Document:

employment agreement
THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of September 14, 2020 (“Effective Date”), is entered into by and between General Cannabis Corp., a Colorado corporation (the “Company”), and Diane Jones, an individual (“Employee”).
WHEREAS, the Company wishes to employ Employee, and Employee wishes to accept such employment, on the terms and conditions set forth in this Agreement. 
NOW, THEREFORE, in consideration of the foregoing and the mutual promises, terms, provisions, and conditions set forth in this Agreement, the parties hereby agree as follows:
1.Employment. Subject to the terms and conditions set forth in this Agreement, the Company hereby offers, and Employee hereby accepts, employment, effective as of the Effective Date. Subject to the provisions for earlier termination hereinafter provided, Employee’s employment with the Company will be for a term commencing on the Effective Date and ending on the fourth (4th) anniversary of the Effective Date (such term, the “Employment Term”). Employee’s employment may be terminated by either Employee or the Company at any time prior to the end of the Employment Term, with or without Cause.  Notwithstanding the foregoing, Employee’s employment with the Company will end at the end of the Employment Term without any further action by the Company or Employee.
2.Position and Duties.
(a)During Employee’s employment with the Company, Employee shall serve as Chief Financial Officer of the Company.
(b)Employee shall report to the Chief Executive Officer and Employee shall devote her best efforts, business time and attention (except for permitted vacation periods and reasonable periods of illness or other incapacity) to the business and affairs of the Company and its Subsidiaries (as defined below). Employee shall perform her duties, responsibilities and functions to the Company and its Subsidiaries hereunder in good faith and to the best of her abilities in a diligent, trustworthy, professional and efficient manner and shall comply with the Company’s and its Subsidiaries’ general employment policies and practices, as they may be amended from time to time; provided, that when the terms of this Agreement conflict with such general employment policies or practices, this Agreement shall control. So long as Employee is employed by the Company, Employee shall not, without the prior written consent of the Board, accept other employment or perform other services for compensation that materially interfere with Employee’s employment or with his performance hereunder
(c)For purposes of this Agreement, “Subsidiaries” shall mean any corporation or other entity of which the securities or other ownership interests having the voting power to elect a majority of the board of directors or other governing body are then, owned by the Company, directly or through one or more Subsidiaries.

3.Compensation.
(a)Base Salary. Employee’s base salary shall be $200,000 per annum and shall be subject to increase from time to time in the Board’s sole discretion (the “Base Salary”), which salary shall be paid by the Company in regular installments in accordance with the Company’s general payroll practices (in effect from time to time). 
(b)Bonus.  
(i)During Employee’s employment with the Company, Employee shall be eligible to receive an annual bonus payment of up to 50% of her Base Salary, on terms and conditions set by the Company.
(ii)To be eligible for and receive payment of any bonus, Employee must be employed by the Company at the time such bonus is paid. 
(c)Stock Options.  In connection with the execution of this Agreement, Employee will receive options to purchase 300,000 shares of Common Stock of the Company (the “Initial Options”), with one-quarter (1/4) of the shares vesting on each yearly anniversary of the date of grant.  The Options shall be subject to the terms and conditions of the Company’s 2014 Equity Incentive Plan (the “Plan”) and the Company’s standard stock option agreement which provides for the cessation of vesting upon termination of employment for any reason.
4.Employee Benefits.
(a)Insurance and Employee Programs.  During Employee’s employment with the Company, Employee shall be eligible for all employee benefit programs (including any retirement plan, life insurance, group medical and dental, and short-term and long-term disability policies, plan and programs) established and maintained for the benefit of the Company’s employees of comparable rank and status as Employee, subject to the provisions of such plans and programs. 
(b)Expense Reimbursement.  During Employee’s employment with the Company, the Company shall reimburse Employee for all reasonable business expenses incurred by Employee in the course of performing her duties and responsibilities under this Agreement which are consistent with the Company’s policies in effect from time to time with respect to travel, entertainment, cell phone and other business expenses, subject to the Company’s requirements with respect to reporting and documentation of such expenses.
Paid Time Off.  During Employee’s employment with the Company, Employee shall be entitled to paid vacation and holidays in accordance with the Company’s policy. Notwithstanding any Company policy, at all times Employee will be entitled to not less than four 4 weeks of vacation per calendar year during her employment with the Company. Employee shall also be entitled to such periods of sick leave as is customarily provided by the Company to its employees of comparable rank and status of Employee.
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(c)Withholding.  All amounts payable to Employee as compensation hereunder shall be subject to all required and customary employment and income withholding obligations by the Company.
5.Termination of Employment.
(a)Accrued Obligations.  If Employee’s employment with the Company is terminated, Employee shall be entitled to (A) her accrued but unused vacation, (B) any accrued but unpaid Base Salary through the date of termination, and (C) unreimbursed business expenses that are reimbursable in accordance with Section 4(b). 
(b)Severance Compensation and Benefits.  After three months of employment, Employee shall be entitled to receive Severance Compensation (“Severance Compensation”) if terminated by the Company without Cause; provided, that any payment of Severance Compensation shall be conditioned upon Employee executing and delivering to the Company a release in form attached as Exhibit A hereto (the “Release”).  Employee shall not be entitled to any Severance Compensation with respect to any other type of termination of employment with the Company, including termination due to death or Disability or termination due to the end of the Employment Term;
Severance Compensation shall be an amount equal to six (6) months of the annual base salary being paid to Employee at the time of termination. If Employee is entitled to Severance Compensation, the Severance Compensation shall be payable for a period of six (6) months following termination, subject to all required deductions and tax withholdings. The Company will pay the Severance Compensation to Employee on its regularly scheduled payroll dates or, in its discretion, in a lump sum.  
In the event a court of competent jurisdiction finds Employee breached the Release or any of the post-employment obligations set out in Sections 6, 7 and 8, Employee shall not be entitled to any Severance Compensation, and Employee shall immediately repay to the Company any and all Severance Compensation received by Employee.
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(c)Termination of Employee Benefits. Except as otherwise expressly provided herein, particularly in Section 5(b) above, Employee shall not be entitled to any other salary, bonuses, employee benefits or compensation from the Company or its Subsidiaries after the termination of Employee’s employment with the Company and all of Employee’s rights to salary, bonuses, employee benefits and other compensation hereunder which would have accrued or become payable after the termination of Employee’s employment with the Company (other than vested retirement or other benefits accrued on or prior to the termination of Employee’s employment with the Company, including, without limitation, any vested rights under any equity plan of the Company or other amounts owing hereunder as of the date of such termination or expiration that have not yet been paid) shall cease upon such termination or expiration, other than those expressly required under applicable law (such as COBRA). All such salary, bonuses, employee benefits or compensation shall be deemed unearned and all conditions for any right to receive such payments shall be deemed unsatisfied.

(d)Definition of Cause.  For purposes of this Agreement, “Cause” shall be determined by the Board and shall mean with respect to Employee one or more of the following: (i) Employee’s willful breach of her covenants contained in this Agreement, in any material respect, which breach remains substantially uncured for fifteen (15) or more days after Employee’s receipt of written notice from the Company of such breach; (ii) Employee’s willful failure or refusal to perform the duties and responsibilities lawfully required to be performed by Employee under the terms of this Agreement or otherwise reasonably requested by the Company; (iii) Employee’s gross negligence or willful misconduct in the performance of her duties on behalf of the Company or any of its Subsidiaries; (iv) Employee’s willful commission of an act of material dishonesty adversely affecting the Company or any of its Subsidiaries, or the commission of an act constituting common law fraud or a felony or the commission of any other act or omission involving misappropriation, embezzlement, material dishonesty, or theft with respect to the Company or any of its Subsidiaries; or (v) any willful or intentional act or omission materially aiding or abetting a competitor or supplier of the Company or any of its Subsidiaries to the disadvantage or detriment of the Company and its Subsidiaries.  
(e)Definition of Disability.  For purposes of this Agreement, “Disability” shall mean Employee’s inability to perform her duties and responsibilities, with reasonable accommodation, as provided herein due to physical or mental disability or sickness extending for, or reasonably expected to extend for, greater than one hundred and eighty (180) days in any twelve-month period.
(f)Employee acknowledges and agrees that the Company has no obligation to pay Employee any severance, except as expressly provided herein.
6.Confidential Information.
(a)Employee acknowledges that the continued success of the Company and its Subsidiaries and affiliates, depends upon the use and protection of a large body of confidential, proprietary, and/or trade secret information. All such confidential, proprietary and trade secret information now existing or developed during the term of Employee’s employment hereunder will be referred to in this Agreement as “Confidential Information.” Confidential Information will be interpreted broadly to include all information of any sort (whether merely remembered or embodied in a tangible or intangible form) that is (i) related to the Company’s or its Subsidiaries’ business and (ii) not generally or publicly known. Confidential Information includes, without specific limitation, the information, observations and data obtained by Employee during the course of her performance under this Agreement concerning the business and affairs of the Company and its Subsidiaries and affiliates, information concerning acquisition opportunities in or reasonably related to the Company’ or its Subsidiaries’ or affiliates’ business or industry of which Employee becomes aware during Employee’s employment with the Company, the persons or entities that are current, former or prospective suppliers or customers of any one or more of them during Employee’s course of performance under this Agreement, as well as development, transition and transformation plans, methodologies and methods of doing business, strategic, marketing and expansion plans, including plans regarding planned and potential sales, financial and business plans, confidential employee lists and contact information, compensation and incentive structures and strategies, confidential information concerning sales, including volumes, pricing, and margins, new and existing programs and services, prices and terms, customer service, integration processes, requirements and costs of providing service, support and equipment. Therefore, Employee agrees 

