Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Taseko Mines Limited - Exhibit 4.1

 

 

SHAREHOLDER RIGHTS PLAN AGREEMENT

DATED EFFECTIVE AS OF FEBRUARY 13, 2007

between

TASEKO MINES LIMITED

and

COMPUTERSHARE INVESTOR SERVICES INC.

as Rights Agent

TABLE OF CONTENTS

	ARTICLE 1 - INTERPRETATION 	1 
	 	1.1 	Certain Definitions 	1 
	 	1.2 	Holder 	11 
	 	1.3 	Acting Jointly or in Concert 	12 
	 	1.4 	Application of Statutes, Regulations and Rules 	12 
	 	1.5 	Currency 	12 
	 	1.6 	Headings and References 	12 
	 	1.7 	Singular, Plural, etc. 	12 
	 	  	  	  
	ARTICLE 2 - THE RIGHTS 	12 
	 	2.1 	Legend on Common Share Certificates 	12 
	 	2.2 	Initial Exercise Price: Exercise of Rights: Detachment of
      Rights 	13 
	 	2.3 	Adjustments to Exercise Price, Number of Rights 	15 
	 	2.4 	Date on Which Exercise is Effective 	18 
	 	2.5 	Execution, Authentication, Delivery and Dating of Rights
      Certificates 	18 
	 	2.6 	Registration, Registration of Transfer and Exchange 	19 
	 	2.7 	Mutilated, Destroyed, Lost and Stolen Rights Certificates
      	19 
	 	2.8 	Persons Deemed Owners 	20 
	 	2.9 	Delivery and Cancellation of Certificates 	20 
	 	2.10 	Agreement of Rights Holders 	20 
	 	2.11 	Rights Certificate Holder Deemed Not a Shareholder 	21 
	 	  	  	  
	ARTICLE 3 - ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN
      TRANSACTIONS 	21 
	 	3.1 	Flip-in Event 	21 
	 	  	  	  
	ARTICLE 4 - THE RIGHTS AGENT 	22 
	 	4.1 	General 	22 
	 	4.2 	Merger or Amalgamation or Change of Name of Rights Agent
      	23 
	 	4.3 	Duties of Rights Agent 	23 
	 	4.4 	Change of Rights Agent 	24 
	 	  	  	  
	ARTICLE 5 - MISCELLANEOUS 	25 
	 	5.1 	Redemption and Waiver 	25 
	 	5.2 	Expiration 	26 
	 	5.3 	Issuance of New Rights Certificates 	26 
	 	5.4 	Supplements and Amendments 	26 
	 	5.5 	Fractional Rights and Fractional Common Shares 	27 
	 	5.6 	Rights of Action 	27 
	 	5.7 	Holder of Rights Not Deemed a Shareholder 	28 
	 	5.8 	Non-Canadian or United States Holders 	28 
	 	5.9 	Notices 	28 
	 	5.10 	Costs of Enforcement 	29 
	 	5.11 	Successors 	29 
	 	5.12 	Benefits of this Agreement 	29 
	 	5.13 	Governing Law 	29 
	 	5.14 	Counterparts 	30 
	 	5.15 	Severability 	30 
	 	5.16 	Determinations and Actions by the Board of Directors 	30 
	 	5.17 	Regulatory Approvals 	30 

- i -

SHAREHOLDER RIGHTS PLAN AGREEMENT

SHAREHOLDER RIGHTS PLAN AGREEMENT dated effective as of
February 13, 2007 between TASEKO MINES LIMITED a corporation incorporated
under the Business Corporations Act (British Columbia) (the
“Corporation”) and COMPUTERSHARE INVESTOR SERVICES INC., a trust
company incorporated under the laws of Canada, as rights agent (the “Rights
Agent”), which term shall include any successor Rights Agent hereunder).

WHEREAS the Board of Directors has determined it advisable and
in the best interests of the Corporation to adopt a shareholder rights plan
agreement (the “Rights Plan”) to ensure, to the extent possible, that all
shareholders of the Corporation are treated fairly in connection with any
take-over offer for the Corporation; and

WHEREAS in order to implement the Rights Plan, the Board of
Directors has authorized the issuance of one right (“Right”):

	(a) 	
      effective at the Record Time (as hereinafter defined) in
      respect of each Common Share (as hereinafter defined) outstanding at the
      Record Time; and

	 	 
	(b) 	
      in respect of each Common Share issued after the Record
      Time and prior to the earlier of the Separation Time (as hereinafter
      defined) and the Expiration Time (as hereinafter
  defined);

WHEREAS the Corporation desires to appoint a Rights Agent to
act on behalf of the Corporation and the holders of Rights, and the Rights Agent
was willing to so act, in connection with the issuance, transfer, exchange and
replacement of Rights Certificates (as hereinafter defined), the exercise of
Rights and other matters referred to herein;

WHEREAS each Right entitles the holder thereof, after the
Separation Time, to purchase securities of the Corporation pursuant to the terms
and subject to the conditions set forth therein; and

WHEREAS the Board of Directors has resolved to seek the
ratification of the Corporation’s shareholders, by way of ordinary resolution
within 180 days of the date hereof, of the adoption of this Rights Plan.

NOW THEREFORE, in consideration of the premises and the
respective agreements set forth herein, the Corporation and the Rights Agent
hereby agree as follows:

ARTICLE 1 - INTERPRETATION

1.1                    
Certain Definitions

                           
In this Agreement, unless the context otherwise requires:

	 	(a) 	
      “Acquiring Person” means any Person who is the
      Beneficial Owner of 20% or more of the outstanding Voting Shares;
      provided, however, that the term “Acquiring Person” shall
      not include:

	 	 	 	 
	 		(i) 	
      the Corporation or any Subsidiary of the Corporation,
      or

	 	 	 	 
	 		(ii) 	
      an underwriter or member of a banking or selling group
      that acquires Voting Shares from the Corporation in connection with a
      distribution of securities, or

	 	 	 	 
	 		(iii) 	
      any Person who becomes the Beneficial Owner of 20% or
      more of the outstanding Voting Shares as a result of one or any
      combination of:

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	 	(A) 	
      a Voting Share Reduction which, by reducing the number of
      Voting Shares outstanding, increases the percentage of Voting Shares
      Beneficially Owned by such Person to 20% or more of the Voting Shares then
      outstanding,

	 	 	 
	 	(B) 	
      a Permitted Bid Acquisition,

	 	 	 
	 	(C) 	
      an Exempt Acquisition,

	 	 	 
	 	(D) 	
      a Pro-Rata Acquisition, or

	 	 	 
	 	(E) 	
      a Convertible Security
Acquisition,

	 		
      in each such case, until such time thereafter as such
      Person shall become the Beneficial Owner (otherwise than pursuant to any
      one or more of a Voting Share Reduction, a Permitted Bid Acquisition, an
      Exempt Acquisition, a Pro-Rata Acquisition, or a Convertible Security
      Acquisition) of additional Voting Shares constituting more than 1% of the
      Voting Shares then outstanding, in which event such Person shall become an
      Acquiring Person as of the date and time of acquisition of such additional
      Voting Shares; or

	 	 	 
	 	(iv) 	
      for a period of 10 days after the Disqualification Date
      (as hereinafter defined), any Person who becomes the Beneficial Owner of
      20% or more of the outstanding Voting Shares as a result of such Person
      becoming disqualified from relying on clauses (vi) or (viii) of the
      definition of Beneficial Owner. In this definition, “Disqualification
      Date” means the first date of public announcement of facts indicating
      that such Person has or is making or has announced an intention to make a
      Take-over Bid alone or by acting jointly or in concert with any other
      Person; or

	 	 	 
	 	(v) 	
      a Person (a “Grandfathered Person”) who is the
      Beneficial Owner of 20% or more of the outstanding Voting Shares as of the
      Record Time; provided, however, that the exemption shall not be applicable
      to any Grandfathered Person in the event that such Grandfathered Person
      shall, after the Record Time, become the Beneficial Owner of additional
      Voting Shares such that its Beneficial Ownership of Voting Shares is
      increased by more than 1% of the number of Voting Shares then outstanding
      (otherwise than pursuant to any one or more of a Voting Share Reduction, a
      Permitted Bid Acquisition, an Exempt Acquisition, a Pro-Rata Acquisition,
      or a Convertible Security Acquisition).

	 	(b) 	
      “Affiliate”, when used to indicate a relationship
      with a specified corporation, means a Person that directly, or indirectly
      through one or more controlled intermediaries, controls, or is controlled
      by, or is under common control with, such specified corporation.

	 	 	 	 
	 	(c) 	
      “Agreement” means this Shareholder Rights Plan
      Agreement as amended and supplemented from time to time.

	 	 	 	 
	 	(d) 	
      “Associate”, when used to indicate a relationship
      with a specified Person, means (i) a spouse of such specified Person, (ii)
      any Person of either sex with whom such specified Person is living in a
      conjugal relationship outside marriage or (iii) any relative of such
      specified Person or of a Person mentioned in clauses (i) or (ii) of this
      definition if that relative has the same residence as the specified
      Person.

	 	 	 	 
	 	(e) 	
      A Person shall be deemed the “Beneficial Owner”
      and to have “Beneficial Ownership” of and to “Beneficially
      Own”, any securities:

	 	 	 	 
	 		(i) 	
      of which such Person or any of such Person’s Affiliates
      or Associates is the owner at law or in equity;

- 2 -

	 	(ii) 	
      as to which such Person or any of such Person’s
      Affiliates or Associates has the right to become owner at law or in equity
      (where such right is exercisable within 60 days, whether or not on
      condition or the happening of any contingency or the making of any
      payment) pursuant to any agreement, arrangement, pledge or understanding,
      including but not limited to any Lock-Up Agreement or similar agreement,
      arrangement or understanding that is not a Permitted Lock-Up Agreement,
      whether or not in writing (other than (x) customary agreements with and
      between underwriters and/or banking group members and/or selling group
      members with respect to a public offering or private placement of
      securities, and (y) pledges of securities in the ordinary course of
      business), or upon the exercise of any Convertible Securities;
  and

	 	 	 
	 	(iii) 	
      which are Beneficially Owned within the meaning of
      clauses (i) or (ii) of this definition by any other Person with which such
      Person is acting jointly or in concert;

provided, however, that a
Person shall not be deemed the “Beneficial Owner”, or to have
“Beneficial Ownership” of, or to “Beneficially Own”, any
security:

	 	(iv) 	
      by reason of such security having been deposited or
      tendered pursuant to a tender or exchange offer or Take-over Bid made by
      such Person or any of such Person’s Affiliates or Associates or any other
      Person referred to in clause (iii) of this definition until the earlier of
      such deposited or tendered security being accepted unconditionally for
      payment or exchange or being taken up and paid for;

	 	 	 	 
	 	(v) 	
      by reason of the holder of such security having agreed to
      deposit or tender such security to a Take-over Bid made by such Person or
      any of such Person’s Affiliates or Associates or any other Person referred
      to in clause (iii) of this definition pursuant to a Permitted Lock-up
      Agreement;

	 	 	 	 
	 	(vi) 	
      by reason of such Person, any of such Person’s Affiliates
      or Associates or any other Person referred to in clause (iii) of this
      definition holding such security, provided that:

	 	 	 	 
	 		(A) 	
      the ordinary business of the Person (in this definition,
      the “Manager”) includes the management of mutual funds or
      investment funds for others (which others may include or be limited to one
      or more employee benefit plans or pension plans) and such security is held
      by the Manager in the ordinary course of such business in the performance
      of such Manager’s duties for the account of any other Person (in this
      definition, a “Client”), including non-discretionary accounts held
      on behalf of a Client by a dealer or broker registered under applicable
      laws;

	 	 	 	 
	 		(B) 	
      the Person (in this definition, a “Trust Company”)
      is licensed to carry on the business of a trust company under applicable
      law and, as such, acts as a trustee or administrator or in a similar
      capacity in relation to the estates of deceased or incompetent Persons
      (each, in this definition, an “Estate Account”) or in relation to
      other accounts (each, in this definition, an “Other Account”) and
      holds such security, and is acting, in the ordinary course of such duties
      for the Estate Account or for such Other Accounts;

	 	 	 	 
	 		(C) 	
      the ordinary business of such Person includes acting as
      an agent of the Crown in the management of public assets (in this
      definition, the “Crown Agent”);

	 	 	 	 
	 		(D) 	
      the Person is an independent Person established by
      statute for purposes that include, and the ordinary business or activity
      of such Person (in this definition, the “Statutory Body”) includes,
      the management of investment funds for employee benefit plans, pension
      plans, insurance plans of various public bodies

- 3 -

	 		
      and the Statutory Body holds such security for the
      purposes of its activities as such; or

	 	 	 
	 	(E) 	
      the Person (in this definition, the
      “Administrator”) is the administrator or trustee of one or more
      pension funds or plans (each, in this definition, a “Plan”) or is a
      Plan registered under the laws of Canada or any province thereof or the
      corresponding laws of the jurisdiction by which such Plan is governed and
      the Administrator or Plan holds such security for the purposes of its
      activities as such;

			
      but only if the Manager, the Trust Company, the Crown
      Agent, the Statutory Body, the Administrator or the Plan, as the case may
      be, is not then making and has not announced a current intention to make a
      Take-over Bid, other than an Offer to Acquire Common Shares or other
      securities pursuant to a distribution by the Corporation or by means of
      ordinary market transactions (including prearranged trades entered into in
      the ordinary course of business of such Person) executed through the
      facilities of a stock exchange or an organized over-the-counter market,
      alone or by acting jointly or in concert with any other Person; 

	 	  	  
	 	(vii) 	
      because such Person, or any other Person acting jointly
      or in concert with such Person is: 

	 		(A) 	
      a Client of the same Manager as another Person on whose
      account the Manager holds such security, or

	 	 	 	 
	 		(B) 	
      an Estate Account or an Other Account of the same Trust
      Company as another Person on whose account the Trust Company holds such
      security, or

	 	 	 	 
	 		(C) 	
      a Plan with the same Administrator as another Plan on
      whose account the Administrator holds such securities, or

	 	 	 	 
	 	(viii) 	
      because such Person, or any other Person acting jointly
      or in concert with such Person, is:

	 	 	 	 
	 		(A) 	
      a Client of a Manager and such security is owned at law
      or in equity by the Manager, or

	 	 	 	 
	 		(B) 	
      an Estate Account or an Other Account of a Trust Company
      and such security is owned at law or in equity by the Trust Company,
    or

	 	 	 	 
	 		(C) 	
      a Plan and such security is owned at law or in equity by
      the Administrator of the Plan, or

	 	 	 	 
	 	(ix) 	
      because such Person is the registered holder of
      securities as a result of carrying on the business of, or acting as
      nominee for, a securities depository.

For purposes of this Agreement, the
percentage of Voting Shares Beneficially Owned by any Person at any time shall
be and be deemed to be the product determined by the formula:

	100 	x 	A 
	  	  	B 

		where: 	A = 	
      the number of votes for the election of all directors
      generally attached to the Voting Shares Beneficially Owned by such Person
      at such time; and 

- 4 -

		
      B = 
	
      the number of votes for the election of all directors
      generally attaching to all Voting Shares actually outstanding.
  

Where any Person is deemed to
Beneficially Own unissued Voting Shares, such Voting Shares shall be deemed to
be outstanding for the purpose of calculating the percentage of Voting Shares
Beneficially Owned by such Person, but unissued Voting Shares which another
Person may be deemed to Beneficially Own shall not be included in the
denominator of the above formula.

	 	(f) 	
      “Board of Directors” means the board of directors
      for the time being of the Corporation.

	 	 	 
	 	(g) 	
      “Business Day” means any day other than a
      Saturday, Sunday or, unless otherwise specified, a day on which Canadian
      chartered banks in the cities of Toronto, Ontario, and Vancouver, British
      Columbia are generally authorized or obligated by law to close.

	 	 	 
	 	(h) 	
      “Business Corporations Act (British
      Columbia)” means the Business Corporations Act (BCA),
      S.B.C. 2002, c.57, as amended, and the regulations thereunder, unless
      otherwise specified, as the same exist on the date hereof.

	 	 	 
	 	(i) 	
      “Canadian-U.S. Exchange Rate” means, on any date,
      the inverse of the U.S.-Canadian Exchange Rate.

	 	 	 
	 	(j) 	
      “Canadian Dollar Equivalent” of any amount which
      is expressed in United States dollars means, on any date, the Canadian
      dollar equivalent of such amount determined by reference to the
      Canadian-U.S. Exchange Rate on such date.

	 	 	 
	 	(k) 	
      “Close of Business” on any given date means 5:00
      p.m. (Toronto time, unless otherwise specified), on such date;
      provided, however, that if such date is not a Business Day,
      “Close of Business” on such date shall mean 5:00 p.m., (Toronto
      time, unless otherwise specified), on the next succeeding Business
    Day.

	 	 	 
	 	(l) 	
      “Common Shares” means the Common Shares in the
      capital of the Corporation.

	 	 	 
	 	(m) 	
      “Competing Permitted Bid” means a Take-over Bid
      that:

	 	(i) 	
      is made after a Permitted Bid or Competing Permitted Bid
      has been made and prior to the expiry of that Permitted Bid or Competing
      Permitted Bid (in this definition, the “Prior Bid”);

	 	 	 	 
	 	(ii) 	
      satisfies all components of the definition of a Permitted
      Bid other than the requirements set out in clause (ii) of that definition;
      and

	 	 	 	 
	 	(iii) 	
      contains, and the take-up and payment for securities
      tendered or deposited thereunder are subject to, irrevocable and
      unqualified conditions that no Voting Shares shall be taken-up or paid for
      pursuant to the Competing Permitted Bid:

	 	 	 	 
	 		A. 	
      prior to the Close of Business (Vancouver time) on a date
      that is not earlier than the later of 35 days after the date of such
      Competing Permitted Bid and the earliest date on which Voting Shares may
      be taken-up or paid for under any Prior Bid in existence at the date of
      such Competing Permitted Bid; and

	 	 	 	 
	 		B. 	
      then only if, at the time that such Voting Shares are
      first taken-up or paid for, more than 50% of the then outstanding Voting
      Shares held by Independent Shareholders have been deposited or tendered
      pursuant to the Competing Permitted Bid and not
  withdrawn.

- 5 -

	 	(n) 	
      a body corporate is “controlled” by another Person
      if:

	 	 	 	 
	 		(i) 	
      securities entitled to vote in the election of directors
      carrying more than 50% of the votes for the election of directors are
      held, directly or indirectly, by or on behalf of the other Person;
    and

	 	 	 	 
	 		(ii) 	
      the votes carried by such securities are entitled, if
      exercised, to elect a majority of the board of directors of such body
      corporate,

	 		
      and “controls”, “controlling” and “under
      common control with” shall be interpreted accordingly.

	 	 	 
	 	(o) 	
      “Convertible Securities” means at any
  time:

	 	(i) 	
      any right (contractual or otherwise and regardless of
      whether such right constitutes a security) to acquire Voting Shares from
      the Corporation; and

	 	 	 
	 	(ii) 	
      any securities issued by the Corporation from time to
      time (other than the Rights) carrying any exercise, conversion or exchange
      right;

	 		
      which is then exercisable or exercisable within a period
      of 60 days from that time pursuant to which the holder thereof may acquire
      Voting Shares or other securities convertible into or exercisable or
      exchangeable for Voting Shares (in each case, whether such right is then
      exercisable or exercisable within a period of 60 days from that time and
      whether or not on condition or the happening of any
contingency).

	 	 	 
	 	(p) 	
      “Convertible Security Acquisition” means the
      acquisition of Voting Shares upon the exercise of Convertible Securities
      received by a Person pursuant to a Permitted Bid Acquisition, an Exempt
      Acquisition or a Pro-Rata Acquisition.

	 	 	 
	 	(q) 	
      “Exchange Act of 1934” means the
      Securities Exchange Act of 1934, as amended, of the United States
      of America and the rules and regulations thereunder, unless otherwise
      specified, as the same exist on the date hereof.

	 	 	 
	 	(r) 	
      “Exempt Acquisition” means a Share acquisition (i)
      in respect of which the Board of Directors has waived the application of
      Section 3.1 pursuant to the provisions of Section 5.1 hereof, (ii)
      pursuant to a regular dividend reinvestment or other plan of the
      Corporation made available by it to all holders of Voting Shares of a
      class or series of Voting Shares where such plan permits the holder to
      direct that dividends paid in respect of such Voting Shares be applied to
      the purchase from the Corporation of further securities of the
      Corporation, or (iii) by a Person pursuant to a prospectus or by way of
      private placement, provided that the Person does not thereby acquire a
      greater percentage of Voting Shares, or securities convertible into or
      exchangeable for Voting Shares, than the Person’s percentage of Voting
      Shares Beneficially Owned immediately prior to such acquisition.

	 	 	 
	 	(s) 	
      “Exercise Price” means, as of any date, the price
      at which a holder may purchase the securities issuable upon exercise of
      one whole Right. Until adjustment thereof in accordance with the terms
      hereof, the Exercise Price shall equal $40.

	 	 	 
	 	(t) 	
      “Expiration Time” means the earliest of: (i) the
      Termination Time; (ii) the termination of the annual meeting of the
      Corporation in the year 2010 unless at such meeting the duration of this
      Agreement is extended; and (iii) 180 days after the date of this Rights
      Plan if this Rights Plan is not ratified by holders of Voting Shares in
      accordance with the requirements of the Toronto Stock
  Exchange.

- 6 -

	 	(u) 	
      “Flip-in Event” means a transaction or event that
      results in a Person becoming an Acquiring Person.

	 	 	 
	 	(v) 	
      “Fiduciary” means a trust company registered under
      the laws of Canada or any province thereof or a portfolio manager
      registered under the securities legislation of one or more provinces of
      Canada.

	 	 	 
	 	(w) 	
      “Independent Shareholders” means all holders of
      Common Shares other than (i) any Acquiring Person, (ii) any Offeror, (iii)
      any Affiliate or Associate of any Acquiring Person or Offeror, (iv) any
      Person acting jointly or in concert with any Person referred to in clauses
      (i) or (ii) , and (v) any employee benefit plan, deferred profit sharing
      plan, stock participation plan or trust for the benefit of employees of
      the Corporation or a wholly-owned Subsidiary of the Corporation, unless
      the beneficiaries of such plan or trust direct the manner in which such
      Common Shares are to be voted or direct whether the Common Shares are to
      be tendered to a Take-over Bid.

	 	 	 
	 	(x) 	
      “Market Price” per security of any securities on
      any date means the average of the daily closing prices per security of
      such securities (determined as described below) on each of the 20
      consecutive Trading Days through and including the Trading Day immediately
      preceding such date.; provided, however, that if an event of a type
      analogous to any of the events described in Section 2.3 hereof shall have
      caused the closing prices used to determine the Market Price on any
      Trading Days not to be fully comparable with the closing price on such
      date (or, if such date is not a Trading Day, on the immediately preceding
      Trading Day), each such closing price so used shall be appropriately
      adjusted in a manner analogous to the applicable adjustment provided for
      in Section 2.3 hereof in order to make it fully comparable with the
      closing price on such date (or, if such date is not a Trading Day, on the
      immediately preceding Trading Day). The closing price per security of any
      securities on any date shall be:

	 	(i) 	
      the closing board lot sale price or, in the case no such
      sale takes place on such date, the average of the closing bid and asked
      prices for each share of such securities as reported by the principal
      stock exchange in Canada on which such shares are listed or posted for
      trading;

	 	 	 
	 	(ii) 	
      if such shares are not listed or posted for trading on
      any stock exchange in Canada, the last sale price, regular way, or, in
      case no such sale takes place on such date, the average of the closing bid
      and asked prices, regular way, for each share of such securities as
      reported in the principal consolidated transaction reporting system with
      respect to securities listed or admitted to trading on the principal
      national securities exchange in the United States on which such shares are
      listed or admitted to trading, or

	 	 	 
	 	(iii) 	
      if for any reason none of such prices is available on
      such day or the securities are not listed or admitted to trading on a
      stock exchange in Canada or a national securities exchange in the United
      States, the last quoted price, or if not so quoted, the average of the
      high bid and low asked prices for each share of such securities in the
      over-the-counter market, as reported by the National Association of
      Securities Dealers, Inc. Automated Quotation System (“NASDAQ”) or
      such other system then in use; or

	 	 	 
	 	(iv) 	
      if on any such date such shares are not quoted by any
      such organization, the average of the closing bid and asked prices as
      furnished by a professional market maker making a market in such shares
      selected by the Board of Directors of the Corporation; provided, however,
      that if on any such date such shares are not traded in the
      over-the-counter market, the closing price per share of such securities on
      such date shall mean the fair value per share of such securities on such
      date as determined by a nationally or internationally recognized
      investment dealer or investment banker. The Market Price shall be
      expressed in Canadian dollars and if initially determined in respect of
      any day forming part of the 20 consecutive Trading Day period in question
      in United States

- 7 -

	 		
       
	
      dollars, such amount shall be translated into Canadian
      dollars at the Canadian Dollar Equivalent thereof on the relevant Trading
      Day.

