Document:

Exhibit 10.20

 

FORM OF
CHANGE OF CONTROL AGREEMENT

 

OCCAM
NETWORKS, INC.

 

CHANGE OF
CONTROL SEVERANCE AGREEMENT

 

This Change of Control Severance Agreement (the “Agreement”) is made
and entered into by and between [NAME] (“Executive”) and Occam Networks, Inc.
(the “Company”), initially effective as of [DATE] (the “Effective Date”) and
amended and restated as of December 10, 2008.

 

RECITALS

 

1.                                       It is expected that the Company from time to
time will consider the possibility of an acquisition by another company or
other change of control.  The Board of Directors of the Company (the “Board”)
recognizes that such consideration can be a distraction to Executive and can
cause Executive to consider alternative employment opportunities.  The
Board has determined that it is in the best interests of the Company and its
stockholders to assure that the Company will have the continued dedication and
objectivity of Executive, notwithstanding the possibility, threat or occurrence
of a Change of Control (as defined herein) of the Company.

 

2.                                       The Board believes that it is in the best
interests of the Company and its stockholders to provide Executive with an
incentive to continue his or her employment and to motivate Executive to
maximize the value of the Company upon a Change of Control for the benefit of
its stockholders.

 

3.                                       The Board believes that it is imperative to
provide Executive with certain severance benefits upon Executive’s termination
of employment following a Change of Control.  These benefits will provide
Executive with enhanced financial security and incentive and encouragement to
remain with the Company notwithstanding the possibility of a Change of Control.

 

4.                                       Certain capitalized terms used in the
Agreement are defined in Section 8 below.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the parties hereto agree as follows:

 

1.                                       Term of Agreement.  This Agreement is effective as of the
Effective Date and will remain in effect through the third anniversary of the
Effective Date, except in the event of a Change of Control during such term, in
which case this Agreement will remain in effect through, and automatically
terminate upon, the completion of all payments under the terms of this
Agreement (the “Agreement Term”), provided
that the Board of Directors of the Company or the Compensation
Committee thereof may, in its sole and absolute discretion, at any time extend
the term of this Agreement for such period of time as it may determine
appropriate.  No severance benefits will be paid under this Agreement with
respect to any termination of employment effective after the date of the
Agreement’s termination.

 

2.                                       At-Will Employment.  The Company and Executive acknowledge
that Executive’s employment is and will continue to be at-will, as defined
under applicable law, except as may otherwise be specifically provided under
the terms of any written formal employment agreement between the Company and
Executive (an “Employment Agreement”).  If Executive’s employment
terminates for any reason, 

 

 

including (without
limitation) any termination prior to a Change of Control, Executive will not be
entitled to any payments, benefits, damages, awards or compensation other than
as provided by this Agreement.

 

3.                                       Termination of Employment.  In the event Executive’s employment
with the Company terminates for any reason, Executive will be entitled to any: (i) unpaid
base salary accrued up to the effective date of termination, (ii) unpaid,
but earned and accrued annual incentive for any completed fiscal year as of his
or her termination of employment, (iii) pay for accrued but unused
vacation, (iv) benefits or compensation as provided under the terms of any
employee benefit and compensation agreements or plans applicable to Executive, (v) unreimbursed
business expenses required to be reimbursed to Executive, and (vi) rights
to indemnification Executive may have under the Company’s Certificate of
Incorporation, Bylaws, or separate indemnification agreement, as
applicable.  In addition, if the termination is by the Company (or any
parent, subsidiary or successor of the Company) without Cause (as defined
herein) or if Executive resigns for Good Reason (as defined herein), Executive
will be entitled to the amounts and benefits specified in Section 4.

 

4.                                       Severance Benefits.

 

(a)                                  Termination Without Cause or Resignation for
Good Reason in Connection with a Change of Control.  If on or within six (6) months
following a Change of Control, (i) Executive’s employment is terminated by
the Company (or any parent, subsidiary or successor of the Company) without
Cause or (ii) Executive resigns for Good Reason, and Executive signs and
does not revoke the release of claims required by Section 5, Executive
will receive the following severance benefits from the Company:

 

(i)                                     Severance Payment.  Executive will receive a lump sum
cash payment equal to six (6) months of the Executive’s annual base salary
(as in effect immediately prior to (A) the Change of Control or (B) Executive’s
termination, whichever is greater).

 

(ii)                                  Equity Awards.  Fifty percent (50%) of Executive’s
then outstanding and unvested awards relating to the Company’s common stock
(whether stock options, stock appreciation rights, shares of restricted stock,
restricted stock units, or otherwise (collectively, the “Equity Awards”)) as of
the date of Executive’s termination of employment will become vested and will
otherwise remain subject to the terms and conditions of the applicable Equity
Award agreement.

 

(iii)                               Benefits.  The Company agrees to reimburse Executive for premiums paid for
the same level of group health coverage as in effect for Executive on the day
immediately preceding the date of termination; provided, however, that (1) Executive
constitutes a qualified beneficiary, as defined in Section 4980(B)(g)(1) of
the Internal Revenue Code of 1986, as amended (the “Code”); and (2) Executive
elects continuation coverage pursuant to the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”), within the time period
prescribed pursuant to COBRA.  The Company will continue to reimburse
Executive for continuation coverage through the earlier of (A) the date
that is six (6) months following his or her termination, or (B) the
date upon which Executive and Executive’s eligible dependents become covered
under similar plans.  Executive will thereafter be responsible for the
payment of COBRA premiums (including, without limitation, all administrative
expenses) for the remaining COBRA period.  COBRA reimbursements shall be
made by the Company to Executive consistent with the Company’s normal expense
reimbursement policy, provided that Executive submits documentation to the
Company substantiating his or her payments for COBRA coverage.

 

(b)                                 Timing of Severance Payments.  Subject to Section 4(g) below,
the Company will pay the severance payments to which Executive is entitled
pursuant to Section 4(a)(i) above in cash and in full, within ten (10) calendar
days after the date of the termination of Employee’s employment as provided in Section 4(a) or,
if later, on the date the release of claims required pursuant to Section 5
of this Agreement becomes effective.  If Executive should die before all
severance amounts have been paid, such 

 

 

unpaid amounts will be paid
in a lump-sum payment (less any withholding taxes) to Executive’s designated
beneficiary, if living, or otherwise to the personal representative of
Executive’s estate.

 

(c)                                  Voluntary Resignation; Termination For Cause.  If Executive’s employment with the
Company terminates (i) voluntarily by Executive (except upon a termination
for Good Reason on or within six (6) months following a Change of Control)
or (ii) for Cause by the Company (or any parent or subsidiary of the
Company), then Executive will not be entitled to receive severance or other benefits
except for those (if any) as may then be established under the Company’s then
existing severance and benefits plans and practices or pursuant to other
written agreements with the Company, including, without limitation, any
Employment Agreement or Equity Award agreements.

 

(d)                                 Disability; Death.  If the Company terminates Executive’s
employment as a result of Executive’s Disability (as defined herein), or
Executive’s employment terminates due to his or her death, then Executive will
not be entitled to receive severance or other benefits except for those (if
any) as may then be established under the Company’s then existing written
severance and benefits plans and practices or pursuant to other written
agreements with the Company, including, without limitation, any Employment
Agreement or Equity Award agreements.

 

(e)                                  Termination Apart from Change of Control.  In the event Executive’s employment
is terminated for any reason, either prior to the occurrence of a Change of
Control or after the six (6) month period following a Change of Control,
then Executive will be entitled to receive severance and any other benefits
only as may then be established under the Company’s existing written severance
and benefits plans and practices or pursuant to other written agreements with
the Company, including, without limitation, any Employment Agreement or Equity
Award agreement.

 

(f)                                    Exclusive Remedy.  In the event of a termination of
Executive’s employment on or within six (6) months following a Change of
Control, the provisions of this Section 4 are intended to be and are
exclusive and in lieu of any other rights or remedies to which Executive or the
Company may otherwise be entitled, whether at law, tort or contract, in equity,
or under this Agreement.  Executive will be entitled to no benefits,
compensation or other payments or rights upon termination of employment other
than those benefits expressly set forth in this Section 4, except as may
be provided in any Equity Award agreement.

 

(g)                                 Section 409A.

 

(i)                                     Distributions.  Notwithstanding anything to the
contrary in this Agreement, no Deferred Compensation Separation Benefits (as
defined below) payable under this Agreement will be considered due or payable
until the Executive has incurred a “separation from service” within the meaning
of Section 409A of the Internal Revenue Code of 1986, as amended and the
final regulations and any guidance promulgated thereunder (together, “Section 409A”).  If Executive is a “specified employee” within
the meaning of Section 409A at the time of Executive’s termination (other
than due to Executive’s death), and the payment of any portion of the severance
payments under this Agreement, when considered together with any other
severance payments or separation benefits which may be considered deferred
compensation under Section 409A (together, the “Deferred Compensation
Separation Benefits”), will result in the imposition of additional tax under Section 409A
if paid to Executive on or within the six (6) month period following
Executive’s termination, then the portion of the Deferred Compensation
Separation Benefits that would cause the imposition of additional tax under Section 409A
will accrue during such six (6) month period and will become payable in a
lump sum payment on the date six (6) months and one (1) day following
the date of Executive’s termination of employment.  All subsequent
payments, if any, will be payable in accordance with the payment schedule
applicable to each payment or benefit.  Notwithstanding anything herein to
the contrary, if Executive dies following his or her termination of employment
but prior to the six (6) month anniversary of his or her date of
termination, then any payments delayed in accordance with this paragraph will
be payable in a lump sum (less applicable withholding taxes) to Executive’s
estate as soon as administratively practicable after the 

 

 

date of Executive’s death
and all other Deferred Compensation Separation Benefits will be payable in
accordance with the payment schedule applicable to each payment or benefit.

 

(ii)                                  Amendment.  This provision is intended to comply with the requirements of Section 409A
so that none of the severance payments and benefits to be provided hereunder
will be subject to the additional tax imposed under Section 409A, and any
ambiguities herein will be interpreted to so comply.  The Company and
Executive agree to work together in good faith to consider amendments to this
Agreement and to take such reasonable actions which are necessary, appropriate
or desirable to avoid imposition of any additional tax or income recognition
prior to actual payment to Executive under Section 409A.

 

5.                                       Conditions to Receipt of Severance; No Duty
to Mitigate.

 

(a)                                  Separation Agreement and Release of Claims. 
The receipt of any severance or other
benefits pursuant to Section 4 will be subject to Executive signing and
not revoking a separation agreement and release of claims in a form acceptable
to the Company (the “Release”) within the period required by the release and in
no event will the period to return the release be longer than sixty (60) days,
inclusive of any revocation period set forth in the Release, following the
Executive’s termination of employment (the “Release Deadline”).  No severance or other benefits will be paid
or provided until the separation agreement and release agreement becomes
effective.  Notwithstanding any contrary
provisions of Section 4, in the event that the termination occurs at a
time during the calendar year where it would be possible for the Release to
become effective in the calendar year following the calendar year in which the
Executive’s termination occurs, any severance that would be considered Deferred
Compensation Separation Benefits (as defined in Section 4(g)) will be paid
on the first payroll date to occur during the calendar year following the
calendar year in which such termination occurs, or, if later, (i) the
Release Deadline, or (ii) such time as required by Section 4(g).

