Rider Effective Date:     [11/01/2008]

  Contract Number:              
    [870152]

  Owner:                                               
    [Jane Doe]

  [Joint Owner:                   
              [John Doe]]

  

  

  
    

  

  Allianz Life Insurance Company

    of North America

  [PO Box 561

  Minneapolis, MN 55440-0561]

  [800.624.0197]

  

  

  	
          Index Performance Strategy Rider III

        


  

  

  This rider forms a part of the Base Contract to which it is attached and is effective on the Rider Effective Date shown
    above.  The Index Options provided by this rider are available for allocation on the next Index Anniversary that occurs on or immediately after the Rider Effective Date. 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 below.

  

  

  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 below.

  

  

  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 below.

  

  

  Performance Credit

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

  
    
      S40904-IAI-INFORCE                                                                                                          1                                                                [Admin. Tracking Identifier]

    

    
      


    
      

      

    

  

  

  

  	
          Definitions
            continued from previous page

        


  

  

  Term

  The period of time from the Term Start Date to the Term End Date.  The Term is shown below.

  

  

  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 an Index Anniversary.

  

  

  	
          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:

  
    	
            •

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

          


  

  
    	
            •

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

          


  

  
    	
            •

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

          


  

  

  

  At the end of each Business Day we apply the Alternate Minimum Value if we pay a Death Benefit, upon annuitization, or if
    you take a Withdrawal.

  
    
      S40904-IAI-INFORCE                                                                                                          2                                                    [Admin. Tracking Identifier]

    

    
      


    
      

      

    

  

  

  

  

  

  

  

  	
          Alternate Minimum Value

        


  

  

  The Alternate Minimum Value provides a guaranteed minimum value on each of your Index Option Values when we pay a Death
    Benefit, upon annuitization, or if you take a Withdrawal.

  

  

  When we pay a Death Benefit, upon annuitization, or if you take a Full Withdrawal, we compare each of your Index Option
    Values (after deducting any applicable fees or charges) with its Alternate Minimum Value.  If your Index Option Value is less than its Alternate Minimum Value, we add the difference to the Index Option Value before determining the amount of the Death
    Benefit, Annuity Payment, or Withdrawal.

  

  

  If you take a Partial Withdrawal, we compare the percentage of Index Option Value withdrawn (including any Withdrawal
    Charge) with an equivalent percentage of its Alternate Minimum Value.  If the percentage of Index Option Value is less than the equivalent percentage of Alternate Minimum Value, we add the difference to the amount we pay to you as a Partial Withdrawal.

  

  

  On the Index Anniversary that occurs on or immediately following the Rider Effective Date, the Alternate Minimum Value is
    equal to its associated Index Option Base multiplied by the AMV Factor shown on the Index Options Contract Schedule plus any Accumulated Alternate Interest transferred into the Index Option.  We establish an Alternate Minimum Base to calculate
    interest.  On the Index Anniversary that occurs on or immediately following the Rider Effective Date, we set the Alternate Minimum Base equal to the AMB Factor multiplied by its Index Option Base.  The AMB Factor is shown on your Index Options Contract
    Schedule.  On each Business Day, the Alternate Minimum Value is equal to the AMV Factor multiplied by its Index Option Base on the Term Start Date (adjusted proportionately for any Withdrawals, including any Withdrawal Charge) plus the Accumulated
    Alternate Interest, any Accumulated Alternate Interest transferred into the Index Option, and any Daily Adjustment.  The Accumulated Alternate Interest is the total amount of Alternate Interest accrued.

  

  

  We credit Alternate Interest to each Alternate Minimum Value at the end of the day.  Each daily Alternate Interest is equal
    to the Alternate Interest Rate divided by 365 and then multiplied by its Alternate Minimum Base.  The Alternate Interest Rate is shown on your Index Options Contract Schedule.

  

  

  If you take a Partial Withdrawal, each Alternate Minimum Value, Alternate Minimum Base, and Accumulated Alternate Interest is
    reduced by the percentage of the Index Option Value withdrawn, including any Withdrawal Charge.

  

  

  If you transfer Index Option Value from an Index Option to another Index Option, we also transfer Accumulated Alternate
    Interest.  The dollar amount of Accumulated Alternate Interest transferred is equal to the dollar amount of Index Option Value transferred divided by the total Index Option Value for the Index Option prior to the transfer, then multiplied by the
    Accumulated Alternate Interest for the Index Option prior to the transfer.

  

  

  On each Term End Date or, if an Index Option Value has been locked, the Index Anniversary that occurs on or immediately after
    the Lock Date, we reset each Alternate Minimum Base to equal its Index Option Base multiplied by the AMB Factor plus its Accumulated Alternate Interest.

  

  

  	
          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:

  
    	
            •

          	
            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;

          


  

  
    	
            •

          	
            You cannot unlock the Index Option; and

          


  

  
    	
            •

          	
            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.

  
    
      S40904-IAI-INFORCE                                                                                                          3                                                    [Admin. Tracking Identifier]

    

    
      


    

  

  

  

  

  

  	
          Index Performance Strategy III Index Options

        


  

  

  Allocation Guidelines:

  [1. Currently, you can select up to [5] of the Index Performance Strategy III Index Options.

  2. Allocations must be made in whole percentages.]

  

  

  [Part [A] Index Option Rider(s):]

   Index Performance Strategy III Index Options

  	
          Index

        	
          Buffer for all Terms

        	
           

          Minimum Cap for all Terms

           

        	
           

          Minimum Participation Rate for all Terms

           

        	
           

          Term

           

        
	
          [S&P 500® Index

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [3 Index Years]]

        
	
          [Nasdaq-100® Index

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [3 Index Years]]

        
	
          [Russell 2000® Index

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [3 Index Years]]

        
	
          [EURO STOXX 50®

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [3 Index Years]]

        
	
          [iShares® MSCI Emerging Markets
            ETF

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [3 Index Years]]

        
	
          [S&P 500® Index

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [6 Index Years]]

        
	
          [Nasdaq-100® Index

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [6 Index Years]]

        
	
          [Russell 2000® Index

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [6 Index Years]]

        
	
          [EURO STOXX 50®

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [6 Index Years]]

        
	
          [iShares® MSCI Emerging Markets ETF

        	
          [10.00]%

        	
          [3.00]%

        	
          [100.00]%

        	
          [6 Index Years]]

        


  

  

  The indexes do not reflect the dividends paid on the stocks underlying the market
    indexes.

  

  

  On the Income Benefit Date, for any Index Option that has not reached a Term End Date, we will lock the Index
    Option Value before we calculate Income Payments.

  

  

  	
          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.

  
    
      S40904-IAI-INFORCE                                                                                                         
        4                                                    [Admin. Tracking
          Identifier]

    

    
      


    

  

  

  

  

  

  	
          Index Disclosures

        


  

  

  [The Index disclaimers will populate here based on our agreements with the index companies.]

  

  

  

  

  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-IAI-INFORCE                                                                                             5          
                                                                           [Admin. Tracking Identifier]