Common use of GUARANTEED FUND WITHDRAWALS AND TRANSFER PAYMENTS Clause in Contracts

GUARANTEED FUND WITHDRAWALS AND TRANSFER PAYMENTS. Nationwide will make annual Withdrawals from the Guaranteed Fund beginning on the Transfer Date and continuing on each anniversary thereof until the Guaranteed Fund is exhausted. If the Guaranteed Fund has not been exhausted by the fifth (5th) anniversary of the Transfer Date Nationwide shall make a final payment on that date. The first withdrawal will be equal to the Book Value Transfer Limit reduced by the sum of (a) any amounts exchanged from the Guaranteed Fund to a Companion Investment Option during the twelve-month period immediately preceding the withdrawal and (b) any amounts withdrawn from the Guaranteed Fund to make Cash Payments during the twelve (12) month period immediately preceding the Withdrawal. Subsequent Withdrawals will be equal to the Book Value Transfer limit reduced by any amounts withdrawn from the Guaranteed Fund to make Cash Payments during the twelve (12) month period immediately preceding the Withdrawal. SAMPLE Instead of annual Withdrawals, Nationwide may, at its option, make monthly withdrawals in an amount equal to one-twelfth of annual amounts from the Guaranteed Fund, as described in the paragraph above. Each time a Withdrawal is made from the Guaranteed Fund, in accordance with this Section, Nationwide shall make a transfer payment to the Funding Successor in the amount of the Withdrawal, less taxes and applicable charges in accordance with Article VI. In the event that the Contract is terminated by Nationwide as described in Section 7.3 of the Contract, the Termination Fee as described in Section 6.3 of the Contract will be waived. The interest rate after the Transfer Date shall be the amount specified in Section 2.4 of the Contract.