that her shall not disclose to any unauthorized person or use for her own account any of such Confidential Information without the Board’s prior written consent, unless and to the extent that any Confidential Information (i) becomes generally known to and available for use by the public other than as a result of Employee’s improper acts or omissions to act or (ii) is required to be disclosed pursuant to any applicable law or court order. Employee agrees that her shall not disclose any Confidential Information after her employment ends. If requested by the Company in writing, Employee agrees to deliver to the Company at the end of Employee’s employment with the Company, or at any other time the Company may request, all memoranda, notes, plans, records, reports and other documents (and copies thereof and all electronic data residing on any electronic device) relating to the business of the Company or its Subsidiaries or affiliates (including, without limitation, all Confidential Information) that she may then possess or have under her control, provided that Employee may retain copies of Employee’s personnel information, such as performance evaluations, payroll information and the like. 
(b)During Employee’s employment with the Company, Employee shall not use or disclose any confidential information or trade secrets, if any, of any former employers or any other person to whom Employee has an obligation of confidentiality, and shall not bring onto the premises of the Company or its Subsidiaries or affiliates any unpublished documents or any property belonging to any former employer or any other person to whom Employee has an obligation of confidentiality unless consented to in writing by the former employer or person. Employee shall use in the performance of her duties only information that is (i) generally known and used by persons with training and experience comparable to Employee’s and that is (x) common knowledge in the industry or (y) is otherwise legally in the public domain, (ii) otherwise provided or developed by the Company or its Subsidiaries or affiliates or (iii) in the case of materials, property or information belonging to any former employer or other person to whom Employee has an obligation of confidentiality, approved for such use in writing by such former employer or person. If at any time during employment with the Company or any Subsidiary of the Company, Employee believes she is being asked to engage in work that will, or will be likely to, jeopardize any confidentiality or other obligations Employee may have to former employers or other persons, Employee shall promptly advise the Board so that Employee’s duties can be modified appropriately.
(c)Employee shall promptly notify the Company of any intended or unintended, unauthorized disclosure or use of any trade secrets or Confidential Information by Employee or any other person or entity of which Employee becomes aware. Employee shall cooperate fully with the Company in the procurement of any protection of the Company’ rights to or in any of the trade secrets or Confidential Information.
(d)Employee understands that the Company and its Subsidiaries and affiliates will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s and its Subsidiaries’ and affiliates’ part to maintain the confidentiality of such information and to use it only for certain limited purposes. During Employee’s employment with the Company and thereafter, and without in any way limiting the provisions of Section 6(a) above, Employee will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than personnel of the Company or its Subsidiaries and affiliates who need to know such information in connection with their work for the Company or such Subsidiaries and affiliates) or use, except in connection with her work for the Company or 

its Subsidiaries and affiliates, such Third Party Information unless expressly authorized by the Board’s written consent.
(e)Notwithstanding anything to the contrary contained herein:
(1)nothing in this Agreement shall prohibit Employee from reporting possible violations of federal or state law or regulation to, or otherwise cooperating with or providing information requested by, any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation.  Employee does not need the prior authorization of the Company to make any such reports or disclosures and is not required to notify the Company that she has made such reports or disclosures; and
(2)Employee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (B) solely for the purposes of reporting or investigating a suspected violation of law or is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  If Employee files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Employee may disclose the Company’s trade secrets to her attorney and use the trade secret information in the court proceeding if Employee (x) files any document containing the trade secret under seal and (y) does not disclose the trade secret, except pursuant to court order.
7.Employee Proprietary Information Agreement. Employee agrees to execute, perform and abide by the terms and provisions of a separate agreement between the parties hereto dated on even date herewith and attached hereto as Exhibit B and made a part hereof (the “Employee Proprietary Information Agreement”) covering, among other things, non-disclosure and assignment of inventions.
8.Non-Compete and Non-Solicitation.
(a)Employee agrees that during Employee’s employment with the Company and for three (3) months after the termination of Employee’s employment with the Company, Employee shall not, without the Company’s written permission, directly or indirectly through another person or entity (i) compete directly against the Company in the regulated cannabis industry, (ii) induce or attempt to induce any employee of the Company or any of its Subsidiaries to leave the employ of the Company or such Subsidiary, or in any way interfere with the relationship between the Company or any of its Subsidiaries and any employee thereof or (iii) induce or attempt to induce any customer, supplier, licensee, licensor, franchisee or other business relation of the Company or any of its Subsidiaries to cease doing business with the Company or such Subsidiary, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and the Company or any of its Subsidiaries (including, without limitation, making any negative or disparaging statements or communications about the Company or its Subsidiaries or affiliates), (iv) directly or indirectly acquire or attempt to acquire any business which the Company or its Subsidiaries identified as a potential acquisition target during or prior to Employee’s employment with the Company (an “Acquisition Target”), or take any action to induce or attempt 

to induce any Acquisition Target to consummate any acquisition, investment or other similar transaction with any person or entity other than the Company or its Subsidiaries. In addition to the foregoing, Employee agrees that Employee shall not at any time, without the Company’s written permission, directly or indirectly through another person or entity hire any person who was an employee of the Company or any of its Subsidiaries at any time during the twelve (12) months preceding such hiring, unless such person was terminated by the Company without cause. For purposes of this Section 8(a), the term “employee” shall include consultants and independent contractors of the Company and its Subsidiaries.  
(b)Employee agrees that the covenants made in this Section 8 shall be construed as agreements independent of any other provision(s) of this Agreement and shall survive any order of a court of competent jurisdiction terminating any other provision(s) of this Agreement.
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9.Indemnification.   In the event that the Employee is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (a “Proceeding”), by reason of the fact that Employee is or was an employee and/or officer of the Company, or any affiliate of the Company, the Employee shall be indemnified and held harmless by the Company to the maximum extent permitted under applicable law from and against all liabilities, costs, claims, and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys’ fees). Cost and expenses incurred by the Employee in defense of such Proceeding (including attorneys’ fees) shall be paid by the Company in advance of the final disposition of such Proceeding upon receipt by the Company of: (a) a written request for payment; and, (b) appropriate documentation evidencing the incurrence, amount, and nature of the costs and expenses for which payment is being sought. 
10.Insurance.   During the Term, the Company or any successor to the Company shall purchase and maintain, at its own expense, directors’ and officers’ liability insurance providing coverage to the Employee on terms that are no less favorable than the coverage provided to similarly situated executives of the Company. 
11.Trade Secrets; Remedies; Restrictions.
(a)Employee further acknowledges and agrees with the Company that Employee’s service to the Company requires the use of information, including programs, methods, techniques, and processes, that the Company and its Subsidiaries have made reasonable efforts to keep confidential and that derives independent economic value, actual or potential, from not being generally known to the public or to other person who can obtain economic value from its disclosure or use (collectively, “Trade Secrets”). Employee acknowledges and agrees that the Company would be irreparably damaged if Employee were to use or disclose such Trade Secrets to third parties, including any person or entity competing with the Company and its Subsidiaries or engaged in a material line of business similar to that engaged in by the Company or its Subsidiaries. Employee accordingly covenants and agrees with the Company that during the period commencing on the date of this Agreement, throughout Employee’s employment, and after such employment terminates, Employee shall not, directly or indirectly, either for himself or for any other person participate in any business, other than for the Company and its Subsidiaries, in which Employee 