	 	 	 	 
	 	(y) 	
      “Offer to Acquire” includes:

	 	 	 	 
	 		(i) 	
      an offer to purchase, or a solicitation of an offer to
      sell, Common Shares (including an offer commenced by public announcement
      or advertisement);

	 	 	 	 
	 		(ii) 	
      an acceptance of an offer to sell Common Shares, whether
      or not such offer to sell has been solicited;

	 		
      or any combination thereof, and the Person accepting an
      offer to sell shall be deemed to be making an Offer to Acquire to the
      Person that made the offer to sell.

	 	 	 	 
	 	(z) 	
      “Offeror” means a Person who is making or has
      announced a current intention to make a Take- over Bid (including a
      Permitted Bid or Competing Permitted Bid but excluding any person referred
      to in paragraph (vi) of the definition of Beneficial Owner) but only so
      long as the Take- over Bid so announced or made has not been withdrawn or
      terminated or has not expired.

	 	 	 	 
	 	(aa) 	
      “Permitted Bid” means a Take-over Bid which is
      made by means of a Take-over Bid circular and which also complies with the
      following additional provisions:

	 	 	 	 
	 		(i) 	
      the Take-over Bid shall be made to all holders of Voting
      Shares as registered on the books of the Corporation, other than the
      Offeror;

	 	 	 	 
	 		(ii) 	
      the Take-over Bid shall contain, and the take-up and
      payment for securities tendered or deposited thereunder shall be subject
      to, an irrevocable and unqualified condition that no Voting Shares shall
      be taken up or paid for pursuant to the Take-over Bid prior to the Close
      of Business (Vancouver time) on a date which is not less than 60 days
      after the date of the Take-over Bid and only if at such date more than 50%
      of the Voting Shares held by Independent Shareholders shall have been
      deposited or tendered pursuant to the Take-over Bid and not
    withdrawn;

	 	 	 	 
	 		(iii) 	
      the Take-over Bid contains an irrevocable and unqualified
      provision that, unless the Take-over Bid is withdrawn, Voting Shares may
      be deposited pursuant to such Take-over Bid at any time during the period
      of time between the date of the Take-over Bid and the date on which Voting
      Shares may be taken up and paid for and that any Voting Shares deposited
      pursuant to the Take-over Bid may be withdrawn until taken up and paid
      for; and

	 	 	 	 
	 		(iv) 	
      the Take-over Bid contains an irrevocable and unqualified
      provision that if, on the date on which Voting Shares may be taken up and
      paid for, more than 50% of the Voting Shares held by Independent
      Shareholders shall have been deposited or tendered pursuant to the
      Take-over Bid and not withdrawn, the Offeror will make a public
      announcement of that fact and the Take-over Bid will remain open for
      deposits and tenders of Voting Shares for not less than 10 Business Days
      from the date of such public announcement.

	 	 	 	 
	 	(bb) 	
      “Permitted Bid Acquisition” means a Share
      acquisition made pursuant to a Permitted Bid or Competing Permitted
      Bid.

	 	 	 	 
	 	(cc) 	
      “Permitted Lock-Up Agreement” means an agreement
      (the “Lock-up Agreement”) between a Person and one or more holders
      of Voting Shares (each holder referred to herein as a “Locked-up
      Person”), the terms of which are publicly disclosed and a copy of
      which is made available to the public, including the Corporation, pursuant
      to which such holders agree to deposit or tender Voting Shares to a
      Take-over Bid (the “Lock-up Bid”) made by the Person or any of
      such

- 8 -

Person’s Affiliates or Associates or
any other Person referred to in clause (iii) of the definition of Beneficial
Owner, whether such Lock-up Bid is made before or after the Lock-up Agreement is
signed, provided that:

	 	(i) 	
      the Lock-up Agreement permits the Locked-up Person to
      terminate its agreement to deposit or tender to or to not withdraw Voting
      Shares from the Lock-up Bid in the event a “Superior Offer” is made
      to the Locked-up Person. For purposes of this subsection, a “Superior
      Offer” is any Take-over Bid, amalgamation, arrangement or similar
      transaction pursuant to which the cash equivalent value of the
      consideration per share to be received by holders of the Voting Shares
      under such transaction (the “Superior Offer Consideration”) is
      greater than the cash equivalent value per share to be received by holders
      of Voting Shares under the Lock-up Bid (the “Lock-up Bid
      Consideration”). Notwithstanding the foregoing, the Lock-up Agreement
      may require that the Superior Offer Consideration must exceed the Lock-up
      Bid Consideration by a specified percentage before such termination rights
      take effect, provided such specified percentage is not greater than
    7%.

For greater clarity, the Lock-up
Agreement may contain a right of first refusal or require a period of delay to
give the Person who made the Lock-up Bid an opportunity to match a higher price
in another Take-over Bid or transaction or similar limitation on the Locked-up
Person’s right to withdraw Voting Shares from the agreement, so long as the
limitation does not preclude the exercise by the Locked-up Person of the right
to withdraw Voting Shares during the period of the other Take-over Bid or
transaction; and

	 	(ii) 	
      no “break-up” fees, “top-up” fees,
      penalties, expenses, or other amounts that exceed, in the aggregate, the
      greater of:

	 	 	 	 
	 		A. 	
      2.5% of the Lock-up Bid Consideration payable under the
      Lock-up Agreement to the Locked-up Person; and

	 	 	 	 
	 		B. 	
      one-half of the difference between the Superior Offer
      Consideration payable to the Locked-up Person and the Lock-up Bid
      Consideration the Locked-up Person would have received under the Lock-up
      Bid,

shall be payable pursuant to the
Lock-up Agreement in the event that the Locked-up Person fails to tender Voting
Shares pursuant to the Lock-up Bid or withdraws Voting Shares from the Lock-Up
Bid in order to accept the other Take-over Bid or transaction.

	 	(dd) 	
      “Person” includes any individual, firm,
      partnership, association, trust, body corporate, joint venture, syndicate
      or other form of unincorporated organization, government and its agencies
      and instrumentalities or other entity or group (whether or not having
      legal personality) and any successor (by merger, statutory amalgamation or
      arrangement, or otherwise) thereof.

	 	 	 
	 	(ee) 	
      “Pro-Rata Acquisition” means the acquisition of
      Voting Shares or securities convertible into or exchangeable for Voting
      Shares (i) as a result of a stock dividend, stock split or other event
      pursuant to which a Person receives or acquires Voting Shares or
      securities convertible into or exchangeable for Voting Shares on the same
      pro-rata basis as all other holders of Voting Shares of the same class or
      series, or (ii) pursuant to the receipt and/or exercise of rights issued
      by the Corporation on a pro-rata basis to all holders of a class or series
      of Voting Shares to subscribe for or purchase Voting Shares or securities
      convertible into or exchangeable for Voting Shares provided that such
      rights are acquired directly from the Corporation and not from any other
      Person, provided that the Person acquiring such Voting Shares does not
      thereby acquire a greater percentage of such Voting Shares, or securities
      convertible into or exchangeable for such Voting Shares, than the Person’s
      percentage of Voting Shares Beneficially Owned immediately prior to such
      acquisition.

- 9 -

	 	(ff) 	
      “Record Time” means the close of business on
      February 13, 2007.

	 	 	 	 
	 	(gg) 	
      “Redemption Price” has the meaning ascribed to
      that term in subsection 5.1(a) hereof.

	 	 	 	 
	 	(hh) 	
      “Regular Periodic Cash Dividends” means cash
      dividends paid at regular intervals in any fiscal year of the Corporation
      to the extent that such cash dividends do not exceed, in the aggregate,
      the greatest of:

	 	 	 	 
	 		(i) 	
      200% of the aggregate amount of cash dividends declared
      payable by the Corporation on its Common Shares in its immediately
      preceding fiscal year;

	 	 	 	 
	 		(ii) 	
      300% of the arithmetic mean of the aggregate amounts of
      cash dividends declared payable by the Corporation on its Common Shares in
      its three immediately preceding fiscal years; and

	 	 	 	 
	 		(iii) 	
      100% of the aggregate consolidated net income of the
      Corporation, before extraordinary items, for its immediately preceding
      fiscal year.

	 	 	 	 
	 	(ii) 	
      “Rights Certificate” has the meaning ascribed to
      that term in subsection 2.2(c) hereof.

	 	 	 	 
	 	(jj) 	
      “Rights Holders’ Special Meeting” means a meeting
      of the holders of Rights called by the Board of Directors and conducted in
      accordance with the terms hereof.

	 	 	 	 
	 	(kk) 	
      “Securities Act of 1933” means the
      Securities Act of 1933, as amended, of the United States of America
      and the rules and regulations thereunder, unless otherwise specified, as
      the same exist on the date hereof.

	 	 	 	 
	 	(ll) 	
      “Securities Act (British Columbia)”
      means the Securities Act, R.S.B.C. 1996, Chapter 418, as amended,
      and the regulations and rules thereunder, unless otherwise specified, as
      the same exist on the date hereof.

	 	 	 	 
	 	(mm) 	
      “Separation Time” means the Close of Business
      (Vancouver time) on the tenth Trading Day after the earliest of:

	 	 	 	 
	 		(i) 	
      the Stock Acquisition Date;

	 	 	 	 
	 		(ii) 	
      the date of the commencement of, or first public
      announcement of the intent of any Person (other than the Corporation or
      any Subsidiary of the Corporation) to commence, a Take-over Bid (other
      than a Permitted Bid or a Competing Permitted Bid, as the case may be);
      and

	 	 	 	 
	 		(iii) 	
      the date upon which a Permitted Bid or Competing
      Permitted Bid ceases to be such;

	 		
      or such later date as may be determined by the Board of
      Directors provided, however, that if any such Take-over Bid expires, is
      cancelled, terminated or otherwise withdrawn prior to the Separation Time,
      such Take-over Bid shall be deemed, for purposes of this definition, never
      to have been made.

	 	 	 
	 	(nn) 	
      “Shares” means the shares in the capital of the
      Corporation.

	 	 	 
	 	(oo) 	
      “Stock Acquisition Date” means the first date of
      public announcement (which, for purposes of this definition, shall
      include, without limitation, a report filed pursuant to Section 111 of the
      Securities Act (British Columbia) or Section 13(d) under the
      Exchange Act of 1934, as amended from time to time and any
      provision substituted therefor) by the Corporation or an Acquiring Person
      of facts indicating that an Acquiring Person has become
  such.

- 10 -

	 	(pp) 	
      “Subsidiary”:

	 	 	 
	 		
      A body corporate is a Subsidiary of another body
      corporate if:

	 	(i) 	
      it is controlled by (A) that other, or (B) that other and
      one or more bodies corporate, each of which is controlled by that other,
      or (C) two or more bodies corporate, each of which is controlled by that
      other, or

	 	 	 
	 	(ii) 	
      it is a Subsidiary of a body corporate that is that
      other’s Subsidiary.

	 	(qq) 	
      “Take-over Bid” means an Offer to Acquire Voting
      Shares or securities convertible into Voting Shares, where the Voting
      Shares subject to the Offer to Acquire, together with the Voting Shares,
      if any, into which the securities subject to the Offer to Acquire are
      convertible and the Voting Shares Beneficially Owned by the Offeror at the
      date of the Offer to Acquire constitute, in the aggregate, 20% or more of
      the then outstanding Voting Shares.

	 	 	 
	 	(rr) 	
      “Termination Time” means the time at which the
      right to exercise Rights shall terminate pursuant to Section 5.1
      hereof.

	 	 	 
	 	(ss) 	
      “Trading Day”, when used with respect to any
      securities, means a day on which the principal securities exchange in
      Canada on which such securities are listed or admitted to trading is open
      for the transaction of business or, if the securities are not listed or
      admitted to trading on any securities exchange in Canada, a day on which
      the principal securities exchange in the United States of America on which
      such securities are listed or admitted to trading is open for the
      transaction of business, or if the securities are not listed or admitted
      to trading on any securities exchange in Canada or the United States of
      America, a Business Day.

	 	 	 
	 	(tt) 	
      “U.S.-Canadian Exchange Rate” means, on any
      date:

	 	(i) 	
      if on such date the Bank of Canada sets an average noon
      spot rate of exchange for the conversion of one United States dollar into
      Canadian dollars, such rate; and

	 	 	 
	 	(ii) 	
      in any other case, the rate for such date for the
      conversion of one United States dollar into Canadian dollars calculated in
      the manner which shall be determined by the Board of Directors from time
      to time.

	 	(uu) 	
      “U.S. Dollar Equivalent” of any amount which is
      expressed in Canadian dollars means, on any date, the United States dollar
      equivalent of such amount determined by reference to the U.S.- Canadian
      Exchange Rate on such date.

	 	 	 
	 	(vv) 	
      “Voting Share Reduction” means an acquisition or a
      redemption by the Corporation of Voting Shares.

	 	 	 
	 	(ww) 	
      “Voting Shares” means, collectively, the Common
      Shares and any other Shares entitled to vote generally for the election of
      directors.

1.2                      
Holder

                           
As used in this Agreement, unless the context otherwise requires, the
“holder” when used with reference to Rights, means the registered holder
of such Rights or, prior to the Separation Time, the associated Common
Shares.

- 11 -

1.3                     
Acting Jointly or in Concert

                           
For purposes of this Agreement, a Person is acting jointly or in concert with
every other person who is a party to any agreement, to acquire or offer to
acquire Voting Shares (other than customary agreements with and between
underwriters and banking group or selling group members with respect to the
distribution of securities pursuant to a prospectus or by way of private
placement and other than pursuant to pledges of securities in the ordinary
course of business).

1.4                      
Application of Statutes, Regulations and Rules

                           
Where a statute, regulation or rule is referred to in a definition or other
provision of this Agreement, it shall be conclusively deemed to have application
in the contemplated circumstances notwithstanding that such statute, regulation
or rule might not, but for the provisions of this Section 1.4, have application
for want of jurisdiction or otherwise.

1.5                     
Currency

                           
All sums of money which are referred to in this Agreement are expressed in
lawful money of Canada, unless otherwise specified.

1.6                      
Headings and References

                           
The headings of the Articles and Sections of this Agreement and the Table of
Contents are inserted for convenience and reference only and shall not affect
the construction or interpretation of this Agreement. All references to
Articles, Sections and Exhibits are to articles and sections of and exhibits to,
and forming part of, this Agreement. The words “hereto”, “herein”,
“hereof”, “hereunder”, “this Agreement”, “the Rights
Agreement” and similar expressions refer to this Agreement including the
Exhibits, as the same may be amended, modified or supplemented at any time or
from time to time.

1.7                      
Singular, Plural, etc.

                           
In this Agreement, where the context so admits, words importing the singular
number include the plural and vice versa and words importing gender include the
masculine, feminine and neuter genders.

ARTICLE 2 - THE RIGHTS

2.1                      
Legend on Common Share Certificates

                           
Certificates for Common Shares issued after the Record Time hereof but prior to
the Separation Time shall evidence one Right for each Common Share represented
thereby and shall have impressed, printed, or written thereon or otherwise
affixed thereto a legend in substantially the following form:

“Until the Separation Time (as such
term is defined in the Rights Agreement referred to below), this certificate
also evidences and entitles the holder hereof to certain Rights as set forth in
a Rights Agreement dated effective as of February 13, 2007 (the “Rights
Agreement”), between Taseko Mines Limited (the “Corporation”) and Computershare
Investor Services Inc., as Rights Agent, the terms of which are hereby
incorporated herein by reference and a copy of which is on file and may be
inspected during normal business hours at the principal executive offices of the
Corporation. Under certain circumstances, as set forth in the Rights Agreement,
such Rights may be amended or redeemed, may expire, may become void (if, in
certain circumstances, they are “Beneficially Owned” by a “Person” who is or
becomes an “Acquiring Person” or any Person acting jointly or in concert with an
Acquiring Person or with an “Affiliate” or “Associate” of an “Acquiring Person”,
as such terms are defined in the Rights Agreement, or a transferee thereof) or
may be evidenced by separate certificates and may no longer be evidenced by this
certificate.

- 12 -

The Corporation will mail or arrange
for the mailing of a copy of the Rights Agreement to the holder of this
certificate without charge within five days after the receipt of a written
request therefor.”

Certificates representing Common Shares that are issued and
outstanding at the Record Time shall evidence one Right for each Common Share
evidenced thereby notwithstanding the absence of a legend in substantially the
foregoing form until the earlier of the Separation Time and the Expiration
Time.

2.2                        
 Initial Exercise Price: Exercise of Rights: Detachment of Rights

	 	(a) 	
      Subject to adjustment as herein set forth, each Right
      will entitle the holder thereof, after the Separation Time and prior to
      the Expiration Time, to purchase, for the Exercise Price, one Common
      Share. Notwithstanding any other provision of this Agreement, any Rights
      held by the Corporation or any of its Subsidiaries shall be
void.

	 	 	 	 
	 	(b) 	
      Until the Separation Time,

	 	 	 	 
	 		(i) 	
      the Rights shall not be exercisable and no Right may be
      exercised, and

	 	 	 	 
	 		(ii) 	
      for administrative purposes, each Right shall be
      evidenced by the certificate for the associated Common Share registered in
      the name of the holder thereof (which certificate shall be deemed to
      represent a Rights Certificate) and shall be transferable only together
      with, and shall be transferred by a transfer of, such associated Common
      Share.

	 	 	 	 
	 	(c) 	
      After the Separation Time and prior to the Expiration
      Time, the Rights (i) may be exercised and

	 	 	 	 
	 		(ii) 	
      shall be registered and transferable independent of
      Common Shares. Promptly following the Separation Time, the Corporation
      shall prepare and the Rights Agent shall mail to each holder of record of
      Common Shares as of the Separation Time (other than an Acquiring Person,
      any other Person whose Rights are or become void pursuant to the
      provisions of subsection 3.1(b) hereof and, in respect of any Rights
      Beneficially Owned by such Acquiring Person which are not held of record
      by such Acquiring Person, the holder of record of such Rights), at such
      holder’s address as shown in the records of the Corporation (the
      Corporation hereby agreeing to furnish copies of such records to the
      Rights Agent for this purpose),

	 	 	 	 
	 		(i) 	
      a certificate (a “Rights Certificate”) in
      substantially the form of Exhibit A hereto appropriately completed and
      registered in such holder’s name, representing the number of Rights held
      by such holder at the Separation Time and having such marks of
      identification or designation and such legends, summaries or endorsements
      printed thereon as the Corporation may deem appropriate and as are not
      inconsistent with the provisions of this Agreement, or as may be required
      to comply with any applicable law or with any rule or regulation made
      pursuant thereto or with any rule or regulation of any stock exchange or
      quotation system on which the Rights may from time to time be listed or
      traded, or to conform to usage, and

	 	 	 	 
	 		(ii) 	
      a disclosure statement describing the Rights.

	 	 	 	 
	 	(d) 	
      Rights may be exercised in whole at any time or in part
      from time to time on any Business Day (or other day that is not a bank
      holiday at the place of exercise) after the Separation Time and prior to
      the Expiration Time by submitting to the Rights Agent at its office in the
      City of Vancouver, Canada or at any other office of the Rights Agent or
      any Co-Rights Agent in the cities specified in the Rights Certificate or
      designated from time to time for that purpose by the Corporation after
      consultation with the Rights Agent:

	 	 	 	 
	 		(i) 	
      the Rights Certificate evidencing such Rights with an
      Election to Exercise (an “Election to Exercise”) substantially in
      the form attached to the Rights Certificate,
  appropriately

- 13 -

	 		
      completed and duly executed by the holder or his
      executors or administrators or other personal representatives or his legal
      attorney duly appointed by instrument in writing in form and executed in a
      manner satisfactory to the Rights Agent, and

	 	 	 
	 	(ii) 	
      payment by certified cheque or money order payable to the
      order of the Corporation, of a sum equal to the Exercise Price multiplied
      by the number of Rights being exercised and a sum sufficient to cover any
      transfer tax or charge which may be payable in respect of any transfer
      involved in the issuance, transfer or delivery of Rights Certificates or
      the issuance, transfer or delivery of certificates for Common Shares in a
      name other than that of the holder of the Rights being
  exercised.

	 	(e) 	
      Upon receipt of a Rights Certificate accompanied by a
      duly completed and executed Election to Exercise which does not indicate
      that Rights evidenced by such Rights Certificate have become void pursuant
      to subsection 3.1(b) hereof and payment as set forth in subsection 2.2(d)
      above, the Rights Agent (unless otherwise instructed by the Corporation)
      shall thereupon promptly:

	 	 	 	 
	 		(i) 	
      requisition from a transfer agent of the Common Shares
      certificates for the number of Common Shares to be purchased (the
      Corporation hereby irrevocably authorizing its transfer agents to comply
      with all such requisitions),

	 	 	 	 
	 		(ii) 	
      when appropriate, requisition from the Corporation the
      amount of cash to be paid in lieu of issuing fractional Common
    Shares,

	 	 	 	 
	 		(iii) 	
      after receipt of such certificates, deliver the same to
      or upon the order of the registered holder of such Rights Certificate,
      registered in such name or names as may be designated by such holder
      together with, where applicable, any cash payment in lieu of a fractional
      interest, and

	 	 	 	 
	 		(iv) 	
      tender to the Corporation all payments received on
      exercise of the Rights.

	 	 	 	 
	 	(f) 	
      In case the holder of any Rights shall exercise less than
      all the Rights evidenced by such holder’s Rights Certificate, a new Rights
      Certificate evidencing (subject to the provisions of subsection 5.5(a)
      hereof) the Rights remaining unexercised will be issued by the Rights
      Agent to such holder or to such holder’s duly authorized
assigns.

	 	 	 	 
	 	(g) 	
      The Corporation covenants and agrees to:

	 	 	 	 
	 		(i) 	
      take all such action as may be necessary on its part and
      within its powers to ensure that all Shares delivered upon exercise of
      Rights shall, at the time of delivery of the certificates evidencing such
      Shares (subject to payment of the Exercise Price), be duly and validly
      authorized, executed, issued and delivered and be fully paid and non-
      assessable;

	 	 	 	 
	 		(ii) 	
      take all reasonable action as may be necessary on its
      part and within its power to comply with any applicable requirements of
      the Business Corporations Act (British Columbia), the Securities
      Acts or comparable legislation of each of the provinces and territories of
      Canada and the Securities Act of 1933, and the rules and
      regulations thereunder, and any other applicable law, rule or regulation,
      in connection with the issuance and delivery of Rights Certificates and of
      any securities of the Corporation upon exercise of Rights;

	 	 	 	 
	 		(iii) 	
      use its reasonable efforts to cause all Shares of the
      Corporation issued upon exercise of Rights to be listed on the stock
      exchanges on which such Common Shares were traded immediately before the
      Stock Acquisition Date; and

- 14 -

	 	(iv) 	
      pay when due and payable any and all Canadian and United
      States federal, provincial and state transfer taxes (not including any
      taxes referable to the income or profit of the holder or exercising Person
      or any liability of the Corporation to withhold tax) and charges which may
      be payable in respect of the original issuance or delivery of the Rights
      Certificates or of any Shares of the Corporation issued upon the exercise
      of Rights, provided that the Corporation shall not be required to pay any
      transfer tax or charge - which may be payable in respect of any transfer
      involved in the transfer or delivery of Rights Certificates or the
      issuance or delivery of certificates for securities in a name other than
      that of the holder of the Rights being transferred or
  exercised.

2.3                     
Adjustments to Exercise Price, Number of Rights

                           
Subject to subsection 5.17, the Exercise Price, the number and kind of
securities subject to purchase upon exercise of each Right and the number of
Rights outstanding are subject to adjustment from time to time as provided in
this Section 2.3.

