Index Performance Strategy Rider III

          


    

    

    This rider forms a part of the Base Contract to which it is attached and is effective on the Index Effective Date shown
      on your Index Options statement, or if we issue this rider after the Index Effective Date, it is effective on the next Index Anniversary that occurs after the rider becomes available in your state.  Defined terms and contractual provisions are set
      forth in the Base Contract or are added in this rider.  This rider terminates as indicated under the Termination of this Rider provision.

    

    

    	
            Definitions

          


    

    

    Base Contract

    The contract to which this rider is attached.

    

    

    Buffer

    A Buffer is the maximum negative Index Return that we will absorb.  We declare a Buffer for each Index Option, and the
      Buffers will not change.  The Buffers are shown on the Index Options Contract Schedule.

    

    

    Cap

    A Cap is the maximum positive Performance Credit for the Index Option.  On the Term Start Date, we
      declare a Cap or that an Index Option is uncapped and we guarantee it for the Term.   If we declare that an Index Option is uncapped, there is no maximum positive Performance Credit for the Index Option on the Term End Date.  Caps are shown on your Index Options statement each year and will never be less than the Minimum Cap shown on the Index Options Contract Schedule.

    

    

    Index Option Base

    The value used to determine the dollar amount of the Performance Credit.  We establish an Index Option Base for each
      Index Option.

    

    

    Index Option Value

    The value in a selected Index Option.  We establish an Index Option Value for each Index Option.

    

    

    Index Value

    The value of an Index at the end of the Business Day.  Index Values are shown on your Index Options statement.

    

    

    Lock Date

    The Business Day that we receive an Authorized Request for a Performance Lock.

    

    

    Participation Rate

    A Participation Rate is a percentage of an Index Return used to calculate the Performance Credit for any Term. On the Term
      Start Date, we declare a Participation Rate and guarantee it for that Term. Participation Rates are shown on your Index Options statement  each year and will never be less than the Minimum Participate Rate shown on the Index Options Contract
      Schedule.

    

    

    Performance Credit

    The return you may receive per Term when you allocate to an Index Performance Strategy III Index Option.

    

    

    Term

    The period of time from the Term Start Date to the Term End Date.  The Term is shown on the Index Options Contract
      Schedule.

    

    

    Term End Date

    The day on which a Term ends. A Term End Date may only occur on an Index Anniversary.

    

    

    Term Start Date

    The day on which a Term begins.  A Term Start Date may only occur on the Index Effective Date or an Index Anniversary.

    
      
        S40904                                                                                                          1                                                                [Admin. Tracking Identifier]

      

      
        


      
        

        

      

    

    

    

    

    

    

    

    	
            Contract Value

          


    

    

    The following is added to the “Contract Value” section.

    

    

    How we calculate Index Option Values

    On the first Term Start Date, the Index Option Value and Index Option Base for an Index Option are equal to the amount
      of any Purchase Payments and Transfers into the Index Option.

    

    

    At the end of each Business Day other than the Term Start Date or Term End Date, the Index Option Value is equal to the
      Index Option Base plus its Daily Adjustment.  We establish a Proxy Value to calculate the Daily Adjustment.  The Proxy Value is determined on each Business Day based on the value of a hypothetical set of put and call options as determined by an
      option pricing formula.  The Daily Adjustment is calculated before we process any Partial Withdrawal or deduct any Contract Charges using the Index Option Base, the current Proxy Value, and the Proxy Value as of the Term Start Date.

    

    

    At the end of each Business Day, we reduce the Index Option Value by the dollar amount withdrawn from the Index Option,
      including any Withdrawal Charge, and Contract Charges.  We deduct withdrawals from an Index Option proportionately based on the percentage of Contract Value in the Index Option, unless you specify otherwise.  We then reduce the Index Option Base by
      the same percentage by which the amount withdrawn reduced its associated Index Option Value.

    

    

    On the Term End Date, we calculate the Index Option Value for the Index Performance Strategy III Index Option by applying
      its associated Performance Credit to its Index Option Base.  If the Term End Date is not a Business Day, we calculate the Performance Credit on the next Business Day.

