GOLDEN AMERICAN                                               EXCLUDED FUNDS AND
LIFE INSURANCE COMPANY                                      TRANSFER ENDORSEMENT

Golden American is a stock company domiciled in Delaware.
--------------------------------------------------------------------------------

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.  The terms used in this Endorsement shall be
interpreted  to apply only to the portion of the  Contract  values  allocated to
Excluded Funds.

When the Owner  elects  to  invest  in an  Excluded  Fund,  as  defined  herein,
components of the Death  Benefit of the Contract  that  represent the portion of
the  Accumulation  Value  invested  in  Excluded  Funds  will be  calculated  in
accordance  with this  endorsement.  When an  investment  is made in an Excluded
Fund,  any guarantee of the Contract  regarding a Death Benefit in excess of the
Accumulation  Value  (except  Cash  Surrender  Value)  will not apply to amounts
invested in Excluded  Funds and may be permanently  affected by such  investment
regardless of any future allocation of Accumulation Value.

DEATH BENEFIT
-------------

For  each  Death  Benefit  component  described  in the  Contract,  except  Cash
Surrender Value where  applicable,  the portion that  represents  Excluded Funds
will equal the Accumulation Value allocated to Excluded Funds.

For purposes of allocating each such Death Benefit  component  between  Excluded
Funds and  non-Excluded  Funds, the following rules apply. For each component of
Death Benefit  described in the Contract,  a corresponding  Excluded Funds Death
Benefit Base is maintained.  Each Excluded Funds Death Benefit Base has the same
definition  as the Death  Benefit  component  of the  Contract  with  respect to
premiums, credits, and withdrawals, except that it applies only to investment in
Excluded Funds.

TRANSFERS
---------

Transfers  from  Excluded  Funds to  non-Excluded  Funds  will  reduce all Death
Benefit  component(s) for Excluded Funds on a prorata basis. Except with respect
to any  Maximum  Guaranteed  Death  Benefit,  the  resulting  increase  in  each
non-Excluded  Funds Death Benefit Base will equal the lesser of the reduction in
the Death Benefit  component for Excluded Funds and the net  Accumulation  Value
transferred.  With  respect  to the  Maximum  Guaranteed  Death  Benefit,  where
applicable,  the resulting increase in the non-Excluded Funds Maximum Guaranteed
Death  Benefit  Base will equal the  reduction in the Maximum  Guaranteed  Death
Benefit for Excluded Funds.

Transfers   from   non-Excluded   Funds  to  Excluded  Funds  will  reduce  each
non-Excluded Funds Death Benefit Base on a prorata basis. The resulting increase
in the Death Benefit component(s) for Excluded Funds will equal the reduction in
non-Excluded Funds Death Benefit Base.

Adjustments  for transfers  involving  Excluded Funds and Special  Funds,  where
applicable,  will  be  calculated  separately  from  adjustments  for  transfers
involving  Excluded Funds and  non-Special  Funds.  Special  Funds,  if any, are
described in the Contract.

EXCLUDED FUNDS
--------------

Where used in this Endorsement,  as of the Endorsement Date,  Excluded Funds are
as listed on the  Schedule.  We may add newly  available  divisions  as Excluded
Funds. We may also reclassify an existing  division as a Excluded Fund or remove
such designation upon 30 days notice to you. Such  re-classification  will apply
to amounts  transferred  or otherwise  added to such division  after the date of
change.

RESTRICTED FUNDS
----------------

Restricted  Funds are  subject to limits as to amount  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.



<PAGE>


                                   THRESHOLDS
--------------------------------------------------------------------------------
                           MAXIMUM
                           ALLOCATION %  OF         MAXIMUM
                           ACCUMULATION VALUE       PREMIUM %        DOLLAR CAP
                           ------------------       ---------        ----------

Contract Limits                  30%                 99.999%         $9,999,999


THRESHOLDS
----------

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
----------

The Dollar cap is the dollar amount at which no further  Accumulation  Value may
be added to Restricted Funds.

PREMIUM THRESHOLD
-----------------

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
--------------------

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
----------------------------------

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.



<PAGE>


THRESHOLD PROCESSING
--------------------

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.

Endorsement Effective Date:

Signed:   /s/ Barnett Chernow
             -----------------
              Barnett Chernow