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AMERICAN GENERAL LIFE INSURANCE COMPANY




OPTIONAL GUARANTEED MINIMUM WITHDRAWAL BENEFIT

MAXIMUM ANNIVERSARY VALUE EXTENSION ENDORSEMENT


Notwithstanding any provision in the Contract or Certificate (“Contract”) to the contrary, this
Endorsement becomes a part of the Contract to which it is attached. Should any provision in this
Endorsement conflict with the Contract, the provisions of this Endorsement will prevail. This
Endorsement replaces your most recent Optional Guaranteed Minimum Withdrawal Benefit Maximum
Anniversary Value Endorsement.



Subject to the terms and conditions set forth herein, this optional Endorsement provides a
Guaranteed Minimum Withdrawal Benefit (“GMWB”) that guarantees an amount available for Withdrawal
not to exceed a maximum annual dollar amount to be distributed over a specified number of years or
over Your lifetime, even if the Contract Value has been reduced to zero due to unfavorable
investment performance.




EFFECTIVE DATE (original Effective Date): [date]




EXTENSION EFFECTIVE DATE: [date]




DEFINITIONS



For purposes of this Endorsement, the following definitions apply. Terms not defined in this
Endorsement shall have the same meaning given to them in the Contract.




ANNIVERSARY VALUE



The Contract Value minus any Ineligible Purchase Payments as measured one year from the Effective
Date and on subsequent Contract anniversaries.




BENEFIT BASE



A component of the calculation of the GMWB, which is used to determine the total amount of
guaranteed Withdrawals, the Minimum Withdrawal Period, the GMWB Charge, and the Maximum Annual
Withdrawal Amount.




BENEFIT BASE EVALUATION PERIOD



The period of time over which Anniversary Values are considered in determining the Benefit Base.




BENEFIT YEAR



Each consecutive one year period starting on the Effective Date.




EFFECTIVE DATE



The date shown above when the original Endorsement became effective.




ELIGIBLE PURCHASE PAYMENTS



The [Gross] Purchase Payments or portion thereof that are included in the calculation of the
Benefit Base.




EXCESS WITHDRAWAL



The portion of any Withdrawal that makes the total of all Withdrawals in a Benefit Year exceed the
Maximum Annual Withdrawal Amount in that Benefit Year.




EXTENSION EFFECTIVE DATE



The date shown above when this Endorsement becomes effective.




For Inquiries Call [1-800-445-7862]



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INELIGIBLE PURCHASE PAYMENTS



[Gross] Purchase Payments that are not included in the calculation of the Benefit Base.




LIFETIME WITHDRAWAL PERIOD



The period of time, if conditions are met, over which You may take Withdrawals for the length of
Your Life.




MAXIMUM ANNUAL WITHDRAWAL AMOUNT (“MAWA”)



The maximum amount available to be withdrawn each Benefit Year under the GMWB.




MAXIMUM ANNUAL WITHDRAWAL PERCENTAGE (“MAWP”)



The maximum percentage used to determine the maximum amount available to be withdrawn each Benefit
Year under the GMWB.




MINIMUM WITHDRAWAL PERIOD (“MWP”)



The minimum period of time over which You may take Withdrawals under the GMWB if Withdrawals are
not taken under the Lifetime Withdrawal Period.




SPOUSAL BENEFICIARY



Your spouse, if designated as Your primary Beneficiary on the date of Your death, who elects to
continue the Contract as the new Owner or Participant (“Owner”) upon Your death.




WITHDRAWAL



The amount of any full or partial surrender of Contract Value and any fees or charges attributable
to the surrendered amount.




YOU, YOUR



The Owner. In the case of Joint Owners, the older of the two Joint Owners.




GUARANTEED MINIMUM WITHDRAWAL BENEFIT MAXIMUM ANNIVERSARY VALUE PROVISIONS



This Endorsement provides a GMWB subject to the terms and conditions described herein.




GMWB Charge



The GMWB charge is an annualized charge deducted from Your Contract Value on a quarterly basis
beginning one quarter following the Extension Effective Date and ending on the termination of this
Endorsement. The full quarterly charge will also be deducted upon full surrender or annuitization
of Your Contract.



The amount of the GMWB charge will equal:




	 	 	 
	Annual Charge Percentage	 	As a Percentage of
	[0.65%]
	 	Benefit Base






Benefit Base Evaluation Period



The Benefit Base Evaluation Period applicable to this Endorsement begins on the Extension Effective
Date and extends for [10 Benefit Year anniversaries.




