ENDORSEMENT
APPLICABLE TO SEP CONTRACTS
In this Endorsement, "we", "our" and "us" mean The Equitable Life Assurance
Society of the United States and "you" and "your" mean the Owner. For purposes
of this Endorsement, reference to "Contract" will also include "Certificate".
When issued with this Endorsement and as specified on page 3 of this Contract,
this Contract is a "SEP Contract". It is issued as an individual retirement
annuity contract that meets the requirements of Section 408(b) of the Code and
it is purchased under a written program that is a "Simplified Employee Pension"
as described in Section 408(k) of the Code. Such a program as adopted by the
Annuitant's employer may provide for salary reductions, whereby the employer
makes tax-deferred contributions for the Annuitant in lieu of salary. If so,
this will also be specified on page 3 of this Contract. This Contract is
established for the exclusive benefit of you and your beneficiaries, and the
terms below change, or are added to, applicable sections of this Contract. Also,
your entire interest under the Contract is not forfeitable. The provisions of
this Endorsement applicable to SEP Contracts supersede any inconsistent
provisions of the Contract or any other Endorsement.
1. CODE: The existing section is replaced with the following:
"Code" means the Internal Revenue Code of 1986, as amended at any time, or any
corresponding provisions of prior or subsequent United States revenue laws.
References to the "Code" in this Contract include references to applicable
Federal income tax Regulations.
2. OWNER: The existing section is replaced with the following:
"Owner" means the person shown as such on page 3 of the Contract or any
successor owner.
You must be both the Owner and the Annuitant.
3. RETIREMENT DATE: The existing section is amended by replacing the third
paragraph with the following:
You may not choose a "Retirement Date" later than the maximum maturity age,
currently age [85], unless state law requires a different age. If you choose a
Retirement Date later than age 70-1/2, you must meet the lifetime Required
Minimum Distribution rules applicable to this SEP Contract by making withdrawals
at least annually with respect to this Contract. See the "Partial Withdrawals"
section of the Contract and Item 11 (Required Minimum Distributions) of this
Endorsement.
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4. CONTRIBUTIONS: The following is added to the existing section:
Section 3.01 states that an initial Contribution of less than $1,000 may not be
accepted. This does not apply to SEP Contracts. Contributions are not fixed and
may be made at any time and in any amount that is at least $50. Limitations on
the types and amounts of contributions to this Contract may be specified on page
3 of this Contract.
No Contributions will be accepted unless they are in United States currency. We
reserve the right not to accept funds by electronic means unless they meet our
specifications.
Except in the case of a "rollover contribution" or a "direct transfer"
contribution described in the next two sentences, or a contribution made in
accordance with the terms of a Simplified Employee Pension (SEP) as described in
Code Section 408(k), the total of such Contributions will not exceed the dollar
limits in the next two paragraphs of this Item 4 for any taxable year. A
"rollover contribution" is one permitted by any of the following sections of the
Code: [402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) and
457(e)(16)]. A "direct transfer" contribution is the transfer of amounts to this
Contract directly from an individual retirement account or another individual
retirement annuity contract that meets the requirements of Section 408 of the
Code.
The total of such Contributions that are not rollover, direct transfer or SEP
contributions to this Contract shall not exceed:
$3,000 for any taxable year beginning in 2002 through 2004;
$4,000 for any taxable year beginning in 2005 through 2007; and
$5,000 for any taxable year beginning in 2008 and years thereafter.
After 2008, the annual dollar limit will be adjusted by the Secretary of the
Treasury for cost-of-living increases under Code Section [219(b)(5)(C)]. Such
adjustments will be in multiples of $500.
If you are age 50 or older, the annual dollar limit on contributions is
increased by:
$500 for any taxable year beginning in 2002 through 2005; and
$1,000 for any taxable year beginning in 2006 and years thereafter.