 

(b)                                 Non-solicitation.  The receipt of any severance or other
benefits pursuant to Section 4 will be subject to Executive agreeing that
during the Agreement Term and Continuance Period, Executive will not solicit
any employee of the Company (other than Executive’s personal assistant) for
employment other than at the Company.

 

(c)                                  Nondisparagement.  During the Agreement Term and
Continuance Period, Executive will not knowingly and materially disparage,
criticize, or otherwise make any derogatory statements regarding the
Company.  Notwithstanding the foregoing, nothing contained in this Agreement
will be deemed to restrict Executive, the Company or any of the Company’s
current or former officers and/or directors from (1) providing information
to any governmental or regulatory agency (or in any way limit the content of
any such information) to the extent they are requested or required to provide
such information pursuant to applicable law or regulation or (2) enforcing
his or her or its rights pursuant to this Agreement.

 

(d)                                 Other Requirements.  Executive’s receipt of severance
payments will be subject to Executive continuing to comply with the terms of
any agreement between the Company and Executive (or any written policy of the
Company) relating to treatment of confidential information, assignment of
inventions, or similar terms (any such agreement or policy, a “Confidentiality
Agreement”) and the provisions of this Section 5.

 

(e)                                  No Duty to Mitigate.  Executive will not be required to
mitigate the amount of any payment contemplated by this Agreement, nor will any
earnings that Executive may receive from any other source reduce any such
payment

 

6.                                       Limitation on Payments.  In the event that the severance and
other benefits provided for in this Agreement or otherwise payable to Executive
(i) constitute “parachute payments” within the 

 

 

meaning of Section 280G
of the Code, and (ii) but for this Section 6, would be subject to the
excise tax imposed by Section 4999 of the Code, then Executive’s severance
benefits under Section 4 will be either:

 

(a)                                  delivered in full, or

 

(b)                                 delivered as to such lesser extent which
would result in no portion of such severance benefits being subject to excise
tax under Section 4999 of the Code,

 

whichever
of the foregoing amounts, taking into account the applicable federal, state and
local income taxes and the excise tax imposed by Section 4999, results in
the receipt by Executive on an after-tax basis, of the greatest amount of
severance benefits, notwithstanding that all or some portion of such severance
benefits may be taxable under Section 4999 of the Code.  Any
reduction in payments and/or benefits required by this Section 6(b) shall
occur in the following order: (1) reduction of cash payments; (2) reduction
of vesting acceleration of equity awards; and (3) reduction of other
benefits paid or provided to the Executive. 
In the event that acceleration of vesting of equity awards is to be
reduced, such acceleration of vesting shall be cancelled in the reverse order
of the date of grant for the Executive’s equity awards.  If two or more equity awards are granted on
the same date, each award will be reduced on a pro-rata basis.  Unless the Company and Executive otherwise
agree in writing, any determination required under this Section 6 will be
made in writing by the Company’s independent public accountants immediately
prior to the Change of Control (the “Accountants”), whose determination will be
conclusive and binding upon Executive and the Company for all purposes. 
For purposes of making the calculations required by this Section 6, the
Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code.  The
Company and Executive will furnish to the Accountants such information and
documents as the Accountants may reasonably request in order to make a
determination under this Section.  The Company will bear all costs the
Accountants may reasonably incur in connection with any calculations
contemplated by this Section 6.

 

7.                                       Definition of Terms.  The following terms referred to in
this Agreement will have the following meanings:

 

(a)                                  Cause.  For purposes of this Agreement, “Cause” will mean:

 

(i)                                     Executive’s willful and continued failure to
perform the duties and responsibilities of his or her position (other than as a
result of Executive’s illness or injury) after there has been delivered to
Executive a written demand for performance from the Board which describes the
basis for the Board’s belief that Executive has not substantially performed his
or her duties and provides Executive with thirty (30) days to take corrective
action;

 

(ii)                                  Any material act of personal dishonesty taken
by Executive in connection with his or her responsibilities as an employee of
the Company with the intention that such action may result in the substantial
personal enrichment of Executive;

 

(iii)                               Executive’s conviction of, or plea of nolo contendere to, a felony that
the Board reasonably believes has had or will have a material detrimental
effect on the Company’s reputation or business;

 

(iv)                              A willful breach of any fiduciary duty owed to the Company by Executive
that has a material detrimental effect on the Company’s reputation or business;

 

(v)                                 A willful breach of a Confidentiality
Agreement or any written policy relating to ethics or conduct;

 

 

(vi)                              Executive being found liable in any Securities and Exchange Commission
or other civil or criminal securities law action (regardless of whether or not
Executive admits or denies liability), which the Board determines, in its
reasonable discretion, will have a material detrimental effect on the Company’s
reputation or business;

 

(vii)                           Executive entering any cease and desist order with respect to any
action which would bar Executive from service as an executive officer or member
of a board of directors of any publicly-traded company (regardless of whether
or not Executive admits or denies liability);

 

(viii)                        Executive (A) obstructing or impeding; (B) endeavoring to
obstruct or impede, or (C) failing to materially cooperate with, any
investigation authorized by the Board or any governmental or self-regulatory
entity (an “Investigation”).  However, Executive’s failure to waive
attorney-client privilege relating to communications with Executive’s own
attorney in connection with an Investigation will not constitute “Cause”; or

 

(ix)                                       Executive’s disqualification or bar by any
governmental or self-regulatory authority from serving in the capacity
contemplated by this Agreement, if (A) the disqualification or bar continues
for more than thirty (30) days, and (B) during that period the Company
uses its commercially reasonable efforts to cause the disqualification or bar
to be lifted. While any disqualification or bar continues during Executive’s
employment, Executive will serve in the capacity contemplated by this Agreement
to whatever extent legally permissible and, if Executive’s employment is not
permissible, Executive will be placed on administrative leave (which will be
paid to the extent legally permissible).

 

(b)                                 Change of Control.  “Change of Control” of the Company is
defined as:

 

(i)                                     Any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly,
of securities of the Company representing more than fifty percent (50%) of the
total voting power represented by the Company’s then outstanding voting
securities;

 

(ii)                                  The consummation of the sale or disposition
by the Company of all or substantially all of the Company’s assets;

 

(iii)                               A change in the composition of the Board occurring within a one-year
period, as a result of which fewer than a majority of the directors are
Incumbent Directors.  “Incumbent Directors” means directors who either (A) are
Directors as of the effective date of the Plan, or (B) are elected, or
nominated for election, to the Board with the affirmative votes of at least a
majority of the Incumbent Directors at the time of such election or nomination
(but will not include an individual whose election or nomination is in
connection with an actual or threatened proxy contest relating to the election
of directors to the Company); or

 

(iv)                              The consummation of a merger or consolidation of the Company with any
other corporation, other than a merger or consolidation which would result in
the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or its parent) at least fifty
percent (50%) of the total voting power represented by the voting securities of
the Company or such surviving entity or its parent outstanding immediately
after such merger or consolidation.

 

(c)                                  Continuance Period.  “Continuance Period” will mean the
period of time beginning on the date of the termination of Executive’s
employment and ending on the date that is six (6) months following the
date of the termination of Executive’s employment.

 

 

(d)                                 Disability.  For purposes of this Agreement, “Disability” will have the same
meaning as that term is defined in the Company’s 2006 Equity Incentive
Plan.  Notwithstanding the foregoing however, should the Company maintain
a long-term disability plan at any time during the Agreement Term, a
determination of disability under such plan shall also be considered a “Disability”
for purposes of this Agreement.

 

(e)                                  Good Reason.  “Good Reason” will mean Executive’s termination of employment
within ninety (90) days following the end of the Cure Period (as defined below)
as a result of the occurrence of any of the following without the Executive’s
consent:

 

(i)                                     a material diminution of Executive’s
authority, duties, or responsibilities, relative to Executive’s authority,
duties, or responsibilities in effect immediately prior to such reduction;
provided, however, that a reduction of authority, duties, or responsibilities
or a change in title or reporting responsibility that occurs solely as a
necessary and direct consequence of the Company undergoing a Change of Control
and being made part of a larger entity will not be considered material (as, for
example, when the Chief Financial Officer of the Company remains the principal
financial or accounting employee of the Company (or the business unit
comprising the Company) following a Change of Control even though he or she is
not made the Chief Financial Officer of the acquiring corporation;

 

(ii)                                  a material diminution by the Company in the
base salary of Executive as in effect immediately prior to such reduction,
other than pursuant to a reduction that also is applied to substantially all
other executive officers of the Company;

 

(iii)                               the relocation of Executive to a facility or a location more than fifty
(50) miles from Executive’s then present location; or

 

(iv)                              tthe failure of the Company to obtain the
assumption of this Agreement by any successor in accordance with Section 8(a) below.

 

Notwithstanding the foregoing, Executive will not
resign for Good Reason without first providing the Board with written notice of
the condition that could constitute a “Good Reason” event within ninety (90)
days of the initial existence of such condition and such condition must not
have been remedied by the Company within thirty (30) days (the “Cure Period”)
of such written notice.

 

8.                                       Successors.

 

(a)                                  The Company’s Successors.  Any successor to the Company (whether
direct or indirect and whether by purchase, merger, consolidation, liquidation
or otherwise) to all or substantially all of the Company’s business and/or
assets will assume the obligations under this Agreement and agree expressly to
perform the obligations under this Agreement in the same manner and to the same
extent as the Company would be required to perform such obligations in the
absence of a succession.  For all purposes under this Agreement, the term “Company”
will include any successor to the Company’s business and/or assets which
executes and delivers the assumption agreement described in this Section 8(a) or
which becomes bound by the terms of this Agreement by operation of law.

 

(b)                                 Executive’s Successors.  The terms of this Agreement and all
rights of Executive hereunder will inure to the benefit of, and be enforceable
by, Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

 

9.                                       Notice.

 

(a)                                  General.  Notices and all other communications contemplated by this
Agreement will be in writing and will be deemed to have been duly given when
personally delivered or when mailed by U.S. registered or certified mail,
return receipt requested and postage prepaid.  In the case of Executive, 

 

 

mailed notices will be
addressed to him or her at the home address which he or she most recently
communicated to the Company in writing.  In the case of the Company,
mailed notices will be addressed to its corporate headquarters, and all notices
will be directed to the attention of its President.

 

(b)                                 Notice of Termination.  Any termination by the Company for
Cause or by Executive for Good Reason or as a result of a voluntary resignation
will be communicated by a notice of termination to the other party hereto given
in accordance with Section 9(a) of this Agreement.  Such notice
will indicate the specific termination provision in this Agreement relied upon,
will set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination under the provision so indicated, and will
specify the termination date (which will be not more than thirty (30) days
after the giving of such notice).  The failure by Executive to include in
the notice any fact or circumstance which contributes to a showing of Good
Reason will not waive any right of Executive hereunder or preclude Executive
from asserting such fact or circumstance in enforcing his or her rights
hereunder.