Calculation of the Components of the GMWB



The GMWB is available for Withdrawal at any time while this Endorsement is in effect and prior to
any termination of the GMWB. The amount of Withdrawals and time period over which You can take
Withdrawals under the GMWB may change over time as a result of Withdrawal activity or Benefit Base
increase. Withdrawals made under this Endorsement are treated like any other Withdrawal under the
Contract for purposes of calculating




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Contract Value, Withdrawal Charges, and any other benefits
under the Contract. Withdrawals in excess of the Penalty Free Withdrawal amount will be assessed a
Withdrawal Charge, if applicable. We reserve the right to limit the investment options available
under Your Contract if You elect the GMWB.



To determine the GMWB, We calculate each of the following components: Benefit Base and MAWA. The
calculations for each component are detailed below.




Benefit Base



The initial Benefit Base is equal to the initial Eligible Purchase Payment.



The table below defines the Eligible Purchase Payments that increase the Benefit Base, as
determined by the time elapsed between the Effective Date and the day on which Purchase Payments
are received by Us and deposited into Your Contract. Payment Enhancements, if applicable, are not
considered Eligible Purchase Payments.




	 	 	 
	 	 	Percentage Included in the Benefit Base
	Time Elapsed Since Effective Date	 	Calculation
	0-2 Years
	 	100%





On any Benefit Year anniversary occurring during the Benefit Base Evaluation Period, the Benefit
Base is automatically increased to the Anniversary Value when the Anniversary Value is greater than
(a) and (b), where:





	 	(a)	 	is the current Benefit Base; and
	 
	 	(b)	 	is all previous Anniversary Values during any Benefit Base Evaluation Period.




The Benefit Base is not used in the calculation of Contract Value or any other benefits under the
Contract. We reserve the right to limit the Eligible Purchase Payments to a maximum of $1,500,000.




Maximum Annual Withdrawal Amount (“MAWA”)



The MAWA is an amount calculated as a percentage of the Benefit Base. The applicable Maximum
Annual Withdrawal Percentage (“MAWP”) used to calculate the MAWA is determined by when the first
Withdrawal is made by You, as specified in the tables below.




	 	 	 
	Time of First	 	Maximum Annual
	Withdrawal	 	Withdrawal Percentage
	[Before 5th Benefit Year
anniversary]
	 	[5%]
	[On or after 5th Benefit
Year anniversary]
	 	[7%]
	[On or after 10th Benefit Year anniversary]
	 	[7%]
	[On or after 20th Benefit
Year anniversary]
	 	[10%]
	[On or after [the Contract
anniversary following] Your
65th birthday]
	 	[5%]*








 




			
	*	 	Excess Withdrawals at any time and ownership changes impacting You will cancel the Lifetime
Withdrawal Period. All future Withdrawals provided by this Endorsement will then be subject to the
Minimum Withdrawal Period based on when the first Withdrawal is taken and adjusted based on
Withdrawal history and investment





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	 	 	performance (see item 3 under Impact of Withdrawals section). If
Withdrawals are taken prior to the anniversary following Your 65th birthday, the
Lifetime Withdrawal is not available.




If you are taking required minimum distributions (“RMD”) from the Contract, and the portion of the
RMD amount based on Contract Value, only, is greater than the Maximum Annual Withdrawal Amount,
that portion of the RMD withdrawal will not be treated as an Excess Withdrawal. Any portion of an
RMD withdrawal that is based on amounts greater than the Contract Value alone will be considered an
Excess Withdrawal. This will result in the cancellation of the Lifetime Withdrawal Period and
further may reduce your remaining Minimum Withdrawal Period.



The MAWA can be withdrawn throughout each Benefit Year. If You do not withdraw the [entire] MAWA
in a Benefit Year, You will maintain Your Minimum Withdrawal Period, but the MAWA will not
increase. Excess Withdrawals in any Benefit Year may reduce Your future MAWA. See Impact of
Withdrawals section below.



If the Benefit Base is increased to the Anniversary Value, the MAWA will be recalculated on that
Benefit Year anniversary, by multiplying the new Benefit Base by the applicable MAWP.




Impact of Withdrawals



Withdrawals reduce the amount available for Withdrawal under the GMWB. Total Withdrawals in any
Benefit Year equal to or less than the MAWA reduce the Benefit Base by the amount of the
Withdrawal. Once Withdrawals in a Benefit Year exceed the MAWA, all subsequent Withdrawals in that
Benefit Year are Excess Withdrawals. Excess Withdrawals may reduce the Benefit Base based on the
relative size of the Withdrawal in relation to the Contract Value at the time of the Excess
Withdrawal. This means that when the Contract Value is less than the Benefit Base, Excess
Withdrawals will result in a reduction of the Benefit Base which is greater than the amount of the
Excess Withdrawal. We further explain this impact and the effect on each component of the GMWB
through the calculations below:




Withdrawals impact Contract Value and the components of the GMWB calculation as follows:





	 	1.	 	Contract Value: Any Withdrawal reduces the Contract Value by the amount of the
Withdrawal.
	 
	 	2.	 	Benefit Base: Withdrawals up to the MAWA, before any Excess Withdrawal, reduce
the Benefit Base by the dollar amount of the Withdrawal.
	 