	 	(a) 	
      If the Corporation shall at any time after the Record
      Time and prior to the Expiration Time:

	 	 	 	 
	 		(i) 	
      declare or pay a dividend on Common Shares payable in
      Common Shares (or other Shares of capital or securities exchangeable for
      or convertible into or giving a right to acquire Common Shares or other
      Shares of capital) otherwise than pursuant to any optional share dividend
      program;

	 	 	 	 
	 		(ii) 	
      subdivide or change the outstanding Common Shares into a
      greater number of Common Shares,

	 	 	 	 
	 		(iii) 	
      consolidate or change the outstanding Common Shares into
      a smaller number of Common Shares, or

	 	 	 	 
	 		(iv) 	
      issue any Common Shares (or other shares of capital or
      securities exchangeable for or convertible into or giving a right to
      acquire Common Shares or other Shares of capital) in respect of, in lieu
      of, or in exchange for, existing Common Shares in a reclassification or
      redesignation of Common Shares, an amalgamation or statutory
      arrangement,

the Exercise Price and the number of Rights outstanding, or, if
the payment or effective date therefor shall occur after the Separation Time,
the securities purchasable upon exercise of Rights shall be adjusted in the
manner set forth below. If an event occurs which would require an adjustment
under both this Section 2.3 and subsection 3.1(a), the adjustment provided for
in this Section 2.3 shall be in addition to, and shall be made prior to, any
adjustment required under subsection 3.1(a) . If the Exercise Price and number
of Rights are to be adjusted,

	 	(x) 	
      the Exercise Price in effect after such adjustment shall
      be equal to the Exercise Price in effect immediately prior to such
      adjustment divided by the number of Common Shares (or other Shares of
      capital) (the “Expansion Factor”) that a holder of one Common Share
      immediately prior to such dividend, subdivision, change, consolidation or
      issuance would hold immediately thereafter as a result thereof (assuming
      the exercise of all such exchange or conversion rights, if any),
  and

	 	 	 
	 	(y) 	
      each Right held prior to such adjustment shall become
      that number of Rights equal to the Expansion
Factor,

and the adjusted number of Rights shall be deemed to be
distributed among the Common Shares with respect to which the original Rights
were associated (if they remain outstanding) and the Shares issued in respect of
such dividend, subdivision, change, consolidation or issuance, so that each such
Common Share (or other whole Share or security exchangeable for or convertible
into a whole Share of capital) shall have exactly one Right associated with
it.

- 15 -

                           
If the securities purchasable upon exercise of Rights are to be adjusted, the
securities purchasable upon exercise of each Right after such adjustment shall
be the securities that a holder of the securities purchasable upon exercise of
one Right immediately prior to such dividend, subdivision, change, consolidation
or issuance would hold immediately thereafter as a result thereof. To the extent
that any such rights of exchange, conversion or acquisition are not exercised
prior to the expiration thereof, the Exercise Price shall be readjusted to the
Exercise Price which would then be in effect based upon the number of Common
Shares (or securities convertible into or exchangeable for Common Shares)
actually issued upon the exercise of such rights. If after the Record Time and
prior to the Expiration Time the Corporation shall issue any shares of its
authorized capital other than Common Shares in a transaction of a type described
in the first sentence of this subsection 2.3(a), such shares shall be treated
herein as nearly equivalent to Common Shares as may be practicable and
appropriate under the circumstances and the Corporation and the Rights Agent
agree to amend this Agreement in order to effect such treatment.

                           
If the Corporation shall at any time after the Record Time and prior to the
Separation Time issue any Common Shares otherwise than in a transaction referred
to in the preceding paragraph, each such Common Share so issued shall
automatically have one new Right associated with it, which Right shall be
evidenced by the certificate representing such Share.

           
(b)            If the
Corporation shall at any time after the Record Time and prior to the Separation
Time fix a record date for the making of a distribution to all holders of Common
Shares of rights or warrants entitling them (for a period expiring within 45
days after such record date) to subscribe for or purchase Common Shares (or
securities convertible into or exchangeable for or carrying a right to purchase
or subscribe for Common Shares) at a price per Common Share (or, in the case of
a security convertible into or exchangeable for or carrying a right to purchase
or subscribe for Common Shares, having a conversion, exchange or exercise price
(including the price required to be paid to purchase such convertible or
exchangeable security or right) per share) that is less than 90% of the Market
Price per Common Share on such record date, the Exercise Price shall be
adjusted. The Exercise Price in effect after such record date shall equal the
Exercise Price in effect immediately prior to such record date multiplied by a
fraction, of which the numerator shall be the number of Common Shares
outstanding on such record date plus the number of Common Shares which the
aggregate offering price of the total number of Common Shares so to be offered
(and/or the aggregate initial conversion, exchange or exercise price of the
convertible or exchangeable securities or rights so to be offered (including the
price required to be paid to purchase such convertible or exchangeable
securities or rights)) would purchase at such Market Price and of which the
denominator shall be the number of shares of Common Shares outstanding on such
record date plus the number of additional Common Shares to be offered for
subscription or purchase (or into which the convertible or exchangeable
securities or rights so to be offered are initially convertible, exchangeable or
exercisable). In case such subscription price may be paid in a consideration
part or all of which shall be in a form other than cash, the value of such
consideration shall be as determined by the Board of Directors. To the extent
that any such rights or warrants are not so issued or, if issued, are not
exercised prior to the expiration thereof, the Exercise Price shall be
readjusted to the Exercise Price which would then be in effect if such record
date had not been fixed or to the Exercise Price which would then be in effect
based upon the number of Common Shares (or securities convertible into or
exchangeable for Common Shares) actually issued upon the exercise of such rights
or warrants, as the case may be. For purposes of this Agreement, the granting of
the right to purchase Common Shares (whether previously unissued, treasury
shares or otherwise) pursuant to any optional dividend reinvestment plan and/or
any Common Share purchase plan providing for the reinvestment of dividends
payable on securities of the Corporation and/or employee stock option, stock
purchase or other employee benefit plan (so long as such right to purchase is in
no case evidenced by the delivery of rights or warrants) shall not be deemed to
constitute an issue of rights or warrants by the Corporation; provided,
however, that, in the case of any dividend reinvestment plan, the right to
purchase Common Shares is at a price per share of not less than 90% of the then
current market price per share (determined as provided in such plan) of the
Common Shares.

           
(c)             If
the Corporation shall at any time after the Record Time and prior to the
Separation Time fix a record date for the making of a distribution to all
holders of Common Shares of evidences of indebtedness or assets (other than a
Regular Periodic Cash Dividend or a dividend paid in Common Shares) or rights or
warrants (excluding those referred to in subsection 2.3(a) or 2.3(b)), the
Exercise Price shall be adjusted. The Exercise Price in effect after such record
date shall, subject to adjustment as provided in the penultimate sentence of
subsection 2.3(b), equal the Exercise Price in effect immediately prior to such
record date less the fair market value of the 

- 16 -

portion of the assets, evidences of indebtedness, rights or
warrants so to be distributed applicable to the securities purchasable upon
exercise of one Right.

           
(d)             Each
adjustment made pursuant to this Section 2.3 shall be made as of:

	 	(i) 	
      the payment or effective date for the applicable
      dividend, subdivision, change, consolidation or issuance in the case of an
      adjustment made pursuant to subsection 2.3(a) above, and

	 	 	 
	 	(ii) 	
      the record date for the applicable dividend or
      distribution, in the case of an adjustment made pursuant to subsections
      2.3(b) or (c) above.

           
(e)            
Anything herein to the contrary notwithstanding, no adjustment to the Exercise
Price shall be required unless such adjustment would require an increase or
decrease of at least 1% in such Exercise Price; provided, however, that
any adjustments which by reason of this subsection 2.3(e) are not required to be
made shall be carried forward and taken into account in any subsequent
adjustment. Each adjustment made pursuant to this Section 2.3 shall be
calculated to the nearest cent or to the nearest one ten-thousandth of a Common
Share or Right, as the case may be. 

           
(f)             All
Rights originally issued by the Corporation subsequent to any adjustment made to
an Exercise Price hereunder shall evidence the right to purchase, at the
adjusted Exercise Price, the number of Common Shares purchasable from time to
time hereunder upon exercise of the Rights, all subject to further adjustment as
provided herein.

           
(g)            
Unless the Corporation shall have exercised its election as provided in
subsection 2.3(h), upon each adjustment of an Exercise Price as a result of the
calculations made in subsections 2.3(b) and (c), each Right outstanding
immediately prior to the making of such adjustment shall thereafter evidence the
right to purchase, at the adjusted Exercise Price, that number of Common Shares
(calculated to the nearest one ten-thousandth) obtained by:

	 	(i) 	
      multiplying (A) the number of Common Shares covered by a
      Right immediately prior to this adjustment, by (B) the Exercise Price in
      effect immediately prior to such adjustment of the Exercise Price;
    and

	 	 	 
	 	(ii) 	
      dividing the product so obtained by the Exercise Price in
      effect immediately after such adjustment of the Exercise
  Price.

           
(h)             The
Corporation may elect on or after the date of any adjustment of an Exercise
Price to adjust the number of Rights, in lieu of any adjustment in the number of
Common Shares purchasable upon the exercise of a Right. Each of the Rights
outstanding after the adjustment in the number of Rights shall be exercisable
for the number of Common Shares for which a Right was exercisable immediately
prior to such adjustment. Each Right held of record immediately prior to such
adjustment of the number of Rights shall become the number of Rights (calculated
to the nearest one ten-thousandth) obtained by dividing the Exercise Price in
effect immediately prior to the adjustment of the Exercise Price by the Exercise
Price in effect immediately after adjustment of the Exercise Price. The
Corporation shall make a public announcement of its election to adjust the
number of Rights, indicating the record date for the adjustment and, if known at
the time, the amount of the adjustment to be made. This record date may be the
date on which the Exercise Price is adjusted or any date thereafter, but, if the
Rights Certificates have been issued, shall be at least 10 calendar days after
the date of the public announcement. If Rights Certificates have been issued,
upon each adjustment of the number of Rights pursuant to this subsection 2.3(h),
the Corporation shall, as promptly as practicable, cause to be distributed to
holders of record of Rights Certificates on such record date, Rights
Certificates evidencing the additional Rights to which such holder shall be
entitled as a result of such adjustment, or, at the option of the Corporation,
shall cause to be distributed to such holders of record in substitution or
replacement for the Rights Certificates held by such holders prior to the date
of adjustment, and upon surrender thereof, if required by the Corporation, new
Rights Certificates evidencing all the Rights to which such holders shall be
entitled after such adjustment. Rights Certificates so to be distributed shall
be issued, executed and countersigned 

- 17 -

in the manner provided for herein and may bear, at the option
of the Corporation, the adjusted Exercise Price and shall be registered in the
names of the holders of record of Rights Certificates on the record date
specified in the public announcement.

           
(i)            
Irrespective of any adjustment or change in the securities purchasable upon
exercise of the Rights, the Rights Certificates theretofore and thereafter
issued may continue to express the securities so purchasable which were
expressed in the initial Rights Certificates issued hereunder.

           
(j)             If,
as a result of an adjustment made pursuant to Section 3.1, the holder of any
Right thereafter Exercised shall become entitled to receive any securities other
than Common Shares, thereafter the number of such other securities so receivable
upon exercise of any Right and the applicable Exercise Price thereof shall be
subject to adjustment from time to time in a manner and on terms as nearly
equivalent as may be practicable to the provisions with respect to the Common
Shares contained in the foregoing subsections of this Section 2.3 and the
provisions of this Agreement with respect to the Common Shares shall apply on
like terms to any such other securities.

           
(k)             In
any case in which this Section 2.3 shall require that any adjustment in the
Exercise Price be made effective as of a record date for a specified event, the
Corporation may elect to defer until the occurrence of such event the issuance
to the holder of any Right exercised after such record date of the number of
Common Shares and other securities of the Corporation, if any, issuable upon
such exercise over and above the number of Common Shares and other securities of
the Corporation, if any, issuable upon such exercise on the basis of the
Exercise Price in effect prior to such adjustment; provided, however,
that the Corporation shall deliver to such holder a due bill or other
appropriate instrument evidencing such holder’s right to receive such additional
Common Shares or other securities upon the occurrence of the event requiring
such adjustment.

           
(l)            
Whenever an adjustment to the Exercise Price or a change in the securities
purchasable upon the exercise of Rights is made pursuant to this Section 2.3,
the Corporation shall promptly:

	 	(i) 	
      prepare a certificate setting forth such adjustment and a
      brief statement of the facts accounting for such adjustment;

	 	 	 
	 	(ii) 	
      file with the Rights Agent and with each transfer agent
      for the Common Shares, a copy of such certificate; and

	 	 	 
	 	(iii) 	
      cause notice of the particulars of such adjustment or
      change to be given to the holders of the Rights.

Failure to file such certificate or to cause such notice to be
given as aforesaid, or any defect therein, shall not affect the validity of any
such adjustment or change.

2.4                  
Date on Which Exercise is Effective

                       
Each Person in whose name any certificate for Shares is issued upon the exercise
of Rights shall for all purposes be deemed to have become the holder of record
of the Shares represented thereby on, and such certificate shall be dated, the
date upon which the Rights Certificate evidencing such Rights was duly submitted
(together with a duly completed Election to Exercise) and payment of the
Exercise Price for such Rights (and any applicable transfer taxes and other
charges payable by the exercising holder hereunder) was made; provided,
however, that if the date of such exercise is a date upon which the relevant
Share transfer books of the Corporation are closed, such Person shall be deemed
to have become the recorded holder of such Shares on, and such certificate shall
be dated, the next succeeding Business Day on which the said Share transfer
books of the Corporation are open.

2.5                   Execution,
Authentication, Delivery and Dating of Rights Certificates

           
(a)             The
Rights Certificates shall be executed on behalf of the Corporation by its Chief
Executive Officer, Chief Operating Officer or Chief Financial Officer under its
corporate seal reproduced thereon attested by 

- 18 -

its Secretary or one of its Assistant Secretaries. The
signature of any of these officers on the Rights Certificates may be manual or
facsimile.

           
(b)            
Rights Certificates bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Corporation shall bind the
Corporation, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the countersignature and delivery of such Rights
Certificates.

           
(c)            
Promptly after the Corporation learns of the Separation Time, the Corporation
shall notify the Rights Agent of such Separation Time and shall deliver Rights
Certificates executed by the Corporation to the Rights Agent for
countersignature, and the Rights Agent shall countersign (manually or by
facsimile signature in a manner satisfactory to the Corporation) and deliver
such Rights Certificates to the holders of the Rights pursuant to subsection
2.2(c) hereof. No Rights Certificate shall be valid for any purpose until
countersigned by the Rights Agent in the manner described above.

           
(d)             Each
Rights Certificate shall be dated the date of countersignature thereof.

2.6                  
Registration, Registration of Transfer and Exchange

           
(a)             The
Corporation shall cause to be kept a register (the “Rights Register”) in
which, subject to such reasonable regulations as it may prescribe, the
Corporation shall provide for the registration and transfer of Rights. The
Rights Agent is hereby appointed “Rights Registrar” for the purpose of
maintaining the Rights Register for the Corporation and registering Rights and
transfers of Rights as herein provided. If the Rights Agent shall cease to be
the Rights Registrar, the Rights Agent shall have the right to examine the
Rights Register at all reasonable times.

                       
After the Separation Time and prior to the Expiration Time, upon surrender for
registration of transfer or exchange of any Rights Certificate, and subject to
the provisions of subsection 2.6(c) below, the Corporation shall execute, and
the Rights Agent shall countersign and deliver, in the name of the holder or the
designated transferee or transferees, as required pursuant to the holder’s
instructions, one or more new Rights Certificates evidencing the same aggregate
number of Rights as did the Rights Certificate so surrendered.

           
(b)             All
Rights issued upon any registration of transfer or exchange of Rights
Certificates shall be the valid obligations of the Corporation, and such Rights
shall be entitled to the same benefits under this Agreement as the Rights
surrendered upon such registration of transfer or exchange.

           
(c)            
Every Rights Certificate surrendered for registration of transfer or exchange
shall have the form of assignment thereon duly completed and endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the
Corporation or the Rights Agent, as the case may be, duly executed by the holder
thereof or such holder’s attorney duly authorized in writing. As a condition to
the issuance of any new Rights Certificate under this Section 2.6, the
Corporation may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and other
expenses (including the reasonable fees and expenses of its Rights Agent)
connected therewith.

           
(d)             The
Corporation shall not be required to register the transfer or exchange of any
Rights after the Rights have been terminated pursuant to the provisions of this
Agreement.

2.7                    
Mutilated, Destroyed, Lost and Stolen Rights Certificates

           
(a)             If
any mutilated Rights Certificate is surrendered to the Rights Agent prior to the
Expiration Time, the Corporation shall execute and the Rights Agent shall
countersign and deliver a new Rights Certificate evidencing the same number of
Rights as did the Rights Certificate so surrendered.

           
(b)             If
there shall be delivered to the Corporation and the Rights Agent prior to the
Expiration Time (i) evidence to their satisfaction of the destruction, loss or
theft of any Rights Certificate and (ii) such security or indemnity as may be
required by them to save each of them and their respective agents harmless,
then, in the absence of notice to the Corporation or the Rights Agent that such
Rights Certificate has been acquired by a bona 

- 19 -

fide purchaser, the Corporation shall execute and upon the
Corporation’s request, the Rights Agent shall countersign and deliver, in lieu
of any such destroyed, lost or stolen Rights Certificate, a new Rights
Certificate evidencing the same number of Rights as did the Rights Certificate
so destroyed, lost or stolen.

           
(c)             As a
condition to the issuance of any new Rights Certificate under this Section 2.7,
the Corporation may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the reasonable fees and expenses of the Rights Agent)
connected therewith.

           
(d)            
Every new Rights Certificate issued pursuant to this Section 2.7 in lieu of any
destroyed, lost or stolen Rights Certificate shall evidence an original
additional contractual obligation of the Corporation, whether or not the
destroyed, lost or stolen Rights Certificate shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Agreement equally and
proportionately with any and all other Rights duly issued hereunder.

2.8                 
Persons Deemed Owners

                       
Prior to due presentment of a Rights Certificate (or, prior to the Separation
Time, the associated Share certificate) for registration of transfer, the
Corporation, the Rights Agent and any agent of the Corporation or the Rights
Agent may deem and treat the Person in whose name such Rights Certificate (or,
prior to the Separation Time, such Share certificate) is registered as the
absolute owner thereof and of the Rights evidenced thereby for all purposes
whatsoever. As used in this Agreement, unless the context otherwise requires,
the term “holder” of any Rights means the registered holder of such
Rights (or, prior to the Separation Time, the associated Shares).

2.9                 
 Delivery and Cancellation of Certificates

                       
All Rights Certificates surrendered upon exercise or for redemption,
registration of transfer or exchange shall, if surrendered to any Person other
than the Rights Agent, be delivered to the Rights Agent and, in any case, shall
be promptly cancelled by the Rights Agent. The Corporation may at any time
deliver to the Rights Agent for cancellation any Rights Certificates previously
countersigned and delivered hereunder which the Corporation may have acquired in
any manner whatsoever, and all Rights Certificates so delivered shall be
promptly cancelled by the Rights Agent. No Rights Certificates shall be
countersigned in lieu of or in exchange for any Rights Certificates cancelled as
provided in this Section 2.9, except as expressly permitted by this Agreement.
The Rights Agent shall destroy all cancelled Rights Certificates and deliver a
certificate of destruction to the Corporation.

2.10               
Agreement of Rights Holders

                       
Every holder of Rights by accepting the same consents and agrees with the
Corporation and the Rights Agent and with every other holder of Rights that:

           
(a)             such
holder shall be bound by and subject to the provisions of this Agreement, as
amended from time to time in accordance with the terms hereof, in respect of all
Rights held;

           
(b)            
prior to the Separation Time, each Right shall be transferable only together
with, and shall be transferred by a transfer of, the associated Share;

           
(c)            
after the Separation Time, the Rights Certificates shall be transferable only on
the Rights Register as provided herein;

           
(d)            
prior to due presentment of a Rights Certificate (or, prior to the Separation
Time, the associated Share certificate) for registration of transfer, the
Corporation, the Rights Agent and any agent of the Corporation or the Rights
Agent may deem and treat the Person in whose name the Rights Certificate (or,
prior to the Separation Time, the associated Share certificate) is registered as
the absolute owner thereof and of the Rights evidenced thereby (notwithstanding
any notations of ownership or writing on such Rights Certificate or the
associated Share 

- 20 -

certificate made by anyone other than the Corporation or the
Rights Agent) for all purposes whatsoever, and neither the Corporation nor the
Rights Agent shall be affected by any notice to the contrary;

           
(e)             such
holder has waived all rights to receive any fractional Right or fractional Share
upon exercise of a Right;

           
(f)             this
Agreement may be supplemented or amended from time to time pursuant to
subsection 5.4(a) or the last sentence of the penultimate paragraph of
subsection 2.3(a) hereof upon the sole authority of the Board of Directors
without the approval of any holder of Rights.

2.11               
Rights Certificate Holder Deemed Not a Shareholder

                       
No holder of any Rights or Rights Certificate is entitled, as such holder, to
vote, receive dividends or be considered for any purpose the holder of any
Common Share or any other share or security of the Corporation which may at any
time be issuable on the exercise of the Rights represented thereby, and nothing
contained herein or in any Rights Certificate is to be construed as conferring
upon the holder of any Right or Rights Certificate, as such, any right of a
holder of Common Shares or any other shares or securities of the Corporation or
any right to vote at any meeting of shareholders of the Corporation whether for
the election of directors or otherwise or upon any matter submitted to holders
of Common Shares or any other shares of the Corporation at any meeting thereof,
or to give or withhold consent to any action of the Corporation or to receive
notice of any meeting or other action affecting any holder of Common Shares or
any other shares of the Corporation except as expressly provided herein, or to
receive dividends, distributions or subscription rights, or otherwise, until the
Right or Rights evidenced by Rights Certificates have been duly exercised in
accordance with the terms and provisions hereof.

ARTICLE 3 - ADJUSTMENTS TO THE RIGHTS 
IN THE EVENT OF
CERTAIN TRANSACTIONS

3.1                     
Flip-in Event

           
(a)            
Subject to the provisions of Subsection 3.1(b) and Section 5.1 hereof, if prior
to the Expiration Time a Flip-in Event shall occur, each Right shall thereafter
constitute, effective at the Close of Business on the tenth Business Day after
the relevant Stock Acquisition Date, the right to purchase from the Corporation,
upon exercise thereof in accordance with the terms hereof, that number of Common
Shares of the Corporation having an aggregate Market Price on the date of
consummation or occurrence of such Flip-in Event equal to twice the Exercise
Price for an amount in cash equal to the Exercise Price (such right to be
appropriately adjusted in a manner analogous to the applicable adjustment
provided for in Section 2.3 hereof in the event that, after such date of
consummation or occurrence, an event of a type analogous to any of the events
described in Section 2.3 hereof shall have occurred with respect to such Common
Shares).

           
(b)            
Anything in this Agreement to the contrary notwithstanding, upon the occurrence
of a Flip-In Event, any Rights that are or were Beneficially Owned on or after
the earlier of the Separation Time and the Stock Acquisition Date by:

	 	(i) 	
      an Acquiring Person (or any Person acting jointly or in
      concert with an Acquiring Person or with an Affiliate or Associate of an
      Acquiring Person), or

	 	 	 
	 	(ii) 	
      a direct or indirect transferee of, or other successor in
      title to, such Rights (a “Transferee”), who becomes a Transferee
      concurrently with or subsequent to the Acquiring Person becoming an
      Acquiring Person, in a transfer, whether or not for consideration, that
      the Board of Directors has determined is part of a plan, understanding or
      scheme of an Acquiring Person (or an Affiliate or Associate of an
      Acquiring Person or any Person acting jointly or in concert with an
      Acquiring Person or an Affiliate or Associate of an Acquiring Person) that
      has the purpose or effect of avoiding the provisions of this subsection
      3.1(b) applicable in the circumstances contemplated in clause (i)
      hereof,

- 21 -

shall thereupon become and be void and any holder of such
Rights (including any Transferee) shall thereafter have no rights whatsoever
with respect to such Rights, whether under any provision of this Agreement or
otherwise. The holder of any Rights represented by a Rights Certificate which is
submitted to the Rights Agent, or any Co-Rights Agent, upon exercise or for
registration of transfer or exchange which does not contain the necessary
certifications set forth in the Rights Certificate establishing that such Rights
are not void under this subsection 3.1(b) shall be deemed to be an Acquiring
Person for the purposes of this subsection 3.1(b) and such rights shall be null
and void.

           
(c)             From
and after the Separation Time the Corporation shall do all such acts and things
as shall be necessary and within its power to ensure compliance with the
provisions of this Section 3.1, including without limitation, all such acts and
things as may be required to satisfy the requirements of the Business
Corporations Act (British Columbia), the Securities Act (British
Columbia) and the securities laws or comparable legislation in each of the
provinces of Canada in respect of the issue of Common Shares upon the exercise
of Rights in accordance with this Agreement.

           
(d)             Any
Rights Certificate that represents Rights Beneficially Owned by a Person
described in either clauses (i) or (ii) of subsection 3.1(b) hereof or
transferred to any nominee of any such Person, and any Rights Certificate issued
upon the transfer, exchange or replacement of any other Rights Certificate
referred to in this sentence shall contain the following legend:

“The Rights represented by this Rights
Certificate were issued to a Person who was an Acquiring Person or an Affiliate
or an Associate of an Acquiring Person (as such terms are defined in the Rights
Agreement) or was acting Jointly or in concert with any of them. This Rights
Certificate and the Rights represented hereby shall become void in the
circumstances specified in subsection 3.1(b) of the Rights Agreement.”

provided, however, that the Rights Agent shall not be
under any responsibility to ascertain the existence of facts that would require
the imposition of such legend but shall be required to impose such legend only
if instructed to do so by the Corporation or if a holder fails to certify upon
transfer or exchange in the space provided on the Rights Certificate that such
holder is not an Acquiring Person or an Affiliate or Associate thereof or acting
jointly or in concert with any of them.