 

10.                                 Miscellaneous Provisions.

 

(a)                                  Arbitration.  The parties agree that any and all disputes arising out of, or
relating to, the terms of this Agreement, their interpretation, and any of the
matters herein released, will be subject to binding arbitration in Santa
Barbara, California before the American Arbitration Association under its
National Rules for the Resolution of Employment Disputes.  The
parties agree that the prevailing party in any arbitration will be entitled to
injunctive relief in any court of competent jurisdiction to enforce the
arbitration award.  The parties agree that the prevailing party in any
arbitration will be awarded its reasonable attorney fees and costs.  The parties hereby agree to waive their right to have
any dispute between them resolved in a court of law by a jury. 
This section will not prevent either party from seeking injunctive relief (or
any other provisional remedy) from any court having jurisdiction over the
parties and the subject matter of their dispute relating to Executive’s
obligations under this Agreement and the agreements incorporated herein by
reference.

 

(b)                                 Waiver.  No provision of this Agreement will be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing
and signed by Executive and by an authorized officer of the Company (other than
Executive).  No waiver by either party of any breach of, or of compliance
with, any condition or provision of this Agreement by the other party will be
considered a waiver of any other condition or provision or of the same
condition or provision at another time.

 

(c)                                  Headings.  All captions and section headings used in this Agreement are
for convenient reference only and do not form a part of this Agreement.

 

(d)                                 Entire Agreement.  This Agreement, together with any
Employment Agreement (to the extent not otherwise superseded herein), any
Equity Award agreements that describe Executive’s outstanding Equity Awards
and/or any Confidentiality Agreement, constitutes the entire agreement of the
parties hereto and supersedes in their entirety all prior representations,
understandings, undertakings or agreements (whether oral or written and whether
expressed or implied) of the parties with respect to the subject matter
hereof.  To the extent that any provisions of this Agreement conflict with
those of any other agreement between the Executive and the Company, the terms
in this Agreement will prevail.  However, with respect to Equity Awards
granted on or after the date hereof, the acceleration of vesting provided
herein will apply to such awards except to the extent otherwise explicitly
provided in the applicable Equity Award agreement.

 

(e)                                  Choice of Law.  The validity, interpretation,
construction and performance of this Agreement will be governed by the laws of
the State of California (with the exception of its conflict of laws
provisions).

 

(f)                                    Severability.  The invalidity or unenforceability of
any provision or provisions of this Agreement will not affect the validity or
enforceability of any other provision hereof, which will 

 

 

remain in full force and
effect.  The remainder of this Agreement will be interpreted so as best to
effect the intent of the Company and the Executive.

 

(g)                                 Withholding.  All payments made pursuant to this Agreement will be subject to
withholding of applicable income and employment taxes.

 

(h)                                 Counterparts.  This Agreement may be executed in
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by its duly authorized officer, as of the day and year
set forth below.

 

 

	
  COMPANY

  	
  OCCAM NETWORKS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:Exhibit 10.3

 

AMERIPRISE
FINANCIAL

 

DEFERRED
COMPENSATION PLAN

 

 

As
Amended and Restated Effective January 1, 2009

 

 

AMERIPRISE
FINANCIAL

DEFERRED
COMPENSATION PLAN

 

As Amended and Restated Effective January 1, 2009

 

Purpose

 

The purpose of the
Plan is to provide specified benefits to a select group of management or highly
compensated Employees who contribute materially to the continued growth,
development and future business success of Ameriprise Financial, Inc. and
its subsidiaries.  The Plan shall be unfunded
for tax purposes and for purposes of Title I of ERISA.

 

Article 1

Definitions

 

For purposes of
the Plan, unless otherwise clearly apparent from the context, the following
phrases or terms shall have the meanings indicated in this Article 1:

 

1.01.      “Aggregate Vested Balance”
shall mean, with respect to the Plan Accounts of any Participant as of a given
date, the sum of the amounts that have become vested under all of the
Participant’s Plan Accounts, as adjusted to reflect all applicable Investment
Adjustments and all prior withdrawals and distributions, in accordance with Article 6
of the Plan and the provisions of the applicable Annual Enrollment Materials.

 

1.02.      “Amended Distribution
Election Form” shall mean the written form required by the Committee to be
signed and submitted by a Participant to effect a permitted change in the
Distribution Election previously made by the Participant under any Distribution
Election Form.

 

1.03.      “Annual Deferral Account”
shall mean a Participant’s Annual Participant Deferral for a Plan Year, as
adjusted to reflect all applicable Investment Adjustments and all prior
withdrawals and distributions in accordance with Article 6 and the
provisions of the applicable Annual Enrollment Materials.

 

1.04.      “Annual Discretionary
Allocation” shall mean the aggregate amount credited by a Participant’s
Employer to a Participant in respect of a particular Plan Year under Article 5.

 

1.05.      “Annual Discretionary
Allocation Account” shall mean a Participant’s Annual Discretionary Allocation
for a Plan Year, as adjusted to reflect all applicable Investment Adjustments
and all prior withdrawals and distributions in accordance with Article 6
and the provisions of the applicable Annual Enrollment Materials.

 

1.06.      “Annual Election Form”
shall mean the written form required by the Committee to be signed and
submitted by a Participant in connection with the Participant’s deferral
election with respect to a given Plan Year.

 

1.07.      “Annual Enrollment Forms”
shall mean, for any Plan Year, the Annual Election Form, the Distribution
Election Form and any other forms or documents which may be required of a
Participant by the Committee, in its sole discretion.

 

1

 

1.08.      “Annual Enrollment
Materials” shall mean, for any Plan Year, the Annual Enrollment Forms and
any other forms, documents or materials concerning the terms of any Annual
Participant Deferral, Annual Match or Annual Discretionary Allocation for such
Plan Year.

 

1.09.      “Annual Match” shall
mean the aggregate amount credited by a Participant’s Employer to a Participant
in respect of a particular Plan Year under Article 4.

 

1.10.      “Annual Match Account”
shall mean a Participant’s Annual Match for a Plan Year, as adjusted to reflect
all applicable Investment Adjustments and all prior withdrawals and
distributions in accordance with Article 6 and the provisions of the
applicable Annual Enrollment Materials.

 

1.11.      “Annual Participant
Deferral” shall mean the aggregate amount deferred by a Participant in
respect of a particular Plan Year under Article 3.

 

1.12.      “Board” shall mean
the board of directors of the Company.

 

1.13.      “Change in Control”
shall mean any transaction or series of transactions that constitutes a change
in the ownership or effective control of the Company or a change in the
ownership of a substantial portion of the assets of the Company, in each case
within the meaning of Section 409A.

 

1.14.      “Claimant” shall have
the meaning set forth in Article 12.01.

 

1.15.      “Code” shall mean the
Internal Revenue Code of 1986, as it may be amended from time to time, and all
regulations, interpretations and administrative guidance issued thereunder.

 

1.16.      “Committee” shall
mean the Compensation and Benefits Committee of the Company or such other
committee designated by the Board to administer the Plan.  Any reference herein to the
Committee shall be deemed to include any  person to
whom any duty of the Committee has been delegated pursuant to Article 11.02.

 

1.17.      “Company” shall mean
Ameriprise Financial, Inc., a Delaware corporation, and any successor to
all or substantially all of its assets or business.

 

1.18.      “Company Stock” shall
mean the common stock, par value $0.01 per share, of the Company.

 

1.19.      “Company Stock Fund”
shall mean the Investment Option that relates to the performance of Company
Stock.

 

1.20.      “Designation Date”
shall mean the date or dates as of which a designation of investment directions
by a Participant pursuant to Article 6, or any change in a prior
designation of investment directions by a Participant pursuant to Article 6,
shall become effective.  The Designation
Date in any Plan Year shall be determined by the Committee; provided, however, 

 

2

 

that each trading day of the New York Stock Exchange
shall be available as a Designation Date unless the Committee selects different
Designation Dates.

 

1.21.      “Disability” shall
mean, with respect to a Participant, the Participant (a) is unable to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, or (b) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an
accident and health plan covering Employees of the Participant’s Employer.  In making its determination, the Committee
shall be guided by the prevailing authorities applicable under Section 409A.

 

1.22.      “Distribution Election”
shall mean an election made in accordance with Article 7.01.

 

1.23.      “Distribution Election
Form” shall mean the written form required by the Committee to be signed
and submitted by a Participant with respect to a Distribution Election for a
given Plan Year.

 

1.24.      “Elective Deductions”
shall mean the deductions made from a Participant’s Eligible Compensation for
amounts voluntarily deferred or contributed by the Participant pursuant to all
qualified and non-qualified compensation deferral plans, including, without
limitation, amounts not included in the Participant’s gross income under
Sections 125, 132(f)(4), 402(e)(3) or 402(h) of the Code;
provided, however, that all such amounts would have been payable in cash to the
Employee had there been no such plan.

 

1.25.      “Eligible Compensation”
shall mean, for any Plan Year, the base salary, bonus or other items of
compensation, including any Elective Deductions, designated by the Committee in
the applicable Annual Enrollment Materials as eligible for deferral under the
Plan for such Plan Year.

 

1.26.      “Employee” shall mean
a person who is an employee of any Employer, as determined by the Committee in
its sole discretion.

 

1.27.      “Employer” shall
mean, as applicable, the Company or any of its subsidiaries listed on Schedule
A attached hereto, as such Schedule A may be amended by the Committee, in its
sole discretion, from time to time.

 

1.28.      “ERISA” shall mean
the Employee Retirement Income Security Act of 1974, as it may be amended from
time to time, and all regulations, interpretations and administrative guidance
issued thereunder.

 

1.29.      “Investment Adjustment”
shall mean an adjustment made to the balance of any Plan Account in accordance
with Article 6.02 to
reflect the performance of an Investment Option pursuant to which the value of
the Plan Account or portion thereof is measured.

 

3

 

1.30.      “Investment Agent”
shall mean the person appointed by the Committee or the Trustee to invest the
Plan Accounts of Participants, or if no person is so designated, the Committee.

 

1.31.      “Investment Option”
shall mean a hypothetical investment made available under the Plan from time to
time by the Committee for purposes of valuing Plan Accounts.  In the event that an Investment Option ceases
to exist or is no longer to be an Investment Option, the Committee may
designate a substitute Investment Option for the discontinued hypothetical
investment.

 

1.32.      “Newly Eligible Employee”
shall mean an Employee who becomes eligible to participate in the Plan during a
Plan Year and who has not previously participated in the Plan or an elective or
non-elective account-balance deferred compensation arrangement (as defined for
purposes of Section 409A) of the Company, an Employer or any entity other
than the Company with whom the Company would be considered a single employer
under Sections 414(b) or 414(c) of the Code, as determined by the
Committee and to the extent permissible under Section 409A.