would be required to employ, reveal or otherwise utilize or disclose Company Trade Secrets. Employee further acknowledges and agrees that Employee shall not use or disclose Company Trade Secrets during the period commencing on the date of this Agreement, throughout Employee’s employment, and after such employment terminates, for any purpose contrary to the Company’s and its Subsidiaries’ interests, including to engage in any competitive activities with the Company or its Subsidiaries, but rather will keep the Company’s Trade Secrets strictly confidential and not disclose them to any third parties.
(b)In the event of the breach or a threatened breach by Employee of any of the provisions of Sections 6, 7, 8, or 9, the Company would suffer irreparable harm, and in addition and supplementary to other rights and remedies existing in its favor, the Company shall be entitled to specific performance and/or injunctive or other equitable relief from a court of competent jurisdiction in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security). In addition, in the event Employee breaches or violates Sections 6, 7, 8, or 9, the periods of such restrictive covenants will be tolled until such breach or violation has been duly cured.
(c)If, at the time of enforcement of Sections 6, 7, 8, or 9 of this Agreement, a court holds that the restrictions stated herein are unreasonable under circumstances then existing the parties hereto agree that the maximum period, scope or geographic area held reasonable by the court shall be substituted for the stated period, scope or area. Employee acknowledges that the restrictions contained in Sections 6, 7, 8, or 9 are reasonable in all respects and necessary to protect the goodwill of the businesses of the Company and its Subsidiaries and that, without such protection, the Company’s and its Subsidiaries’ customer, distributor and supplier relations and competitive advantage would be adversely affected. 
12.Employee’s Representations. Employee hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Employee do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Employee is a party or by which she is bound, (ii) Employee is not a party to or bound by any other employment agreement, noncompete agreement or, except in the ordinary course of business, confidentiality agreement with any other person or entity except as disclosed in writing to the Company prior to the date hereof, and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of Employee, enforceable in accordance with its terms. Employee hereby acknowledges and represents that she has consulted with independent legal counsel regarding his or her rights and obligations under this Agreement and that she fully understands the terms and conditions contained herein.
13.Survival. To the extent contemplated by this Agreement, the respective rights and obligations of the parties hereto shall survive and continue in full force in accordance with their terms notwithstanding the termination of Employee’s employment with the Company.
14.Notices. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, sent by reputable overnight courier service, mailed by first class mail, return receipt requested, or by facsimile transmission or electronic mail in .pdf format, to the recipient at the address below indicated:

Notices to Employee:
Diane Jones
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Notices to Company:
General Cannabis Corp.
6565 East Evans Avenue
Denver, CO 80224
Attention: Steve Gutterman
Email: sgutterman@generalcann.com
or such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party.  Any notices required or permitted hereunder shall be deemed given upon personal delivery to the appropriate address, or three (3) days after the date of mailing if sent by certified or registered mail, or one (1) day after the date of mailing if sent by overnight delivery service, or the day of transmission of such notice by facsimile or email if sent during normal business hours of the recipient, and if sent after normal business hours of the recipient then on the next business day.  Each party may change its address, facsimile number or email address for receipt of notice by giving notice of the change to the other party.  
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15.Modification; Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, the provision shall be modified to the minimum extent necessary to be valid, legal and enforceable.  If it cannot be so modified, the provision shall be severed, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. The invalidity, illegality or unenforceability of any provision shall not affect any other provision of this Agreement or any action in any other jurisdiction.
16.Complete Agreement. This Agreement, those documents expressly referred to herein and other documents of even date herewith embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.  If there is a conflict between the provisions of this Agreement and the provisions of the documents expressly referred to herein, this language of this Agreement shall control.
17.No Strict Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party.
18.Counterparts. This Agreement may be executed in separate counterparts (including by means of facsimile or by electronic mail in .pdf format), each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

19.Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the Company and any successor to the Company, including without limitation any persons acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor shall thereafter be deemed the “Company” for the purposes of this Agreement). This Agreement will inure to the benefit of and be enforceable by Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees and legatees, but otherwise will not otherwise be assignable, transferable or delegable by Employee. Except as expressly provided in the immediately preceding sentence, Employee shall not, without the prior written consent of the Company, assign, transfer or delegate this Agreement or any of Employee’s rights or obligations hereunder.
20.Choice of Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Colorado, notwithstanding any state’s choice-of-law rules to the contrary.
21.Arbitration.  Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in Denver, Colorado before three (3) arbitrator(s). The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures.  Judgment on the Award may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction, in which case each party consents to the jurisdiction and venue of the state and federal courts located in Denver, Colorado. The reasonable attorney’s fees and costs of the party ultimately prevailing in such dispute shall be borne by the other party.
22.Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of both the Company (as approved by the Board) and Employee, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement (including, without limitation, the Company’s right to terminate Employee’s employment with the Company for Cause) shall affect the validity, binding effect or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this Agreement.
23.Deductions/Withholdings on Behalf of Employee. The Company and its respective Subsidiaries shall be entitled to deduct or withhold from any amounts owing from the Company or any of its Subsidiaries to Employee any federal, state, local or foreign withholding taxes, excise tax, or employment taxes (“Taxes”) imposed with respect to Employee’s compensation or other payments from the Company or any of its Subsidiaries or Employee’s ownership interest in the Company (including, without limitation, wages, bonuses, dividends, the receipt or exercise of equity options and/or the receipt or vesting of restricted equity). 
24.Corporate Opportunity. During Employee’s employment with the Company, Employee shall submit to the Board all business, commercial and investment opportunities or offers presented to Employee or of which Employee becomes aware which relate to the business of the Company Business at any time during Employee’s employment with the Company (“Corporate 

Opportunities”). If the Company elects not to pursue a submitted Corporate Opportunity, Employee shall have the right to accept or pursue such Corporate Opportunity.
25.Employee’s Cooperation. During Employee’s employment with the Company, Employee shall, subject to the Company reimbursing Employee for out-of-pocket expenses, cooperate with the Company and its Subsidiaries in any internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by the Company (including, without limitation, Employee being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to the Company all pertinent information and turning over to the Company all relevant documents which are or may come into Employee’s possession, all at times and on schedules that are reasonably consistent with Employee’s other permitted activities and commitments).
26.Section 409A Compliance. The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. To the extent that any provision hereof is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Employee and the Company of the applicable provision without violating the provisions of Code Section 409A. In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on Employee by Code Section 409A or damages for failing to comply with Code Section 409A. Notwithstanding anything herein to the contrary, a termination of employment shall be deemed to have occurred at the time such termination constitutes a “separation from service” within the meaning of Code Section 409A for purposes of any provision of this Agreement providing for the payment of any amounts or benefits in connection with a termination of employment and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean a “separation from service.” Further, if, on the date of a “separation from service” (as defined in Code Section 409A), Employee is a “specified employee” (as defined in Code Section 409A), no amounts that would constitute deferred compensation payable hereunder that are subject to Code Section 409A shall be made until the earliest date on which payment is permissible under 409A(a)(2)(B)(i) (the six (6)-month delay rule for specified employees). This provision shall not apply to any Severance Compensation payments made pursuant to Section 5(b) of this Agreement. To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Code Section 409A, (A) all such expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year  in which such expenses were incurred by Employee, (B) any right to such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year. For purposes of Code Section 409A, Employee’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole 

discretion of the Company. Notwithstanding any other provision to the contrary, in no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A.
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IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date first written above.
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	General Cannabis Corp.
 
