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True - the 4th gear switch grounds a wire going to the relay (Red, to terminal 85) when the trans is in 4th. Without that ground, the relay (thus, OD) won't operate - no current to solenoid. That's the "lockout" - in the relay, not the OD unit itself.
But if someone bypassed the relay and fed 12V directly to the solenoid, it would force the OD to engage in whatever gear (including reverse...ouch$$).
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Bob (son's 81-244GL B21F, dtr's 83-244DL B23F, 'my' 94-944 B230FD; plus grocery-getter Dodge minivan, hobbycar MGB, and numerous old motorcycles)
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