ARTICLE 4 - THE RIGHTS AGENT

4.1              
 General

           
(a)             The
Corporation hereby appoints the Rights Agent to act as agent for the Corporation
and the holders of Rights in accordance with the terms and conditions hereof,
and the Rights Agent hereby accepts such appointment. The Corporation may from
time to time appoint one or more co-rights agents (each, a “Co-Rights
Agent”) as it may deem necessary or desirable after consultation with the
Rights Agent. In such event, the respective duties of the Rights Agent and any
Co-Rights Agent shall be as the Corporation may determine after consultation
with the Rights Agent and Co-Rights Agent. The Corporation agrees to pay to the
Rights Agent reasonable compensation for all services rendered by it hereunder
and, from time to time on demand of the Rights Agent, its reasonable expenses
and counsel fees and other disbursements incurred in the administration and
execution of this Agreement and the exercise and performance of its duties
hereunder. The Corporation also agrees to indemnify the Rights Agent, its
officers, directors, employees and agents for, and to hold them harmless
against, any loss, liability, or expense, incurred without negligence, bad faith
or wilful misconduct on the part of the Rights Agent, its officers, directors,
employees or agents, for anything done or omitted by them in connection with the
acceptance and performance of this Agreement, including legal costs and
expenses, which right to indemnification shall survive the termination of this
Agreement or the resignation or removal of the Rights Agent.

           
(b)             The
Rights Agent shall be protected from, and shall incur no liability for or in
respect of, any action taken, suffered or omitted by it in connection with its
performance of this Agreement in reliance upon any certificate for Shares,
Rights Certificate, certificate for other securities of the Corporation,
instrument of assignment or transfer, power of attorney, endorsement, affidavit,
letter, notice, direction, consent, certificate, opinion, statement, or other
paper or document believed by it to be genuine and to be signed, executed and,
where necessary, verified or acknowledged, by the proper Person or Persons.

- 22 -

                       
The Corporation shall inform the Rights Agent in a reasonably timely manner of
events which may materially affect the administration of this Agreement by the
Rights Agent and, at any time upon written request, shall provide to the Rights
Agent an incumbency certificate certifying the then current officers of the
Corporation.

4.2                   
Merger or Amalgamation or Change of Name of Rights Agent

           
(a)             Any
body corporate into which the Rights Agent or any successor Rights Agent may be
merged or amalgamated with or into, or any body corporate succeeding to the
security holder services business of the Rights Agent or any successor Rights
Agent, shall be the successor to the Rights Agent under this Agreement without
the execution or filing of any paper or any further act on the part of any of
the parties hereto, provided that such body corporate would be eligible for
appointment as a successor Rights Agent under the provisions of Section 4.4
hereof. In case at the time such successor Rights Agent succeeds to the agency
created by this Agreement any of the Rights Certificates have been countersigned
but not delivered, any such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Rights
Certificates so countersigned; and in case at that time any of the Rights
Certificates have not been countersigned, any successor Rights Agent may
countersign such Rights Certificates either in the name of the predecessor
Rights Agent or in the name of the successor Rights Agent; and in all such cases
such Rights Certificates shall have the full force provided in the Rights
Certificates and in this Agreement.

           
(b)             In
case at any time the name of the Rights Agent is changed and at such time any of
the Rights Certificates shall have been countersigned but not delivered, the
Rights Agent may adopt the countersignature under its prior name and deliver
Rights Certificates so countersigned; and in case at that time any of the Rights
Certificates shall not have been countersigned, the Rights Agent may countersign
such Rights Certificates either in its prior name or in its changed name; and in
all such cases such Rights Certificates shall have the full force provided in
the Rights Certificates and in this Agreement.

4.3                 
Duties of Rights Agent

                       
The Rights Agent undertakes the duties and obligations imposed by this Agreement
upon the following terms and conditions, by all of which the Corporation and the
holders of Rights Certificates, by their acceptance thereof, shall be bound:

	 	(a) 	
      The Rights Agent may retain and consult with legal
      counsel (who may be legal counsel for the Corporation), and the opinion of
      such counsel will be full and complete authorization and protection to the
      Rights Agent as to any action taken or omitted by it in good faith and in
      accordance with such opinion.

	 	 	 
	 	(b) 	
      Whenever in the performance of its duties under this
      Agreement the Rights Agent deems it necessary or desirable that any fact
      or matter be proved or established by the Corporation prior to taking or
      suffering any action or refraining from taking any action hereunder, such
      fact or matter (unless other evidence in respect thereof be herein
      specifically prescribed) may be deemed to be conclusively proved and
      established by a certificate signed by an individual believed by the
      Rights Agent to be the Chief Executive Officer, Chief Operating Officer,
      Chief Financial Officer or the Secretary of the Corporation and delivered
      to the Rights Agent; and such certificate shall be full authorization to
      the Rights Agent for any action taken, omitted or suffered in good faith
      by it under the provisions of this Agreement in reliance upon such
      certificate.

	 	 	 
	 	(c) 	
      The Rights Agent shall be liable hereunder only for its
      own negligence, bad faith or wilful misconduct.

	 	 	 
	 	(d) 	
      The Rights Agent shall not be liable for or by reason of
      any of the statements of fact or recitals contained in this Agreement or
      in the certificates for Shares or the Rights Certificates (except its
      countersignature thereof) or be required to verify the same, but all such
      statements and recitals are and will be deemed to have been made by the
      Corporation only.

- 23 -

	 	(e) 	
      The Rights Agent shall not be under any responsibility in
      respect of the validity of this Agreement or the execution and delivery
      hereof (except the due authorization, execution and delivery hereof by the
      Rights Agent) or in respect of the validity or execution of any Share
      certificate or Rights Certificate (except its countersignature thereof);
      nor will it be responsible for any breach by the Corporation of any
      covenant or condition contained in this Agreement or in any Rights
      Certificate; nor will it be responsible for any change in the
      exercisability of the Rights (including the Rights becoming void pursuant
      to subsection 3.1(b) hereof) or any adjustment required under the
      provisions of Section 2.3 hereof or responsible for the manner, method or
      amount of any such adjustment or the ascertaining of the existence of
      facts that would require any such adjustment (except with respect to the
      exercise of Rights after receipt of the certificate contemplated by
      Section 2.3 hereof describing any such adjustment); nor will it by any act
      hereunder be deemed to make any representation or warranty is to the
      authorization or reservation of any Shares to be issued pursuant to this
      Agreement or any Rights or as to whether any Shares shall, when issued, be
      duly and validly authorized, executed, issued and delivered and be fully
      paid and non-assessable.

	 	 	 
	 	(f) 	
      The Corporation agrees that it will perform, execute,
      acknowledge and deliver or cause to be performed, executed, acknowledged
      and delivered all such further and other acts, instruments and assurances
      as may reasonably be required by the Rights Agent for the carrying out or
      performing by the Rights Agent of the provisions of this
  Agreement.

	 	 	 
	 	(g) 	
      The Rights Agent is hereby authorized to rely upon and
      directed to accept written instructions with respect to the performance of
      its duties hereunder from any individual believed by the Rights Agent to
      be the Chairman, the President and Chief Executive Officer or any
      Vice-President or the Secretary or any Assistant Secretary or the
      Treasurer or any Assistant Treasurer of the Corporation, and to apply to
      such individuals for advice or instructions in connection with its duties,
      and it shall not be liable for any action taken, omitted or suffered by it
      in good faith in accordance with instructions of any such
    individual.

	 	 	 
	 	(h) 	
      The Rights Agent and any shareholder, director, officer
      or employee of the Rights Agent may buy, sell or deal in Shares, Rights or
      other securities of the Corporation or become pecuniarily interested in
      any transaction in which the Corporation may be interested, or contract
      with or lend money to the Corporation or otherwise act as fully and freely
      as though it were not Rights Agent under this Agreement. Nothing herein
      shall preclude the Rights Agent from acting in any other capacity for the
      Corporation or for any other legal entity.

	 	 	 
	 	(i) 	
      The Rights Agent may execute and exercise any of the
      rights or powers hereby vested in it or perform any duty hereunder either
      itself or by or through its attorneys or agents, and the Rights Agent
      shall not be answerable or accountable for any act, default, neglect or
      misconduct of any such attorneys or agents or for any loss to the
      Corporation resulting from any such act, omission, default, neglect or
      misconduct, provided reasonable care was exercised in the selection and
      continued employment thereof.

4.4             
    Change of Rights Agent

                       
The Rights Agent may resign and be discharged from its duties under this
Agreement upon 60 days’ notice (or such lesser notice as is acceptable to the
Corporation) in writing delivered or mailed to the Corporation and to each
transfer agent of Shares by first class mall, and mailed or delivered to the
holders of the Rights in accordance with Section 5.9 hereof. The Corporation may
remove the Rights Agent upon 30 days’ notice in writing, mailed or delivered to
the Rights Agent and to each transfer agent of the Shares by first class mall,
and mailed to the holders of the Rights in accordance with Section 5.9 hereof.
If the Rights Agent should resign or be removed or otherwise become incapable of
acting, the Corporation shall appoint a successor to the Rights Agent. If the
Corporation fails to make such appointment within a period of 30 days after such
removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of
any Rights (which holder shall, with such notice, submit such holder’s Rights
Certificate for inspection by the Corporation), then the holder of any Rights
may apply, at the Corporation’s expense, to any court of competent jurisdiction
for the appointment of a new Rights Agent, Any successor Rights Agent, whether
appointed by the 

- 24 -

Corporation or by such a court, shall be a body corporate
incorporated under the laws of Canada or a province thereof authorized to carry
on the business of a trust company in the Province of British Columbia. After
appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights
Agent without further act or deed; but the predecessor Rights Agent shall
deliver and transfer to the successor Rights Agent any property at the time held
by it hereunder, and execute and deliver any further assurance, conveyance, act
or deed necessary for the purpose. Not later than the effective date of any such
appointment, the Corporation shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Shares, and mail a
notice thereof in writing to the holders of the Rights. Failure to give any
notice provided for in this Section 4.4, however, or any defect therein, shall
not affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be.

ARTICLE 5 - MISCELLANEOUS

5.1                  
Redemption and Waiver

                
(a)            
Subject to the prior consent of the holders of Voting Shares or Rights (obtained
as described in Section 5.4(b) or Section 5.4(c)), the Board of Directors may,
at any time prior to the occurrence of a Flip-in Event, elect to redeem all but
not less than all of the then outstanding Rights at a redemption price of
$0.0001 per Right appropriately adjusted in a manner analogous to the applicable
adjustment provided for in Section 2.3 if an event of the type analogous to any
of the events described in Section 2.3 shall have occurred (such redemption
price being herein referred to as the “Redemption Price”).

                 (b)            
The Board of Directors may waive the application of Section 3.1 in respect of
the occurrence of any Flip-in Event if the Board of Directors has determined
within eight Trading Days following a Stock Acquisition Date that a Person
became an Acquiring Person by inadvertence and without any intention to become,
or knowledge that it would become, an Acquiring Person under this Agreement and
if such a waiver is granted by the Board of Directors, such Stock Acquisition
Date is deemed not to have occurred. Any such waiver pursuant to this subsection
5.1(b) must be on the condition that such Person has, within 10 days after the
foregoing determination by the Board of Directors or such earlier or later date
as the Board of Directors may determine (the “Disposition Date”), reduced
its Beneficial Ownership of Voting Shares such that the Person is no longer an
Acquiring Person or has entered into a contractual arrangement with the
Corporation, acceptable to the Board of Directors, to do so within 30 days of
the date on which the contractual arrangement is entered into. If the Person
remains an Acquiring Person at the close of business on the Disposition Date,
the Disposition Date is deemed to be the date of occurrence of a further Stock
Acquisition Date and Section 3.1 applies thereto.

                 (c)            
If before the occurrence of a Flip-in Event a Person acquires, pursuant to a
Permitted Bid, a Competing Permitted Bid or a Take-over Bid in respect of which
the Board of Directors of the Corporation has waived the application of Section
3.1 pursuant to Subsection 5.1(d), any outstanding Common Shares, the
Corporation shall, immediately upon such acquisition and without further
formality, redeem the Rights at the Redemption Price.

                 (d)            
The Board of Directors may, prior to the occurrence of a Flip-in Event as to
which the application of Section 3.1 has not been waived pursuant to this
clause, determine, upon prior written notice to the Rights Agent, to waive the
application of Section 3.1 to that Flip-in Event provided that the Flip-in Event
would occur by reason of a Take-over Bid made by means of a Take-over Bid
circular sent to all holders of record of Voting Shares and further provided
that if the Board of Directors waives the application of Section 3.1 to such
Flip-in Event, the Board of Directors shall be deemed to have waived the
application of Section 3.1 to any other Flip-in Event occurring by reason of a
Take-over Bid made by means of a Take-over Bid circular sent to all holders of
record of Voting Shares prior to the expiry of any Take-over Bid, as the same
may be extended from time to time, in respect of which a waiver is, or is deemed
to have been, granted under this subsection 5.1(d) .

                 (e)            
If the Rights are redeemed pursuant to this Agreement, the right to exercise the
Rights will thereupon, without further action and without notice, terminate and
the only right thereafter of the holders of Rights is to receive the Redemption
Price.

- 25 -

                 (f)            
Within 10 days after the Rights are redeemed pursuant to this Agreement, the
Corporation shall give notice of redemption to the holders of the then
outstanding Rights by mailing such notice to all such holders at their last
address as they appear upon the registry books of the Rights Agent or, prior to
the Separation Time, on the registry books of the transfer agent for the Voting
Shares. Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. Each such notice of
redemption must state how the Redemption Price will be paid.

                 (g)            
Where a Take-over Bid that is not a Permitted Bid or Competing Permitted Bid is
withdrawn or otherwise terminated after the Separation Time has occurred and
prior to the occurrence of a Flip-in Event, the Board of Directors may elect to
redeem all the outstanding Rights at the Redemption Price.

                 (h)            
Notwithstanding the Rights being redeemed pursuant to this Section 5.1, all the
provisions of this Agreement shall continue to apply as if the Separation Time
had not occurred and Rights Certificates representing the number of Rights held
by each holder of record of Common Shares as of the Separation Time had not been
mailed to each such holder and for all purposes of this Agreement the Separation
Time shall be deemed not to have occurred and the Rights shall remain attached
to outstanding Voting Shares, subject to and in accordance with the provisions
of this Agreement.

5.2                 
Expiration

                       
No Person shall have any rights pursuant to this Agreement or any Right after
the Expiration Time, except as provided in Section 4.1 hereof.

5.3                  
Issuance of New Rights Certificates

                       
Notwithstanding any of the provisions of this Agreement or of the Rights to the
contrary, the Corporation may, at its option, issue new Rights Certificates
evidencing Rights in such form as may be approved by the Board of Directors to
reflect any adjustment or change in the number or kind or class of Shares
purchasable upon exercise of Rights made in accordance with the provisions of
this Agreement.

5.4                    
Supplements and Amendments

           
(a)             At
any time, the Corporation may, by resolution of the Board of Directors, amend
this Agreement to correct any clerical or typographical errors or to maintain
the validity of this Agreement as a result of any changes in applicable
legislation or applicable rules or policies of securities regulatory
authorities, and such amendments shall be in force immediately after such a
resolution is passed by the Board of Directors.

           
(b)            
Prior to the Separation Time, the Corporation may, by resolution of the Board of
Directors, and with the prior consent of the holders of Voting Shares obtained
as set forth below, supplement or amend this Agreement and the Rights (whether
or not such action would materially adversely affect the interests of the
holders of Rights generally). Such consent is deemed to have been given if the
supplement or amendment is approved by the affirmative vote of a majority of the
votes cast by Independent Shareholders represented in person or by proxy and
entitled to be voted at a meeting of the holders of Voting Shares duly called
and held in compliance with applicable laws and the articles and bylaws of the
Corporation.

           
(c)            
After the Separation Time, the Corporation may, by resolution of the Board of
Directors, and with the prior consent of the holders of Rights obtained as set
forth below, supplement or amend this Agreement and the Rights (whether or not
such action would materially adversely affect the interests of the holders of
Rights generally). Such consent is deemed to have been given if provided by the
holders of Rights at a Rights Holders’ Special Meeting, which Rights Holders’
Special Meeting is called and held in compliance with applicable laws and
regulatory requirements and, to the extent possible, with the requirements in
the articles and by-laws of the Corporation applicable to meetings of holders of
Voting Shares varied as the Corporation thinks appropriate. Subject to
compliance with any requirements imposed by the foregoing, consent is given if
the proposed supplement or amendment, is approved by the affirmative vote of a
majority of the votes cast by holders of Rights (other than 

- 26 -

holders of Rights whose Rights have become void pursuant to
subsection 3.1(b)), represented in person or by proxy at the Rights Holders’
Special Meeting.

           
(d)            
Notwithstanding anything in this Section 5.4 to the contrary, no such supplement
or amendment shall be made to the provisions of Article 4 except with the
written concurrence of the Rights Agent to such supplement or amendment.

           
(e)             Any
supplement to or amendment to this Agreement shall require the prior written
consent of The Toronto Stock Exchange.

           
(f)             Any
amendments made by the Corporation to this Agreement pursuant to subsection
5.4(a) which are required to maintain the validity of this Agreement as a result
of any changes in applicable legislation or applicable rules or policies of
securities regulatory authorities shall:

	 	(i) 	
      if made before the Separation Time, be submitted to the
      shareholders of the Corporation at the next meeting of shareholders and
      the shareholders may, by a vote of the majority referred to in subsection
      5.4(b), confirm or reject such amendment; and

	 	 	 
	 	(ii) 	
      if made after the Separation Time, be submitted to
      holders of Rights at a meeting to be called for on a date not later than
      immediately following the next meeting of shareholders of the Corporation
      and the holders of Rights may, by a vote of the majority referred to in
      subsection 5.4(c), confirm or reject such
amendment.

Any such amendment shall be effective
from the date of the resolution of the Board of Directors adopting such
amendment, until it is confirmed or rejected in accordance with this subsection
5.4(f) or until it ceases to be effective (as described below) and, where such
amendment is confirmed, it continues in effect in the form so confirmed. If such
amendment is rejected by shareholders or holders of Rights or is not submitted
to shareholders or holders of Rights as required, then such amendment shall
cease to be effective from and after the termination of the meeting at which it
was rejected or to which it should have been but was not submitted or from and
after the date of the meeting of holders of Rights that should have been but was
not held, and no subsequent resolution of the Board of Directors to amend this
Agreement to substantially the same effect shall be effective until confirmed by
shareholders or holders of Rights, as the case may be.

5.5                
Fractional Rights and Fractional Common Shares

           
(a)             The
Corporation shall not be required to issue fractions of Rights or to distribute
Right Certificates which evidence fractional Rights or to pay any amount to a
holder of record of Rights Certificates in lieu of such fractional Rights.

           
(b)             The
Corporation shall not be required to issue fractions of Common Shares upon
exercise of the Rights or to distribute certificates which evidence fractional
Common Shares. In lieu of issuing fractional Common Shares, the Corporation
shall pay to the registered holders of Right Certificates at the time such
Rights are exercised as herein provided, an amount in cash equal to the same
fraction of the Market Price of one Common Share that the fraction of a Common
Share that would otherwise be issuable upon the exercise of such Right is of a
whole Common Share.

5.6                  
Rights of Action

                       
Subject to the terms of this Agreement, rights of action in respect of this
Agreement, other than rights of action vested solely in the Rights Agent, are
vested in the respective holders of the Rights, and any holder of any Rights,
without the consent of the Rights Agent or of the holder of any other Rights
may, on such holder’s own behalf and for such holder’s own benefit and the
benefit of other holders of Rights, enforce, and may institute and maintain any
suit, action or proceeding against the Corporation to enforce, or otherwise act
in respect of, such 

- 27 -

holder’s right to exercise such holder’s Rights in the manner
provided in such holder’s Rights Certificate and in this Agreement. Without
limiting the foregoing or any remedies available to the holders of Rights, it is
specifically acknowledged that the holders of Rights would not have an adequate
remedy at law for any breach of this Agreement and will be entitled to specific
performance of the obligations under, and injunctive relief against actual or
threatened violations of the obligations of any Person subject to, this
Agreement.

5.7                 
Holder of Rights Not Deemed a Shareholder

                       
No holder, as such, of any Rights shall be entitled to vote, receive dividends
or be deemed for any purpose the holder of Common Shares or any other securities
which may at any time be issuable on the exercise of such Rights, nor shall
anything contained herein or in any Rights Certificate be construed to confer
upon the holder of any Rights, as such, any of the rights of a shareholder of
the Corporation or any right to vote for the election of directors or upon any
matter submitted to shareholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of meetings or other
actions affecting shareholders (except as provided in Section 5.8 hereof), or to
receive dividends or subscription rights, or otherwise, until such Rights shall
have been exercised in accordance with the provisions hereof.

5.8                  
Non-Canadian or United States Holders

                       
If in the opinion of the Board of Directors (who may rely upon the advice of
counsel) any action or event contemplated by this Agreement would require
compliance by the Corporation with the securities laws or comparable legislation
of a jurisdiction outside Canada or the United States, the Board of Directors
may take such actions as it may deem appropriate to ensure that such compliance
is not required, including without limitation establishing procedures for the
issuance to a Canadian resident Fiduciary of Rights or securities issuable on
exercise of Rights, the holding thereof in trust for the Persons entitled
thereto (but reserving to the Fiduciary or to the Fiduciary and the Corporation,
as the Corporation may determine, absolute investment discretion with respect
thereto) and the sale thereof and remittance of the proceeds of such sale, if
any, to the Persons entitled thereto. In no event has the Corporation or the
Rights Agent an obligation to issue or deliver Rights or securities issuable on
exercise of Rights to Persons who are citizens, residents or nationals of any
jurisdiction other than Canada and the United States, in which jurisdiction such
issue or delivery would be unlawful without registration of the relevant
Persons, securities or issue or delivery for such purposes.

5.9                   Notices

                       
Any notice, demand or other communication required or permitted to be given or
made by the Rights Agent or by the holder of any Rights to or on the Corporation
or by the Corporation or by the holder of any Rights to or on the Rights Agent
shall be in writing and shall be well and sufficiently given or made if:

	 	(i) 	
      delivered in person during normal business hours on a
      Business Day and left with the receptionist or other responsible employee
      at the relevant address set forth below; or

	 	 	 
	 	(ii) 	
      except during any general interruption of postal services
      due to strike, lockout or other cause, sent by first-class mail;
  or

	 	 	 
	 	(iii) 	
      sent by telegraph, facsimile or other form of recorded
      electronic communication, charges prepaid and confirmed in writing as
      aforesaid;

- 28 -

if to the Corporation, addressed to it at:

Suite 1020 – 800 West Pender Street

Vancouver, British Columbia V6C 2V6

Attention: Corporate Secretary 
Fax
No. (604) 681-2741

and if to the Rights Agent, addressed to it at:

3rd Floor, 510 Burrard
Street 
Vancouver, British Columbia V6C 3B9

Attention: General Manager, Client
Services 
Fax No. (604) 661-9401

Notices, demands or other communications required or permitted
to be given or made by the Corporation or the Rights Agent to or on the holder
of any Rights shall be in writing and shall be well and sufficiently given or
made if delivered personally to such holder or delivered or mailed by first
class mail to the address of such holder as it appears on the Rights Register
maintained by the Rights Registrar, or, prior to the Separation Time, in the
register of Shareholders maintained by the transfer agent for the Common
Shares.

                       
Any notice so given or made shall be deemed to have been given and to have been
received on the day of delivery, if so delivered; on the third Business Day
(excluding each day during which there exists any general interruption of postal
service due to strike, lockout, or other cause) following the mailing thereof,
if so mailed; and on the day of telegraphing, telecopying or sending of the same
by other means of recorded electronic communication (provided such sending is
during the normal business hours of the addressee on a Business Day and if not,
on the first Business Day thereafter). Each of the Corporation and the Rights
Agent may from time to time change its address for notice by notice to the other
given in the manner aforesaid.

5.10               
Costs of Enforcement

                       
The Corporation agrees that if the Corporation fails to fulfill any of its
obligations pursuant to this Agreement, then the Corporation shall reimburse the
holder of any Rights for the costs and expenses (including reasonable legal
fees) incurred by such holder and actions to enforce his rights pursuant to any
Rights or this Agreement.

5.11                
Successors

                       
All the covenants and provisions of this Agreement by or for the benefit of the
Corporation or the Rights Agent shall bind and inure to the benefit of their
respective successors and permitted assigns hereunder.