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	By:
	 /s/ Steve Gutterman

	Name:
	 
	Steve Gutterman

	Title:
	 
	CEO

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                                                                                       /s/ Diane Jones
DIANE JONES
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EXHIBIT A
GENERAL RELEASE
THIS GENERAL RELEASE (“Release”) is entered into as of __________, by Diane Jones, an individual (“Employee”), for the benefit of General Cannabis Corp., a Colorado corporation (the “Company”), and the other Released Parties (as defined below). Capitalized terms used but not otherwise defined herein shall have the meanings given to such terms in the Employment Agreement (as defined below).
WHEREAS, Employee is a holder of equity of the Company and a former employee of the Company and its subsidiaries; and
WHEREAS, in consideration for the receipt of the Severance Compensation to be paid by the Company, as described further in Section 5(b) of the Employment Agreement, Employee hereby desires to release and forever discharge as of the date hereof the Released Parties to the extent provided below.
NOW, THEREFORE, in consideration of the mutual promises, agreements and covenants contained herein, and for other valuable consideration, receipt of which is hereby acknowledged, Employee, intending to be legally bound, agrees as follows:
1.Employee agrees that, in consideration of and subject to the performance by the Company of its obligations under the Employment Agreement, dated as of February 21, 2018 the “Employment Agreement”), she does hereby release and forever discharge as of the date hereof the Company, its parent, subsidiaries and their respective affiliates and all present and former directors, officers, agents, representatives, employees, successors and assigns of the Company, its parent and subsidiaries and their respective affiliates and the Company’s and parent’s direct or indirect owners (collectively, the “Released Parties”) as provided below.
2.Employee understands that the Severance Compensation paid or granted to him under Section 5(b) of the Employment Agreement represents, in part, consideration for her signing of this Release and is not salary, wages or benefits to which she was already entitled. Employee understands and agrees that she will not receive the Severance Compensation specified in Section 5(b) of the Employment Agreement unless she executes this Release and does not revoke this Release within the time period permitted hereafter or breach this Release. The Severance Compensation will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its affiliates.
3.Except as provided in paragraph 5 below and except for the provisions of the Employment Agreement which expressly survive the termination of Employee’s employment with the Company, Employee knowingly and voluntarily (for himself, his heirs, executors, administrators and assigns) releases and forever discharges the Company, its parent and subsidiaries and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date 

this Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company, its parent and subsidiaries or any of the Released Parties which Employee, his spouse, or any of her heirs, executors, administrators or assigns, may have, which arise out of or are connected with her employment with, or her separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”); provided, however, that, notwithstanding anything to the contrary contained herein, her Claims and this Release shall not cover and shall specifically exclude Employee’s rights and claims, directly or indirectly, arising from or under or related to (A) any obligation of the Company to provide benefits or payments under Section 5(a) of the Employment Agreement, (B) any rights Employee may have to vested benefits under any employee benefit plan or program, including vested equity, 401(k) contributions and health insurance claims, (C) any rights of indemnification or contribution, whether pursuant to the Released Parties’ certificate of incorporation, bylaws, limited liability company agreement, contract, applicable law or otherwise, and/or (D) any claims that cannot be released as a matter of law.
4.Employee represents that she has made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 3 above.
5.Employee specifically releases all claims against the Released Parties under the Age Discrimination in Employment Act (“ADEA”) relating to Employee’s employment and its termination.
6.In signing this Release, Employee acknowledges and intends that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. Employee expressly consents that this Release shall be given full force and effect according to all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. Employee acknowledges and agrees that this waiver is an essential and material term of this Release and that without such waiver the Company would not have agreed to the terms of the Employment Agreement. Employee further agrees that in the event that Employee should bring a Claim seeking damages against a Released Party, or in the event Employee should seek to recover against any Released Party in any Claim brought by a governmental agency on his behalf, this Release shall serve as a complete defense to such Claims. Employee further agrees that she is not aware of any pending charge or complaint of the type described in paragraph 3 as of the execution of this Release.

7.Employee agrees that neither this Release, nor the furnishing of the consideration for this Release, shall be deemed or construed at any time to be an admission by the Company or any Released Party of any improper or unlawful conduct.
8.Employee agrees that she will forfeit the Severance Compensation under the Employment Agreement if Employee challenges the validity of this Release except as otherwise permitted any law. Employee also agrees that if she violates this Release by suing the Company, its parent or subsidiaries or the Released Parties, except as expressly permitted by law, Employee must return the Severance Compensation received by him pursuant to the Employment Agreement. In the event of such a lawsuit, the prevailing party shall be entitled to recover from the losing party the costs and expenses of the lawsuit, including reasonable attorneys’ fees.
9.Employee agrees that this Release is confidential and agrees not to disclose any information regarding the terms of this Release, except to Employee’s immediate family and to any tax, legal or other counsel that Employee has consulted regarding the meaning or effect hereof or as required by law, and Employee will instruct each of the foregoing not to disclose the same to anyone.
10.Employee represents that Employee has not filed or caused to be filed against any of the Released Parties, individually or collectively, any lawsuit, complaint, charge, proceeding, or the like, before any local, state, or federal agency, court, or other body (each, a “Proceeding”), and Employee covenants and agrees that Employee will not do so at any time hereafter with respect to the subject matter of this Release and claims released pursuant to this Release (including, without limitation, any claims relating to the termination of Employee’s employment), except as may be necessary to enforce this Release or Employee’s rights to the Severance Compensation under the Employment Agreement, to seek a determination of the validity of the waiver of Employee’s rights under the ADEA, or to initiate or participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”) or other governmental agency as permitted by law.  Except as otherwise provided in the preceding sentence, (i) Employee will not initiate or cause to be initiated on his behalf any Proceeding, and will not participate (except as required or expressly permitted to do so by law) in any Proceeding of any nature or description against any of the Released Parties individually or collectively that in any way involves the allegations and facts that Employee could have raised against any of the Released Parties individually or collectively as of the date hereof, and (ii) Employee waives any right she may have to benefit in any manner from any relief (monetary or otherwise) arising out of any Proceeding.
11.Whenever possible, each provision of this Release shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.
BY SIGNING THIS RELEASE, EMPLOYEE REPRESENTS AND AGREES (EXCEPT AS SET FORTH BELOW) THAT:
EMPLOYEE HAS READ THIS RELEASE CAREFULLY; 

EMPLOYEE UNDERSTANDS ALL OF THE TERMS OF THE RELEASE AND KNOWS THAT EMPLOYEE IS GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;
EMPLOYEE VOLUNTARILY CONSENTS TO EVERYTHING IN THIS RELEASE;
EMPLOYEE HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING THIS RELEASE AND EMPLOYEE HAS DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION EMPLOYEE HAS CHOSEN NOT TO DO SO OF EMPLOYEE’S OWN VOLITION;
EMPLOYEE HAS HAD AT LEAST 21 DAYS FROM THE DATE OF HIS RECEIPT OF THIS RELEASE;
EMPLOYEE UNDERSTANDS THAT SHE HAS SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL SUCH REVOCATION PERIOD HAS EXPIRED;
EMPLOYEE HAS SIGNED THIS RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE EMPLOYEE WITH RESPECT TO IT; AND
EMPLOYEE AGREES THAT THE PROVISIONS OF THIS RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY EMPLOYEE.
This Release shall not become effective until the eighth (8th) day following Employee’s execution of it.
[Signature Pages Follow]
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DATE:  _______________
DIANE JONES
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Exhibit B
Employee Proprietary Information Agreement
As a condition of my becoming employed by General Cannabis Corp., a Colorado corporation (the “Company”), and in consideration of my employment relationship with the Company and my receipt of the compensation now and hereafter paid to me by the Company, I agree to the following:
1.Employment Relationship.  I understand and acknowledge that this Agreement does not alter, amend or expand upon any rights I may have to continue in an employment relationship with, or in the duration of my employment relationship with, the Company under any existing agreements between the Company and me, including but not limited to the employment agreement entered into by and between the Company and me, dated as of the date hereof (the “Employment Agreement”), or under applicable law.  Any employment relationship between the Company and me shall be referred to herein as the “Relationship.”
2.Inventions.
(a)Inventions Retained and Licensed.  I have attached hereto, as Exhibit I, a list describing with particularity all inventions, original works of authorship, developments, improvements, and trade secrets which were made by me prior to the commencement of the Relationship (collectively referred to as “Prior Inventions”), which belong solely to me or belong to me jointly with another, which relate in any way to any of the Company’s proposed businesses, products or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, I represent that there are no such Prior Inventions.  If, in the course of my Relationship with the Company, I incorporate into a Company product, process or machine a Prior Invention owned by me or in which I have an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license (with the right to sublicense) to make, have made, copy, modify, make derivative works of, use, sell and otherwise distribute such Prior Invention as part of or in connection with such product, process or machine.
(b)Assignment of Inventions.  I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title and interest throughout the world in and to any and all inventions, original works of authorship, developments, concepts, know-how, improvements or trade secrets, whether or not patentable or registrable under copyright or similar laws, which I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time in which I am employed by the Company (collectively referred to as “Inventions”). 
(c)Maintenance of Records.  I agree to keep and maintain adequate and current written records of all Inventions made by me (solely or jointly with others) during the term of my Relationship with the Company.  The records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, laboratory notebooks, and any other format.  The records will be available to and remain the sole property of the Company at all times.  I agree not to remove such records from the Company’s place of business except as expressly permitted 