 

1.33.      “Participant” shall
mean any eligible Employee (a) who is in a classification of Employees
designated by the Committee to participate in the Plan or who is otherwise
selected by the Committee to participate in the Plan, (b) who elects to
participate in the Plan and signs the applicable Annual Election Forms or is
credited with an Annual Discretionary Allocation under Article 5, (c) who
commences participation in the Plan, and (d) whose participation in the
Plan has not terminated.  A spouse or
former spouse of a Participant shall not be treated as a Participant in the
Plan or have an account balance under the Plan, even if he or she has an
interest in the Participant’s benefits under the Plan as a result of applicable
law or property settlements resulting from legal separation or divorce.

 

1.34.      “Plan” shall mean the
Ameriprise Financial Deferred Compensation Plan, which shall be evidenced by
this instrument and by the Annual Enrollment Materials, as they may be amended
from time to time.

 

1.35.      “Plan Accounts” shall
mean the Annual Deferral Accounts, Annual Match Accounts and Annual
Discretionary Allocation Accounts established under the Plan.

 

1.36.      “Plan Year” shall
mean the 12-month period beginning on January 1 of each calendar year and
ending on December 31 of such calendar year.

 

1.37.      “Reporting Person”
shall mean an Employee who is subject to the reporting requirements of Section 16(a) of
the Securities Exchange Act of 1934, as amended.

 

1.38.      “Retirement” shall
mean, with respect to a Participant, the Participant’s Termination of
Employment on or after the date that such Participant becomes Retirement Eligible.

 

1.39.      “Retirement Eligible”
shall mean, with respect to a Participant, that the Participant has attained
age 55 and has completed ten or more Years of Service with the Company or its
affiliates.

 

4

 

1.40.      “Section 409A”
means Section 409A of the Code, and the Treasury Regulations promulgated
and other official guidance issued thereunder.

 

1.41.      “Termination of
Employment” shall mean a “separation from service” as defined under Section 409A,
as determined in accordance with the Company’s Policy Regarding Section 409A
Compliance.

 

1.42.      “Trust” shall mean a
trust established in accordance with Article 13.

 

1.43.      “Trustee” shall mean
the trustee of the Trust.

 

1.44.      “Unforeseeable Emergency”
shall mean, with respect to a Participant, a severe financial hardship to the
Participant resulting from an illness or accident of the Participant, the
Participant’s spouse, or a dependent (as defined in Section 152(a) of
the Code) of the Participant, loss of the Participant’s property due to
casualty, or other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant.  In making its determination, the Committee
shall be guided by the prevailing authorities applicable under Section 409A.

 

1.45.      “Years of Service”
shall mean the total number of actual or deemed full Plan Years during which a
Participant has been continuously employed by one or more Employers.  For purposes of determining a Participant’s
Years of Service, such Participant’s service with American Express Company will
be taken into account if and to the extent, and in accordance with, the
provisions of the Employee Benefits Agreement by and between American Express
Company and the Company, dated as of September 30, 2005.  Any partial Plan Year during which a
Participant has been employed by an Employer shall not be counted.

 

Article 2

Transition Rule

 

2.01.      Opening Plan Account
Balances and Participation.  Unless
otherwise expressly set forth herein, the Plan Account balance as of the
closing date of the Stock Purchase Agreement, dated as of August 12, 2008,
by and between Block Financial LLC, Ameriprise Financial, Inc. and H&R
Block, Inc. (the “Stock Purchase Agreement”), of any individual who had
accumulated benefits under the H&R Block Financial Advisors, Inc.
Deferred Compensation Plan (the “HRBFA Plan”), the responsibility for which was
transferred to the Company pursuant to the Stock Purchase Agreement, shall be
the account balance such Participant had in the HRBFA Plan on October 31,
2008 (the “Closing Date”).

 

2.02.      Plan Elections and
Designations.  Notwithstanding
anything herein to the contrary and in accordance with the requirements of the
Stock Purchase Agreement, all beneficiary designations, deferral election
forms, distribution election forms, and qualified domestic relations orders
creating rights for alternate payees in effect under the HRBFA Plan as of the
Closing Date shall be deemed to be effective with respect to the Plan.

 

5

 

Article 3

Annual Participant Deferrals

 

3.01.      Selection by Committee.  Participation in the Plan with respect to
Annual Participant Deferrals shall be limited to a select group of management
or highly compensated Employees of the Employers who are in a classification of
Employees designated by the Committee in its sole discretion.  For each Plan Year, the Committee may select
from that group, in its sole discretion, the Employees who shall be eligible to
make an Annual Participant Deferral in respect of that Plan Year.  The Committee’s selection of an Employee to
make an Annual Participant Deferral in respect of a particular Plan Year will
not entitle that Employee to make an Annual Participant Deferral for any subsequent
Plan Year, unless the Employee is again selected by the Committee to make an
Annual Participant Deferral for such subsequent Plan Year.

 

3.02.      Enrollment Requirements
for Annual Participant Deferrals.  As
a condition to being eligible to make an Annual Participant Deferral for any
Plan Year, each selected Employee shall complete, execute and return to the
Committee each of the required Annual Enrollment Forms no later than the last
day of the immediately preceding Plan Year or such earlier date as the
Committee may establish from time to time, and in accordance with the
requirements of Section 409A.  The
Committee may in its discretion permit a Newly Eligible Employee to complete,
execute and return to the Committee each of the required Annual Enrollment
Forms no later than 30 days following the date on which such Employee first
becomes eligible to participate in the Plan or such earlier date as the
Committee may establish from time to time. 
An Employee’s Annual Election Form shall be irrevocable once filed
with the Committee, and may only be suspended pursuant to Article 3.07.

 

3.03.      Participant Deferrals.

 

(a)         Deferral
Election.  The Committee shall
have sole discretion to determine in respect of each Plan Year:  (i) whether a Participant shall be eligible
to make an Annual Participant Deferral; (ii) the items of Eligible
Compensation which may be the subject of any Annual Participant Deferral for
that Plan Year; and (iii) any other terms and conditions applicable to the
Annual Participant Deferral.  The
Participant’s election shall be evidenced by an Annual Election Form completed
and submitted to the Committee in accordance with the procedures established by
the Committee, in its sole discretion. 
The amounts deferred by a Participant in respect of services rendered
during a Plan Year shall be referred to collectively as an Annual Participant
Deferral and shall be credited to an Annual Deferral Account established in the
name of the Participant.  A separate Annual
Deferral Account shall be established and maintained for each Annual
Participant Deferral.

 

(b)         Minimum and
Maximum Deferrals.  The
Committee may from time to time designate in the Annual Enrollment Materials
for a given Plan Year a minimum or maximum amount or percentage of Eligible
Compensation that a Participant may elect to defer under the Plan with respect
to that Plan Year.

 

(c)         Deferral Designations.  A
Participant may designate the amount of the Annual Participant Deferral to be
deducted from his or her Eligible Compensation as specified 

 

6

 

in the applicable Annual Enrollment Materials for a
given Plan Year, which may provide for deferrals to be expressed as either a
percentage or a fixed dollar amount of a specified item of Eligible Compensation
expected by the Participant, as determined by the Committee.  If a Participant designates the Annual
Participant Deferral to be deducted from any item of Eligible Compensation as a
fixed dollar amount and such fixed dollar amount exceeds the amount of such
item of Eligible Compensation actually payable to the Participant, the entire
amount of such item of Eligible Compensation shall be withheld.

 

(d)         Deferral
Deductions.  Annual
Participant Deferral shall be deducted from the items of Eligible Compensation
as follows:  (i) for periodic
payments (e.g., salary), in substantially equivalent amounts from each periodic
payment during the Plan Year; and (ii) for one-time payments (e.g.,
bonuses), at the time the compensation would otherwise have been paid to the
Participant.

 

3.04.      Commencement of
Participation.  Provided an Employee
has met all enrollment requirements set forth in the Plan in respect of a
particular Plan Year and any other requirements imposed by the Committee,
including signing and submitting all Annual Enrollment Forms to the Committee
within the specified time period, the Employee’s designated deferrals shall
commence as of the first day of the particular Plan Year.  In the case of a Newly Eligible Employee,
designated deferrals shall commence as of the date such Employee’s Annual
Enrollment Forms are received by the Committee, which shall be no later than 30
days following the date on which such Employee first became eligible to
participate in the Plan, and such Annual Election Form shall apply only
with respect to compensation earned for services performed subsequent to the
time such Annual Election Form is received by the Committee.  If an Employee fails to meet all such
requirements within the specified time period with respect to any Plan Year,
the Employee shall not be eligible to make any deferrals for that Plan Year.

 

3.05.      Subsequent Plan Year
Participant Deferrals.  The Annual
Enrollment Forms submitted by a Participant in respect of a particular Plan
Year will not be effective with respect to any subsequent Plan Year.  If an Employee is selected to participate in
the Plan for a subsequent Plan Year and the required Annual Enrollment Forms
are not timely delivered for the subsequent Plan Year, the Participant shall
not be eligible to make any deferrals with respect to such subsequent Plan
Year.

 

3.06.      Vesting.  A Participant shall be vested in all amounts
credited to his or her Annual Deferral Account as of the date such amounts are
credited to such Participant’s Annual Deferral Account.

 

3.07.      Suspension of Deferrals.

 

(a)         Unforeseeable Emergencies. 
If a Participant experiences an Unforeseeable Emergency, the Participant
may petition the Committee to suspend any deferrals required to be made by the
Participant.  A petition shall be made on
the form required by the Committee to be used for such request and shall
include all financial information requested by the Committee in order to make a
determination on such petition, as determined by the Committee in its sole
discretion.  Subject to the requirements
of Section 409A, the Committee 

 

7

 

shall determine, in its
sole discretion, whether to approve the Participant’s petition.  If the petition for a suspension is approved,
suspension shall take effect upon the date of approval.  Notwithstanding the foregoing, the Committee
shall not have any right to approve a request for suspension of deferrals if
such approval (or right to approve) would cause the Plan to fail to comply
with, or cause a Participant to be subject to a tax under the provisions of Section 409A.

 

(b)         Disability.  From and after the date that a Participant is
deemed to have suffered a Disability, any standing deferral election of the
Participant shall automatically be suspended and no further deferrals shall be
made with respect to the Participant.

 

(c)         Resumption
of Deferrals.  If deferrals by
a Participant have been suspended during a Plan Year due to an Unforeseeable
Emergency or a Disability, the Participant will not be eligible to make any
further deferrals in respect of that Plan Year. 
The Participant may be eligible to make deferrals for subsequent Plan
Years provided the Participant is selected to make deferrals for such subsequent
Plan Years and the Participant complies with the election requirements under
the Plan.

