Index Protection Strategy with Declared Protection Strategy Credit Rider

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.  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.

Declared Protection Strategy Credit

The return you may receive per Term when you allocate to an Index Protection Strategy with Declared Protection Strategy Credit Index Option(s).  On the Term Start Date, we declare Declared Protection Strategy Credits and guarantee them for the Term.  Declared Protection Strategy Credits are shown on your Index Options statement each year and will never be less than the Minimum Declared Protection Strategy Credit shown on the Index Options Contract Schedule.

Index Option Base

The value used to determine the dollar amount of the Declared Protection Strategy 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.

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.

Contract Value

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

How we calculate Index Option Values

On the first Term Start Date, the Index Option Value and Index Option Base for each Index Option are equal to:

• The portion of the Initial Purchase Payment allocated to that Index Option, if the first Term Start Date is the Issue Date; or

• The portion of Variable Account Value allocated to that Index Option, if the first Term Start Date is not the Issue Date.

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 (including any corresponding Partial MVAs)  or deduct any Contract Charges using the Index Option Base, the current Proxy Value, and the Proxy Value as of the Term Start Date.   The Daily Adjustment will never be less than zero.

Contract Value continued from the previous page

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At the end of each Business Day, we reduce each Index Option Value by the dollar amount withdrawn from the Index Option, including any corresponding Partial MVAs, and Contract Charges.  We deduct withdrawals from an Index Option proportionately, after first deducting from the Interim Fund(s), based on the percentage of Contract Value in each 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 each Index Protection Strategy with Declared Protection Strategy Credit Index Option by first determining if it receives the Declared Protection Strategy Credit.  If the Term End Date is not a Business Day, we make this determination on the next Business Day.  

For each Index Option, if the current Index Value is equal to or greater than its value on the Term Start Date then that Index Option receives its Declared Protection Strategy Credit. If an Index Option’s current Index Value is less than its value on the Term Start Date, then that Index Option does not receive its Declared Protection Strategy Credit.  If the Term Start Date is not a Business Day, we use the Index Value on the next Business Day.

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

Then, on the Term End Date for each 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 corresponding Partial MVAs) and Contract Charges.

Performance Lock

We process an Authorized Request to exercise a Performance Lock on the Lock Date based on the values at the end of the Business Day.  Compared with what you would have received as a Declared Protection Strategy Credit on the Term End Date, if you exercise a Performance Lock, you may receive less than the full Declared Protection Strategy Credit that you would have received if you waited for us to apply the Declared Protection Strategy Credit on the Term End Date.

You can request a Performance Lock of the current Index Option Value for each of your unlocked Index Options. 

Once an Index Option Value has been locked:

• The Index Option Value will not change until the next Index Anniversary that occurs on or immediately after the Lock Date, unless it is reduced for Partial Withdrawals (including any corresponding Partial MVAs) and any Contract Charges;

• You cannot unlock the Index Option; and

• The locked Index Option will not receive a Declared Protection Strategy 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.

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Rider Fee

There is no fee for this rider.

Termination of this Rider

This rider terminates on 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]

SecretaryPresident and CEO

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

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

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