by Company policy which may, from time to time, be revised at the sole election of the Company for the purpose of furthering the Company’s business.  I agree to return all such records (including any copies thereof) to the Company at the time of termination of my Relationship with the Company as provided for in Section 3.
(d)Patent and Copyright Rights.  I agree to assist the Company, or its designee, at its expense, in every proper way to secure the Company, or its designee’s, rights in the Inventions and any copyrights, patents, trademarks, mask work rights, moral rights, or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company or its designee of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments which the Company or its designee shall deem necessary in order to apply for, obtain, maintain and transfer such rights and in order to assign and convey to the Company or its designee and any successors, assigns and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto.  I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this Agreement until the expiration of the last such intellectual property right to expire in any country of the world.  If the Company or its designee is unable because of my mental or physical incapacity or unavailability or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents, copyright, mask works, or other registrations covering Inventions or original works of authorship assigned to the Company or its designee as above, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters patent, copyright or other registrations thereon with the same legal force and effect as if originally executed by me.  I hereby waive and irrevocably quitclaim to the Company or its designee any and all claims, of any nature whatsoever, which I now or hereafter have for infringement of any and all proprietary rights assigned to the Company or such designee.
3.Company Property; Returning Company Documents.  I acknowledge and agree that I have no expectation of privacy with respect to the Company’s telecommunications, networking or information processing systems (including, without limitation, stored company files, e-mail messages and voice messages) and that my activity and any files or messages on or using any of those systems may be monitored at any time without notice.  I further agree that any property situated on the Company’s premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice.  I agree that, at the time of termination of my Relationship with the Company, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, materials, flow charts, equipment, other documents or property, or reproductions of any of the aforementioned items, developed by me pursuant to the Relationship or otherwise belonging to the Company, its successors or assigns.  In the event of the termination of the Relationship, I agree to sign and deliver the “Termination Certification” attached hereto as Exhibit II, however, my failure to sign 

and deliver the Termination Certificate shall in no way diminish my continuing obligations under this Agreement.
4.Representations and Covenants.
(a)Facilitation of Agreement.  I agree to execute promptly any proper oath or verify any proper document required to carry out the terms of this Agreement upon the Company’s written request to do so.
(b)Conflicts.  I represent that my performance of all the terms of this Agreement does not and will not breach any agreement I have entered into, or will enter into with any third party, including without limitation any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to commencement of my Relationship with the Company.  
(c)Voluntary Execution.  I certify and acknowledge that I have carefully read all of the provisions of this Agreement and that I understand and will fully and faithfully comply with such provisions.
5.General Provisions.
(a)Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Colorado, without giving effect to the principles of conflict of laws.
(b)Entire Agreement.  This Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us.  No modification or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by both parties.  
(c)Severability.  If any term or provision of this Agreement or the application thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or unenforceable, such term or provision shall be ineffective as to such jurisdiction to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining terms and provisions of this Agreement or the application of such terms and provisions to circumstances other than those as to which it is held invalid or unenforceable, and a suitable and equitable term or provision shall be substituted therefor to carry out, insofar as may be valid and enforceable, the intent and purpose of the invalid or unenforceable term or provision. 
(d)Successors and Assigns.  This Agreement will be binding upon my heirs, executors, administrators and other legal representatives, and my successors and assigns.  
(e)Survival.  The provisions of this Agreement shall survive the termination of the Relationship and the assignment of this Agreement by the Company to any successor in interest or other assignee.
(f)Remedies.  I acknowledge and agree that violation of this Agreement by me may cause the Company irreparable harm, and therefore agree that the Company will be 

entitled to seek extraordinary relief in court, including but not limited to temporary restraining orders, preliminary injunctions and permanent injunctions without the necessity of posting a bond or other security and in addition to and without prejudice to any other right and remedies that the Company may have for a breach of this Agreement.
(g) Counterparts; Electronic Signature.  This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.  This Agreement may be executed by facsimile or electronic (.pdf) signature and a facsimile or electronic (.pdf) signature shall constitute an original for all purposes.
(h)ADVICE OF COUNSEL.  I ACKNOWLEDGE THAT, IN EXECUTING THIS AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT.  THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.
[Signature Page Follows]
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The parties have executed this Employee Proprietary Information Agreement on the respective dates set forth below:
General Cannabis Corp.
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By:/s/ Steve Gutterman​ ​
Name: Steve Gutterman
Title:  CEO
/s/ Diane Jones
DIANE JONES
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EXHIBIT I
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PRIOR INVENTIONS
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None.
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EXHIBIT II
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TERMINATION CERTIFICATION
This is to certify that I do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, flow charts, materials, equipment, other documents or property, or copies or reproductions of any aforementioned items belonging to General Cannabis Corp., a Colorado corporation (the “Company”).
I further certify that I have complied with all the terms of the Company’s Employee Proprietary Information Agreement signed by me, including the reporting of any inventions and original works of authorship (as defined therein), conceived or made by me (solely or jointly with others) covered by that agreement.
I further agree that, in compliance with the Employee Proprietary Information Agreement, I will preserve as confidential all trade secrets, confidential knowledge, data or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer programs, data bases, other original works of authorship, customer lists, business plans, financial information or other subject matter pertaining to any business of the Company or any of its employees, clients, consultants or licensees.
I further agree that for twelve (12) months from the date of this Certificate, I shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees or consultants to terminate their relationship with the Company, or attempt to solicit, induce, recruit, encourage or take away, hire, or otherwise engage the services of employees or consultants of the Company, either for myself or for any other person or entity.  Further, I shall not at any time use any Confidential Information of the Company to negatively influence any of the Company’s clients or customers from purchasing Company products or services or to solicit or influence or attempt to influence any client, customer or other person either directly or indirectly, to direct his or its purchase of products and/or services to any person, firm, corporation, institution or other entity in competition with the business of the Company.
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Date:​ ​​ ​​ ​​ ​
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(Employee’s Signature)ampex101ameriprisefinanc

Revised November 2020                 Ameriprise Financial, Inc.   2007 Long-Term Incentive Award Program Guide      This Guide is available on Inside for awards granted in January 2007 and forward.                                                                                                THIS DOCUMENT IS PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE   BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933.        

 

Revised November 2020   2007 Long-Term Incentive Award Program Guide   Information regarding awards granted beginning January 2007      Contents      Long-Term Incentive Award Program ..........................................................................................................1  LTIA Program Overview ...........................................................................................................................1   Summary of the Types of Awards under the Plan ....................................................................................2   Restricted Stock Awards .......................................................................................................................3  Valuing RSA Grants .................................................................................................................................3  Vesting ......................................................................................................................................................3  Quarterly dividends .......................................................................................................................................3   Treatment of RSAs upon Certain Events ..................................................................................................3   Non-Qualified Stock Options ........................................................................................................................3  Valuing NQSO Grants ..............................................................................................................................4  Vesting .....................................................................................................................................................4  Steps for Exercising NQSOs .....................................................................................................................4  Illustration of NQSO Exercise Methods * ......................................................................................................6   Treatment of NQSOs upon Certain Events ..............................................................................................6  Restricted Stock Units .................................................................................................................................7  Valuing RSU Grants .................................................................................................................................7  Vesting ..................................................................................................................................................... 7  Quarterly Dividend Equivalents ................................................................................................................ 7   Treatment of RSUs upon Certain Events ..................................................................................................7  Performance Stock Units (for executive officers only) ..................................................................................7  Performance Cash Units ..............................................................................................................................7  Tax Implications for LTIAs (U.S. only) ..........................................................................................................7  RSAs and RSUs: Income & Employment Tax Implications ......................................................................8  NQSOs: Income and Employment Tax Implications .................................................................................9  Multi-State Taxation Process.....................................................................................................................9   Section 409A of the Code..........................................................................................................................9  Treatment of LTIAs upon Certain Events .................................................................................................... 10  Part-Time Employment Status................................................................................................................ 10  Employment Termination ....................................................................................................................... 10  Leave of Absence ................................................................................................................................... 11  Death ..................................................................................................................................................... 11  Disability Termination ............................................................................................................................. 11  Retirement ............................................................................................................................................. 12  Transfer between Business Segments ................................................................................................... 12  Transfer from Field Eligible Employee to Franchise Advisor .................................................................. 12  Situations of Detrimental Conduct .......................................................................................................... 12  Compensation Recovery or “Clawback” Policy (For executive officers only) ........................................ 13  Change in Control of the Company ......................................................................................................... 13  Payments to Certain U.S. Taxpayers upon a Change in Control of the Company ................................. 14   Resale of Shares Received Under the Plan ...........................................................................................14   Major Terms and Conditions of NQSOs, RSAs and RSUs ........................................................................14  Non-Qualified Stock Options ..................................................................................................................15   Restricted Stock Awards and Restricted Stock Units .............................................................................15   Administrative Information about this Guide ............................................................................................... 16  About this Guide ..................................................................................................................................... 16  About the Illustrations ............................................................................................................................. 17  Award Confirmation Materials ................................................................................................................ 17  Governing Award Documents................................................................................................................. 17  AMP Shares Available for Grant under the Plan ..................................................................................... 17  Plan Administration ................................................................................................................................ 18  Performance-Based Compensation ....................................................................................................... 18  Adjustments upon Changes in Capitalization .......................................................................................18   