 

Article 4

Annual Match

 

4.01.      Selection by Committee.  Participation in the Plan with respect to an
Annual Match shall be limited to a select group of management or highly
compensated Employees of the Employers who are in a classification of Employees
designated by the Committee in its sole discretion.  For each Plan Year, the Committee may select
from that group, in its sole discretion, the Employees who shall be eligible to
receive an Annual Match in respect of that Plan Year.  The Committee’s selection of an Employee to
receive an Annual Match in respect of a particular Plan Year will not entitle
that Employee to receive an Annual Match for any subsequent Plan Year, unless
the Employee is again selected by the Committee to receive an Annual Match for
such subsequent Plan Year.

 

4.02.      Annual Match.  A Participant may be credited with a
discretionary matching allocation in respect of any Plan Year, pursuant to and
as described in the Annual Enrollment Materials for such Plan Year.  Such discretionary matching allocation
credited to a Participant in respect of a Plan Year shall be referred to as the
Annual Match for that Plan Year and shall be credited to an Annual Match
Account in the name of the Participant. 
A separate Annual Match Account shall be established and maintained for
each Annual Match.  The Committee shall
have sole discretion to determine in respect of each Plan Year and each
Participant:  (a) whether any Annual
Match shall be made; (b) the Participant(s) who shall be entitled to
such Annual Match; (c) the amount of such Annual Match; (d) the date(s) on
which any portion of such Annual Match shall be credited to each Participant’s
Annual Match Account; (e) the vesting terms applicable to such Annual
Match; (f) the Investment Option(s) that shall apply to such Annual
Match; and (g) any other terms and conditions applicable to such Annual
Match.

 

4.03.      Vesting.  A Participant shall be vested in his or her
Annual Match Account in respect of each given Plan Year as set forth in the
Annual Enrollment Materials for such Plan Year. 
The vesting terms of Annual Match Accounts set forth in the Annual
Enrollment Materials shall be established by the Committee in its sole
discretion and may vary for each 

 

8

 

Participant and each Plan Year.  Notwithstanding anything to the contrary
contained in the Plan or any of the Annual Enrollment Materials, the Committee
shall have the authority, exercisable in its sole discretion, to accelerate the
vesting of any amounts credited to any Plan Account of any Participant.

 

Article 5

Annual Discretionary Allocation

 

5.01.      Selection By Committee.  Participation in the Plan with respect to an
Annual Discretionary Allocation shall be limited to a select group of
management or highly compensated Employees of the Employers who are in a
classification of Employees designated by the Committee in its sole
discretion.  For each Plan Year, the Committee
may select from that group, in its sole discretion, the Employees who shall be
eligible to receive an Annual Discretionary Allocation in respect of that Plan
Year.  The Committee’s selection of an
Employee to receive an Annual Discretionary Allocation in respect of a
particular Plan Year will not entitle that Employee to receive an Annual
Discretionary Allocation for any subsequent Plan Year, unless the Employee is
again selected by the Committee to receive an Annual Discretionary Allocation
for such subsequent Plan Year.

 

5.02.      Annual Discretionary
Allocation.  A Participant may be
credited with one or more other discretionary allocations in respect of any
Plan Year, expressed as either a flat dollar amount or as a percentage of one
or more items of the Participant’s Eligible Compensation for the Plan Year, or
any combination of the foregoing.  Such
discretionary allocations credited to a Participant in respect of a Plan Year
shall be referred to collectively as the Annual Discretionary Allocation for
that Plan Year and shall be credited to an Annual Discretionary Allocation
Account in the name of the Participant. 
A separate Annual Discretionary Allocation Account shall be established
and maintained for each Annual Discretionary Allocation.  The Committee shall have sole discretion to
determine in respect of each Plan Year and each Participant:  (a) whether
any Annual Discretionary Allocation shall be made; (b) the Participant(s) who
shall be entitled to such Annual Discretionary Allocation; (c) the amount
of such Annual Discretionary Allocation; (d) the date(s) on which any
portion of such Annual Discretionary Allocation shall be credited to each
Participant’s Annual Discretionary Allocation Account; (e) the Investment
Option(s) that shall apply to such Annual Discretionary Allocation; and (f) any
other terms and conditions applicable to such Annual Discretionary Allocation.

 

5.03.      Vesting.  A Participant shall be vested in his or her
Annual Discretionary Allocation Account in respect of each given Plan Year as
set forth in the Annual Enrollment Materials for such Plan Year.  The vesting terms of Annual Discretionary
Allocation Accounts set forth in the Annual Enrollment Materials shall be
established by the Committee in its sole discretion and may vary for each
Participant and each Plan Year. 
Notwithstanding anything to the contrary contained in the Plan or any of
the Annual Enrollment Materials, the Committee shall have the authority,
exercisable in its sole discretion, to accelerate the vesting of any amounts
credited to any Plan Account of any Participant.

 

9

 

Article 6

Investment Options, Investment Adjustments and Taxes

 

6.01.      Investment Options.

 

(a)         The Committee shall
establish from time to time the Investment Option(s) that will be available
under the Plan.  At any time, the
Committee may, in its discretion, add one or more additional Investment Options
under the Plan, and in connection with any such addition, may permit
Participants to select from among the then-available Investment Options under
the Plan to measure the value of such Participants’ Plan Accounts.  In addition, the Committee, in its sole
discretion, may discontinue any Investment Option at any time, and provide for
the portions of Participants’ Plan Accounts and future deferrals designated to
the discontinued Investment Option to be reallocated to another Investment
Option(s).

 

(b)         Subject to such
limitations, operating rules and procedures as may from time to time be
required by law; imposed by the Committee, the Trustee or their designated
agents; contained elsewhere in the Plan; or set forth in any Annual Enrollment
Materials, each Participant may communicate to the Investment Agent a direction
(in accordance with this Article 6) as to how his or her Plan Accounts
should be deemed to be invested among the Investment Options made available by
the Committee; provided, however, that a Participant’s ability to select
Investment Options with respect to his or her Annual Match Account and Annual
Discretionary Allocation Account is subject to, and may be limited by, the
Committee’s discretion under Article 4.02 and Article 5.02 to
designate the Investment Options that shall apply to all or a portion of such
Annual Match Account or Annual Discretionary Allocation Account.  The Participant’s investment directions shall
designate the percentage (in any whole percent multiples, which must total 100
percent) of the portion of the subsequent contributions to the Participant’s
Plan Accounts which is requested to be deemed to be invested in such Investment
Options, and shall be subject to the rules set forth below.  The Investment Agent shall invest the assets
of the Participant’s Plan Accounts in accordance with the directions of the
Participant except to the extent that the Committee directs it to the
contrary.  The Committee has the
authority, but not the requirement, in its sole and absolute discretion, to
direct that a Participant’s Plan Accounts be invested among such investments as
it deems appropriate and advisable, which investments need not be the same for
each Participant.

 

(c)         Any initial or subsequent
investment direction shall be in writing to the Investment Agent on a form
supplied by the Company, or, as permitted by the Investment Agent, may be by
oral designation or electronic transmission designation to the Investment
Agent.  A designation shall be effective
as of the Designation Date next following the date the direction is received
and accepted by the Investment Agent or as soon thereafter as administratively
practicable, subject to the Committee’s right to override such direction.  The Participant may, if permitted by the
Committee, make an investment direction to the Investment Agent for his or her
existing Plan Accounts as of a Designation Date and a separate investment direction
to the Investment Agent for contribution credits to his or her Plan Accounts
occurring after the Designation Date.

 

(d)         All amounts credited to a
Participant’s Plan Accounts shall be invested in accordance with the then
effective investment direction, unless the Committee directs 

 

10

 

otherwise. 
Unless otherwise changed by the Committee, an investment direction shall
remain in effect until the Participant’s Plan Accounts are distributed or
forfeited in their entirety, or until a subsequent investment direction is
received and accepted by the Investment Agent.

 

(e)         If a Participant files an
investment direction with the Investment Agent for his or her existing Plan
Accounts as of a Designation Date which is received and accepted by the
Investment Agent and not overridden by the Committee, then the Participant’s
existing Plan Accounts shall be deemed to be reallocated as of the next
Designation Date (or as soon thereafter as administratively practicable) among
the designated Investment Options according to the percentages specified in
such investment direction; provided, however, that a Participant’s ability to
change the Investment Options applicable to his or her Annual Match Account and
Annual Discretionary Allocation Account are subject to, and may be limited by,
the Committee’s discretion under Article 4.02 and Article 5.02 to
designate the Investment Options that shall apply to all or a portion of such
Annual Match Account or Annual Discretionary Allocation Account.  Unless otherwise changed by the Committee, an
investment direction shall remain in effect until the Participant’s Plan
Accounts are distributed or forfeited in their entirety, or until a subsequent
investment direction is received and accepted by the Investment Agent.

 

(f)          The Committee, in its
sole discretion, may place limits on a Participant’s ability to make changes
with respect to any Investment Options. 
In addition, in no event shall a Participant who is a Reporting Person
be permitted to allocate any portion of his or her Plan Accounts to the Company
Stock Fund more frequently than quarterly.

 

(g)         If the Investment Agent
receives an initial or subsequent investment direction with respect to Plan
Accounts which it deems to be incomplete, unclear or improper, or which is
unacceptable for some other reason (determined in the sole and absolute
discretion of the Investment Agent), the Participant’s investment direction for
such Plan Accounts then in effect shall remain in effect (or, in the case of a
deficiency in an initial investment direction, the Participant shall be deemed
to have filed no investment direction) until the Participant files an
investment direction for such Plan Accounts acceptable to the Investment Agent.

 

(h)         If the Investment Agent
does not possess valid investment directions covering the full balance of a
Participant’s Plan Accounts or subsequent contributions thereto (including,
without limitation, situations in which no investment direction has been filed,
situations in which the investment direction is not acceptable to the
Investment Agent under  Article 6.01(g),
or situations in which some or all of the Participant’s designated investments
are no longer permissible Investment Options), the Participant shall be deemed
to have directed that the undesignated portion of the Plan Accounts be invested
in a money-market fund or similar short-term investment fund; provided,
however, the Committee may provide for the undesignated portion to be allocated
to or among the Investment Option(s) that the Participant did designate in
the same proportion as the designated portion, or may provide for any other
allocation method it deems appropriate, in its discretion.

 

(i)          None of the Company, its
directors and employees (including, without limitation, each member of the
Committee), and the Trustee, and their designated agents and representatives,
shall have any liability whatsoever for the investment of a Participant’s Plan

 

11

 

Accounts, or for the investment performance of a
Participant’s Plan Accounts.  Each
Participant hereunder, as a condition to his or her participation hereunder,
agrees to indemnify and hold harmless the Company, its directors and employees
(including, without limitation, each member of the Committee), and the Trustee,
and their designated agents and representatives, from any losses or damages of
any kind (including, without limitation, lost opportunity costs) relating to
the investment of a Participant’s Plan Accounts.  The Investment Agent shall have no liability
whatsoever for the investment of a Participant’s Plan Accounts, or for the
investment performance of a Participant’s Plan Accounts, other than as a result
of the failure to follow a valid and effective investment direction.  Each Participant hereunder, as a condition to
his or her participation hereunder, agrees to indemnify and hold harmless the
Investment Agent, and its agents and representatives, from any losses or
damages of any kind (including, without limitation, lost opportunity costs)
relating to the investment of a Participant’s Plan Accounts, other than as a
result of the failure to follow a valid and effective investment direction.