No Contributions will be accepted under a SIMPLE IRA plan established by any
employer pursuant to Code Section [408(p)]. Also, no transfer or rollover of
funds attributable to contributions made by a particular employer under its
SIMPLE IRA plan will be accepted from a SIMPLE IRA, that is, an IRA used in
conjunction with a SIMPLE IRA plan, prior to the expiration of the 2 year period
beginning on the date you first participated in that employer's SIMPLE IRA plan.
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5. TERMINATION OF COVERAGE UNDER THIS CONTRACT: The existing section is amended
by adding the following paragraph at the end:
In the event that an annuity bought under the Contract fails to qualify as an
annuity that meets the requirements of Section 408(b) of the Code, we will have
the right, upon receipt of notice of such fact, before the Retirement Date, to
terminate this Contract. In that case, we will pay to you the Annuity Account
Value less a deduction for the part which applies to any Federal income tax
payable by you that would not have been payable with respect to an annuity which
meets such requirements. However, we may also, at your request transfer the
Annuity Account Value under this Contract to another annuity contract issued by
an affiliate subsidiary or us.
6. DEATH BENEFIT: The existing section is amended by replacing the first
paragraph as follows:
Upon receipt of due proof of your death before the Retirement Date we will pay a
death benefit to the beneficiary named under the "Beneficiary" section of the
Contract.
Under either of the following two circumstances, the death benefit under this
"Death Benefit" section of the Contract will not be paid at your death before
the Retirement Date and the coverage under the Contract will continue if:
(1) You are married at the time of your death and the person named as
sole beneficiary under the "Beneficiary" section of the Contract is
your surviving spouse; and your surviving spouse elects to become
"Successor Owner and Annuitant" of your Contract.
(2) Also, a death benefit will not be paid under this "Death Benefit"
section of the Contract, if the "Beneficiary Continuation Option" under
Item 9 of this Endorsement is in effect.
7. OWNER DEATH DISTRIBUTION RULES:
This Section does not apply to SEP Contract.
8. BENEFICIARY- SUCCESSOR OWNER: The existing section is replaced with the
following:
SECTION 5.03 BENEFICIARY
On the application, you give us the name of the beneficiary who is to receive
any death benefit payable on your death. You may change the beneficiary from
time to time during your lifetime and while coverage under this Contract is in
force. Any such change must be made in writing in a form we accept. A change
will, upon receipt at the Processing Office, take effect as of the date the
written form was signed, whether or not you are living on the
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date of receipt. We will not be liable as to any payment we may make before we
receive any such change.
On the application you may name a person to be primary beneficiary on your death
and another person to be contingent beneficiary if the primary beneficiary dies
before you. Unless you direct otherwise, if you have named two or more persons
as beneficiary, the beneficiary will be the named person or persons who survive
you. If more than one survives, they will share equally.
Unless you specifically elect in writing otherwise, we will treat each
beneficiary's share of the death benefit payable as a separate account for the
benefit of each beneficiary as described in Treasury Regulation Section
1.401(a)(9)-8 Q&A A-2(a)(2) or any successor Regulation.
Any part of a death benefit payable as described in the "Death Benefit" section
of the Contract for which there is no named beneficiary living at your death
will be payable in a single sum to your surviving spouse, if any; if there is no
surviving spouse, then to the children who survive you, in equal shares; if
there are no children, then to your estate.
If you so choose in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity chosen by you, subject to our rules then in effect and the
minimum distribution rules in the Section "Election and Commencement of Annuity
Benefits" under the Contract and Item 11 of this Endorsement. If at your death
there is no choice in effect, the beneficiary may make such a choice.
9. BENEFICIARY CONTINUATION OPTION (BCO): The following section is added at the
end of "Part V - Death Benefits":
This Item 9 will apply only if you die before the Retirement Date, and the
beneficiary(ies) named under the "Beneficiary" section of the Contract is an
individual. With the exception of the following paragraph, this Item 9 does not
apply to any beneficiary which is not an individual, and that non-individual
beneficiary's portion of the death benefit described in the "Death Benefit"
section of the Contract is payable to that beneficiary.