 

Revised November 2020   Tax Withholding ..................................................................................................................................... 18  Assignment and Transfer ....................................................................................................................... 19  Amendment ............................................................................................................................................ 19   Term of the Plan ...................................................................................................................................... 19   Resources ..................................................................................................................................................19   Availability of Certain Information and Incorporation of Documents by Reference .................................19   Contact Information ................................................................................................................................. 21            

 

1  Long-Term Incentive Award Program       The Long-Term Incentive Award (“LTIA”) program is  designed to align Participants’ interests with those of  the shareholders of Ameriprise Financial, Inc. (the  “Company”). By providing a stake in the Company’s  future success, LTIAs are considered essential to our  efforts to attract and retain talented employees.       LTIAs are equity-based or cash-based incentive  awards (i.e., non-qualified stock options, restricted  stock awards, restricted stock units, performance cash  units, performance stock units and other equity-based  awards) issued pursuant to the Ameriprise Financial  2005 Incentive Compensation Plan, as amended and  restated (the “Plan”). All LTIAs are recommended for  approval by the Compensation and Benefits  Committee (the “Committee”) of the Company’s Board  of Directors (the “Board”) or the Committee’s duly  authorized delegate. The timing and process for  approval and issuance of such awards will be  governed by the Ameriprise Financial Long-Term  Incentive Award Policy – Grant Practices and  Procedures. Once the recommended awards are  approved and granted, they are then communicated to  employees by their leaders, as well as by email  notification.      LTIA Program Overview      Restricted Stock Awards (“RSAs”), Non-qualified Stock   Options (“NQSOs”), Restricted Stock Unit Awards   (“RSUs”), Performance Stock Units (“PSUs”) and   Performance Cash Units (“PCUs”) (collectively,  “Awards” or “LTIAs”) are issued pursuant to the terms  of the Plan at the discretion and subject to the  administration of the Committee.      All Awards issued under the Plan will contain the  general terms set forth in the applicable provisions of  this 2007 Long-Term Incentive Award Program Guide   (this “Guide”). The specific terms of an individual Award will  be contained in the Shareworks online award agreement or  certificate delivered to the Participant in connection with the  grant of an Award. All Awards are subject to the terms and  conditions of the Plan, the Guide and the Award detail, as well  as any administrative guidelines or interpretations by the  Committee under the Plan, and any such guidelines or  interpretations are hereby incorporated into this Guide by  reference and made a part of this Guide. PSUs and PCUs will  also be subject to the terms and conditions of the PSU  Supplement to this Guide or the PCU Supplement to this  Guide, as applicable.       The Plan provides that Awards may be settled in cash  and/or in shares of Company common stock (“AMP  Shares”) or other property; however, the medium of  settlement for an individual Award will be contained in  the Award certificate. As used in this Guide, the term  “shares” refers to the common shares of the Company  having a par value of $.01 per share, or the shares of  any other stock of any other class into which such  shares may thereafter be changed.      The chart on the following page summarizes the key  features of the types of awards granted under the LTIA  program. This Guide describes awards management  expects to recommend for grant and may not cover the  specific features of every award. However, this Guide  is intended to cover the terms of the vast majority of  Awards, and you may generally rely on it for the  governance of your awards unless the Company  communicates something different to you in writing.      If the type of awards granted changes from what is  described in this Guide, the LTIA Administration Group  will provide you with detailed information regarding any  changes. Detailed information about various award  types, tax implications and other award features is  contained in the following sections.                    

 

2   Summary of the Types of Awards under the Plan   This section summarizes general features of RSAs, NQSOs, RSUs, PSUs and PCUs. Detailed information about  the various Award types is contained in sections that follow.        RSA  NQSO  RSU  PSU and PCU   Intent and Form  of Award    A grant of AMP Shares  in which the   Participant’s rights in  the shares are restricted  and such shares are  nontransferable until  they vest.   The opportunity to purchase  (or exercise) a specific  number of AMP Shares after  the award vests. NQSOs, to  the extent vested and subject  to other Award requirements,  may be exercised while  continuously employed1, but  in no event later than 10 years  after the grant date.   A contractual right  to deliver AMP  Shares when the  Award vests.   A contractual right to deliver a number of  AMP Shares (for a PSU, or, in the case of  a PCU, an amount of cash) based on  attainment of the applicable performance  conditions over the applicable performance  period.   Size of Grant   Generally, the dollar  value of the award is  converted to a specific  number of AMP Shares  (at fair market value) on  the grant date.   Generally, a Black-Scholes  valuation model is used to  convert the dollar value of the  award to a specific number  NQSOs on the grant date.   Same as RSAs.   For PSUs, the number of AMP shares  distributable is determined pursuant to your  applicable Award details in the same  manner as RSAs. For PCUs, the amount of  cash payable at target is the dollar value of  the award.   Vesting   Schedule2    Vests in substantially  equal installments over  a three-year period, or  according to such other  vesting schedule  specified in the Award  detail.   Same as RSAs.  Same as RSAs.  The performance period for a PSU or a  PCU is generally three years. Awards  generally “cliff vest” at the end of the  performance period and become payable  no later than the following March 15th,  after the payout for that period has been  determined.   Dividends/  Dividend   Equivalents   Quarterly dividends, if  and to the extent  declared, will be paid in  cash during the vesting  period.   An NQSO, whether vested or  unvested, is not entitled to  dividends or dividend  equivalents.   Quarterly dividend  equivalents, if and  to the extent  declared, will be  paid in cash  during the vesting  period.   Each PSU earned will be entitled to a cash  payment equal to the amount of any  dividends declared and paid during the  performance period and through the  payment date. Any such dividend  equivalent payment will vest and be paid at  the same time as the underlying PSU.  PCUs are not entitled to dividends or  dividend equivalents.   Voting Rights  for Unvested  AMP Shares   Yes.  No.  No.  No.   Income &   Employment   Taxation    (U.S. only)  Generally, taxable upon  vesting of the AMP  Shares.   Taxable upon exercise of the  NQSO.   Generally, taxable  upon delivery of  the AMP Shares   (note: FICA taxes  may be payable  and withheld  before an RSU  vests and AMP   Shares delivered).   Generally, taxable upon delivery of the  AMP Shares or, in the case of a PCU,  cash.        1 Continuous employment with the Company or one of its subsidiaries is required through the date of exercise of the NQSO, provided that in  certain situations, exercise may be permitted for a limited period following termination of employment (but in no event later than 10 years  after the grant date), as set forth in this Guide under “Treatment of LTIAs upon Certain Events.”   2  Continuous employment is required through each vesting date, unless an exception is set forth in this Guide under “Treatment of LTIAs  upon Certain Events.”   