	 	 	 	Any Excess Withdrawal further reduces the Benefit Base to the lesser of (a) or (b),
where:






	 	(a)	 	is the Benefit Base immediately prior to the Excess Withdrawal
minus the amount of the Excess Withdrawal, or;
	 
	 	(b)	 	is the Benefit Base immediately prior to the Excess Withdrawal
reduced in the same proportion by which the Contract Value is reduced by the
Excess Withdrawal.






	 	3. Minimum Withdrawal Period: If the total of all Withdrawals in a Benefit Year are less
than or equal to the MAWA, the new MWP equals the Benefit Base after the Withdrawal divided
by the current MAWA. When the Benefit Base is adjusted to a higher Anniversary Value, a new
MWP is determined by dividing the new Benefit Base by the new MAWA.
	 
	 	If there is an Excess Withdrawal in a Benefit Year, the new MWP equals the MWP calculated at
the end of the prior Benefit Year reduced by one year. An Excess Withdrawal in a Benefit
Year will cancel the Lifetime Withdrawal, Period and the new MWP will be determined by
dividing the new Benefit Base by the new MAWA.
	 
	 	4. Maximum Annual Withdrawal Amount: If there are no Excess Withdrawals in a Benefit Year,
the MAWA does not change for the next Benefit Year, unless the Benefit Base is increased as
described above under “Benefit Base.”





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	 	If there are any Excess Withdrawals in a Benefit Year, the MAWA will be recalculated on the
next Benefit Year anniversary. The new MAWA will equal the new Benefit Base on that Benefit
Year anniversary after the Withdrawal divided by the new Minimum Withdrawal Period on that
Benefit Year anniversary. The new MAWA may be lower than Your previously calculated MAWA.





If Your Contract Value is Reduced to Zero



If Your Contract Value is reduced to zero and the Benefit Base is greater than zero, subsequent
Purchase Payments will no longer be accepted and a Death Benefit will not be payable. You can
receive the remaining value of the GMWB under one of the following options:





	 	a.	 	A lump sum equal to the discounted present value of any remaining guaranteed
payments under the GMWB; or,
	 
	 	b.	 	Periodic payments during each Benefit Year that in total are equal to the MAWA
until the MWP (or LWP, if eligible) has been reduced to zero. If You do not select a
specific frequency for these payments, We will pay the current MAWA in quarterly
payments; or,
	 
	 	c.	 	Any payment option that is mutually agreeable.





[Extension
of the Benefit Base Evaluation Period
(“Extension”)


We may offer You Extension of the Benefit Base Evaluation Period at the end of the current Benefit
Base Evaluation Period, provided the Owner is age 85 or younger at that time. [If You elect such
Extension, you will receive a new endorsement with the charges and provisions in effect at that
time.]



Termination of the GMWB



Once elected, this GMWB Endorsement and its corresponding charge may be terminated by the Owner.
If the Owner’s request to terminate the GMWB is received:





	 	1.	 	prior to the [10th] Benefit Year anniversary, the termination is
effective on the [10th] Benefit Year anniversary;
	 
	 	2.	 	in any Benefit Year after the [10th] Benefit Year anniversary, the
termination is effective on the Benefit Year anniversary following Our receipt of the
election to terminate the GMWB.




This Endorsement and the related charge will terminate automatically if:





	 	1.	 	The Minimum Withdrawal Period has been reduced to zero, or for the Lifetime
Withdrawal Period, You die; or,
	 
	 	2.	 	A Spousal Beneficiary elects to continue the Contract without this Endorsement;
or,
	 
	 	3.	 	A Death Benefit is paid (as described under the Death Provisions or Death
Benefit section of Your Contract); or,
	 
	 	4.	 	The Contract is fully withdrawn or surrendered; or,
	 
	 	5.	 	The Contract is annuitized.




We reserve the right to terminate this GMWB Endorsement if Withdrawals in excess of the MAWA in any
Benefit Year reduce the Benefit Base by 50% or more.



If terminated, the GWMB may not be re-elected.




Spousal Continuation



Upon election to continue the Contract and this Endorsement, Your Spousal Beneficiary will be
subject to the terms and conditions of this Endorsement. Upon Your death, the Lifetime Withdrawal
Period ends and is not




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available to Your Spousal Beneficiary. The Effective Date and Extension
Effective Date will not change as the result of Spousal Continuation. A continuation contribution
paid under the Spousal Continuation provision of the Contract is not considered an Eligible
Purchase Payment, but is included in the calculation of Anniversary Values if the spouse continues
the Benefit Base Evaluation Period.



Signed for the Company to be effective on the Extension Effective Date.




	 	 	 

	

	 	






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