This Item 9 applies to a non-individual beneficiary only if it is a "see through
trust". A see through trust is an irrevocable trust, valid under state law, the
only beneficiaries of which are individuals, and which trust has met applicable
documentation requirements under applicable Regulations as we may determine. If
such a "see-through trust" described in Treasury Regulation Section
1.401(a)(9)-4 Q&A A-5, or any successor Regulation, is the beneficiary named
pursuant to the "Beneficiary" section of the Contract, the successor Annuitant
is the oldest beneficiary of such trust.
If this Item 9 applies and there is more than one beneficiary, the Annuity
Account Value and any other interest under the Contract described in Item 11
("Required Minimum
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Distributions") will be apportioned among your beneficiaries
as you designate pursuant to the "Beneficiary" section of the Contract.
If the beneficiary qualifies to continue this Contract, and we receive that
beneficiary's completed election no later than September 30 of the calendar year
following the calendar year of your death and before any contrary election is
made, that beneficiary may continue your Contract pursuant to this Item 9 under
the terms set forth in (a) through (g) below. Each such beneficiary electing to
continue his or her portion of the interest under the Contract is a
"Continuation Beneficiary". For any beneficiary who does not timely elect to
continue his or her portion of the interest under the Contract, we will pay that
beneficiary's share of the death benefit pursuant to the "Death Benefit" section
of the Contract, in a lump sum.
a. Each Continuation Beneficiary will automatically become the
Annuitant as defined in the Contract with respect to that
Continuation Beneficiary's portion of the interest in the
Contract. If you have specifically elected under the
"Beneficiary" section of the Contract and Item 8 of this
Endorsement that we not separately account for each beneficiary's
portion of the interest in the Contract, the oldest Continuation
Beneficiary will be the Annuitant for purposes of calculating the
Required Minimum Distribution payments in Item 11 of this
Endorsement (Minimum Distribution Rules-Required Payments After
Death).
b. Each Continuation Beneficiary will have the right to transfer
amounts among the Investment Divisions (also referred to as
"Investment Options") with respect to that Continuation
Beneficiary's portion of the interest in the Contract.
c. A Continuation Beneficiary cannot make any additional
Contributions.
d. Distributions to the Continuation Beneficiary with respect to
that Continuation Beneficiary's portion of the interest in the
Contract will be made in accordance with requirements described
in Item 11B of this Endorsement (Minimum Distribution
Rules-Required Payments After Death).
e. A Continuation Beneficiary may withdraw the Annuity Account Value
apportioned to such Continuation Beneficiary at any time;
withdrawals made after we have received a Continuation
Beneficiary's election to continue this Contract are not subject
to a withdrawal charge.
f. Upon a Continuation Beneficiary's death, we will make a lump sum
payment to the person designated by the deceased Continuation
Beneficiary to receive that deceased Continuation Beneficiary's
portion of the Annuity Account Value, if any remains. In the
alternative, the deceased Continuation Beneficiary's designated
beneficiary may elect to continue the
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payment method originally elected by the deceased Continuation
Beneficiary in accordance with paragraph (b)(1) or (b)(2) of Item
11B of this Endorsement (Minimum Distribution Rules-Required
Payments After Death).
g. The Contract cannot be assigned and must continue in your name
for benefit of your Continuation Beneficiary.
h. If a minimum death benefit pursuant to the "Death Benefit"
section of the Contract is in effect as of the date we receive
satisfactory proof of your death, any required instructions,
information and forms necessary to effect the beneficiary
continuation feature, we will increase the Annuity Account Value
to equal the minimum death benefit, if such death benefit is
greater than the Annuity Account Value.
10 WITHDRAWAL CHARGES: The existing section is amended by adding the following
events upon which a withdrawal charge will not apply:
(vi) a request is made for a refund of a Contribution in excess of amounts
allowed to be contributed under Section 219 and/or Section 408 of the
Code within one month of the date on which the Contribution is made.