 

(j)          The Participant’s Annual
Match Accounts and Annual Discretionary Allocation Accounts for each Plan Year
shall be treated for purposes of this Article 6 as separate from the
Annual Deferral Accounts for that Plan Year. 
Unless otherwise provided in the applicable Annual Enrollment Materials,
a Participant may only provide investment directions with respect to all of his
or her Annual Deferral Accounts.

 

6.02.      Adjustment of Plan
Accounts.  While a Participant’s Plan
Accounts do not represent the Participant’s ownership of, or any ownership
interest in, any particular assets, the Participant’s Plan Accounts shall be
adjusted in accordance with the Investment Option(s), subject to the conditions
and procedures set forth herein or established by the Committee from time to
time.  Any notional cash earnings generated
under an Investment Option (such as interest and cash dividends and
distributions) shall, at the Committee’s sole discretion, either be deemed to
be reinvested in that Investment Option or reinvested in one or more other
Investment Option(s) designated by the Committee.  All notional acquisitions and dispositions of
Investment Options under a Participant’s Plan Accounts shall be deemed to occur
at such times as the Committee shall determine to be administratively feasible
in its sole discretion and the Participant’s Plan Accounts shall be adjusted
accordingly.  In addition, a Participant’s
Plan Accounts may be adjusted from time to time, in accordance with procedures
and practices established by the Committee, in its sole discretion, to reflect
any notional transactional costs and other fees and expenses relating to the
deemed investment, disposition or carrying of any Investment Option for the
Participant’s Plan Accounts.

 

6.03.      FICA
and Other Taxes.

 

(a)         Withholding.  For each Plan Year in which an Annual
Participant Deferral is being withheld from a Participant or in which an Annual
Match or Annual Discretionary Allocation credited on behalf of a Participant
vests, the Participant’s Employer(s) shall withhold from the Participant’s
other compensation payable by the Employer(s) to the Participant, in a
manner determined by the Employer(s), the Participant’s share of FICA and other
employment taxes.  If the Committee
determines that such portion may not be sufficient to cover the amount of the
applicable withholding, then to the extent permissible under Section 409A,
the Committee may reduce the Annual Participant Deferral to the extent
necessary, as determined 

 

12

 

by the Committee in its sole discretion, for the
Participant’s Employer to comply with applicable withholding requirements.

 

(b)         Distributions.  The Participant’s Employer(s), or the
Trustee, shall withhold from any payments made to a Participant under the Plan
all federal, state and local income, employment and other taxes required to be
withheld by the Employer(s), or the Trustee, in connection with such payments,
in amounts and in a manner to be determined in the sole discretion of the
Employer(s) and the Trustee.

 

Article 7

Distribution of Plan Accounts

 

7.01.      Distribution Elections.

 

(a)         Initial
Elections.  The Participant
shall make a Distribution Election by filing a Distribution Election Form at
the time he or she makes an Annual Participant Deferral with respect to a given
Plan Year to have the Participant’s respective Plan Accounts for that Plan Year
distributed in either a lump sum, or two to ten substantially equivalent annual
installments, in each case commencing, in accordance with administrative
guidelines determined by the Committee, on June 30th of (i) a
specified year following the year that the compensation deferred would
otherwise have been paid; or (ii) the year following the year of the
Participant’s Termination of Employment. 
The amount of each installment payment shall be equal to the value of
the Participant’s respective Plan Accounts for that Plan Year divided by the
number of installments remaining to be paid.

 

(b)         Subsequent
Elections.  Subject to any
restrictions that may be imposed by the Committee, a Participant may amend his
or her Distribution Election with respect to any Plan Account by completing and
submitting to the Committee within such time frame as the Committee may
designate, an Amended Distribution Election Form; provided, however, that such
Amended Distribution Election Form (i) is submitted no later than a
date specified by the Committee in accordance with the requirements of Section 409A,
(ii) shall not take effect until 12 months after the date on which such
Amended Distribution Election Form becomes effective, and (iii) specifies
a new distribution date (or a new initial distribution date in the case of
installment distributions) that is no sooner than five years after the original
distribution date (or the original initial distribution date in the case of installment
distributions), or such later date specified by the Committee.

 

7.02.      Valuation of Plan
Accounts Pending Distribution.  To
the extent that the distribution of any portion of any Plan Account is
deferred, any amounts remaining to the credit of the Plan Account shall
continue to be adjusted by the applicable Investment Adjustments in accordance
with Article 6.

 

7.03.      Form of Payment.  Distributions under the Plan shall be paid in
cash; provided, however, that the Committee may provide, in its discretion,
that any distribution attributable to the portion of a Plan Account that is
deemed invested in the Company Stock Fund shall be paid in shares of Company
Stock; provided, further, that any shares of Company Stock paid out under the
Plan will be deemed to have been distributed under the Ameriprise Financial 

 

13

 

2005 Incentive Compensation Plan, as amended from
time to time, or any successor thereto, and will count against the limit on the
number of shares of Company Stock available for distribution thereunder.

 

7.04.      Effect of Payment.  The full payment of the applicable benefit
under the provisions of the Plan shall completely discharge all obligations to
a Participant and his or her estate under the Plan.

 

Article 8

Leave of Absence

 

8.01.      Paid Leave of Absence.  If a Participant is authorized by the
Participant’s Employer for any reason to take a paid leave of absence from the
employment of the Employer, the Participant shall continue to be considered
employed by the Employer and the appropriate amounts shall continue to be
withheld from the Participant’s compensation pursuant to the Participant’s then
current Annual Election Form.

 

8.02.      Unpaid Leave of Absence.  If a Participant is authorized by the Participant’s
Employer for any reason to take an unpaid leave of absence from the employment
of the Employer, the Participant shall continue to be considered employed by
the Employer and, to the extent permissible under Section 409A, the
Participant shall be excused from making deferrals until the earlier of the
date the leave of absence expires or the Participant returns to a paid
employment status.  Upon such expiration
or return, deferrals shall resume for the remaining portion of the Plan Year in
which the expiration or return occurs, based on the deferral election, if any,
made for that Plan Year.  If no election
was made for that Plan Year, no deferral shall be withheld.

 

Article 9

Effects of Certain Events

 

9.01.      Death.  In the case of a Participant’s death, all
amounts credited to the Plan Accounts of the affected Participant shall be 100
percent vested.  Notwithstanding anything
to the contrary in a Participant’s Distribution Election or otherwise, if a
Participant dies before he or she has received a complete distribution of his
or her Plan Accounts, the Participant’s estate shall receive the balance of the
Participant’s Plan Accounts, which shall be payable to the executor or personal
representative of the Participant’s estate in a lump sum within 90 days of the
date of the Participant’s death, or such later date permissible under Section 409A.

 

9.02.      Disability.  In the case of a Participant’s Disability,
all amounts credited to the Participant’s Plan Accounts shall be 100 percent
vested.  Notwithstanding anything to the
contrary in a Participant’s Distribution Election or otherwise, a Participant
suffering a Disability shall receive the balance of his or her Plan Accounts,
which shall be paid in a lump sum within 90 days of the date that the Participant
became disabled.

 

9.03.      Retirement.  In the case of a Participant becoming
Retirement Eligible, all amounts credited to the Plan Accounts of such
Participant shall become immediately 100 percent vested.  In the event of a Participant’s Retirement,
the balance of the Participant’s 

 

14

 

Plan Accounts will be paid out in either a lump sum,
or two to ten substantially equivalent annual installments, as specified by the
Participant in his or her Distribution Election, in each case commencing, in
accordance with administrative guidelines determined by the Committee, on June 30th
of the year following the year of the Participant’s Retirement.

 

9.04.      Other Termination of
Employment.  As of the date of a
Participant’s Termination of Employment for any reason other than Retirement,
Disability or death, the amounts credited to each of the Participant’s Plan
Accounts shall be reduced by the amount which has not become vested in
accordance with the vesting provisions set forth herein and in the Annual
Enrollment Materials applicable to such Plan Account, and such unvested amounts
shall be forfeited by the Participant. 
Notwithstanding anything to the contrary in a Participant’s Distribution
Election or otherwise, in the event of a Participant’s Termination of
Employment for any reason other than Retirement, Disability or death, the
portion of the Participant’s Aggregate Vested Balance will be paid out in
either a lump sum, or two to five substantially equivalent annual installments,
as specified by the Participant in his or her Distribution Election, in each
case commencing, in accordance with administrative guidelines determined by the
Committee, on June 30th of the year following the year of the Participant’s
Termination of Employment. 
Notwithstanding anything to the contrary in a Participant’s Distribution
Election or otherwise, in the event that the Participant specified in his or
her Distribution Election for a Plan Account to be paid out in more than five
installments, such Participant’s Distribution Election for such Plan Account
shall be deemed to specify five annual installments for purposes of this Article 9.04.

 

9.05.      Change in Control.  Upon the occurrence of a Change in Control of
the Company, all amounts credited to any and all Plan Accounts of each
Participant as of the effective date of such Change in Control shall become
immediately 100 percent vested. 
Notwithstanding anything to the contrary set forth in a Participant’s
Annual Distribution Election Form or the Plan, upon the occurrence of a
Change in Control, the Company will distribute all previously undistributed
Plan Accounts to Participants as soon as administratively practicable following
the effective date of such Change in Control, but in no event later than 90
days thereafter.

 

9.06.      Unforeseeable Emergency.  In the event that a Participant experiences
an Unforeseeable Emergency, the Participant may petition the Committee to
receive a partial or full payout of amounts credited to one or more of the Participant’s
Plan Accounts.  The Committee shall
determine, in its sole discretion, whether the requested payout shall be made,
the amount of the payout and the Plan Accounts from which the payout will be
made; provided, however, that the payout shall not exceed the lesser of the
Participant’s Aggregate Vested Balance or the amount reasonably needed to
satisfy the Unforeseeable Emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution.  In making its determination under this Article 9.06,
the Committee shall be guided by the requirements of Section 409A and any
other related prevailing legal authorities, and the Committee shall take into
account the extent to which a Participant’s Unforeseeable Emergency is or may be
relieved through reimbursement or compensation by insurance or otherwise or by
the liquidation by the Participant of his or her assets (to the extent the
liquidation of such assets would not itself cause severe financial hardship).  If, subject to the sole discretion of the
Committee, the petition for a payout is approved, the payout shall be made
within 90 days of the date of the Unforeseeable Emergency.

