis of not more than [0.003724%]
(equivalent to an annual maximum rate of [1.35%]) for mortality and expense
risks. The charge is not deducted from the Fixed Account or General Account
accumulation values.
RESTRICTED FUNDS
Restricted Funds are subject to limits as to amounts which may be invested or
transferred into such divisions. The designation of a division as a Restricted
Fund may be changed upon 30 days notice to the Owner with regard to future
transfers and premium payments into such division. When a new division is made
available it may be designated as a Restricted Fund. If so designated, the rules
regarding its restrictions will be sent to the Owner. Also listed below are the
total Contract limits for Restricted Funds. Listed below are the total Contract
limits for Restricted Funds.
THRESHOLDS
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MAXIMUM
ALLOCATION % OF MAXIMUM
ACCUMULATION VALUE PREMIUM % DOLLAR CAP
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Contract Limits [30%] [99.999%] [$9,999,999]
THRESHOLDS
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Each Restricted Fund has one or more thresholds at which point no further
amounts may be allocated to that division. Compliance with a threshold is
verified whenever there is a transaction initiated which is subject to such
threshold (premium payments, transfers, withdrawals). A threshold is applied to
the total Accumulation Value of each Restricted Fund. Thresholds may be changed
by the Company for new premiums, transfers or withdrawals by Restricted Fund
upon 30 day notice.
DOLLAR CAP
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The Dollar Cap is the dollar amount at which no further Accumulation Value may
be added to Restricted Funds.
PREMIUM THRESHOLD
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The threshold for premium by Restricted Fund limits the amount of any premium
which may be allocated to that division. Should a request for allocation to a
Restricted Fund exceed the limit in effect for that division or for the
Contract, any excess over that amount shall be allocated prorata to any
non-Restricted Fund(s) in which the contract is then invested. Should the
Contract not be invested in other non-Restricted Funds, the excess will be
invested in the Specially Designated Division unless we receive written
instructions to do otherwise. Premium allocations must also satisfy the
Allocation Threshold.
ALLOCATION THRESHOLD
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Allocations into a Restricted Fund are limited to that amount such that the
Accumulation Value in that Restricted Fund after such allocation does not exceed
the threshold for that division and does not cause the Contract's total limit on
allocation to Restricted Funds to be exceeded. If the amount of an allocation
would cause either limit to be exceeded, the allocation will only be executed to
the extent the lower limit would allow.
Allocations from a Restricted Fund will be allowed even if the amount remaining
in the Restricted Fund after an allocation exceeds the allocation threshold. If
a program of allocations over time is authorized by us, verification of the
threshold will be performed at the initiation of such program. If such program
is modified at a later date, a testing of thresholds will be done at that time.
THRESHOLDS - EFFECT ON WITHDRAWALS
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If a withdrawal is requested while any Accumulation Value is allocated to
Restricted Funds and the Allocation Threshold percentage is currently exceeded,
the percentage for funds invested in Restricted Funds for the total Contract,
after taking into account the withdrawal, may not be higher than prior to the
withdrawal. Should the calculated effect of a withdrawal result in the total
Contract threshold being exceeded, the excess portion of the withdrawal will be
processed prorata from all variable divisions.
Systematic withdrawals, while the Contract has investments in Restricted Funds,
if not withdrawn prorata from all divisions, shall be monitored annually to
assure threshold compliance. Should the effect of such withdrawals cause a
Restricted Fund to exceed its threshold, the divisions from which the
withdrawals are processed may be adjusted to assure that the percentage of
Accumulation Value in the Restricted Funds does not increase.
THRESHOLD PROCESSING
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For the purpose of calculating any thresholds, the values for the divisions will
be determined using the prior day's closing index of investment experience.
All other provisions of the Contract to which this Endorsement is attached
remain unchanged.
Signed: /s/ Barnett Chernow
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Barnett Chernow