 

3   Restricted Stock Awards      An RSA is a grant of AMP Shares. On the date of  grant, your rights to the shares are restricted and  you may not sell, assign or otherwise transfer the  shares until they vest, which is contingent upon you  remaining employed with the Company or one of its  subsidiaries through each vesting date. Once  vested, you receive the AMP Shares free from such  restrictions. Quarterly dividends, if any, are paid on  your unvested AMP Shares during the vesting  period. You have full voting rights for all of your  unvested AMP Shares.       Valuing RSA Grants      The value of an RSA share at vesting is equal to the  Company’s closing share price as reported on the  New York Stock Exchange on the vesting date, or if  there is no reported closing price on the vesting  date, then the closing price as reported by the New  York Stock Exchange on the last previous day on  which such closing price was reported. For example,  if 150 restricted AMP Shares vest in January and the  closing AMP Share price at vesting is $85, the pretax  value of these AMP Shares would be $12,750 ($85 x  150 = $12,750). (See the “About the Illustrations”  section in this Guide for an important disclosure.)       Vesting      RSAs generally vest in equal installments over a  three-year period, starting with the first anniversary  of the grant date and ending on the third anniversary  of the grant date. The Award detail you receive with  your RSA will include a personalized vesting  schedule.       Upon a vesting date, the restrictions will lapse on the  number of AMP Shares specified in your Award to  vest on such date. Any required tax withholding will  be paid by withholding AMP Shares from the number  of shares that vest on such date. The net AMP  Shares that will be in your account following vesting  will be the number of AMP Shares specified in your  Award to vest on such date less the number of AMP  Shares necessary to satisfy any tax withholding  requirements. Once the restrictions have lapsed and  the required tax withholdings have been satisfied,  you may sell, assign or otherwise transfer your AMP  Shares at any time, subject to securities laws  governing insider trading, short-swing profit rules  and Company stock ownership and retention  guidelines and black-out periods. You are  responsible for knowing and abiding by the  applicable laws and Company policies regarding  your stock and stock-based awards.      Quarterly dividends      Cash dividends paid on AMP Shares, as declared by  the Board, are paid quarterly during the vesting  period. The dividend payment amount is determined  each quarter and stated as a per-share amount that  is multiplied by the number of unvested AMP Shares  in your award. For example, if a quarterly dividend is  $0.45 per share and you have 500 unvested AMP  Shares, your quarterly dividend payment would  equal $225 ($0.45 x 500 = $225).       To change the address where your dividend check is  mailed, to request a dividend check replacement or  to set-up electronic payment, contact the Transfer  Agent. Contact information can be found in the  “Contact Information” section in this Guide.      Treatment of RSAs upon Certain Events      For information on the treatment of RSAs upon  retirement, employment termination, leave of  absence, etc., please see the “Treatment of LTIAs  upon Certain Events” section in this Guide.      Non-Qualified Stock Options      An NQSO gives you the right to purchase a specified  number of AMP Shares at the exercise price set  forth in the Award, subject to continuous  employment and other vesting requirements and  exercise period limitations. The exercise price is  equal to the closing stock price as reported on the  New York Stock Exchange composite tape on the  grant date. Once an NQSO becomes vested, you  determine when to exercise the option (before its  expiration) and how to pay for the option exercise.  Unless your Award detail provides otherwise, an  NQSO expires on the date that is 10 years after the  date of grant, or upon your earlier termination of  employment with the Company or one of its  subsidiaries, provided that in certain situations, you  may be permitted to exercise the NQSO for a limited  period following termination of employment and prior  to its award expiration date (please see the  “Treatment of LTIAs upon Certain Events” section in  this Guide). “Non-qualified” refers to the tax  

 

4   treatment of the option under the U.S. Internal  Revenue Code of 1986, as amended (the “Code”).      Valuing NQSO Grants      NQSOs earn value if the Company’s stock price  increases above the exercise price. Once an NQSO  becomes vested, you have the right to pay the  exercise price to exercise the option and acquire the  AMP Shares. For example, assume that 500 vested  NQSOs were granted at the exercise price of $50  per share and the price of an AMP Share increases  to $75. If you decided to exercise the NQSO, the  pre-tax gain on these options would be $12,500  (($75 - $50 = $25) x 500 = $12,500). (See the “About  the Illustrations” section in this Guide for an  important disclosure.)      Vesting      NQSOs generally become vested and available for  exercise in equal installments over a three-year  period, starting with the first anniversary of the grant  date and ending on the third anniversary of the grant  date. The Award detail you receive in connection  with an NQSO grant will include a personalized  vesting schedule.      Steps for Exercising NQSOs      (These steps are for U.S. employees; exercise steps  outside the United States may differ due to local  requirements.) Generally, you may exercise the  vested portion of an NQSO as soon as it vests or at  any subsequent time prior to its award expiration  date, as long as you remain employed with the  Company or one of its subsidiaries through the  exercise date. It is your responsibility to track your  NQSO expiration date(s), including any early  expiration of your NQSO in connection with the  termination of your employment, to ensure you  realize any value through a timely exercise. As with  any investment decision, you are strongly urged to  consult with your personal financial advisor before  exercising an NQSO.       Follow these steps to exercise the vested portion of  an NQSO:      1. The execution of an NQSO exercise requires  you to have a valid non-qualified Ameriprise  brokerage account. If you do not have one,  contact your advisor or call the Ameriprise  Advisor Center at 1-877-370-3950 to set up an  account. Initiating an NQSO exercise without  having an AMP brokerage account can delay the  ability to exercise your NQSOs.      2. Sign into your account with Shareworks to  exercise your stock options. Indicate how you  plan to pay for the AMP Shares you are  purchasing by exercising the option and any  required tax withholdings. You may pay the  exercise cost (the per-share exercise price  multiplied by the number of shares) and required  tax withholdings using one of these payment  options (in U.S. dollars):      • Net Exercise: Instruct Ameriprise Financial  Brokerage Services (“AFBS”), our exclusive  broker, to withhold a portion of the exercised  shares equal in fair market value to the  exercise cost plus any required tax  withholdings to the Company in lieu of  paying the exercise price in cash. The  number of shares withheld to cover the  required tax withholding is determined using  the closing price of AMP Shares as reported  by the New York Stock Exchange on the day  preceding the date of exercise (or if there is  no reported closing price on the day  preceding the date of exercise, then the  closing price as reported by the New York  Stock Exchange on the last previous day on  which such closing price was reported);  provided, however, if the exercise is made  pursuant to a limit order, then the limit price  is used to determine the number of shares  withheld to cover the required tax  withholding. There is no fee to open a  brokerage account with AFBS, and you will  pay a reduced commission if AFBS sells  shares on your behalf. Regular brokerage  account maintenance fees apply. Please  note that the Net Exercise method  replaced the Cashless Exercise method  for all NQSOs granted under the Plan on  or after Feb. 6, 2012.      • Cashless Exercise: Instruct AFBS to sell all  exercised shares and pay the exercise cost  and any required tax withholdings from the  proceeds. There is no fee to open a  brokerage account with AFBS, and you will  pay a reduced commission when AFBS sells  shares on your behalf. The Cashless  Exercise method is only available for  

 

5   NQSOs granted under the Plan on or  before Feb. 5, 2012.      • Buy-and-Hold Exercise: (Cash Exercise,  using cash in AFBS account): Pay the  exercise cost by instructing AFBS to take  funds from your brokerage cash account.      If you choose to pay the exercise cost using the Buy- and-Hold Exercise, you must have the funds  available in your brokerage account prior to initiating  your exercise activity. You may pay any required  minimum tax withholding by instructing AFBS to take  funds from your brokerage cash account to pay the  required minimum tax withholding, or instructing  AFBS to withhold and sell the appropriate number of  shares (otherwise available from the exercise) to pay  the required minimum tax withholding. Note: Shares  cannot be sold until after tax withholding liability has  been determined. Due to price fluctuation (between  exercise and disposition of shares), the exact  number of shares needed to cover taxes will not be  known immediately upon exercise.      3. Additional Approvals, Restrictions and   Reporting (For Bands 50 and above and certain  other Participants only)      • Obtain required pre-clearance. The  Corporate Secretary’s Office will provide you  with an email explaining the pre-clearance  process. It is important to understand,  however, that pre-clearance may not be  granted, depending on the facts and  circumstances.   OR  • Provide required notice. Other Band 50  and above Participants are required to  provide advance notice to their Executive  leader if the exercise request exceeds  certain hurdles (e.g., the request would  result in the exercise of more than 40% of  your available AMP NQSOs within any 90- day period).    Note: Regardless of whether one has received  pre-clearance or provided the required notice, he  or she remains legally responsible for  compliance with the federal securities laws  prohibiting trading in securities when aware of  nonpublic information about Ameriprise or its  securities that a reasonable investor would  consider significant when trading in those  securities.  Participants who are subject to the  regular quarterly blackouts on trading in  Ameriprise securities, including the exercise of  NQSOs, will receive emails from the Corporate  Secretary informing them of the dates on which  the blackout will begin and end, as well as the  related policy requirements.     • Black-out period. There is a quarterly  black-out period when the trading window  closes and remains closed for approximately  four weeks, as declared, until the  Company’s earnings for the preceding  quarter are made public. Other black-out  periods may apply as determined by the  Corporate Secretary’s Office. All affected   Participants will receive an email from the  Corporate Secretary’s Office quarterly  stating the blackout dates including a copy  of the Ameriprise Securities Trading Policy.      Important: If your NQSO will expire during a  Company-declared black-out period, you  must take action to exercise the NQSO prior  to the start of the black-out period. You will  be solely responsible for any loss if you fail  to exercise the NQSO before such black-out  period. During the black-out period, you can  no longer exercise the NQSO absent a  hardship exception, which is rarely granted,  and the NQSO will be cancelled on the  expiration date.      • (For Bands 70 and above only) Affirm stock  ownership requirements are met or  requirements understood if not yet met.  The Company has implemented stock  ownership guidelines for executives. These  guidelines have been communicated to  affected executives. All Band 70 and above  Participants will receive a stock ownership  summary statement not less frequently than  annually.       • (For executive officers only) Participants  who are executive officers of the Company  also need to be aware that all of their  acquisitions and dispositions of AMP  Shares, including AMP Shares and similar  rights under the Plan, the Ameriprise  Financial 401(k) Plan and all other stock- based compensation plans maintained by   the Company or its subsidiaries, may be  subject to the reporting requirements and  short-swing trading restrictions under  