5.12              
 Benefits of this Agreement

                       
Nothing in this Agreement shall be construed to give to any Person other than
the Corporation, the Rights Agent and the holders of the Rights any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall
be for the sole and exclusive benefit of the Corporation, the Rights Agent and
the holders of the Rights.

5.13                
Governing Law

                       
This Agreement and each Right issued hereunder shall be deemed to be a contract
made under the laws of the Province of British Columbia and for all purposes
shall be governed by and construed in accordance with the laws of such Province
applicable to contracts to be made and performed entirely within such
Province.

- 29 -

5.14                
Counterparts

                       
This Agreement may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

5.15               
Severability

                       
If any term or provision hereof or the application thereof to any circumstance
shall, in any jurisdiction and to any extent, be invalid or unenforceable, such
term or provision shall be ineffective as to such Jurisdiction to the extent of
such invalidity or unenforceability without invalidating or rendering
unenforceable the remaining terms and provisions hereof or the application of
such term or provision to circumstances other than those as to which it is held
invalid or unenforceable.

5.16               
Determinations and Actions by the Board of Directors

                       
All actions, calculations and determinations (including all omissions with
respect to the foregoing) in connection with the administration of this
Agreement which are done or made by the Board of Directors, in good faith, shall
not subject the Board of Directors to any liability to the holders of the
Rights.

5.17              
 Regulatory Approvals

                       
Any obligation of the Corporation or action or event contemplated by this
Agreement, or any amendment or supplement to this Agreement, shall be subject to
receipt of any requisite approval or consent from any governmental or regulatory
authority having jurisdiction including The Toronto Stock Exchange while any
securities of the Corporation are listed and posted for trading thereon and for
a period of six months thereafter.

                       
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

TASEKO MINES LIMITED

By:________________________________________

By:________________________________________

COMPUTERSHARE INVESTOR SERVICES
INC.

By:________________________________________

By:________________________________________

- 30 -

EXHIBIT A

[Form of Rights Certificate]

	Certificate No. 	____________________Rights

THE RIGHTS ARE SUBJECT TO REDEMPTION ON
THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES
(SPECIFIED IN THE RIGHTS AGREEMENT), RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING
PERSON OR ANY PERSON ACTING JOINTLY OR IN CONCERT WITH AN ACQUIRING PERSON OR
WITH AN ASSOCIATE OR AFFILIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED
IN THE RIGHTS AGREEMENT) OR TRANSFEREES OF ANY OF THE FOREGOING WILL BECOME VOID
WITHOUT FURTHER ACTION.

RIGHTS CERTIFICATE

                       
This certifies that ______________________, or registered assigns, is the
registered holder of the number of Rights set forth above, each of which
entitles the registered holder thereof, subject to the terms, provisions and
conditions of a Rights Agreement, dated effective as of February 13, 2007 (the
“Rights Agreement”) between Taseko Mines Limited, a corporation
incorporated under the Business Corporations Act (British Columbia) (the
“Corporation”), and Computershare Investor Services Inc., as
Rights Agent, to purchase from the Corporation at any time after the Separation
Time and prior to the Expiration Time (as such terms are defined in the Rights
Agreement), one fully paid common share in the capital of the Corporation (a
“Common Share”) (subject to adjustment as provided in the Rights
Agreement) at the Exercise Price referred to below, upon presentation and
surrender of this Rights Certificate with a duly completed and executed Form of
Election to Exercise at the principal office of the Rights Agent in any of the
Cities of Toronto or Vancouver, Canada. The Exercise Price shall initially be $•
per right and shall be subject to adjustment in certain events as provided in
the Rights Agreement.

                       
This Rights Certificate is subject to all the terms, provisions and conditions
of the Rights Agreement which terms, provisions and conditions are hereby
incorporated herein by this reference and made a part hereof and to which Rights
Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Rights Agent, the Corporation and the holders of the Rights Certificates. Copies
of the Rights Agreement are on file at the registered office of the Corporation
and are available upon written request. 

                       
This Rights Certificate, with or without other Rights Certificates, upon
surrender at any office of the Rights Agent or any Co-Rights Agent designated
for such purpose, may be exchanged for another Rights Certificate or Rights
Certificates of like tenor and date evidencing an aggregate number of Rights
equal to the aggregate number of Rights evidenced by the Rights Certificate or
Rights Certificates so surrendered. If this Rights Certificate shall be
exercised in part, the registered holder shall be entitled to receive, upon
surrender hereof, another Rights Certificate or Rights Certificates for the
number of whole Rights not exercised.

                       
Subject to the provision of the Rights Agreement, the Rights evidenced by this
Certificate may be redeemed by the Corporation at a redemption price of $0.0001
per Right.

                       
No fractional Common Shares will be issued upon the exercise of any Right or
Rights evidenced hereby nor will Rights Certificates be issued for less than one
whole Right. In lieu thereof, a cash payment will be made as provided in the
Rights Agreement.

                       
No holder of this Rights Certificate, as such, shall be entitled to vote or
receive dividends or be deemed for any purpose the Holder of Common Shares or of
any other securities which may at any time be issuable on the exercise hereof,
nor shall anything contained in the Rights Agreement or herein be construed to
confer upon the holder hereof, as such, any of the rights of a shareholder of
the Corporation or any right to vote for the election of directors or upon any
matter submitted to shareholders at any meeting thereof, or to give or withhold
consent to 

any corporate action, or to receive notice of meetings or other
actions affecting shareholders (except as provided in the Rights Agreement), or
to receive dividends or subscription rights, or otherwise, until the Rights
evidenced by this Rights Certificate shall have been exercised as provided in
the Rights Agreement.

                       
This Rights Certificate shall not be valid or obligatory for any purpose until
it shall have been countersigned by the Rights Agent.

                       
WITNESS the facsimile signature of the proper officers of the Corporation and
its corporate seal.

Date: _________________________________________

ATTEST:

TASEKO MINES LIMITED

By:________________________________________

 

COMPUTERSHARE INVESTOR SERVICES INC.

By:________________________________________
    
Authorized Signatory

[Form of Reverse Side of Rights Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such 
holder
desires to transfer the Rights Certificates.)

FOR VALUE RECEIVED ________________________________________________________________________________________
  

  hereby sells, assigns and transfers

unto
____________________________________________________________________________________________________________

____________________________________________________________________________________________________________

  (Please
print name and address of transferee)

this Rights Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint
_____________________________ Attorney, to transfer the within Rights
Certificate on the books of the within-named Corporation, with full power of
substitution.

Dated: _______________________________

Signature Guaranteed:

___________________________________________________
Signature
(Signature
must correspond to name as written upon the face of this Rights Certificate in
every particular, without alteration or enlargement or any change
whatsoever)

                       
Signatures must be medallion guaranteed by a member firm of a recognized stock
exchange in Canada or a registered national securities exchange in the United
States, a member of the National Association of Securities Dealers, Inc., or a
commercial bank or trust company having an office or correspondent in Canada or
the United States.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - -

(To be completed if true)

CERTIFICATION

           
The undersigned hereby represents and certifies, for the benefit of all holders
of Rights and Common Shares, that the Rights evidenced by this Rights
Certificate are not, and, to the knowledge of the undersigned, have not been,
Beneficially Owned by an Acquiring Person or any Person acting jointly or in
concert with any Acquiring Person or with any Affiliate or Associate thereof
(all as defined in the Rights Agreement).

___________________________________________________
Signature

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - - -

NOTICE

                       
In the event the certification set forth above is not completed in connection
with a purported assignment, the Beneficial Owner of the Rights evidenced by
this Rights Certificate will be deemed to be an Acquiring Person or a Person
acting jointly or in concert with such Acquiring Person or an Affiliate or
Associate of such Acquiring Person (all as defined in the Rights Agreement) and
accordingly the Rights evidenced by this Rights Certificate will be null and
void.

[To be attached to each Rights Certificate]

FORM OF ELECTION TO EXERCISE

(To be executed if holder desires to exercise the Rights
Certificate.)

TO:

                       
The undersigned hereby irrevocably elects to exercise ________________ whole
Rights represented by the attached Rights Certificate to purchase the Shares
issuable upon the exercise of such Rights and requests that certificates for
such Shares be issued in the name of:

_____________________________________________________________________________________________________________________________________

Address:

_____________________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________________

Social Insurance, Social Security or 
Other Taxpayer
Identification Number:
______________________________________________________________________

If such number of Rights shall not be all the whole Rights
evidenced by this Rights Certificate, a new Rights Certificate for the balance
of such whole Rights shall be registered in the name of and delivered to:

_____________________________________________________________________________________________________________________________________

Address:

_____________________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________________

Social Insurance, Social Security or 
Other Taxpayer
Identification Number:
______________________________________________________________________

Dated: __________________________________

Signature Guaranteed:

___________________________________________________
Signature
(Signature
must correspond to name as written upon the face of this Rights Certificate in
every particular, without alteration or enlargement or any change
whatsoever)

                       
Signatures must be medallion guaranteed by a member firm or a recognized stock
exchange in Canada or a registered national securities exchange in the United
States, a member of the National Association of Securities Dealers, Inc., or a
commercial bank or trust company having an office or correspondent in Canada or
the United States.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - - -

(To be completed if true)

CERTIFICATION

                       
The undersigned hereby represents, for the benefit of all holders of Rights and
Shares, that the Rights evidenced by this Rights Certificate are not, and, to
the knowledge of the undersigned, have never been, Beneficially Owned by an
Acquiring Person or any Person acting jointly or in concert with any Acquiring
Person or with any Affiliate or Associate thereof (all as defined in the Rights
Agreement).

___________________________________________________
Signature

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
  - - -

NOTICE

                       
In the event the certification set forth above is not completed in connection
with a purported exercise, the Beneficial Owner of the Rights evidenced by this
Rights Certificate will be deemed to be an Acquiring Person or a Person acting
jointly or in concert with an Acquiring Person or an Affiliate or Associate of
an Acquiring Person (all as defined in the Rights Agreement) and accordingly
will deem the Rights evidenced by this Rights Certificate will be null and
void.<PAGE>

                        PRINCIPAL UNDERWRITER AGREEMENT
                        -------------------------------

                                      FOR
                                      ---

                VARIABLE ANNUITIES AND VARIABLE LIFE INSURANCE
                ----------------------------------------------
                                    BETWEEN
                                    -------

                        RIVERSOURCE DISTRIBUTORS, INC.
                        ------------------------------

                                      AND
                                      ---

                      RIVERSOURCE LIFE INSURANCE COMPANY
                      ----------------------------------

This Principal Underwriter Agreement for Variable Annuities and Variable Life
Insurance ("Agreement") is entered into by and between RiverSource Life
Insurance Company ("RSLIC"), a Minnesota corporation, and RiverSource
Distributors, Inc. ("RDI"), a Delaware Corporation, effective this first (1st)
day of January 2007 ("Effective Date").

Whereas, RSLIC is a life insurance company duly organized and validly existing
under the laws of the state of Minnesota and is subject to supervision by the
Minnesota Department of Commerce;

Whereas, RSLIC maintains certain separate accounts named in Exhibit A to this
Agreement as may be amended from time to time ("Separate Accounts");

Whereas, the Separate Accounts were duly created and established by RSLIC or
by its affiliated life insurance companies domiciled outside of New York prior
to December 31, 2006;

Whereas, the Separate Accounts of American Enterprise Life Insurance Company
and American Partners Life Insurance Company (such companies together the
"Affiliated Insurers") were transferred to RSLIC by operation of law and
incident to the mergers of the Affiliated Insurers with and into RSLIC on
December 31, 2006, and simultaneously, IDS Life Insurance Company was renamed
RSLIC;

Whereas, each Separate Account is registered as a unit investment trust under
the Investment Company Act of 1940 ("1940 Act");

Whereas, the Separate Accounts serve as segregated investment accounts for
certain variable annuity contracts and variable life insurance policies
("Contracts") named in Exhibit A to this Agreement and issued by RSLIC and its
Affiliated Insurers prior to December 31, 2006;

                                 Page 1 of 33
<PAGE>

Whereas, the Contracts are registered under the Securities Act of 1933 (1933
Act);

Whereas, RSLIC desires to retain RDI to act as principal underwriter for the
distribution and sale of the Contracts in order to satisfy the requirements of
the federal securities laws, and such future and additional Contracts as may
be issued after the Effective Date ("Future Contracts");

Whereas, RDI is registered as a broker dealer under the 1934 Act and is a
member of the National Association of Securities Dealers Inc. ("NASD");

NOW, THEREFORE, In consideration of the mutual promises contained herein the
parties agree as follows:

1.    REPRESENTATIONS OF RDI.

      RDI represents and warrants that it is registered with the National
      Association of Securities Dealers, Inc. ("NASD") and Securities Exchange
      Commission ("SEC") as a broker-dealer under the 1934 Act and is
      qualified to do business in those jurisdictions where RSLIC is licensed
      and qualified to do business and the Contracts are offered. RDI
      represents and warrants that it is and shall remain during the term of
      this Agreement in compliance with Section 9(a) of the 1940 Act.

2.    APPOINTMENT OF PRINCIPAL UNDERWRITER.

      On the Effective Date of the Agreement, RSLIC appoints RDI and RDI
      accepts the appointment to serve as principal underwriter of the
      Contracts and the Future Contracts in all jurisdictions where the
      Contracts and the Future Contracts may be lawfully sold, subject to the
      registration requirements of the 1933 Act, the 1934 Act and the 1940
      Act.

3.    SELLING AGREEMENTS.

      In order to accomplish the distribution of the Contracts and the Future
      Contracts, RDI is authorized to enter into selling agreements,
      substantially in the form attached hereto as Exhibit B ("Selling
      Agreements"), with other broker dealer firms that are registered under
      the 1934 Act and are members of the NASD ("Selling Firms").

      RSLIC may refuse to appoint any Selling Firm, affiliated or networked
      insurance agency of the Selling Firm and any affiliated person of any of
      the foregoing entities as its agent under the insurance laws of the
      jurisdictions in which the Contracts and the Future Contracts may be
      offered and may terminate such appointment as provided for in the
      Selling Agreement.

                                 Page 2 of 33
<PAGE>

4.    DUTIES OF RDI.

      (a)   Compliance

            RDI will fully comply with the requirements of the NASD, the SEC
            and all other federal and state laws applicable to the
            underwriting and distribution of the Contracts and the Future
            Contracts through Selling Firms. Upon request by RSLIC, RDI will
            furnish such records as may be necessary to establish such
            compliance.

      (b)   Prospectuses, Sales Literature and Advertising.

            In accordance with the requirements of the laws of several states,
            and rules of the NASD and SEC, RDI will act in conformity with
            final disclosure documents describing the Contracts and the Future
            Contracts. RDI will not give any information or make any
            representations or statements on behalf of or concerning RSLIC in
            connection with the Contracts and the Future Contracts other than
            information or representations contained in the registration
            statement, prospectus or statement of additional information
            pertaining to the Separate Accounts and the Contracts and the
            Future Contracts, as such materials may be amended from time to
            time or as may be contained in sales literature prepared and
            approved by RSLIC. RDI will not use, and will take reasonable
            steps to ensure that no Selling Firm uses any sales promotion or
            advertising materials in connection with the offering and sale of
            the Contracts and the Future Contracts which has not been approved
            in writing by RSLIC prior to such use.

      (c)   Purchase Payments

            RDI agrees that all payments tendered with or in respect of any
            application for a Contract or a Future Contract and the Contract
            or a Future Contract when issued is the property of RSLIC. All
            payments made for or under the Contracts (including Future
            Contracts) shall be made by check payable to RSLIC, or by such
            other method RSLIC specifies as acceptable. In the event RDI
            receives any payment in respect of a Contract or a Future
            Contract, RDI shall hold such payment in a fiduciary capacity and
            shall promptly transmit such payment to RSLIC.

      (d)   Books, Records and Reports

            RDI will comply with all applicable requirements of the 1934 Act
            and the NASD including the requirements to maintain and preserve
            books and records pursuant to Section 17(a) of the 1934 Act and
            the rules thereunder.

                                 Page 3 of 33
<PAGE>

      (e)   Indemnification

            RDI hereby agrees to hold harmless and indemnify RSLIC against any
            and all claims, liabilities and expenses which RSLIC may incur
            from liabilities arising out of or based upon any breach of this
            Agreement by RDI.

      (f)   Assistance to Selling Firms

            RDI may assist RSLIC in obtaining sales of the Contracts and
            Future Contracts through Selling Firms by providing Selling Firms
            (and with the consent of the Selling Firms, their registered
            personnel) with wholesaling support services including but not
            limited to the following:

            o     product information regarding the Contracts (and Future
                  Contracts) which has been prepared by or approved in advance
                  of its use by RSLIC
            o     sales strategies and sales materials for the Contracts (and
                  Future Contracts) which have been prepared by or approved in
                  advance of their use by RSLIC
            o     sponsoring informational events regarding the Contracts (and
                  Future Contracts) for Selling Firms and their registered
                  personnel
            o     answering technical product questions about the Contracts
                  (and Future Contracts) for the Selling Firm and its
                  registered personnel

5.    REPRESENTATIONS OF RSLIC.

      (a)   RSLIC represents and warrants that it is domiciled in the State of
            Minnesota and licensed by the Minnesota Department of Commerce to
            offer the Contracts (including Future Contracts) and is licensed
            in other jurisdictions in which the Contracts(including Future
            Contracts) may be offered.

      (b)   RSLIC, as issuer of the Contracts and Future Contracts, and on
            behalf of the Separate Accounts, has registered each Separate
            Account as a unit investment trust under the 1940 Act and has
            registered each Contract under the 1933 Act, and will register
            each Future Contract under the 1933 Act.

      (c)   RSLIC will meet any requirements of the departments of insurance
            in the jurisdictions in which the Contracts and Future Contracts
            are available for sale regarding filing of advertising and sales
            literature.

      (d)   RSLIC represents and warrants that it is and shall remain during
            the term of this Agreement in compliance with Section 9(a) of the
            1940 Act.

                                 Page 4 of 33
<PAGE>

6.    DUTIES OF RSLIC.

      (a)   Prospectuses, Sales Literature and Advertising

            (i)   RSLIC will provide RDI prospectuses relating to the
                  Contracts and Future Contracts and such other sales
                  literature and advertising materials as RSLIC determines is
                  necessary or desirable for use in connection with sales of
                  the Contracts and Future Contracts.

            (ii)  RSLIC represents and warrants that the prospectus(es) and
                  registration statement(s) relating to the Contracts and
                  Future Contracts will contain no untrue statements of
                  material fact or omission to state a material fact, the
                  omission of which makes any statement contained in the
                  prospectus(es) and registration statement(s) misleading.

      (b)   Applications for Contracts and Future Contracts

            All applications for Contracts and Future Contracts are subject to
            acceptance or rejection by RSLIC at its sole discretion. If
            rejected, RSLIC will refund the initial payment to the Selling
            Firm for the benefit of the purchaser if the Selling Agreement so
            provides, otherwise, RSLIC will refund the purchase payment
            directly to the purchaser.

      (c)   Variable Contract Delivery

            RSLIC will transmit Contracts and Future Contracts to Selling
            Firms for delivery to the owner if the Selling Agreement so
            provides, otherwise RSLIC will mail the Contract or Future
            Contract directly to the owner.

      (d)   Retention of Rights by RSLIC

            RSLIC reserves the right to reject any and all applications and
            payments submitted, discontinue writing any form of Contract or
            Future Contract, take possession of and cancel any Contract or
            Future Contract and return the payment or any part of it, and make
            any compromise or settlement in respect of a Contract or Future
            Contract. RSLIC may in its sole discretion and without notice to
            RDI, suspend sales of any Contract or Future Contract or amend any
            policies or contracts evidencing such Contracts or Future
            Contracts if, in RSLIC's opinion, such suspension or amendment is
            (1) necessary for compliance with federal, state or local laws,
            regulations or administrative order(s); or, (2) necessary to
            prevent administrative or financial hardship to RSLIC. In all
            other situations, RSLIC will provide 30 days notice to RDI prior
            to suspending sales of any Contract, Future Contract or amending
            any policies or contracts evidencing such Contracts or Future
            Contracts.

                                 Page 5 of 33
<PAGE>

      (e)   Payment of Amounts Due Selling Firms under Selling Agreements

            If requested by RDI, and as an administrative convenience to RDI,
            RSLIC may pay compensation due to one or more Selling Firms
            (including Selling Firms which are affiliated with RDI and RSLIC)
            in accordance with the terms of the Selling Agreement with each
            Selling Firm ("Commission Processing Services"). RSLIC shall have
            no discretion as to either the timing or the amount of such
            payments to any Selling Firm. RSLIC will pay all such compensation
            to the Selling Firms in the name of RDI. If RSLIC provides these
            Commission Processing Services to RDI, then RSLIC's books and
            records will reflect all transactions performed on behalf of RDI
            in connection with these services. RSLIC will preserve and
            maintain these books and records in conformity with the
            requirements of Rules 17a-3 and 17a-4 under the 1934 Act. RDI will
            retain overall responsibility for the records kept for it by RSLIC
            in providing these services, exactly as if RDI rather than RSLIC
            made these payments. RSLIC acknowledges that it holds all books
            and records with respect to these services on behalf of and as
            agent for RDI whose property they are and shall remain.

            If RSLIC provides Commission Processing Services to RDI, then RDI
            shall pay RSLIC its allocated cost of the Commission Processing
            Services using the same allocation procedures and methods set
            forth in section 7 below, except such allocations shall be made by
            RSLIC and paid by RDI, and provided further that all such
            allocated costs and expenses: a) shall be equitable among all
            parties to this Agreement; b) shall be in conformance with all
            state insurance regulatory requirements applicable to RSLIC; and,
            c) shall be accounted for by RDI in accordance with guidance
            issued by the Securities and Exchange Commission and by the NASD
            in Notice To Members 03-63.

      (f)   Indemnification

            RSLIC hereby agrees to hold harmless and indemnify RDI against any
            and all claims, liabilities and expenses which RDI may incur from
            liabilities arising out of or based upon RSLIC's breach of any of
            its duties under this Agreement.

      (g)   Books, Records and Reports

            RSLIC will comply with all applicable requirements of the 1934 Act
            and the NASD including the requirements to maintain and preserve
            books and records pursuant to Section 17(a) of the 1934 Act and
            the rules thereunder regarding confirmations RSLIC sends on behalf
            of the Selling Firms for payments RSLIC receives under the
            Contracts and the Future Contracts, for transactions RSLIC
            processes under the Contracts and the Future Contracts, and for
            commissions related to the Contracts and Future which RSLIC pays
            to Selling Firms on behalf

                                 Page 6 of 33
<PAGE>

            of RDI. RSLIC shall hold such books and records on behalf of and
            as agent for RDI whose property they are and shall remain, and
            acknowledges that such books and records are at all times subject
            to inspection by the SEC in accordance with Section 17(a) of the
            1934 Act.

7.    COMPENSATION OF PRINCIPAL UNDERWRITER.

      RSLIC agrees to reimburse RDI at cost for services provided by RDI
      pursuant to this Agreement. The charge to RSLIC for such services shall
      include all direct and indirectly allocable expenses. The methods for
      allocating expenses to RSLIC shall be in accordance with the
      requirements of the Minnesota insurance holding company system laws.
      Such methods shall be modified and adjusted by mutual agreement where
      necessary or appropriate to reflect fairly and equitably the actual
      incidence of expense incurred by RDI on behalf of RSLIC. The method of
      allocating costs hereunder and the payment thereof shall be determined
      in the following manner:

      (a)   The cost of services performed by RDI that are identifiable as
            expenses incurred directly and exclusively for the benefit of the
            RSLIC shall be charged to RSLIC.

      (b)   The cost of services performed by RDI that are not identifiable as
            expenses incurred directly and exclusively for the benefit of
            RSLIC shall be allocated and charged to RSLIC in conformity with
            customary insurance accounting practices.

      (c)   At the request of RSLIC, and at RDI's expense, RDI shall produce
            records and provide access to enable RSLIC to verify that such
            cost allocations are performed in accordance with the practices
            referenced above.

      (d)   For services rendered under this Agreement, payment shall be made
            by RSLIC to RDI on a monthly basis within thirty (30) days of
            invoice or other notice. The parties agree that during the course
            of any given month RSLIC may make reasonable estimated payments
            for part or all of the monthly cost in which case such payment
            shall be offset against the actual amount otherwise due at the end
            of the month under this Agreement. The parties also agree that, at
            the option of RSLIC, RSLIC may reimburse RDI based upon RDI's good
            faith estimate of the monthly costs for some or all of the
            services provided hereunder, in which case there shall be a final
            adjustment made within thirty (30) days after completion of RDI's
            cost analysis performed at least annually.