(vii) a distribution of deferrals disallowed by reason of failure to meet
the requirements of Section [408(k)(6)(A)(ii)] of the Code, including
income thereon and less any loss allowable thereto, is made no later
than April 15 which follows the calendar year of the notification by
your employer of such disallowance, or
(viii) a distribution of "excess contributions," as such term is defined in
Section [408(k)(6)(C)(ii)] of the Code, including the income thereon
and less any loss allowable thereto, is made no later than the end of
the plan year of the Simplified Employee Pension which follows the
plan year in which such excess contributions were made, or
(ix) a distribution of "excess deferrals" as such term is defined in
Section [402(g)(2)] of the Code, including income thereon and less any
loss allowable thereto, is made no later than April 15 which follows
the year in which such excess deferrals were made.
11. The title of "ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS" under the
Contract is replaced with the following:
"Annuity Benefits and Required Minimum Distribution Rules"
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The following language is added at the end of the Section:
REQUIRED MINIMUM DISTRIBUTIONS: The following section is added:
This Contract is subject to these "Required Minimum Distribution" rules of
Sections 408(b) and 401(a)(9) of the Code and the Treasury Regulations that
apply.
Part A of this Item 11 describes the Required Minimum Distributions to be made
during your lifetime. Part B of this Item 11 describes the Required Minimum
Distributions to be made after your death, if you die before your entire
interest in this Contract is distributed to you. The Required Minimum
Distribution Rules may be satisfied by either an Annuity Benefit or by taking
withdrawals at least annually from or with respect to your entire interest in
this Contract, all as subject to these rules.
If you choose annual withdrawals, your annual Required Minimum Distribution
payments calculated for this Contract may be made from this Contract or from
another individual retirement arrangement that you maintain, pursuant to
Treasury Regulations. If you do not take Required Minimum Distribution payments
from this Contract, we will assume that you are taking them from another
individual retirement arrangement that you maintain.
For purposes of both the "lifetime" Required Minimum Distribution rules and the
Required Minimum Distribution rules after death, the following definitions and
conditions apply:
Your "entire interest" in this Contract for purposes of the
Required Minimum Distribution Rules. Your "entire interest" in
this Contract includes the amount of any outstanding rollover,
transfer and recharacterization under Q&As-7 and -8 of
Treasury Regulation Section 1.408-8 or any successor
Regulation and the actuarial value of any other benefits
provided under the IRA, such as guaranteed death benefits.
Required Beginning Date. Your "Required Beginning Date" is the
first day of April following the calendar year in which you
attain age 70-1/2. This is the latest date when your lifetime
Required Minimum Distribution payments with respect to this
Contract can start.
A. MINIMUM DISTRIBUTION RULES -- REQUIRED PAYMENTS DURING YOUR LIFE -
Notwithstanding any provision of this Contract to the contrary, the distribution
of your interest in this Contract shall be made in accordance with the
requirements of Code Section 408(b)(3) and the Treasury Regulations thereunder,
the provisions of which are herein incorporated by reference. If distributions
are not made in the form of an annuity on an irrevocable basis (except for
acceleration), then distribution of your interest in this Contract must satisfy
the requirements of Code Section 408(a)(6) and the Regulations
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thereunder, rather than the following paragraphs below in this Item 11A and Item
11B (applicable to annuity distributions).
Your entire interest in this Contract will be distributed or begin to be
distributed no later than your Required Beginning Date defined above. Your
entire interest may be distributed, as you elect, over (a) your life, or the
lives of you and your designated beneficiary, or (b) a period certain not
extending beyond your life expectancy, or the joint and last survivor expectancy
of you and your designated beneficiary.