 

15

 

9.07.      Event of Taxation.  If, for any reason, all or any portion of a
Participant’s benefit under the Plan becomes taxable to the Participant prior
to receipt, a Participant may petition the Committee before a Change in
Control, or the Trustee after a Change in Control, for a distribution of the
state, local or foreign taxes owed on that portion of his or her benefit that
has become taxable.  Upon the grant of
such a petition, which grant shall not be unreasonably withheld, a Participant’s
Employer shall, to the extent permissible under Section 409A, distribute
to the Participant immediately available funds in an amount equal to the state,
local and foreign taxes owed on the portion of the Participant’s benefit that
has become taxable (which amount shall not exceed a Participant’s unpaid
Aggregate Vested Balance under the Plan). 
If the petition is granted, the tax liability distribution shall be made
within 90 days of the date that the Participant’s benefits under the Plan
became taxable.  Such a distribution
shall affect and reduce the benefits to be paid to the Participant under the
Plan.

 

9.08.      Plan Termination.  In the event of a termination of the Plan
pursuant to Article 10.02 as it relates to any Participant, then subject
to Article 7.02,
all amounts credited to each of the Plan Accounts of each affected Participant
shall be 100 percent vested and shall be paid in a lump sum to the
Participant or, in the case of the Participant’s death, to the executor or
personal representative of the Participant’s estate.  Such lump-sum payment shall be made
13 months after such termination (or such earlier or later date permitted
under Section 409A), notwithstanding any elections made by the
Participant, and the Annual Election Forms relating to each of the Participant’s
Plan Accounts shall terminate upon full payment of such Aggregate Vested
Balance, except that neither the Company nor any Employer shall have any right
to so accelerate the payment of any amount to the extent such right would cause
the Plan to fail to comply with, or cause a Participant to be subject to a tax
under, the provisions of Section 409A.

 

Article 10

Amendment and Termination

 

10.01.    Amendment.  The Company may, at any time, amend or modify
the Plan in whole or in part with respect to any or all Employers by the
actions of the Committee; provided, however, that (a) no amendment or modification
shall be effective to decrease or restrict the value of a Participant’s
Aggregated Vested Balance in existence at the time the amendment or
modification is made, calculated as if the Participant had experienced a
Termination of Employment as of the effective date of the amendment or
modification; (b) no amendment or modification may be made if such
amendment or modification would cause the Plan to fail to comply with, or cause
a Participant to be subject to tax under the provisions of Section 409A;
and (c) except as specifically provided in  Article 10.02,
no amendment or modification shall be made after a Change in Control which
adversely affects the vesting, calculation or payment of benefits hereunder or
diminishes any other rights or protections any Participant would have had but
for such amendment or modification, unless each affected Participant consents
in writing to such amendment.

 

10.02.    Termination.  Although an Employer may anticipate that it will
continue the Plan for an indefinite period of time, there is no guarantee that
any Employer will continue the Plan or will not terminate the Plan at any time
in the future.  Accordingly, each
Employer reserves the right to discontinue its sponsorship of the Plan and to
terminate the Plan, at any time, with respect to its participating Employees by
action of its board of directors, and the Company may 

 

16

 

at any time terminate an Employer’s participation in
the Plan; provided, however, that (a) all plans that are aggregated with
the Plan for purposes of Section 409A are also terminated, and (b) the
Plan is not terminated proximate to a downturn in the financial health of the
Employer, or any entity other than the Employer with whom the Employer would be
considered a single employer under Sections 414(b) or 414(c) of the
Code.  In the event of a termination
described in this Article 10.02, no new deferred compensation plans may be
established by the Employer for a minimum period of three years following the
termination and liquidation of the Plan if such new plan would be aggregated
with the Plan under Section 409A.

 

Article 11

Administration

 

11.01.    Committee Duties.  This Plan shall be administered by the Committee.  Members of the Committee may be Participants
under the Plan.  The Committee shall also
have the discretion and authority to (a) make, amend, interpret, and
enforce all appropriate rules and regulations for the administration of
the Plan, and (b) decide or resolve any and all questions including
interpretations of the Plan, as may arise in connection with the Plan.  Any individual serving on the Committee who
is a Participant shall not vote or act on any matter relating solely to himself
or herself.  When making a determination
or calculation, the Committee shall be entitled to rely on information
furnished by a Participant or the Company.

 

11.02.    Agents.  In the administration of the Plan, the
Committee may, from time to time, employ agents and delegate to them such
administrative duties as it sees fit (including acting through a duly appointed
representative) and may from time to time consult with counsel who may be
counsel to any Employer.

 

11.03.    Binding Effect of Decisions.  The decision or action of the Committee with
respect to any question arising out of or in connection with the
administration, interpretation and application of the Plan and the rules and
regulations promulgated hereunder shall be final and conclusive and binding
upon all persons having any interest in the Plan.

 

11.04.    Indemnity of Committee.  All Employers shall indemnify and hold
harmless the members of the Committee, and any agent to whom duties of the
Committee may be delegated, against any and all claims, losses, damages,
expenses or liabilities arising from any action or failure to act with respect
to the Plan, except in the case of willful misconduct by the Committee or any
of its members or any such agent.

 

11.05.    Employer Information.  To enable the Committee to perform its
functions, each Employer shall supply full and timely information to the
Committee on all matters relating to the compensation of its Participants, the
date and circumstances of the Retirement, Disability, death or Termination of
Employment of its Participants, and such other pertinent information as the
Committee may reasonably require.

 

Article 12

Claims Procedures

 

12.01.    Presentation of Claim.  Any Participant or the estate of a deceased
Participant (such Participant or estate being referred to below as a “Claimant”)
may deliver to the 

 

17

 

Committee a written claim for a determination with
respect to the amounts distributable to such Claimant from the Plan.  If such a claim relates to the contents of a
notice received by the Claimant, the claim must be made within 60 days after
such notice was received by the Claimant. 
The claim must state with particularity the determination desired by the
Claimant.  All other claims must be made
within 180 days of the date on which the event that caused the claim to arise
occurred.  The claim must state with
particularity the determination desired by the Claimant.

 

12.02.    Notification of Decision.  The Committee shall consider a Claimant’s
claim within a reasonable time, and shall notify the Claimant in writing:  (a) that the Claimant’s requested
determination has been made, and that the claim has been allowed in full; or (b) that
the Committee has reached a conclusion contrary, in whole or in part, to the
Claimant’s requested determination, and such notice must set forth in a manner
calculated to be understood by the Claimant: 
(i)          the specific reason(s) for
the denial of the claim, or any part of it; (ii) specific reference(s) to
pertinent provisions of the Plan upon which such denial was based; (iii) a
description of any additional material or information necessary for the
Claimant to perfect the claim, and an explanation of why such material or
information is necessary; and (iv) an explanation of the claim review
procedure set forth in Article 12.03.

 

12.03.    Review of a Denied Claim.  Within 60 days after receiving a notice from
the Committee that a claim has been denied, in whole or in part, a Claimant (or
the Claimant’s duly authorized representative) may file with the Committee a
written request for a review of the denial of the claim.  Thereafter, but not later than 30 days after
the review procedure began, the Claimant (or the Claimant’s duly authorized
representative):  (a) may review
pertinent documents; (b) may submit written comments or other documents;
and/or (c) may request a hearing, which the Committee, in its sole
discretion, may grant.

 

12.04.    Decision on Review.  The Committee shall render its decision on
review promptly, and not later than 60 days after the filing of a written
request for review of the denial, unless a hearing is held or other special
circumstances require additional time, in which case the Committee’s decision
must be rendered within 120 days after such date.  Such decision must be written in a manner
calculated to be understood by the Claimant, and it must contain: (a) specific
reasons for the decision; (b) specific reference(s) to the pertinent
Plan provisions upon which the decision was based; and (c) such other
matters as the Committee deems relevant.

 

12.05.    Arbitration.  A Claimant’s compliance with the foregoing
provisions of this Article 12 is a mandatory prerequisite to a Claimant’s
right to commence any arbitration with respect to any claim for benefits under
the Plan.  Any dispute, claim or
controversy that may arise between a Participant and the Company or any other
person (the “Claims”) under the Plan is subject to arbitration, unless
otherwise agreed to in writing by the Participant and the Company.  The Claims shall be finally decided by
arbitration conducted pursuant to the Commercial Dispute Resolution Procedures
of the American Arbitration Association (the “AAA”), and its Supplementary Rules for
Securities Arbitration, or other applicable rules promulgated by the AAA.  In addition, all claims, statutory or
otherwise, which allege discrimination or other violation of employment laws,
including but not limited to claims of sexual harassment, shall be finally
decided by arbitration pursuant to the AAA unless otherwise 

 

18

 

agreed to in writing by a Participant and the
Company.  By agreement of a Participant
and the Company in writing, disputes may be resolved in arbitration by a
mutually agreed-upon organization other than the AAA.  In consideration of the promises and the
compensation provided in this Plan, neither a Participant nor the Company shall
have a right: (a) to arbitrate a Claim on a class action basis or in a
purported representative capacity on behalf of any Participants, employees,
applicants or other persons similarly situated; (b) to join or to
consolidate in an arbitration Claims brought by or against another Participant,
employee, applicant or the Participant, unless otherwise agreed to in writing
by the Participant and the Company; (c) to litigate any Claims in court or
to have a jury trial on any Claims; and (d) to participate in a
representative capacity or as a member of any class of claimants in an action
in a court of law pertaining to any Claims. 
Nothing in this Plan relieves a Participant or the Company from any
obligation the Participant or the Company may have to exhaust certain
administrative remedies before arbitrating any claims or disputes under this Article 12.05.  Either a Participant or the Company may
compel arbitration of any Claims filed in a court of law.  In addition, either a Participant or the
Company may apply to a court of law for an injunction to enforce the terms of
the Plan pending a final decision on the merits by an arbitration panel
pursuant to this provision.  The Company
shall pay all fees, costs or other charges charged by the AAA or any other
organization administering arbitration proceeding agreed upon pursuant to this Article 12
that are above and beyond the filing fees of the federal or state court in the
jurisdiction in which the dispute arises, whichever is less.  A Participant or the Company shall each be
responsible for their own costs of legal representation, if any, except where such
costs of legal representation may be awarded as a statutory remedy by the
arbitrator.  Any award by an arbitration
panel shall be final and binding upon a Participant or the Company.  Judgment upon the award may be entered by any
court having jurisdiction thereof or having jurisdiction over the relevant
party or its assets.  This provision is
covered and enforceable under the terms of the Federal Arbitration Act.

 

Article 13

Trust

 

13.01.    Establishment of the Trust.  The Company may establish one or more Trusts
to which the Employers may transfer such assets as the Employers determine in
their sole discretion to assist in meeting their obligations under the Plan.

 

13.02.    Interrelationship of the
Plan and the Trust.  The provisions
of the Plan and the relevant Annual Enrollment Materials shall govern the
rights of a Participant to receive distributions pursuant to the Plan.  The provisions of the Trust shall govern the
rights of the Employers, Participants and the creditors of the Employers to the
assets transferred to the Trust.