      For purposes of allocating costs under this Agreement, RSLIC and RDI
      shall rely on their internal accounting and allocation system then in
      effect, that system currently being the Management Accounting and
      Reporting System ("MARS"), which utilizes a product factor methodology
      for certain services and rate-volume formulas for other services, in
      order to ensure fair and reasonable allocations of income and expenses
      among affiliated entities. Allocation of such costs under this Agreement
      shall be accounted for by RDI in

                                 Page 7 of 33
<PAGE>

      accordance with applicable requirements of the Securities and Exchange
      Commission and by the NASD including guidance provided in Notice To
      Members 03-63.

8.    TERMINATION.

      This Agreement may be terminated, without cause, by either party upon
      sixty (60) days prior written notice, without penalty; and may be
      terminated immediately, by either party for failure to perform
      satisfactorily or other cause; and will be terminated immediately if RDI
      ceases to be registered as a broker dealer under the 1934 Act and a
      member of the NASD. This Agreement will also terminate immediately upon
      assignment without the prior written consent of both parties.

9.    GENERAL PROVISIONS.

      (a)   Amendment and Entirety

            This is the entire Agreement between RSLIC and RDI with respect to
            the subject matter of this Agreement. No additions, amendments or
            modifications of this Agreement or any waiver of any provision
            will be valid unless approved, in writing, by authorized
            representatives of RSLIC and RDI. In addition, no waiver of any
            default or failure of performance by either party will affect the
            other party's rights with respect to a subsequent default or
            failure.

      (b)   Independent Contractor Relationship

            This Agreement does not create the relationship of employer and
            employee between the parties to this Agreement. RSLIC and RDI are
            independent contractors with respect to each other, and their
            respective employees and agents.

      (c)   Assignment

            Neither RSLIC nor RDI will assign or transfer, in whole or in
            part, this Agreement or any of the benefits accrued or to accrue
            hereunder, without prior written consent of an authorized
            representative of each party.

      (d)   Governing Law

            It is agreed by the parties that this Agreement will be governed
            by the laws of the State of Minnesota.

      (e)   Severability

            It is understood and agreed by the parties that if any part, term
            or provision of this Agreement is held to be invalid or in
            conflict with any law or regulation, the

                                 Page 8 of 33
<PAGE>

            validity of the remaining part, terms or provisions will not be
            affected and the parties' rights and obligations will be construed
            and enforced as if this Agreement did not contain the part, term
            or provision held to be invalid.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and attested as of the Effective Date.

RIVERSOURCE LIFE INSURANCE COMPANY

By:    /s/ Timothy V. Bechtold
       -----------------------
Name:      Timothy V. Bechtold
Title:     President

RIVERSOURCE DISTRIBUTORS INC.

By:    /s/ Mark Schwarzmann
       -----------------------
Name:      Mark Schwarzmann
Title:     CEO

                                 Page 9 of 33
<PAGE>

                                   EXHIBIT A

Separate Accounts:

RiverSource Account F
RiverSource Variable Account 10
RiverSource Variable Annuity Fund A
RiverSource Variable Annuity Fund B
RiverSource Variable Annuity Account 1
RiverSource Variable Annuity Account
RiverSource Variable Life Account
RiverSource Account SBS
RiverSource of New York Account SBS
RiverSource Variable Account for Smith Barney
RiverSource Variable Life Separate Account

Contracts:

IDS Life Variable Retirement & Combination Retirement Annuities
      (File No. 2-73114)
IDS Life Employee Benefit Annuity (File No. 33-52518)
IDS Life Flexible Annuity (File No. 33-4173)
IDS Life Group Variable Annuity Contract (File No. 33-47302)
IDS Flexible Portfolio Annuity (File No. 33-62407)
RiverSource Retirement Advisor Variable Annuity (File No. 333-79311)
RiverSource Retirement Advisor Variable Annuity - Band 3 (File No. 333-79311)
RiverSource Retirement Advisor Advantage Variable Annuity/RiverSource
      Retirement Advisor Select Variable Annuity (File No. 333-79311)
RiverSource Retirement Advisor Advantage Variable Annuity - Band 3
      (File No. 333-79311)
RiverSource Retirement Advisor Advantage Plus Variable Annuity/RiverSource
      Retirement Advisor Select Plus Variable Annuity (File No. 333-79311)
RiverSource Retirement Advisor 4 Advantage Plus VA/RiverSource Retirement
      Advisor 4 Select Plus VA (S) (File No. 333-79311)
Single Premium Variable Life Insurance Policy (File No. 33-5210)
IDS Life Variable Annuity Fund A (File No. 2-29081)
IDS Life Variable Annuity Fund B-Individual (File No. 2-29358)
IDS Life Variable Annuity Fund A-Group (File No. 2-47430)
RiverSource Single Premium Variable Life Insurance (File No. 333-83456)
RiverSource Variable Universal Life IV/ RiverSource Variable Universal Life IV
      - Estate Series (File No. 333-69777)
RiverSource Variable Second-To-Die Life Insurance (File No. 33-62457)
RiverSource Variable Universal Life Insurance (File No. 33-11165)
RiverSource Variable Universal Life III (File No. 333-69777)
RiverSource Succession Select Variable Life Insurance (File No. 33-62457)
Single Premium Variable Life Insurance Policy (File No. 2-97637)
Symphony Annuity (File No. 33-40779)

                                Page 10 of 33
<PAGE>

AEL Personal Portfolio Plus(2) (File No. 33-54471)(no longer offered);
AEL Personal Portfolio Plus (File No. 33-54471)(no longer offered);
AEL Personal Portfolio (File No. 33-54471)(no longer offered);
AEL Preferred Variable Annuity (File No. 333-20217);
Evergreen Essential((SM)) Variable Annuity (File No. 333-92297);
Evergreen New Solutions Variable Annuity (File No. 333-92297);
Evergreen New Solutions Select Variable Annuity (File No. 333-92297);
Evergreen Privilege(SM) Variable Annuity (File No. 333-73958);
Evergreen Pathways(SM) Variable Annuity (File No. 333-73958);
Evergreen Pathways(SM) Select Variable Annuity (File No. 333-73958);
RiverSource(SM) AccessChoice Select(SM) Variable Annuity (File No. 333-92297);
RiverSource(SM) FlexChoice(SM) Variable Annuity (File No. 333-73958);
RiverSource(SM) FlexChoice(SM) Select Variable Annuity (File No. 333-73958);
RiverSource(SM) Endeavor Select(SM) Variable Annuity (File No. 333-92297);
RiverSource(SM) Galaxy Premier Variable Annuity (File No. 333-82149);
RiverSource(SM) Innovations Variable Annuity (File No. 333-92297);
RiverSource(SM) Innovations(R) Select Variable Annuity (File No. 333-92297);
RiverSource(SM) Innovations Classic Variable Annuity (File No. 333-92297);
RiverSource(SM) Innovations(R) Classic Select Variable Annuity
      (File No. 333-92297);
RiverSource(SM) New Solutions Variable Annuity(SM) (File No. 333-92297);
RiverSource(SM) Pinnacle Variable Annuity(SM) (File No. 333-82149);
RiverSource(SM) Platinum Variable Annuity (File No. 333-72777)
      (no longer offered);
RiverSource(SM) Signature Variable Annuity(SM) (File No. 333-74865);
RiverSource(SM) Signature Variable Select Annuity(R) (File 333-74865);
RiverSource(SM) Signature One Variable Annuity(SM) (File No. 333-85567);
RiverSource(SM) Signature One Select Variable Annuity (File No. 333-85567);
Wells Fargo Advantage(R) Variable Annuity (File No. 333-85567);
Wells Fargo Advantage(R) Builder Variable Annuity (File No. 333-85567);
Wells Fargo Advantage Choice(SM) Variable Annuity (File No. 333-73958);
Wells Fargo Advantage(R) Select Variable Annuity (File No. 333-92297);
Wells Fargo Advantage(R) Builder Select Variable Annuity (File No. 333-85567);
Wells Fargo Advantage Choice(SM) Select Variable Annuity (File No. 333-73958).
RiverSource(SM) Signature Variable Life Universal Life (File No. 333-84121)
      (no longer offered).
Privileged Assets(R) Select Annuity (File No. 33-57731)

                                Page 11 of 33
<PAGE>

                                   EXHIBIT B

                               SELLING AGREEMENT
                    FOR RIVERSOURCE LIFE INSURANCE COMPANY
                           ANNUITY AND LIFE PRODUCTS

This AGREEMENT ("Agreement") dated ________________, 2007("Effective Date") is
among RIVERSOURCE LIFE INSURANCE COMPANY ("Company"), RIVERSOURCE
DISTRIBUTORS, INC. ("Distributor", together with Company, "RiverSource") and
_____________ ("Broker-Dealer") and ____________ ("Agency"), and its
affiliated insurance agencies identified on Exhibit A who have also executed
this Agreement or an Affiliate Participation Agreement (each an "Agency").
Distributor joins this Agreement in its role as principal underwriter of
Company's variable annuity contracts and variable life insurance policies
("Variable Contracts") only.

                                   RECITALS

The purpose of this Agreement is to establish the terms and conditions under
which Broker-Dealer and Agency (collectively, "Authorized Selling Firm") will
service Accounts and market and sell those insurance products issued by the
Company, as set forth in one or more attached Product Exhibit(s), which may
include variable annuity contracts, variable life insurance policies, fixed
annuities, and fixed life insurance policies.

RiverSource and Authorized Selling Firm intend that Authorized Selling Firm
will be responsible for managing and supervising Producers in marketing and
selling Company's Products and servicing Company's Accounts pursuant to this
Agreement.

In consideration of the mutual covenants contained herein, the parties agree
as follows:

      1.    DEFINITIONS. As used in this Agreement, the following terms shall
            -----------------------------------------------------------------
            have the following meanings:
            ----------------------------

            1.1   "ACCOUNTS" are those annuity and life insurance Contracts
                  issued by Company that Company authorizes Agency,
                  Broker-Dealer, and their Producers to service under this
                  Agreement.

            1.2   "AGENCY" is an insurance agency licensed in one or more
                  states and affiliated with Broker-Dealer by ownership or
                  contract with respect to the sale of Products under this
                  Agreement. Broker-Dealer may also act as "Agency."

            1.3   "AUTHORIZED SELLING FIRM" means the Broker-Dealer taken
                  together with the Agency or Agencies, with respect to the
                  sale of Products and servicing of Accounts under this
                  Agreement, in accordance with the terms and conditions of
                  the SEC no-action letter First of America Brokerage Service,
                                           -----------------------------------
                  Inc. (dated September 28, 1995).
                  ----

            1.4   "BROKER-DEALER" is an entity duly registered as a
                  broker-dealer with the Securities and Exchange Commission
                  ("SEC"), the National Association of Securities Dealers
                  ("NASD"), and states where required.

            1.5   "COMPANY RULES" mean any written instructions, bulletins,
                  manuals, training materials, and any underwriting or
                  suitability guidelines provided to Authorized Selling Firm
                  by the Company or that may be posted on the RiverSource Web
                  Site located http://www.riversource.com/distributors.

            1.6   "CONTRACT" or "Contracts" are those annuity or variable life
                  insurance policy validly issued by Company to a purchaser
                  meeting underwriting standards of the Company.

            1.7   "HYPERLINK" shall mean a direct link from the Authorized
                  Selling Firm's Internet or Intranet site to the RiverSource
                  Web Site located http://www.riversource.com/distributors.

                                Page 12 of 33
<PAGE>

            1.8   "LICENSED ASSISTANT" is an individual who is appropriately
                  registered with the NASD who assists Producer in providing
                  service for Products and Accounts.

            1.9   "PRODUCER" is a duly licensed individual who sells Products
                  and services Accounts as an employee or independent
                  contractor of Agency or Broker-Dealer and who is
                  appropriately registered with the NASD and licensed and
                  appointed in accordance with all applicable insurance laws.

            1.10  "PRODUCTS" OR "PRODUCT" are those annuity and life insurance
                  products issued by Company which will be marketed, sold, or
                  serviced by Agency, Broker-Dealer, and their Producers under
                  this Agreement, and which are set forth on attached Exhibit
                  A and further detailed on Product Exhibits.

            1.11  "REPLACEMENT" is the sale of a Product which is funded by
                  the purchaser with money obtained from the liquidation of
                  another life insurance policy or annuity contract.

            1.12  "TERRITORY" may be any 49 of the 50 United States (all
                  states other than New York), and the District of Columbia,
                  but includes only those jurisdictions in which Agency is
                  authorized to service Accounts and market and sell the
                  Products under this Agreement. Exhibit A lists states where
                  Company Products have been approved for sale.

      2.    TERM OF AGREEMENT. This Agreement, once fully executed by the
            parties hereto, shall remain in effect beginning upon the
            Effective Date until it is terminated in accordance with Section
            9, "Termination."

      3.    APPOINTMENT AND AUTHORIZATION OF AGENCY AND BROKER-DEALER.

            3.1   APPOINTMENT AND AUTHORIZATION OF AGENCY AND BROKER-DEALER.
                  Company and Distributor appoint Agency and authorize
                  Broker-Dealer to solicit sales of and sell Products and
                  service Accounts in accordance with the terms and conditions
                  of this Agreement as an Authorized Selling Firm. Agency and
                  Broker-Dealer accept the appointment and authorization.
                  These two appointments, taken together, constitute the
                  appointment of Authorized Selling Firm. Authorized Selling
                  Firm's authority is nonexclusive and is limited to the
                  performance of the services and responsibilities set forth
                  in this Agreement.

      4.    DUTIES, OBLIGATIONS AND LIMITATIONS OF AUTHORIZED SELLING FIRM.
            Beginning on the Effective Date, Authorized Selling Firm will
            faithfully perform all of Authorized Selling Firm's duties within
            the scope of the agency relationship created under this Agreement
            to the best of Authorized Selling Firm's knowledge, skill, and
            judgment. As Authorized Selling Firm, Agency and Broker-Dealer
            shall be jointly and severally responsible and liable to
            RiverSource for the faithful performance of all obligations and
            duties except those that this Agreement specifically identifies as
            duties of Broker-Dealer. Authorized Selling Firm's duties shall
            include, but not be limited to the following:

            4.1   RECRUITMENT OF PRODUCERS. Authorized Selling Firm may
                  recruit Producers to sell Products and/or service Accounts
                  under the supervision of Authorized Selling Firm. A Producer
                  so recruited may not solicit or sell Products or service
                  Accounts prior to acquiring any required state insurance
                  license(s) in the state(s) where such Producer will solicit
                  or sell Products or Service Accounts, being registered with
                  the NASD as a representative of the Broker-Dealer, being
                  appointed by Company as an agent, and completing the
                  training described in Section 4.5.15.

            4.2   LICENSED ASSISTANT. Authorized Selling Firm may allow
                  Producer's Licensed Assistants to perform telephone
                  transactions authorized by the Contract owner if permitted
                  by the current Product prospectus and Company Rules.
                  Authorized Selling Firm is responsible for the supervision
                  of Licensed Assistants. A Licensed Assistant may not perform
                  telephone transactions for any Contract owner prior to being
                  appropriately registered with the NASD as a representative
                  of the Broker-Dealer.

                                Page 13 of 33
<PAGE>

            4.3   LICENSING, REGISTRATION, AND APPOINTMENT OF AGENCY,
                  PRODUCERS, AND LICENSED ASSISTANTS. Agency shall be
                  responsible for the preparation and submission of licensing
                  forms and the assurance that all Producers recruited by
                  Authorized Selling Firm are appropriately licensed as
                  insurance agents in the state(s) where such Producers will
                  solicit and sell Products and service Accounts.
                  Broker-Dealer shall be responsible for the preparation and
                  submission to the NASD of representative registration forms
                  and the assurance that all Producers and Licensed Assistants
                  are and remain registered as representatives of
                  Broker-Dealer with the NASD. Authorized Selling Firm shall
                  be responsible for investigating the character, work
                  experience, and background of any proposed Producer and upon
                  request will provide Company with copies of such
                  investigations. Authorized Selling Firm shall recommend
                  Producers for appointment with Company, but Company shall
                  retain sole authority to make appointments and may, at its
                  discretion, refuse to permit any Producer to solicit
                  Contracts for the sale of the Products or to service the
                  Accounts. Company shall be responsible for the preparation
                  and submission of appointment forms and the payment of
                  appointment fees in those states that require the Company to
                  appoint Producers.

            4.4   COMPLIANCE WITH COMPANY RULES AND APPLICABLE LAWS.
                  Authorized Selling Firm will comply with all Company Rules
                  and with all applicable federal and state laws and
                  regulations. Authorized Selling Firm must access the Company
                  Rules at the RiverSource Web Site located
                  http://www.riversource.com/distributors. The Company Rules
                  may be changed by Company at its sole discretion.

            4.5   SUPERVISION AND ADMINISTRATION. Authorized Selling Firm
                  shall have full, joint and several responsibility for the
                  training and supervision of all of its Producers who are
                  engaged directly or indirectly in the solicitation or sale
                  of the Products or the servicing of Accounts and the
                  activities of all of its Licensed Assistants. Producers and
                  Licensed Assistants shall be subject to the control of
                  Authorized Selling Firm with respect to their securities and
                  insurance regulated activities in connection with the
                  Products. Authorized Selling Firm shall be responsible for
                  all acts or omissions of Producers and Licensed Assistants.
                  Authorized Selling Firm's supervisory and administrative
                  responsibilities include, but are not limited to:

                  4.5.1     ensuring that Producers and Licensed Assistants
                            comply with Company Rules and all federal and
                            state laws and regulations applicable to the
                            Products and Accounts;

                  4.5.2     ensuring that Producers comply with all terms of
                            this Agreement in soliciting and selling the
                            Products and servicing the Accounts;

                  4.5.3     ensuring that Licensed Assistants comply with all
                            terms of this Agreement in providing any service
                            to the Contract owner;

                  4.5.4     supplying Producers with sales literature and
                            application forms approved by Company;

                  4.5.5     assisting Producers and Licensed Assistants in
                            responding to customer inquiries;

                  4.5.6     promptly delivering to Producers relevant Company
                            communications and Company Rules concerning
                            Products and/or Accounts, such as changes in
                            rates, regulatory notices or new Product
                            announcements;

                  4.5.7     on all Replacements, ensuring that Producers
                            provide Product applicants sufficient information
                            and disclosures to ensure the suitability of the
                            Replacement. Such information shall include that
                            which NASD Members and their affiliated persons
                            are expected to provide in sales involving a
                            Replacement, information required under
                            applicable state insurance law and regulation and
                            the following:

                            (a) all fees, expenses, and possible charges, such
                            as surrender charges, on both the new and the
                            surrendered investments;
                            (b) any change in the investment risk to the
                            Product applicant;

                                Page 14 of 33
<PAGE>

                            (c) any change in the nature or the provider of
                            any guarantees associated with the Product and/or
                            the surrendered product;

                            All such information will be retained by Agency
                            for six years from the date of the completion and
                            signature of any application, and will be made
                            available to Company in accordance with Section
                            4.10, "Accurate Record; Audit," of this Agreement;

                  4.5.8     notifying Company if any Agency or Producer fails
                            to maintain the required state insurance license
                            or ceases to be a registered representative of
                            Broker-Dealer;

                  4.5.9     promptly informing Company of any violation of law
                            or Company Rules by Authorized Selling Firm,
                            Producer or Licensed Assistant, or of any
                            complaint by a Contract owner or regulatory agency
                            regarding the activities of Authorized Selling
                            Firm, Producer, Licensed Assistant or the Company
                            or Distributor with respect to the Products or
                            servicing of Accounts;

                  4.5.10    any other duties necessary or appropriate to
                            perform Authorized Selling Firm's obligations
                            under this Agreement;

                  4.5.11    on the use of electronic and automated Web-based
                            order-entry, processing, servicing, and
                            administration systems, ensuring that adequate
                            supervision and security and access controls are
                            in place to prevent the improper, unauthorized or
                            fraudulent use of or access to the order-entry,
                            servicing, or administration system(s);

                  4.5.12    notifying company of any suspected or actual
                            improper, unauthorized or fraudulent use of or
                            access to the order-entry, servicing, or
                            administration system(s);

                  4.5.13    cooperating fully with Company in any
                            investigation of any suspected or actual improper,
                            unauthorized or fraudulent use of or access to the
                            order-entry, servicing or administration
                            system(s);

                  4.5.14    Broker-Dealer will fully comply with and will
                            ensure Agency, Producers, and Licensed Assistant's
                            compliance with the requirements of the NASD, the
                            SEC, and all other applicable federal and state
                            laws, and, with Agency, will establish and
                            maintain such rules and procedures as may be
                            necessary to cause diligent supervision of the
                            securities activities of Agency, Producers, and
                            Licensed Assistants. Broker-Dealer's duties with
                            respect to Agency, Producers, and Licensed
                            Assistant's securities activities, include, but
                            are not limited to:

                            (a)    delivering to each person submitting an
                                   application a current prospectus for the
                                   Product to be furnished by RiverSource in
                                   the form required by the applicable federal
                                   and state law;

                            (b)    reviewing all Product applications for
                                   accuracy and completeness, and determining
                                   the suitability of the sale, which includes
                                   reasonable efforts to obtain information
                                   concerning the applicant's financial and
                                   tax status, investment objectives, and any
                                   other information used or considered
                                   reasonable in making a Product
                                   recommendation;

                            (c)    complying with all applicable requirements
                                   of the Securities Exchange Act of 1934
                                   ("1934 Act") and the NASD, including the
                                   requirements to maintain and preserve books
                                   and records pursuant to Section 17(a) of
                                   the 1934 Act and the rules thereunder and
                                   making such records and files available to
                                   RiverSource and personnel of state
                                   insurance departments, the NASD, SEC or
                                   other regulatory agencies which have
                                   authority over RiverSource;

                  4.5.15    ensuring that their Producers who market and sell
                            the Products and service the Accounts are trained
                            on (i) the product specifications and features;
                            (ii) all Company Rules and other requirements
                            communicated to Authorized Selling Firm that
                            RiverSource has adopted to satisfy insurance laws
                            and regulations regarding replacements; (iii)
                            standards that RiverSource has

                                Page 15 of 33
<PAGE>

                            established for and communicated to Authorized
                            Selling Firm and their Producers to use in meeting
                            their respective duties to ensure suitable sales
                            of the Products before they begin to solicit or
                            sell Products; and (iv) completing all Company
                            forms used in connection with servicing Accounts.
                            If Authorized Selling Firm chooses not to use
                            Company-provided materials in training their
                            Representatives on (i), (ii), and (iii) above,
                            then Authorized Selling Firm shall provide to
                            RiverSource, for approval, documentation of its
                            own form and content of training to be used, prior
                            to the execution of this Agreement;

                            After the execution of this Agreement, to the
                            extent that Authorized Selling Firm uses any
                            training material related to the sale of the
                            Products or the servicing of Accounts that differs
                            from that contained in the Company-provided
                            training material, Authorized Selling Firm must
                            provide that training material to RiverSource for
                            approval prior to use. Authorized Selling Firm
                            shall also be responsible for assuring that its
                            Producers comply with all Company Rules and with
                            the applicable suitability requirements of the
                            National Association of Securities Dealers, Inc.
                            ("NASD"), and any state or federal law, as amended
                            from time to time, in selling the Products and
                            servicing the Accounts; and

                  4.5.16    ensuring that Producers, in servicing Accounts,
                            are performing only those services listed on
                            Exhibit B hereto. Company may amend Exhibit B at
                            any time upon written notice to Authorized Selling
                            Firm.

            4.6   COLLECTION AND SUBMISSION OF PREMIUMS. RiverSource and
                  Authorized Selling Firm agree that Authorized Selling Firm
                  will ensure that its Producers collection and timely
                  remittance of premiums received from the sale of Products is
                  as required by the Company Rules. All premiums associated
                  with sales of variable life insurance policies will be
                  remitted using the Check with Application method described
                  in the Company Rules. Five methods of collection and
                  remittance are available for variable annuity sales. Agency
                  and Broker-Dealer will decide which method it will employ
                  for variable annuity sales - Check with Application; Net
                  Wire; Net Wire through clearing broker; Gross Sweep; or
                  Gross ACH through clearing broker. See the Company Rules for
                  a description of each method.

            4.7   SOLICITATION. Authorized Selling Firm, through Producers,
                  will solicit applicants who appear to meet Company's and
                  Distributor's underwriting and suitability standards,
                  provided that nothing in this Agreement shall be deemed to
                  require Authorized Selling Firm to solicit any particular
                  customer's application for a Product. Authorized Selling
                  Firm is not allowed to solicit applications for or sell
                  Products indicated under "Servicing Only" on the most
                  current Exhibit A.

            4.8   APPLICATION AND ELECTRONIC OR WEB-BASED ORDER ENTRY.
                  Authorized Selling Firm is responsible for obtaining all
                  signatures required on each application and must deliver to
                  Company the application and all instruments necessary to
                  establish and issue a Contract under this Agreement.
                  Authorized Selling Firm must ensure that all information
                  sent to Company by means of electronic or automated
                  web-based order entry, processing, service or administration
                  system is complete and accurate. Authorized Selling Firm
                  agrees to pay Company for all expenses and as-of-costs
                  reasonably incurred by Company in connection with incomplete
                  or inaccurate information.