These "lifetime" Required Minimum Distribution payments must be made in periodic
payments at intervals of no longer than 1 year and must be either nonincreasing
or they may increase only as provided in Q&As-1 and -4 of Section 1.401(a)(9)-6T
of the Temporary Treasury Regulations or any successor Regulation. In addition,
any distribution must satisfy the incidental benefit requirements specified in
Q&A-2 of Temporary Treasury Regulation Section 1.401(a)(9)-6T or any successor
Regulation.
The distribution periods described in the second preceding paragraph cannot
exceed the periods specified in Section 1.401(a)(9)-6T of the Temporary Treasury
Regulations or any successor Regulation.
The first lifetime Required Minimum Distribution payment can be made as late as
April 1 of the year following the year you attain age 70-1/2 and must be the
payment that is required for one payment interval. The second payment need not
be made until the end of the next payment interval.
B. MINIMUM DISTRIBUTION RULES - REQUIRED PAYMENTS AFTER DEATH
(a) Death On or After Lifetime Required Minimum Distribution Payments
Commence. If you die on or after lifetime Required Minimum Distribution payments
commence, the remaining portion of your interest will continue to be distributed
under the Annuity Benefit or other option chosen under the Contract.
(b) Death Before Lifetime Required Minimum Distribution Payments Commence.
If you die before lifetime Required Minimum Distribution Payments commence, your
entire interest will be distributed at least as rapidly as follows:
(1) If your designated beneficiary is someone other than your
surviving spouse as described in the immediately following
paragraph, your entire interest will be distributed, starting by
the end of the calendar year following the calendar year of your
death, over the remaining life expectancy of the designated
beneficiary, with such life expectancy determined using the age of
the beneficiary as of his or her birthday in the year following
the year of your death. In the alternative, the beneficiary may
elect to take distribution of your entire interest in accordance
with Item 11B, paragraph (b)(3) below.
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(2) If your sole designated beneficiary is your surviving spouse,
your entire interest will be distributed, starting by the end of
the calendar year following the calendar year of your death (or by
the end of the calendar year in which you would have attained age
70-1/2, if later), over such surviving spouse's life. In the
alternative, your surviving spouse may elect to take distribution
of your entire interest in accordance with Item 11B, paragraph
(b)(3) below. If your surviving spouse dies before these required
distributions commence to him or her, your remaining interest will
be distributed, starting by the end of the calendar year following
the calendar year of your surviving spouse's death, over your
spouse's designated beneficiary's remaining life expectancy
determined using such beneficiary's age as of his or her birthday
in the year following the death of your spouse. In the
alternative, that beneficiary may elect to take distribution of
your entire interest in accordance with Item 11B-paragraph (b)(3)
below. If your surviving spouse dies after these required
distributions commence to him or her, any remaining interest will
continue to be distributed under the Annuity Benefit or other
Contract option chosen.
(3) If there is no individual designated as beneficiary, or if the
applicable beneficiary chooses this alternative, the entire
interest will be distributed by the end of the calendar year
containing the fifth anniversary of your death (or of your
surviving spouse's death in the case of the surviving spouse's
death before distributions are required to begin under Item 11B,
paragraph (b)(2) above).
(4) Life expectancy is determined using the Single Life Table in
Q&A-1 of Treasury Regulation Section 1.401(a)(9)-9 or any
successor Regulation. If distributions are being made to a
surviving spouse as the sole designated beneficiary, such spouse's
remaining life expectancy for a year is the number in the Single
Life Table corresponding to such spouse's age in the year. In all
other cases, remaining life expectancy for a year is the number in
the Single Life Table corresponding to the beneficiary's age in
the year specified in paragraph (b)(1) or (b)(2) of this Item 11B
and reduced by 1 for each subsequent year.
(c) If the designated beneficiary is your surviving spouse, and a
Successor Owner and Annuitant option (described in Item 6 above
of this Endorsement) is elected, the distribution of your
interest need not be made until your surviving spouse's Required
Beginning Date for lifetime Required Minimum Distributions
described above in this Item 11, or your surviving spouse's death
if earlier.
