(b) Death <strong>Guaranteed</strong> Amount on Deposit Maturity DateOn each deposit maturity date that the contract is in force, the death guaranteed amount will be calculated as follows:(a) For Class A Units, 75% of the deposit maturity benefit in effect on such deposit maturity date; and(b) For Class B Units and Class C Units, 100% of the deposit maturity benefit on such deposit maturity date.Example of reinvestment of Deposit Maturity Benefit and calculation of the Death <strong>Guaranteed</strong> Amount on a Deposit Maturity DateAssumptions:Owner/annuitant is age 45Owner/annuitant has chosen the 75/100 guarantee optionIn the years 2015 and 2016, the guaranteed amount is greater than the market value. As a result, no resets were processed.The first reset occurred on May 1 st 2017.Owner/annuitant has made 4 deposits into one non-registered contract as follows:Deposit date Value of deposit at time of deposit FundMay 1, 2014 $6,000 1November 3, 2015 $2,000 2March 14, 2016 $6,000 3April 3, 2017 $3,000 2As a result the owner/annuitant has made 4 deposits in 3 deposit year accounts, as follows:Deposit Year Account 1 - May 1, 2014 - April 30, 2015Deposit Year Account 2 - May 1, 2015 - April 30, 2016Deposit Year Account 3 - May 1, 2016 - April 30, 2017This chart will illustrate (a) the expiry and renewal of deposit year account 1; and (b) the calculation of the death guaranteed amount on depositmaturity date in up and down-markets.If the owner/annuitant is still living on the deposit maturity date for Deposit Year 1 (April 30, 2024) the death guaranteed amount will be calculatedbased on the deposit maturity benefit on that deposit maturity date.On April 30, 2024, the death guaranteed amount will be as follows under the 2 scenarios below:Scenario #1: The deposit maturitybenefit exceeds the current 100%Death <strong>Guaranteed</strong> Amount75% Deposit Maturity <strong>Guaranteed</strong> Amount $4,500 $4,500100% Death <strong>Guaranteed</strong> Amount (after automatic reset) $6,000 $6,000Total market value of all units in Deposit Year Account 1 $10,000 $4,000Deposit maturity benefit reinvested to new deposit year account atdeposit maturity date$10,000 $4,500New 75% deposit maturity benefit $7,500 $3,375New 100% Death <strong>Guaranteed</strong> Amount applicable to the reneweddeposit year account$10,000 $4,500Scenario #2: The deposit maturitybenefit is lower than the current100% Death <strong>Guaranteed</strong> AmountThe total value is not guaranteed and, subject to any applicable death maturity guarantee, any part of the premium or other amountthat is allocated to an imaxxGIF is invested at the risk of the contractholder and may increase or decrease in value.14
imaxx tm Contract Maturity BenefitThis section applies only if the annuitant is living and the contract is inforce on the contract maturity date.An imaxx contract maturity benefit will be payable on the contractmaturity date.The contract maturity date refers to:Contract TypeRSP, RIF, LIRA, LRSP, LIF, PRIF,RLSP and RLIFNew Brunswick LIRA and LIFNewfoundland LIRA and LIFMaturity DateDecember 31 st of the year in which theAnnuitant turns 100 years of ageDecember 31 st of the year in which theAnnuitant turns 90 years of ageDecember 31 st of the year in which theAnnuitant turns 80 years of ageIn the case of the 75/75 guarantee option and 75/100 guarantee optionthe imaxx contract maturity benefit is equal to the aggregate of allamounts, each of which is determined in respect of a deposit yearaccount, and each of which is equal to, the greater of;(i) the 75% guaranteed amount as at the contract maturity date, and(ii) the total unit value of all units in the deposit year account as at thecontract maturity date.In the case of the 100/100 guarantee option, the imaxx contractmaturity benefit is equal to the aggregate of all amounts, each ofwhich is determined in respect of a deposit year account, and each ofwhich is equal to the greater of;(i) the 100% guaranteed amount as at the contract maturity date, and(ii) the total unit value of all units in the deposit year account as at thecontract maturity date.For greater certainty, and subject to a proportional reduction for anywithdrawals or surrenders made from the contract, in no event willthe imaxx contract maturity benefit be less than 75% of the amountsdeposited by the contract owner to the contract. Top up benefitsare not included in such calculations. When calculating the contractmaturity benefit for deposits made under the initial sales chargeoption, we will not deduct the initial sales charge from the calculationof the guaranteed amount. Therefore, the guaranteed amount will notbe less than 75% of the deposit before deducting the applicable initialsales charge less proportional market value reductions for withdrawals.Any amount that is allocated to a segregated fund is investedat the risk of the contract holder and may increase or decreasein value.Unless otherwise instructed (i.e. for payment of a lump sum), thecontract maturity benefit will be applied to provide an annuity basedon the life of the owner, guaranteed for 10 years in accordance withapplicable legislation and <strong>Transamerica</strong>’s administrative rules. If theannuity payment based on the contract maturity benefit will be lessthan $50 per month, we have the right to pay the contract maturitybenefit to the appropriate person in one lump sum on the contractmaturity date. Payment of the annuity (or lump sum if applicable) fulfillsour obligations under the contract in full.Residents of QuebecCalculation of annual annuity paymentsUnless prohibited by law, <strong>Transamerica</strong> will pay the owner a thenavailable life annuity with a maximum guaranteed period of ten yearson the owner’s life or if a joint life is chosen, on the younger age of theowner’s life and another life as the owner may designate. The annuitywill be based on the contract maturity benefit at the contract maturitydate. If the owner does not select an annuity, the applicable annuitywill be a single life annuity, based on the owner’s life with a ten yearguarantee period or if required by law, a joint life annuity.In the case of an RSP or LIRA the annuity will be based on the totalcontract value at RSP age in accordance with the terms of the RSP orLIRA endorsement.<strong>Transamerica</strong> will calculate the annuity payable to the owner basedon its then current projected annuity factors applicable to the type andterms of the annuity chosen. Notwithstanding the foregoing, the annualannuity payment for each $1,000 being annuitized with a maximumguarantee period of ten years or less shall not be lower than theamount set out in Table 1 for the applicable age on which the annuityis based. The applicable age on which the annuity is based is the ageof the annuitant in the case of a single life annuity or the age of theyounger of the two annuitants in the case of a joint life annuity.Table 1 – Annual Annuity Payment per $1,000Age of AnnuitantAnnuity Payment50 $15.3955 $16.6760 $18.1965 $20.0170 $22.2375 $25.0180 $28.5885 $33.3490 $40.0195 $50.01100 $66.6715