            4.9   COMPANY PROPERTY. Authorized Selling Firm will safeguard,
                  maintain, and account for all policies, forms, manuals,
                  equipment, supplies, and advertising, sales, and servicing
                  literature furnished to Authorized Selling Firm and
                  Producers by RiverSource and will destroy or return the same
                  to RiverSource, at its discretion and promptly upon request.

            4.10  ACCURATE RECORD; AUDIT. As required by applicable laws and
                  Company Rules, Authorized Selling Firm will keep
                  identifiable and accurate records and accounts of all
                  business and transactions effected pursuant to this
                  Agreement. Upon reasonable notice and at reasonable times,
                  continuing during a period of one year following the
                  termination of this Agreement, Authorized Selling Firm will
                  permit RiverSource to visit, inspect, examine, audit, and
                  verify, at Authorized Selling Firms offices or elsewhere,
                  all accounts, files, documents, books, reports, work papers,
                  compliance manuals, compliance reports, compliance rules and
                  procedures, and other records belonging to or in the
                  possession or control of

                                Page 16 of 33
<PAGE>

                  Authorized Selling Firm relating to the business covered by
                  this Agreement, and to make copies thereof and extracts
                  therefrom, provided that such audit shall not unreasonably
                  interfere with Authorized Selling Firm's normal course of
                  business. Upon reasonable notice, Authorized Selling Firm
                  shall make and provide copies to RiverSource of such
                  accounts, files, documents, books, reports, work papers,
                  compliance manuals, compliance reports, compliance rules and
                  procedures, and other records belonging to or in the
                  possession or control of Authorized Selling Firm.

            4.11  APPROVED ADVERTISING. No sales promotions, promotional
                  materials, or any advertising relating to Products or
                  Company or Distributor ("Sales Material") distributed to
                  either customers or Producers shall be used by Authorized
                  Selling Firm or Producers unless the specific item has been
                  approved in writing by Company and/or Distributor before
                  use. Any Sales Material developed by Authorized Selling Firm
                  will become the sole property of Company and/or Distributor
                  once approved. Any modification of the promotional materials
                  to enable the use of such in a financial institution setting
                  must also be approved in accordance with this section.

            4.12  FIDELITY BOND. Authorized Selling Firm represents and
                  warrants that all directors, officers, employees, and
                  representatives of the Authorized Selling Firm who are
                  appointed pursuant to this Agreement as Producers for
                  Company or who have access to funds of Company, including
                  but not limited to funds submitted with applications for
                  Products or funds being returned to owners, are and shall be
                  covered by a blanket fidelity bond, including coverage for
                  larceny and embezzlement, issued by a reputable bonding
                  company acceptable to Company. The bond shall be for at
                  least the amount prescribed by the NASD rules. Broker-Dealer
                  shall maintain the bond at its expense. Company may require
                  evidence, satisfactory to it, that such coverage is in
                  force. Authorized Selling Firm shall give prompt written
                  notice to Company of cancellation or change of coverage.

            4.13  LIMITATIONS. Authorized Selling Firm shall have no authority
                  with respect to RiverSource, nor shall it represent itself
                  as having such authority, other than as is specifically set
                  forth in this Agreement. Without limiting the foregoing,
                  neither Agency nor Broker-Dealer shall, without the express
                  written consent of Company and/or Distributor, as
                  applicable:

                  4.13.1    make, waive, alter or change any term, rate or
                            condition stated in any Product, Contract or
                            Company approved Sales Material or other approved
                            forms, or discharge any Product in the name of
                            Company;

                  4.13.2    waive a forfeiture;

                  4.13.3    extend the time for the payment of premiums or
                            other monies due Company;

                  4.13.4    accept service of process on behalf of Company or
                            Distributor;

                  4.13.5    make, accept or endorse notes, or endorse checks
                            payable to Company or Distributor, or otherwise
                            incur any expense or liability on behalf of
                            Company or Distributor;

                  4.13.6    offer to pay or pay, directly or indirectly, any
                            rebate of premium or any other inducement not
                            specified in the Products;

                  4.13.7    give or offer to give any advice or opinion
                            regarding the taxation of any customer's income or
                            estate in connection with the purchase of any
                            Product;

                  4.13.8    enter into an agreement with any person or entity
                            to market or sell the Products without the written
                            consent of Company and Distributor;

                  4.13.9    use Company's or Distributor's names, logos,
                            trademarks, service marks or any other proprietary
                            designation ("Company Marks") without the prior
                            written permission of Company; or

                                Page 17 of 33
<PAGE>

                  4.13.10   engage in, or permit any Producer to engage in,
                            any systematic program that results in a surrender
                            of Product(s) - sold either under this Agreement
                            or any other prior agreement between Authorized
                            Selling Firm or any of their predecessors and
                            RiverSource - at any time while this Agreement is
                            in force; or provide data including Confidential
                            Contract owner Information as defined in Section
                            11.2 of this Agreement to any other person or
                            organization which would allow or facilitate the
                            surrender of Company's Products. Nothing in this
                            Agreement shall preclude the replacement of
                            Company's annuity products with Company's own
                            variable annuity or variable insurance products,
                            so long as such sales are suitable and documented
                            according to Section 4.5.7, Replacement Sales.
                            (See also Section 9.3, Post Termination
                            Limitations, and Section 11, Confidentiality,
                            generally.).

            4.14  CONTRACT DELIVERY TO CONTRACT OWNERS. Authorized Selling
                  Firm shall return promptly to Company all receipts for
                  delivered Contracts, all undelivered Contracts, and all
                  receipts for cancellations, in accordance with Company
                  Rules. Authorized Selling Firm will ensure prompt delivery
                  of Contracts to Contract owners by Authorized Selling Firm
                  or their Producers within 5 business days of receipt of the
                  Contract by the Authorized Selling Firm or their Producers.
                  Authorized Selling Firm agrees to indemnify and hold
                  harmless Company for any loss incurred by Company that
                  results from failure to deliver Contracts to Contract owners
                  within such 5 business day period. This section will not
                  apply if Company transmits the Contract directly to the
                  Contract owner.

            4.15  INDIVIDUAL RETIREMENT ACCOUNT. If Authorized Selling Firm
                  establishes an individual retirement plan through which
                  Company's Products may be offered, then this Section 4.15
                  applies to such transactions in addition to all other terms
                  and conditions under this Agreement.

                  4.15.1    REPRESENTATIONS. Authorized Selling Firm
                            represents and warrants to RiverSource that:

                            (a)    An affiliate of Authorized Selling Firm
                                   qualifies under the IRS Regulations 1.408-2
                                   as custodian ("Custodian") for the
                                   individual retirement account ("Custodial
                                   IRAs"), and will administer the Custodial
                                   IRAs in accordance with the requirements of
                                   the Internal Revenue Code of 1986, as
                                   amended (the "Code") and the rules,
                                   regulations, and rulings adopted in
                                   accordance with the Code;

                            (b)    The Custodial IRA qualifies as an
                                   individual retirement account under the
                                   Code;

                            (c)    it will not submit an application to
                                   Company for the purchase of a Product, on
                                   behalf of any Custodial IRA customer, until
                                   Authorized Selling Firm has received from
                                   the customer the completed documents
                                   necessary to establish the Custodial IRA
                                   account; and

                            (d)    Authorized Selling Firm or an affiliate
                                   will properly respond to any order, levy,
                                   summons or subpoena relating to a Custodial
                                   IRA issued in connection with a judicial or
                                   administrative proceeding, investigation or
                                   inquiry.

                  4.15.2    MONITORING. RiverSource is not responsible for
                            monitoring Custodial IRAs with regard to
                            compliance with the Code or other rules and
                            regulations promulgated under the Code or
                            applicable state law, including, but not limited
                            to, those related to over-contributions,
                            eligibility, income restrictions, timeliness of
                            contribution, distributions upon death, state tax
                            law reporting or any other matters related to the
                            status of any Custodial IRA (as it relates to IRAs
                            specifically or any ownership beneficiary rights
                            in general). RiverSource is not responsible for
                            Authorized Selling Firm's compliance with
                            Authorized Selling Firm's procedures with respect
                            to the administration of any Custodial IRA.

                  4.15.3    TAX REPORTING. Authorized Selling Firm or an
                            affiliate will provide such returns or filings and
                            render such statements and reports as are required
                            for federal regulatory and tax purposes.

                  4.15.4    ANNUAL FEE. The annual IRA custodial fee (if
                            applicable) will be charged by Authorized Selling
                            Firm and not by Company.

                                Page 18 of 33
<PAGE>

                  4.15.5    ANNUITY DISCLOSURE STATEMENT. Agency must make the
                            following disclosure in connection with the sale
                            of individual retirement annuity products into the
                            Custodial IRA:

                            "Your individual retirement annuity ("Annuity
                            IRA") has a tax-deferred feature under the
                            Internal Revenue Code, as does your Custodial IRA.
                            As a result, when you transfer your annuity IRA to
                            the Custodial IRA, your annuity will not provide
                            any necessary or additional tax deferral. However,
                            your annuity IRA has features other than tax
                            deferral that may help you reach your retirement
                            goals. Fees charged by the Insurance Company (if
                            any) will still apply as outlined in the annuity
                            prospectus and contract."

                  4.15.6    CUSTODIAN DISCLOSURE AND CHANGE OF CUSTODIAN.
                            Authorized Selling Firm will provide RiverSource
                            with the name of its Custodian so that RiverSource
                            has an opportunity to conduct due diligence,
                            should it choose to do so. Any change in Custodian
                            or trustee does not take effect unless approved in
                            writing by Company.

            4.16  ACATS. If Authorized Selling Firm and Company agree to
                  provide for the submission of customer account changes
                  through an electronic process known as Automated Customer
                  Account Transfer Service (ACATS) then this section 4.16 will
                  apply.

                  4.16.1    REPRESENTATIONS AND WARRANTIES. RiverSource and
                            Authorized Selling Firm have executed and filed
                            the standard agreement(s) required for
                            participation with the National Securities
                            Clearing Corporation ("NSCC") ("Standard
                            Agreements"), or have contracted with a third
                            party service bureau to provide services through
                            the NSCC. Company and Authorized Selling Firm
                            agree to participate in the Automated Customer
                            Account Transfer Service (ACATS) and/or Insurance
                            Processing Services (IPS) under the applicable
                            terms of the Standard Agreements and in accordance
                            with the following terms:

                            (a)    Electronic Process for Customer Account
                                   Changes

                                   (i) Authorized Selling Firm may submit
                                   customer account changes, including
                                   custodial account changes, to Company by
                                   electronic transmission ("Transmission") in
                                   accordance with the ACATS/IPS procedures
                                   established by NSCC in the Standard
                                   Agreements. Company and Authorized Selling
                                   Firm acknowledge that compliance with these
                                   Transmission procedures is a good order
                                   requirement (i.e. one that does not require
                                   a paper transmission). Authorized Selling
                                   Firm represents and warrants that the
                                   information contained in the Transmission
                                   is accurate and complete. Company and
                                   Authorized Selling Firm acknowledge that
                                   Company will rely upon the information
                                   provided by Authorized Selling Firm in
                                   making the requested changes.

                                   (ii) Authorized Selling Firm will obtain
                                   all appropriate client authorizations on
                                   the Transfer Initiation Form (TIF). Such
                                   client authorizations include, but are not
                                   limited to, those required from third
                                   Parties, such as custodians and trusts,
                                   among others. Authorized Selling Firm will
                                   maintain such TIFs for a period of no less
                                   than six (6) years from the date of the
                                   transfer initiation.

                                   (iii) Company will notify the Authorized
                                   Selling Firm of any errors in requests to
                                   transfer customer accounts. Notification
                                   will be made by Transmission.

                                   (iv) Company will notify the Authorized
                                   Selling Firm when good order requirements
                                   have been met. Notification will be made by
                                   Transmission.

                                   (v) Each party to this Amendment shall
                                   promptly furnish to the other party any
                                   reports and copies of forms which the other
                                   party may request pursuant to that party's
                                   responsibilities under this Amendment and
                                   for the purpose of meeting its reporting
                                   and record keeping obligations under the
                                   insurance laws of any state and under the
                                   federal and state securities laws or the
                                   rules of the NASD or to facilitate the
                                   handling of

                                Page 19 of 33
<PAGE>

                                   customer complaints. Authorized Selling
                                   Firm shall provide Company with a copy of
                                   the TIF, upon request, no later than two
                                   (2) business days from the request date.

                            (b)    General

                            Authorized Selling Firm shall indemnify and hold
                            harmless RiverSource, its subsidiaries and
                            affiliates and their respective officers,
                            directors and employees against any and all
                            losses, claims, damages, liabilities or expenses
                            (including the reasonable costs of legal
                            representation and investigation) to which
                            RiverSource, its subsidiaries and affiliates and
                            their respective officers, directors and employees
                            may become subject which arise out of or are based
                            upon incorrect information submitted to
                            RiverSource in the Transmission by Authorized
                            Selling Firm or its agent, or arising out of or
                            based upon a breach or violation of the Authorized
                            Selling Firm's representations, warranties, or
                            covenants contained in this Agreement.

            4.17. ANTI-MONEY LAUNDERING ("AML")

                  4.17.1    Authorized Selling Firm warrants and represents
                            that it has implemented AML programs reasonably
                            calculated to comply with the USA PATRIOT Act,
                            Bank Secrecy Act, NASD Rule 3011, and the rules
                            and regulations promulgated concerning AML.

                  4.17.2.   Authorized Selling Firm represents and warrants
                            that it has:

                     o      Established AML polices and procedures, including
                            but not limited to investigating, identifying, and
                            reporting suspicious activity;

                     o      Designated a compliance officer with oversight
                            responsibility for the AML program;

                     o      Implemented an ongoing AML training program,
                            including appropriate updates, for Authorized
                            Selling Firm's employees, Producers, and Agents
                            with respect to insurance and annuity Products
                            offered by the Company; and

                     o      Implemented periodic independent testing of its
                            AML program in compliance with applicable
                            regulations.

                  4.17.3    Authorized Selling Firm agrees that if it detects
                            suspicious activity with respect to its sale or
                            servicing of an insurance or annuity Product
                            offered by Company it will provide such
                            information to Company in accordance with 31 CFR
                            103.16(b)(3) by sending the appropriate
                            documentation to: Attn.: Director of Anti-Money
                            Laundering, 2934 Ameriprise Financial Center,
                            Minneapolis, MN 55474.

                  4.17.4    Authorized Selling Firm agrees that in accordance
                            with 31 CFR 103.137 (c) it will provide
                            RiverSource, upon reasonable request, with access
                            to information and records relating to its AML
                            program and the right to inspect its AML program
                            upon reasonable notice.

      5.    COMPANY AND DISTRIBUTOR REPRESENTATIONS AND RESPONSIBILITIES.

            5.1   REPRESENTATIONS.

                  5.1.1     Company represents and warrants that (a) it is
                            duly incorporated in the State of Minnesota and
                            licensed in all states in the Territory; (b) all
                            Products, and all Sales Material (as defined in
                            Section 4.11, above) provided by Company or
                            Distributor have been filed and approved as
                            required by state insurance departments shown in
                            the Product Exhibit(s); and (c) these materials
                            comply with all applicable laws and regulations
                            and rules of the NASD.

                  5.1.2     Distributor represents and warrants that it is
                            duly registered as a broker-dealer with the SEC,
                            the NASD, all fifty states and the District of
                            Columbia, and is qualified to do business in all
                            states in which Company is licensed and qualified
                            to do business.

                                Page 20 of 33
<PAGE>

                  5.1.3     Distributor and Company represent and warrant that
                            Company, as issuer and on behalf of the underlying
                            investment account(s), has registered the
                            underlying investment account(s) of the Products
                            with the SEC as a security under the Securities
                            Act of 1933 ("1933 Act") and as a unit investment
                            trust under the Investment Company Act of 1940.

                  5.1.4     Company represents and warrants that the
                            prospectuses and registration statements relating
                            to the Products do not contain any untrue
                            statements of material fact or any omission to
                            state a material fact, the omission of which makes
                            any statement contained in the prospectuses and
                            registration statements misleading.

            5.2   PROSPECTUSES, SALES LITERATURE AND ADVERTISING. RiverSource
                  will provide to Authorized Selling Firm, without any expense
                  to Authorized Selling Firm, prospectuses for the Products
                  and such other Sales Material (as defined is Section 4.11,
                  above) as RiverSource determines is necessary or desirable
                  for use in connection with sales of the Products.

            5.3   TRANSMISSION OF CONTRACTS FOR DELIVERY TO CONTRACT OWNERS.
                  Company shall send out all Contracts directly to Authorized
                  Selling Firm or their Producers unless Authorized Selling
                  Firm requests in writing that Company send out the Contract
                  directly to the Contract owner. Within 5 business days of
                  Authorized Selling Firm or their Producer's receipt of the
                  Contract, Authorized Selling Firm or their Producer must
                  deliver the Contract to the Contract owner.

            5.4   CONFIRMATIONS. Upon Company's acceptance of any payment for
                  a Product, Company as agent for Distributor will deliver to
                  each Contract owner a statement confirming the transaction
                  in accordance with Rule 10b-10 under the 1934 Act.

            5.5   CONTRACT OWNER SERVICES. Company shall provide
                  administrative, accounting, and other services to Contract
                  owners as necessary and appropriate, in the same manner as
                  such services are provided to Company's other Contract
                  owners.

            5.6   RESERVATION OF RIGHTS. Notwithstanding any other provision
                  of this Agreement or any other agreement between Company
                  and/or Distributor and Agency and/or Broker-Dealer, Company
                  reserves the unconditional right without prior notice to
                  modify any of the Products in any respect whatsoever, to
                  suspend the sale of any Products in whole or in part at any
                  time and to contact Contract owners with a view to retaining
                  their assets with the Company including the offering of
                  other products sold by the Company. Company may in its sole
                  discretion refuse to accept any application for a Contract
                  or any purchase payment or additional purchase payment for a
                  Contract.

            5.7   COMPLIANCE WITH APPLICABLE LAWS. RiverSource will comply
                  with all federal and state laws and regulations applicable
                  to the Products and their distribution under this Agreement.

      6.    COMPENSATION. Company shall pay to Broker-Dealer or Agency, as
            applicable, a total compensation on premiums collected pursuant to
            this Agreement based on the rates of commission and limitations
            set forth on the Product Exhibit(s), Exhibit C hereto, and other
            compensation addendum(s), if any. No compensation will be paid on
            the sale of a Product under this Agreement if that sale involves
            replacement of a Contract or investment issued by Company or by
            another insurance company affiliated with RiverSource.

            6.1   PRODUCT EXHIBITS. The Product Exhibit(s), including Exhibit
                  A and commission rates, are subject to change by Company at
                  anytime, but only upon written notice to Agency. Product
                  Exhibits are duly given when sent by electronic mail or U.S.
                  mail to the current or last known primary contact person at
                  Authorized Selling Firm. No such change shall affect
                  compensation for any premiums that are received and accepted
                  by Company in Minneapolis, MN prior to effective date of
                  such change. Any Product Exhibit(s) included in this
                  Agreement or subsequently made a part of this Agreement may
                  provide other or additional conditions regarding
                  compensation and, if so, will be controlling to the extent
                  of such other or additional conditions.

                                Page 21 of 33
<PAGE>

            6.2   EXPENSES. Except as otherwise provided in this Agreement, or
                  subsequently agreed to in writing by RiverSource, Authorized
                  Selling Firm will be responsible for all costs and expenses
                  of any kind and nature incurred by Authorized Selling Firm
                  in the performance of its duties under this Agreement.

            6.3   FOR CAUSE TERMINATION COMPENSATION OBLIGATIONS. In the event
                  of termination of this Agreement for one or more of the
                  reasons specified below in Section 9.1, Termination for
                  Cause, no further compensation shall thereafter be payable.

            6.4   POST TERMINATION COMPENSATION OBLIGATIONS. Upon termination
                  of this Agreement, Company's obligation to pay compensation
                  to Broker-Dealer or to Agency as applicable will immediately
                  cease except that:

                  6.4.1     Company will pay compensation, as the same become
                            due and payable, upon Products for which the
                            application has been taken and the required
                            premium has been collected (or has become
                            irrevocably collectable from a third party) as of
                            the date of termination, and for which the Company
                            subsequently issues a policy.

                  6.4.2     Company will charge back against those commissions
                            due identified in Product Exhibit(s) in the event
                            of surrenders of Products sold prior to the
                            termination of this Agreement by Authorized
                            Selling Firm or Producers. Company will invoice
                            Agency unless Company and Agency agree upon
                            another method of payment of such amounts.

            6.5   COMPENSATION LIMITATIONS. Agency or Broker-Dealer shall pay
                  cash or non-cash compensation for Product sales: (i) only to
                  any person or entity that is appropriately licensed and
                  appointed to sell Products; (ii) which are accepted by
                  Company; and (iii) if such payment is in accordance with
                  applicable laws, regulations, NASD or other self-regulatory
                  organization rules and Company Rules.

            6.6   ADVANCE COMMISSIONS ON INTERNAL REVENUE CODE SECTION 1035
                  EXCHANGES. If requested by Authorized Selling Firm, Company
                  will advance commissions monthly, in accordance to the Base
                  Commission schedules identified in the variable annuity
                  Product Exhibit(s), based on premium expected to be
                  deposited with Company to effect an IRC Section 1035
                  exchange of one investment product for an annuity Product
                  sold under this Agreement. In the event that the expected
                  premium does not reach Company within 90 days of the date of
                  the Product application, the entire commission for the
                  transaction will be charged back during the next normal
                  commission cycle.

            6.7   COMMISSIONS DISCONTINUED. Notwithstanding anything herein to
                  the contrary, Company will discontinue paying compensation
                  to Authorized Selling Firm for Contracts that are no longer
                  serviced by Authorized Selling Firm.

      7.    INDEMNIFICATION.

            7.1   INDEMNIFICATION OF COMPANY AND DISTRIBUTOR. Broker-Dealer
                  and Agency, jointly and severally, shall indemnify, defend
                  and hold harmless RiverSource and any of its officers,
                  directors, and employees, from and against any and all
                  losses, claims, damages, liabilities, actions, costs or
                  expenses to which RiverSource, or any of its officers,
                  directors and employees, may become subject (including any
                  legal or other expenses incurred by it in connection with
                  investigating any claim against it and defending any action
                  and, provided Authorized Selling Firm will have given prior
                  written approval of such settlement or compromise, which
                  consent will not be unreasonably withheld or delayed, any
                  amounts paid in settlement or compromise) insofar as such
                  losses, claims, damages, liabilities, actions, costs or
                  expenses arise out of or are based upon:

                  7.1.1     The acts or omissions of Authorized Selling Firm
                            or any of its employees, agents, Producers or
                            Licensed Assistants, or Custodians while acting
                            (whether under actual or apparent authority, or
                            otherwise) on behalf of Authorized Selling Firm or
                            RiverSource in connection with this Agreement;

                                Page 22 of 33
<PAGE>

                  7.1.2     Any breach of any covenant or agreement made by
                            Authorized Selling Firm under this Agreement;

                  7.1.3     The inaccuracy or breach of any representation or
                            warranty made by Authorized Selling Firm under
                            this Agreement;

                  7.1.4     The improper, unauthorized or fraudulent use of
                            any electronic or Web-based order-entry, servicing
                            or administration system(s) by any of its
                            employees, agents, Producers or Licensed
                            Assistants while acting (whether under actual or
                            apparent authority, or otherwise) on behalf of
                            Authorized Selling Firm or RiverSource in
                            connection with this Agreement;

                  7.1.5     The acts or omissions of the clearing broker and
                            any employee or agent of clearing broker while
                            performing the activities covered by this
                            Agreement, including, but not limited to, the use
                            or handling of any confidential information or
                            confidential Contract owner Information as
                            described in Section 11 below. The indemnity
                            obligation of this paragraph will extend to any
                            regulatory penalties incurred by RiverSource as a
                            result of said activities;

                            This indemnification obligation shall not apply to
                            the extent that such alleged act or omission is
                            attributable to RiverSource either because (1)
                            RiverSource directed the act or omission, or (2)
                            the act or omission by Authorized Selling Firm or
                            any of its employees, agents, Producers or
                            Licensed Assistants was the result of their
                            compliance with the Company Rules;

                  7.1.6     (a) unauthorized use of Company Marks or Hyperlink
                            (b) violation of a third party's intellectual
                            property rights with respect to Company Marks;

                  7.1.7     Any loss or misuse of Company data, including
                            Contract owner Information, by Authorized Selling
                            Firm or its employees, agents, clearing brokers,
                            custodians, or any third party that Authorized
                            Selling Firm discloses the information to or has
                            requested or instructed that Company disclose the
                            information to.