(d) For purposes of paragraphs (a) and (b) of this Item 11B above,
Required Minimum Distributions are considered to commence on your
Required Beginning Date defined above in this Item 11 or, if
applicable, on the date distributions are required to begin to
the surviving spouse under paragraph (b)(2) above. However, if
distributions start prior to the applicable date in the
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preceding sentence, on an irrevocable basis (except for
acceleration) under an annuity contract meeting the requirements
of Temporary Treasury Regulation Section 1.401(a)(9)-6T or any
successor Regulation, then required distributions are considered
to commence on the annuity starting date.
12. ANNUAL REPORTS: The section is amended by adding the following sentence
after numbered clause (6):
We will also send a report as of the end of each calendar year showing the
status of the Contract and any other reports required by the Code. We will also
send to you information on Required Minimum Distributions as prescribed by the
Commissioner of Internal Revenue.
13. CHANGE OF OWNER.
This section does not apply to SEP Contracts.
14. ASSIGNMENTS: The last four sentences of the first paragraph are deleted and
replaced with the following:
You may not transfer this Contract.
Your rights under this Contract may not be assigned, pledged or transferred
except as required by law. You may not name a new Owner, except as described in
the "Death Benefits" section of this Endorsement.
15. AGE AND SEX: The section is amended by deleting the words "or sex" "and
sex" from the title and text.
APPENDIX
In lieu of the Appendix, the attached "Appendix SEP" applies.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
/s/ Xxxxxxxxxxx X. Xxxxxxx /s/ Xxxxxxx Xxxxxxx
-------------------------- --------------------
Xxxxxxxxxxx X. Xxxxxxx Xxxxxxx Xxxxxxx
Chairman and Chief Executive Officer Senior Vice President, Secretary and
Associate General Counsel
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APPENDIX
APPLICABLE TO SEP CONTRACTS
The Tables of Guaranteed Annuity Payments set forth this minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract on
the Joint and Survivor Life Annuity Form (with 100% of the amount of your
payment continued to your spouse). The amounts of income provided under the
Fixed Annuity Benefit payable on the Life Annuity Form and Joint and Survivor
Life Annuity Form are based on 2.5% interest and the 1983 Individual Annuity
Table "a" projected with modified Scale "G" and adjusted to a unisex basis based
on a 20%-80% split of males and females, at age 55. The amount of income
initially provided under the Variable Annuity Benefit payable on the Life
Annuity Form and the Joint and Survivor Life Annuity Form are based on the 1983
Individual Annuity Table "a" projected with modified Scale "G" adjusted with a
modified two year age set back and a 20%-80% split of males and females, at age
55 and an Assumed Base Rate of Net Investment Income Return of 3.5% or 5%, which
ever applies pursuant to Section 7.02.
Amounts required for ages or for annuity forms are not shown in the Tables will
be calculated by us on the same actuarial basis.
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TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM--
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
Age 60 61 62 63 64 65 66 67 68 69 70
60 3.97 4.02 4.06 4.10 4.14 4.17 4.21 4.25 4.28 4.31 4.34
61 4.06 4.11 4.15 4.19 4.23 4.27 4.31 4.35 4.39 4.42
62 4.15 4.20 4.25 4.29 4.34 4.38 4.42 4.46 4.50
63 4.25 4.30 4.35 4.40 4.45 4.49 4.53 4.58
64 4.36 4.41 4.46 4.51 4.56 4.61 4.66
65 4.47 4.52 4.58 4.63 4.69 4.74
66 4.59 4.65 4.71 4.76 4.82
67 4.71 4.78 4.84 4.90
68 4.85 4.92 4.98
69 4.99 5.06
70 5.14
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ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
3.5% 5.0%
----- ----
AGE
---
60 4.49 5.41
61 4.57 5.48
62 4.65 5.56
63 4.73 5.64
64 4.82 5.73
65 4.91 5.82
66 5.01 5.91
67 5.12 6.02
68 5.23 6.13
69 5.35 6.24
70 5.48 6.37
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