 

13.03.    Distributions from the
Trust.  Each Employer’s obligations
under the Plan may be satisfied with Trust assets distributed pursuant to the
terms of the Trust, and any such distribution shall reduce the Employer’s
obligations under the Plan.

 

19

 

Article 14

Miscellaneous

 

14.01.    Status of Plan.  The Plan is intended to be (a) a plan
that is not qualified within the meaning of Section 401(a) of the
Code and (b) a plan that “is unfunded and is maintained by an employer primarily
for the purpose of providing deferred compensation for a select group of
management or highly compensated employees” within the meaning of Sections
201(2), 301(a)(3) and 401(a)(1) of ERISA.  The Plan shall be administered and
interpreted to the extent possible in a manner consistent with that
intent.  All Plan Accounts and all
credits and other adjustments to such Plan Accounts shall be bookkeeping
entries only and shall be utilized solely as a device for the measurement and
determination of amounts to be paid under the Plan.  No Plan Accounts, credits or other
adjustments under the Plan shall be interpreted as an indication that any
benefits under the Plan are in any way funded.

 

14.02.    Section 409A.  It is intended that the Plan (including all
amendments thereto) comply with provisions of Section 409A, so as to
prevent the inclusion in gross income of any benefits accrued hereunder in a
taxable year prior to the taxable year or years in which such amount would
otherwise be actually distributed or made available to the Participants.  The Plan shall be administered and
interpreted to the extent possible in a manner consistent with that intent and
the Company’s Policy Regarding Section 409A Compliance.  Notwithstanding the terms of Article 7,
to the extent that a distribution to a Participant who is a Specified Employee
at the time of his or her Termination of Employment is required to be delayed
by six months pursuant to Section 409A, such distribution shall be made no
earlier than the first day of the seventh month following the Participant’s
Termination of Employment.  The amount of
such payment will equal the sum of the payments that would have been paid to
the Specified Employee during the six-month period immediately following the
Specified Employee’s Termination of Employment had the payment commenced as of
such date.  If the Specified Employee
elected to receive installment payments, the remaining balance of the Specified
Employee’s Plan Accounts shall be paid in substantially equivalent installments.  For purposes of this paragraph, “Specified
Employee” shall mean a key employee as defined under Section 409A, as
determined in accordance with the Company’s Policy Regarding Section 409A
Compliance.

 

14.03.    Unsecured General Creditor.  Participants and their beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interests or
claims in any property or assets of an Employer.  For purposes of the payment of benefits under
the Plan, any and all of an Employer’s, assets, shall be, and remain, the
general, unpledged unrestricted assets of the Employer.  An Employer’s obligation under the Plan shall
be merely that of an unfunded and unsecured promise to pay money in the future.

 

14.04.    Other Benefits and
Agreements.  The benefits provided
for a Participant under the Plan are in addition to any other benefits
available to such Participant under any other plan or program for employees of
the Participant’s Employer.  The Plan
shall supplement and shall not supersede, modify or amend any other such plan
or program except as may otherwise be expressly provided.

 

20

 

14.05.    Employer’s Liability.  An Employer’s liability for the payment of
benefits shall be defined only by the Plan and the Annual Enrollment Forms, as
entered into between the Employer and a Participant.  An Employer shall have no obligation to a
Participant under the Plan except as expressly provided in the Plan and his or
her Annual Enrollment Forms.

 

14.06.    Nonassignability.  Neither a Participant nor any other person
shall have any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in
advance of actual receipt, the amounts, if any, payable hereunder, or any part
thereof, which are, and all rights to which are expressly declared to be,
unassignable and non-transferable.  No
part of the amounts payable shall, prior to actual payment, be subject to
seizure, attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other
person, be transferable by operation of law in the event of a Participant’s or
any other person’s bankruptcy or insolvency or be transferable to a spouse as a
result of a property settlement or otherwise.

 

14.07.    Prior Beneficiary
Designations Void.  Any beneficiary
designations made under the Plan or any predecessor arrangement thereto shall
be null and void, and of no effect as of January 1, 2007.  Following the death of a Participant, any
payments to be made to the Participant shall be made to the executor or
personal representative of the Participant’s estate.

 

14.08.    Not a Contract of
Employment.  The terms and conditions
of the Plan and the Annual Election Form under the Plan shall not be
deemed to constitute a contract of employment between any Employer and the
Participant.  Such employment is hereby
acknowledged to be an “at will” employment relationship that can be terminated
at any time for any reason, or no reason, with or without cause, and with or
without notice, except as otherwise provided in a written employment
agreement.  Nothing in the Plan or any
Annual Election Form shall be deemed to give a Participant the right to be
retained in the service of any Employer as an Employee or to interfere with the
right of any Employer to discipline or discharge the Participant at any time.

 

14.09.    Furnishing Information.  A Participant will cooperate with the
Committee by furnishing any and all information requested by the Committee and
take such other actions as may be requested in order to facilitate the
administration of the Plan and the payments of benefits hereunder, including
but not limited to taking such physical examinations as the Committee may deem
necessary.

 

14.10.    Terms.  Whenever any words are used herein in the
masculine, they shall be construed as though they were in the feminine in all
cases where they would so apply; and whenever any words are used herein in the
singular or in the plural, they shall be construed as though they were used in
the plural or the singular, as the case may be, in all cases where they would
so apply.

 

14.11.    Captions.  The captions of the articles and paragraphs
of the Plan are for convenience only and shall not control or affect the
meaning or construction of any of its provisions.

 

21

 

14.12.    Governing Law.  The Plan and all determinations made and
actions taken thereunder, to the extent not otherwise governed by federal law,
shall be governed by the laws of the State of Delaware, without reference to
principles of conflict of laws, and construed accordingly.

 

14.13.    Notice.  Any notice or filing required or permitted to
be given to the Committee under the Plan shall be sufficient if in writing and
hand-delivered, or sent by registered or certified mail, to the address below:

 

Ameriprise Financial, Inc.

360 Ameriprise Financial
Center

Minneapolis, Minnesota
55474

Attn:  Vice President, Benefits

 

with a copy to:

 

General Counsel’s Office

 

Such notice shall be
deemed given as of the date of delivery or, if delivery is made by mail, as of
the date shown on the postmark or the receipt for registration or
certification.

 

Any notice or filing
required or permitted to be given to a Participant under the Plan shall be
sufficient if in writing and hand-delivered, or sent by mail, to the last known
address of the Participant.

 

14.14.    Successors.  The provisions of the Plan shall bind and
inure to the benefit of the Participant’s Employer and its successors and
assigns and the Participant and the Participant’s estate, heirs and assigns.

 

14.15.    Spouse’s Interest.  The interest in the benefits hereunder of a
spouse of a Participant who has predeceased the Participant shall automatically
pass to the Participant and shall not be transferable by such spouse in any
manner, including but not limited to such spouse’s will, nor shall such
interest pass under the laws of intestate succession.

 

14.16.    Validity.  In case any provision of the Plan shall be
illegal or invalid for any reason, said illegality or invalidity shall not
affect the remaining parts hereof, but the Plan shall be construed and enforced
as if such illegal or invalid provision had never been inserted herein.

 

14.17.    Incompetent.  If the Committee determines in its discretion
that a benefit under the Plan is to be paid to a minor, a person declared
incompetent or to a person incapable of handling the disposition of that person’s
property, the Committee may direct payment of such benefit to the guardian,
legal representative or person having the care and custody of such minor,
incompetent or incapable person.  The
Committee may require proof of minority, incompetence, incapacity or
guardianship, as it may deem appropriate prior to distribution of the
benefit.  Any payment of a benefit shall
be a payment for the account of the Participant and the Participant’s estate,
as the case may be, and shall be a complete discharge of any Company liability
under the Plan for such payment amount.

 

22

 

14.18.    Insurance.  The Employers, on their own behalf or on
behalf of the Trustee, and, in their sole discretion, may apply for and procure
insurance on the life of the Participant, in such amounts and in such forms as
the Trust may choose.  The Employers or
the Trustee, as the case may be, shall be the sole owner and beneficiary of any
such insurance.  The Participant shall
have no interest whatsoever in any such policy or policies, and at the request
of the Employers shall submit to medical examinations and supply such
information and execute such documents as may be required by the insurance
company or companies to whom the Employers have applied for insurance.

 

14.19.    Legal Fees To Enforce
Rights After Change in Control.  The
Company and each Employer is aware that upon the occurrence of a Change in
Control, the Board or the board of directors of the Participant’s Employer
(which might then be composed of new members) or a stockholder of the Company
or the Participant’s Employer, or of any successor corporation might then cause
or attempt to cause the Company or the Participant’s Employer or such successor
to refuse to comply with its obligations under the Plan and might cause or
attempt to cause the Company or the Participant’s Employer to institute, or may
institute, arbitration or litigation seeking to deny Participants the benefits
intended under the Plan.  In these
circumstances, the purpose of the Plan could be frustrated.  Accordingly, if, following a Change in
Control, it should appear to any Participant that the Company, the Participant’s
Employer or any successor corporation has failed to comply with any of its
obligations under the Plan or any agreement thereunder, or if the Company, such
Employer or any other person takes any action to declare the Plan void or
unenforceable or institutes any arbitration, litigation or other legal action
designed to deny, diminish or to recover from any Participant the benefits
intended to be provided, then the Company and the Participant’s Employer
irrevocably authorize such Participant to retain counsel of his or her choice
at the expense of the Company and the Employer (who shall be jointly and
severally liable) to represent such Participant in connection with the
initiation or defense of any arbitration, litigation or other legal action,
whether by or against the Company, the Participant’s Employer or any director,
officer, stockholder or other person affiliated with the Company, the Participant’s Employer or any successor thereto in any
jurisdiction; provided, however, that in the event that the trier in any such
legal action determines that the Participant’s claim was not made in good faith
or was wholly without merit, the Participant shall return to the Company any
amount received pursuant to this Article 14.19.  Any reimbursements shall be paid in
accordance with the Company’s Policy Regarding Section 409A Compliance.

 

14.20.      Electronic Documents Permitted.  Subject to applicable
law, Annual Election Forms, Annual Enrollment Materials, and other forms or
documents may be in electronic format or made available through means of online
enrollment or other electronic transmission.

 

*  *  * 
*  *

 

23

 

Ameriprise Financial 

Deferred Compensation Plan

 

Schedule A

January 1,
2009

 

Employers

 

·                  Ameriprise Bank, FSB

·                  Ameriprise Enterprise Investment
Services, Inc.

·                  Ameriprise Financial Services Inc.

·                  RiverSource Distributors, Inc.

·                  RiverSource Investments, LLC

·                  RiverSource Service Corporation

·                  RiverSource Life Insurance Company

·                  RiverSource Life Insurance Co. of New
York

·                  IDS Property Casualty Insurance
Company

·                  Ameriprise Trust Company

·                  Ameriprise
Advisor Services, Inc.

·                  J.& W.
Seligman & Co. Incorporated

·                  Seligman
Services, Inc.

·                  Seligman
Advisors, Inc.

 

24

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