            7.2   INDEMNIFICATION OF AGENCY AND BROKER-DEALER. RiverSource
                  shall indemnify, defend and hold harmless Authorized Selling
                  Firm, any of its officers, directors and employees, from and
                  against any and all losses, claims, damages, liabilities,
                  actions, costs or expenses to which Authorized Selling Firm,
                  or any of its officers, directors and employees, may become
                  subject (including any legal or other expenses incurred by
                  it in connection with investigating any claim against it and
                  defending any action and, provided RiverSource will have
                  given prior written approval of such settlement or
                  compromise, which consent will not be unreasonably withheld
                  or delayed, any amounts paid in settlement or compromise)
                  insofar as such losses, claims, damages, liabilities,
                  actions, costs or expenses arise out of or are based upon:

                  7.2.1     The acts or omissions of RiverSource, or any
                            employee or agent of RiverSource, (excluding
                            Authorized Selling Firm, Producers or Licensed
                            Assistants) while acting (whether under actual or
                            apparent authority or otherwise) on behalf of
                            RiverSource in connection with this Agreement;

                  7.2.2     Any breach of any covenant or agreement made by
                            RiverSource under this Agreement; or

                  7.2.3     The inaccuracy or breach of any representation or
                            warranty made by RiverSource under this Agreement.

            7.3   LIMITATION OF LIABILITY. Each party agrees that, as between
                  the parties, in no event will any party to this Agreement be
                  responsible to any other party for any incidental, indirect,
                  consequential, special, punitive, or exemplary damages of
                  any kind arising from this Agreement, including without
                  limitation, lost revenues, loss of profits or loss of
                  business. This limitation does not apply to third party
                  claims for damages that are covered by the indemnification
                  obligation under Section 7.

      8.    ARBITRATION. The parties agree to attempt to settle any
            misunderstandings or disputes arising out of this Agreement
            through consultation and negotiation in good faith and a spirit of
            mutual cooperation. However, if those attempts fail, the parties
            agree that any misunderstandings or disputes arising from this
            Agreement will

                                Page 23 of 33
<PAGE>

            be decided by arbitration administered by the American Arbitration
            Association in accordance with its Commercial Arbitration Rules
            and Title 9 of the U.S. Code. Judgment on the award rendered by
            the arbitrators may be entered in any court having jurisdiction
            thereof. The number of arbitrators will be three (unless the
            parties to the dispute agree on a single arbitrator), one of whom
            will be appointed by the Company or an affiliate, one of whom will
            be appointed by Authorized Selling Firm; and the third of whom
            will be selected by mutual agreement, if possible, within 30 days
            of the selection of the second arbitrator and thereafter by the
            administering authority. The Arbitration shall be held in the city
            of the Company's principal place of business. The arbitrators will
            strictly observe the limitation of liability provisions set forth
            in Section 7.3 of this agreement in making any award and will have
            no authority to award punitive damages or any other damages not
            measured by the prevailing Party's actual damages, and may not, in
            any event, make any ruling, finding or award that does not conform
            to the terms and conditions of this Agreement. The parties agree
            that the arbitrator(s) will decide which party must bear the
            expenses of the Arbitration. Any Party may make an application to
            the arbitrators seeking injunctive relief to maintain the status
            quo until such time as the arbitration award is rendered or the
            controversy is otherwise resolved. This agreement to arbitrate
            shall not preclude either party from obtaining provisional
            remedies such as injunctive relief or the appointment of a
            receiver from a court having jurisdiction, before, during or after
            the pendency of the arbitration. The institution and maintenance
            of such provisional remedies shall not constitute a waiver of the
            right of a party to submit a dispute to arbitration.

      9.    TERMINATION.

            9.1   TERMINATION FOR CAUSE. At any time during the Term of this
                  Agreement, RiverSource or Authorized Selling Firm may
                  terminate this Agreement immediately for cause upon written
                  notice of such termination to the other party. Such written
                  notice shall state the cause with specificity. As used in
                  this Section, the term "cause" shall include any one or more
                  of the following:

                  9.1.1     the conviction of any party, its officers or
                            supervisory personnel of any felony, of fraud, or
                            of any crime involving dishonesty;

                  9.1.2     the intentional misappropriation by a party of
                            funds or property of any other party, or of funds
                            received for it or for a Product owner or
                            applicant for a Product;

                  9.1.3     the cancellation, or the refusal to renew by the
                            issuing insurance regulatory authority of, any
                            license, certificate or other regulatory approval
                            required in order for any party to perform its
                            duties under this Agreement;

                  9.1.4     any action by a regulatory authority with
                            jurisdiction over the activities of a party that
                            would place the party in receivership or
                            conservatorship or otherwise substantially
                            interfere or prevent such party from continuing to
                            engage in the lines of business relevant to the
                            subject matter hereof;

                  9.1.5     a party becoming a debtor in bankruptcy (whether
                            voluntary or involuntary) or the subject of an
                            insolvency proceeding; or

                  9.1.6     a material breach of the Agreement by a party.

            9.2   TERMINATION WITHOUT CAUSE. RiverSource or Authorized Selling
                  Firm may terminate this Agreement without cause upon 30 days
                  prior written notice to the other parties.

            9.3   POST TERMINATION LIMITATIONS. For a period of one year after
                  termination of this Agreement, Broker-Dealer, Agency and
                  Producers shall not knowingly induce or cause, or attempt to
                  induce or cause, any systematic effort to recommend,
                  promote, encourage or endorse the replacement, surrender, or
                  cancellation of any Product sold under this Agreement or any
                  prior agreement between or among Company and any of
                  Broker-Dealer, Agency, or Producer (or any affiliates,
                  predecessors, successors or assigns of Broker-Dealer, Agency
                  or Producer) or provide data including Confidential Contract
                  owner Information as defined by Section 11.2 of this
                  Agreement to any person or organization that would allow or
                  facilitate replacement, surrender or cancellation of
                  Products.

                                Page 24 of 33
<PAGE>

      10.   INDEPENDENT CONTRACTOR. This Agreement is not a contract of
            employment. Nothing contained in this Agreement shall be construed
            or deemed to create the relationship of joint venture,
            partnership, or employer and employee between RiverSource and
            Authorized Selling Firm. Each party is an independent contractor
            and shall be free, subject to the terms and conditions of this
            Agreement, to exercise judgment and discretion with regard to the
            conduct of business.

      11.   CONFIDENTIALITY.

            11.1  Each party agrees that, during the term of this Agreement
                  and at all times thereafter, it will not disclose to any
                  unaffiliated person, firm, corporation or other entity any
                  of the other parties' trade secrets or confidential
                  information, including, without limitation, the terms of
                  this Agreement; non-public program materials; member or
                  customer lists; proprietary information; information as to
                  the other party's business methods, operations or affairs,
                  or the processes and systems used in its operations and
                  affairs, or the processes and systems used in any aspect of
                  the operation of its business; all whether now known or
                  subsequently learned by it. If this Agreement is terminated,
                  each party, within 60 days after such termination, will
                  return to the other parties, respectively, any and all
                  copies, in whatever form or medium, of any material
                  disclosing any of the other parties' trade secrets or
                  confidential information as described above.

                  Nothing in this Agreement shall require a party to keep
                  confidential any information that:

                  11.1.1    the party can prove was known to it prior to any
                            disclosure by any other party;

                  11.1.2    is or becomes publicly available through no fault
                            of the party;

                  11.1.3    the party can prove was independently developed by
                            it outside the scope of this Agreement and with no
                            access to any confidential or proprietary
                            information of any other party;

                  11.1.4    is required to be disclosed to governmental
                            regulators or pursuant to judicial or
                            administrative process or subpoena;

                  11.1.5    is required in order to perform that party's
                            obligation under this Agreement;

                  11.1.6    is required to be disclosed by any applicable law;
                            or

                  11.1.7    is mutually agreed upon by all parties to this
                            Agreement.

            11.2  CONFIDENTIAL CONTRACT OWNER INFORMATION means any personally
                  identifiable information including, but not limited to,
                  customer account numbers, customer names, addresses, social
                  security numbers or any information derived therefrom
                  regarding Contract owners that Company collects or develops
                  or requests Agency, Broker-Dealer or Producers to collect on
                  behalf of Company in order for Company to provide the
                  Products.

            11.3  AUTHORIZED SELLING FIRM'S OBLIGATION NOT TO DISCLOSE
                  CONFIDENTIAL CONTRACT OWNER INFORMATION. Despite anything in
                  this Agreement to the contrary, Authorized Selling Firm must
                  not use or disclose Confidential Contract owner Information
                  for any purpose, including without limitation and by way of
                  example those purposes prohibited under Sections 4.13.10 and
                  9.3 of this Agreement, except to perform its obligations
                  under this Agreement. Additionally, Authorized Selling Firm
                  must:

                  11.3.1    ensure all employees, Producers, Licensed
                            Assistant, former Producers, agents,
                            representatives, or any other party to whom
                            Authorized Selling Firm provides access to, or
                            discloses Confidential Contract owner Information
                            to, limit the use and disclosure of Confidential
                            Contract owner Information for the purpose of
                            performing Authorized Selling Firm's obligations
                            under this Agreement;

                                Page 25 of 33
<PAGE>

                  11.3.2    provide RiverSource with copies of audits and test
                            result information sufficient to assure
                            RiverSource that Authorized Selling Firm has
                            implemented information security measures
                            consistent with this Section;

                  11.3.3    implement appropriate measures designed to:

                            11.3.3.1 ensure the security and confidentiality
                                     of Confidential Contract owner Information;
                                     protect Confidential Contract owner
                                     Information against any anticipated threats
                                     or hazards to the security or integrity of
                                     such information; and

                            11.3.3.2 protect against unauthorized access to,
                                     or use of, Confidential Contract owner
                                     Information that could result in
                                     substantial harm or inconvenience to any
                                     customer of the Company or any of its
                                     subsidiaries, affiliates, or licensees; and

                  11.3.4    ensure all employees, Producers, agents,
                            representatives, subcontractors, or any other
                            party to whom Authorized Selling Firm provides
                            access to or discloses Confidential Contract owner
                            Information to, implement appropriate measures
                            similar to those required to be implemented by
                            Authorized Selling Firm under this Section 11.3.

            11.4  EXCEPTION TO AUTHORIZED SELLING FIRM'S OBLIGATION NOT TO
                  DISCLOSE CONFIDENTIAL CONTRACT OWNER INFORMATION. Authorized
                  Selling Firm may independently collect and use personally
                  identifiable information regarding Contract owners covered
                  by the definition of Confidential Contract owner
                  Information, other than Contract owner account numbers, to
                  market or sell additional financial products and services
                  sold by Authorized Selling Firm if Authorized Selling Firm
                  and its Producers:

                  11.4.1    comply with Authorized Selling Firm's customer
                            privacy notice, Company's privacy notice, the
                            Gramm-Leach-Bliley Act of 1999 and regulations
                            adopted thereunder, the Fair Credit Reporting Act,
                            state insurance laws and regulations, and other
                            applicable laws governing the use and disclosure
                            of personal identification information.

      12.   ASSIGNMENT. The parties to this Agreement may not assign this
            Agreement without the written approval of RiverSource and
            Authorized Selling Firm, except that Distributor may assign this
            Agreement to another broker-dealer appropriately registered with
            the NASD and Company may assign this Agreement or any rights or
            obligations hereunder to any affiliate or company under common
            control with Company upon providing Authorized Selling Firm with a
            least 10 calendar days notice. Any affiliated insurance agency
            signing below or which has signed an Affiliate Participation
            Agreement agrees that RiverSource or Authorized Selling Firm may
            assign this Agreement without the written approval of the
            affiliated insurance agency.

      13.   AMENDMENT OF AGREEMENT. RiverSource reserves the right to amend
            this Agreement at any time, but no amendment shall be effective
            until approved in writing by Authorized Selling Firm, subject to
            the provisions of Section 4.5.16, Section 5.6, "Reservation of
            Rights," Section 6, "Compensation" and Section 12, "Assignment,"
            under this Agreement. Any affiliated insurance agency signing
            below or that has executed an Affiliate Participation Agreement
            acknowledges and agrees that Agency shall be authorized to execute
            any amendment or addenda to this Agreement, on its behalf, and
            that such execution will be binding upon it.

      14.   SETOFFS AND CHARGEBACKS. Broker-Dealer and Agency authorize
            Distributor and Company to set off from all amounts otherwise
            payable to Broker-Dealer and Agency all liabilities of
            Broker-Dealer, Agency or Producers. Broker-Dealer and Agency are
            jointly and severally liable for the payment of all moneys due to
            Distributor or Company that may arise out of this Agreement or any
            other agreement between Broker-Dealer, Agency and Distributor and
            Company including, but not limited to, any liability for any
            chargebacks or for any amounts advanced by or otherwise due
            Distributor or Company. Broker-Dealer and Agency shall pay such
            amounts to Distributor and Company within 30 days of written
            request for payment. Distributor and Company do not waive any of
            its other rights to pursue collection of any indebtedness owed by
            Broker-

                                Page 26 of 33
<PAGE>

            Dealer or Agency or its Producers to Distributor or Company. If
            Distributor or Company initiates legal action to collect any
            indebtedness under this Agreement, Broker-Dealer and Agency must
            reimburse Distributor and Company for reasonable attorney fees and
            expenses in connection with such legal action.

      15.   MISCELLANEOUS.

            15.1  APPLICABLE LAW. This Agreement shall be governed by and
                  interpreted under the laws of the State of Minnesota.

            15.2  SEVERABILITY. Should any part of this Agreement be declared
                  invalid, the remainder of this Agreement shall remain in
                  full force and effect, as if the Agreement had originally
                  been executed without the invalid provisions.

            15.3  NOTICE. Subject to Section 6.1 "Product Exhibits," any
                  notice must be in writing and will be deemed to have been
                  duly given if sent by U.S. mail, postage prepaid, or via a
                  national courier service with the capacity to track its
                  shipments, to the following entities:

IF TO COMPANY:                            IF TO DISTRIBUTOR:
RiverSource Life Insurance Company        RiverSource Distributors, Inc
1818 Ameriprise Financial Center          1818 Ameriprise Financial Center
Minneapolis, MN 55474                     Minneapolis, MN 55474
Attn:  Compliance Officer (Unit 1818)     Attn:  Compliance Officer (Unit 1818)

IF TO AGENCY:                             IF TO BROKER-DEALER:

            15.4  BINDING EFFECT. This Agreement shall be binding upon and
                  inure to the benefit of the parties hereto and their
                  respective successors and assigns, subject to the provisions
                  of this Agreement limiting assignment.

            15.5  HEADINGS. The headings in this Agreement are for convenience
                  only and are not intended to have any legal effect.

            15.6  DEFINED TERMS. The terms defined in this Agreement are to be
                  interpreted in accordance with this Agreement. Such defined
                  terms are not intended to conform to specific statutory
                  definitions of any state.

            15.7  ENTIRE AGREEMENT. This Agreement constitutes the entire
                  agreement of the parties pertaining to the subject matter of
                  this Agreement. It supersedes all prior communications,
                  representations, understandings and agreements of the
                  parties, whether oral or written, pertaining to the subject
                  matter of this Agreement.

            15.8  SURVIVAL. All terms and conditions of Section 5.6
                  "Reservation of Rights"; Section 6.4, "Post Termination
                  Compensation Obligations"; Section 7, "Indemnification";
                  Section 9.3 "Post Termination Limitations"; Section 11,
                  "Confidentiality,"; and Section 14, "Setoffs and
                  Chargebacks." will survive termination of this Agreement.

            15.9  NO WAIVER. No failure to enforce, nor any breach of any term
                  or condition of this Agreement, shall operate as a waiver of
                  such term or condition, or of any other term or condition,
                  nor constitute nor be deemed a waiver or release of any
                  other rights at law or in equity, or of claims which any
                  party may have against any other party, for anything arising
                  out of, connected with, or based upon this Agreement. Any
                  waiver, including a waiver of this Section, must be in
                  writing and signed by the parties to this Agreement.

                                Page 27 of 33
<PAGE>

            15.10 RIGHTS AND REMEDIES ARE CUMULATIVE. The rights, remedies,
                  and obligations contained in this Agreement are cumulative
                  and are in addition to any and all rights, remedies, and
                  obligations, at law or in equity, which the parties to this
                  Agreement are entitled to under state and federal laws.

            15.11 COUNTERPARTS. This Agreement may be executed in
                  counterparts, each of which is an original and all of which
                  together constitute one and the same instrument.

RIVERSOURCE LIFE INSURANCE COMPANY        NAME
Company                                   Broker Dealer

By:                                       By:
     ----------------------------------        --------------------------------

Print Name:                               Print Name:
             --------------------------                ------------------------

Title:                                    Title:
        -------------------------------           -----------------------------

Date:                                     Date:
       --------------------------------          ------------------------------

RIVERSOURCE DISTRIBUTORS, INC.            NAME
Distributor                               Agency

By:                                       By:
     ----------------------------------        --------------------------------

Print Name:                               Print Name:
             --------------------------                ------------------------

Title:                                    Title:
        -------------------------------           -----------------------------

Date:                                     Date:
       --------------------------------          ------------------------------

NAME                                      NAME
Affiliated Agency                         Affiliated Agency

By:                                       By:
     ----------------------------------        --------------------------------

Print Name:                               Print Name:
             --------------------------                ------------------------

Title:                                    Title:
        -------------------------------           -----------------------------

Date:                                     Date:
       --------------------------------          ------------------------------

NAME                                      NAME
Affiliated Agency                         Affiliated Agency

By:                                       By:
     ----------------------------------        --------------------------------

Print Name:                               Print Name:
             --------------------------                ------------------------

Title:                                    Title:
        -------------------------------           -----------------------------

Date:                                     Date:
       --------------------------------          ------------------------------

                                Page 28 of 33
<PAGE>

                                Page 29 of 33
<PAGE>

                                   EXHIBIT A
                                   ---------

                            (TO SELLING AGREEMENT)

        AGENCY AND AFFILIATED AGENCIES, PRODUCT DESCRIPTION AND STATES
                    IN WHICH PRODUCT IS FILED AND APPROVED

This Exhibit A to the Agreement for Annuity and Life Products, effective date
___________, 2006, is among AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
("Company"), AMERIPRISE FINANCIAL SERVICES, INC. ("Distributor" together with
Company "RIVERSOURCE"), _________________________ ("Broker-Dealer") and
_______________ ("Agency") and its affiliated insurance agencies. This Exhibit
A replaces and supersedes any previous Exhibit's A to this Agreement and is
effective on the date listed below.

AMENDED DATE:              New
PURPOSE OF AMENDMENT:      New

SUMMARY:

This Exhibit is intended to summarize the Authorized Selling Firm's Agency and
its affiliated insurance agencies, the Product Description and the States in
which Product is Filed and Approved.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
         AGENCY                AEL PRODUCT DESCRIPTION
OR AFFILIATED AGENCIES    (SEE PRODUCT EXHIBITS FOR DETAILS)
------------------------------------------------------------------------------------------------------------------------------------
                          VARIABLE ANNUITY SELLING PRODUCTS           STATES IN WHICH VARIABLE PRODUCT IS FILED AND APPROVED
                       -------------------------------------------------------------------------------------------------------------
<S>                   <C>                                      <C>
        NAME           RIVERSOURCE FlexChoice SELECT Variable   AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS,
      (Agency)                         Annuity                  KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV,
                                     - Option L                   OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
                                     - Option C

AFFILIATED AGENCIES:   RIVERSOURCE Innovations SELECT Variable  AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS,
                                       Annuity                  KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV,
        Name                                                      OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
        Name
                        RIVERSOURCE Signature SELECT Variable   AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS,
                                       Annuity                  KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV,
  BROKER DEALER IS:                                               OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY

                           RIVERSOURCE Signature One SELECT     AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS,
                                   Variable Annuity             KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV,
                                                                  OH, OK, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
------------------------------------------------------------------------------------------------------------------------------------

                                Page 30 of 33
<PAGE>

<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                         AEL FIXED ANNUITY SELLING PRODUCTS             STATES IN WHICH FIXED PRODUCT IS FILED AND APPROVED
                       -------------------------------------------------------------------------------------------------------------
<S>                        <C>                                 <C>
                            Quantum Select Fixed Annuity        AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS,
                                                                KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV,
                                                                  OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY
<CAPTION>
                       -------------------------------------------------------------------------------------------------------------
                               AEL FIXED AND VARIABLE                               N/A FOR SERVICE ONLY PRODUCTS
                                 SERVICING PRODUCTS
                       -------------------------------------------------------------------------------------------------------------
<S>                        <C>                                 <C>
                                 None at this time.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                Page 31 of 33
<PAGE>

                                   EXHIBIT B

                            (TO SELLING AGREEMENT)

                          LIMITED SERVICE ACTIVITIES

PRODUCERS MAY:

      o     accept additional premium payments (check with application only),
            if the Product allows for additional payments.

PRODUCERS AND LICENSED ASSISTANTS MAY:

      o     Assist customers with all Company forms including;
            o     Annuitization
            o     beneficiary changes
            o     address change
            o     ownership changes or transfers
            o     withdrawal requests; or
            o     death claims.

      o     Perform the following transactions by phone if Company has a
            signed telephone transaction authorization form on file:
            o     Asset Allocation
            o     DCA - set up, stop or change
            o     Sub-account Fund transfers
            o     Systematic withdrawals - stop or change date

Any other assistance requested by a Contract-owner and approved in writing by
Company.

                                Page 32 of 33
<PAGE>

                                   EXHIBIT C
                            (TO SELLING AGREEMENT)
               LIMITATIONS AND CONDITIONS OF COMMISSION PAYMENT:

THE LIMITATIONS AND CONDITIONS BELOW APPLY TO THE COMMISSION PAYABLE ON ALL
COMPANY ANNUITY PRODUCTS, AS REFERENCED IN THE AGREEMENT PRODUCT EXHIBITS -
COMMISSION SCHEDULE(S):

      A.    No commission is payable on the sale of Products under this
            Agreement if that sale involves replacement of an asset or
            investment issued by Company or by any other insurance company
            affiliated with RiverSource unless Company agrees, in a separate
            addendum, to pay commission for such sales.

      B.    The commission options in any VARIABLE annuity Product Exhibit -
            Commission Schedule may not apply for annuity contracts when total
            premium payments are $1 million or more. The Company reserves the
            right to accept or reject such premium payment and to negotiate
            the base commission payable for each separate annuity contract
            when total premium payments equal $1 million or more.

      C.    The commission options in any FIXED annuity Product Exhibit -
            Commission Schedule may not apply for annuity contracts when total
            premium payments are $500,000 or more. The Company reserves the
            right to accept or reject such premium payment and to negotiate
            the base commission payable for each separate annuity contract
            when total premium payments equal $500,000 or more.

      D.    Payment for each quarter's Supplemental Trail Commission shall be
            final, and no credits or additions or adjustments shall be made to
            it. Each quarter is evaluated independently. Chargebacks will be
            accounted for in the quarter in which the contract is returned to
            the Company.

      E.    Company will supply supporting information for the calculation,
            along with payment, to Agency within 45 business days of the end
            of each calendar quarter.

      F.    The Supplemental Trail Commission does not apply to sales which
            are otherwise excluded from normal commission payments under
            Product Exhibit(s) and/or any other addenda to this Agreement
            (e.g., unlicensed sales, sales for which Agency could not
            otherwise be compensated, etc.).

      G.    If any party gives notice of termination of the entire Agreement,
            the obligation to pay the Supplemental Trail Commission will end
            on the first day of the calendar quarter in which the termination
            occurs. No Supplemental Trail Commission will be payable for the
            quarter in which the termination occurs, or thereafter.

      H.    Subject to Conditions A and G above, Supplemental Trail Commission
            will be paid to the Agency for as long as each Eligible Contract
            continues to remain an Eligible Contract as defined in the Product
            Exhibit - Commission Schedule and for as long as the Agency
            continues to be licensed as an insurance agency and appointed with
            Company.

      I.    The obligation to pay Supplemental Trail Commission runs from
            Company to Agency or Broker Dealer only. All distribution of
            Supplemental Trail Commission is the Agency's or Broker Dealer's
            responsibility, respectively. No claim made by or on behalf of any
            Producer or individual representative for Supplemental Trail
            Commission will be honored by Company, and no expense, including
            (without limitation) attorney fees, that an Agency or a Producer
            or individual representative may incur to determine the Producer's
            or the individual representative's entitlement to Supplemental
            Trail Commission, will be absorbed by or reimbursed by Company.

In all cases, the amount of commission described in the Product Exhibit -
Commission Schedule is the total compensation available for distribution from
Company, or any of its subsidiaries, affiliates, or other related entities
owned or controlled by RiverSource, whether under this Agreement or under any
other agreement between or among Company, Agency, or any other party.

                                Page 33 of 33

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