    

    

    On the Term End Date, we determine the Index Return for the Index Option.  The Index Return is the Index Value for the Term
      End Date, minus the Index Value from the Term Start Date, divided by the Index Value from the Term Start Date. If the Term Start Date is not a Business Day, we use the Index Value on the next Business Day.

    

    

    If there is a Cap, and the Index Return multiplied by the Participation Rate is positive and greater than or equal to the
      Cap for an Index Option, then the Performance Credit for the Index Option is equal to the Cap.  If the Index Return multiplied by the Participation Rate is positive, but less than the Cap, or if the Index Option is uncapped, then the Performance
      Credit for that Index Option is equal to the Index Return multiplied by the Participation Rate.  If the Index Return is zero or negative, but within the Buffer, then the Performance Credit for the Index Option is zero.  If the Index Return is
      negative and extends beyond the Buffer, then the Performance Credit for the Index Option is equal to the Index Return plus the Buffer.

    

    

    For an Index Option that receives a Performance Credit, we multiply its Performance Credit by its Index Option Base.  This
      result is then added to its Index Option Base.  We then set the Index Option Value equal to its Index Option Base.

    

    

    Finally, on the Term End Date, for the Index Option we:

    
      	
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              Increase its Index Option Value and Index Option Base by the amount of any Additional Purchase Payments and
                Transfers into the Index Option;

            


    

    
      	
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              Reduce its Index Option Value and Index Option Base by the amount transferred out of the Index Option; and

            


    

    
      	
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              Reduce its Index Option Value and Index Option Base for Withdrawals (including any Withdrawal Charge) and
                Contract Charges.

            


    

    
      
        S40904                                                                                                          2                                                    [Admin. Tracking Identifier]

      

      
        


      
        

        

      

    

    

    

    

    	
            Performance Lock

          


    

    

    You can request a Performance Lock of the current Index Option Value for an unlocked Index Option by providing an
      Authorized Request.  We process the request on the Lock Date based on the values at the end of the Business Day.  Compared with what you would have received as a Performance Credit on the Term End Date, if you exercise a Performance Lock, you may
      receive less than the full protection of the Buffer, less than the full Cap, or if uncapped, less than the full Index Return multiplied by the Participation Rate over the Term.

    

    

    Once an Index Option Value has been locked:

    
      	
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              The Index Option Value will not change until the Index Anniversary that occurs on or immediately after the Lock
                Date, unless it is reduced for Withdrawals and any other Contract Charges;

            


    

    
      	
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              You cannot unlock the Index Option; and

            


    

    
      	
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              The locked Index Option will not receive a Performance Credit on the Term End Date.

            


    

    

    

    On the Index Anniversary that occurs on or immediately after the Lock Date, we set the Index Option Base equal to the Index
      Option Value and we will reallocate the Index Option Value according to your new allocation instructions. If you have not provided new allocation instructions, we will reallocate the Index Option Value into the same Index Option with a new Term.

    

    

    

    

    	
            Rider Fee

          


    

    

    There is no fee for this rider.

    

    

    	
            Termination of this Rider

          


    

    

    This rider terminates on the earlier of the Business Day before the Annuity Date or the date the Base Contract terminates.

    

    

    In all other respects the provisions, conditions, exceptions and limitations contained in the Base Contract remain
      unchanged and apply to this rider.

    

    

    Signed for the Company at its home office.

    

    

    

    

                                                                                 Allianz
      Life Insurance Company

                                                                                             
      of North America

    

    

    [                       ]

    [Gretchen Cepek]                                                                                                [Walter
        R. White]

    Secretary                                                                                                              President and
        CEO

    

    

                                             To obtain information, make an inquiry, or
      for assistance with a complaint,

                                                          please call our toll-free
      number at [800.624.0197].

     

    

     

    

    

    

    
      S40904                                                                                                          3                                                    [Admin. Tracking Identifier]