 

6   Section 16 of the Securities Exchange Act of  1934. Participants who are executive  officers of the Company should consult with   their personal financial or legal advisor prior  to selling and/or buying AMP Shares.       The provisions and procedures described above are  subject to change.      Illustration of NQSO Exercise Methods*   (For U.S. purposes only) The illustration shows three ways to exercise an NQSO. In this example, assume a  U.S. employee chooses to exercise 1,000 NQSO shares with an exercise price of $30 per share. Assume the  market price preceding the exercise date is $50 per share.                   Exercise Method   Net Exercise  Cashless Exercise  Buy-and-Hold   A  Market value of exercised AMP  Shares at $50 ($50 per share x 1,000  shares)      $50,000   B  Exercise cost paid ($30 per share x  1,000 shares)   $30,000      600 shares will be  withheld to pay the  exercise cost (i.e., 600  shares x $50 per share)   All 1,000 shares will be  sold in the open market.  $30,000 of the sale   proceeds will be paid to the  Company to pay the  exercise cost   In order to pay the exercise cost  ($30,000), a Participant must  have the necessary funds in his or  her AFBS account prior to  initiating an online exercise.   C  Pre-Tax Gain (A – B)         $20,000   D  Minimum U.S. tax withholding paid (C  x 40% assumed tax)   $8,000      160 shares will be  withheld to cover the  required tax  withholdings (160 x   $50 per share)   $8,000 of the sale   proceeds will be paid to the  Company to cover the  required tax withholdings   The Participant will instruct AFBS  either to take $8,000 from his or  her brokerage account, or to  withhold 160 shares to cover the  required tax withholdings   E  Incremental value after exercise cost  and tax withholding (A – B – D)      $12,000   F  Incremental share ownership (or net  proceeds) from exercise      240 shares with a  value of $12,000  (1,000 - 600 for  exercise cost -160 for  required tax  withholdings)   $12,000 in cash  Assuming you withhold shares to  cover the required tax   withholdings, 840 shares (1,000 -   160 shares withheld for taxes)           Minus any applicable broker commissions.   * See “About the Illustrations” for an important disclosure.     Treatment of NQSOs upon Certain Events   To find out how your NQSOs will be treated upon retirement, employment termination, retirement, leave of  absence, etc., please see the “Treatment of LTIAs upon Certain Events” section in this Guide.   

 

7      Restricted Stock Units      Under an RSU, AMP Shares are not issued to you  on the grant date. Instead, an RSU represents the  Company’s contractual obligation to issue a  specified number of AMP Shares to you at the end  of the vesting period applicable to your Award.  During this period, you receive quarterly dividend  equivalent payments that are the equivalent value of  any AMP Share dividends that are declared and paid  during such calendar quarter. Any such dividend  equivalents will be paid to you as soon as  practicable following the payment to shareholders of  the related dividend, but in no event later than 75  days following such date. You do not have voting  rights for shares under any unvested portion of the  RSU until such shares become vested and are  issued to you.      Valuing RSU Grants      RSUs are valued in the same manner as RSAs. The  value of an RSU share at vesting is equal to the  Company’s closing share price as reported on the  New York Stock Exchange composite tape on the  vesting date.       Vesting      RSUs generally vest in equal installments over a  three-year period, starting with the first anniversary  of the grant date and ending on the third anniversary  of the grant date. The Award detail you receive with  your RSU will include a personalized vesting  schedule.      Upon a vesting date, the restrictions will lapse on the  number of AMP Shares specified in your Award to  vest on such date. Any required tax withholding will  be paid by withholding AMP Shares from the number  of shares that vest on such date. The net AMP  Shares that will be in your account following vesting  will be the number of AMP Shares specified in your  Award detail to vest on such date less the number of  AMP Shares necessary to satisfy any tax withholding  requirements. Once the restrictions have lapsed and  the required tax withholdings have been satisfied,  you may sell your AMP Shares at any time, subject  to securities laws governing insider trading, short- swing profit rules and Company stock ownership and  retention guidelines and black-out periods. You are  responsible for knowing and abiding by the  applicable laws and Company policies regarding  your stock and stock-based awards.      As explained in greater detail in the section in this   Guide titled “RSAs and RSUs: Income &  Employment Tax Implications,” please note that in  some instances FICA (Social Security and Medicare)  taxes may be payable before an Award vests and  you receive AMP Shares.      Quarterly Dividend Equivalents      Unlike RSAs, RSUs are not entitled to receive  payment of any AMP Share dividends, as declared  by the Board, during the vesting period. However,  RSUs are entitled to receive a dividend equivalent  payment from the Company equal to the amount of  the AMP Share dividends that are paid to  shareholders during the vesting period. For example,  if a quarterly dividend is $0.45 per share and you  have 500 unvested AMP Shares, your quarterly  dividend equivalent payment would equal $225  ($0.45 x 500 = $225).       Treatment of RSUs upon Certain Events      For information about how your RSUs will be treated  upon certain events, such as retirement,  employment termination, leave of absence, etc.,  please see “Treatment of LTIAs upon Certain   Events.”      Performance Stock Units (for  executive officers only)      PSUs are subject to the terms of the PSU   Supplement to this Guide and your PSU Award   certificate. Please refer to the separate PSU  Supplement to this Guide that was provided to you  and your PSU Award for details and provisions  pertaining to these Awards.      Performance Cash Units      PCUs are subject to the terms of the PCU   Supplement to this Guide and your PCU Award   certificate. Please refer to the separate PCU   Supplement to this Guide on Inside and your  PCU Award for details and provisions pertaining  to these Awards.      Tax Implications for LTIAs (U.S.  only)      The following is a summary description of the United  States federal income and employment tax  

 

8      consequences generally arising with respect to  RSAs, NQSOs and RSUs issued under the Plan. For  U.S. federal income tax consequences of PSUs and  PCUs, please refer to the PSU Supplement to this  Guide or PCU Supplement to this Guide, as  applicable. There may also be state and local  taxes applicable to these awards. This summary is  not intended to be a complete description of all  possible tax consequences of LTIAs issued under  the Plan, and you should be aware that different tax  treatments may apply outside of the United States  depending upon your country of residence and/or  citizenship.      RSAs and RSUs: Income & Employment Tax  Implications      The tax rules that apply to your RSA or RSU award  vary based on your tax jurisdiction. Below is a brief  summary of the general U.S. federal income tax  implications for U.S. taxpayers. The Company is  not providing advice to you on the tax treatment  of any LTIA. You are strongly urged to consult  with your personal tax advisor on the applicable  tax implications of RSA or RSU awards and  selling acquired AMP Shares in light of your  individual circumstances.      For employees subject to U.S. federal income tax,  there are no federal income tax consequences when  an RSA or RSU award is granted. When the  restricted period expires and RSA shares vest (i.e.,  the RSA shares become transferable or no longer  subject to a substantial risk of forfeiture, whichever  occurs earlier) or when RSU shares are delivered to  you, you receive ordinary compensation income  based on the market value of an AMP Share on the  day of vesting or delivery, as applicable. Your Form  W-2 wage and earnings statement will indicate that  you had ordinary compensation income equal to the  market value of your vested AMP Shares.       Income resulting from the vesting of RSA shares or  the delivery of RSU shares is subject to statutory  withholding for U.S. federal income tax and FICA  taxes (Social Security and Medicare), plus any  applicable statutory state and local withholding.  (NOTE: The actual income tax you owe will be  based on your individual circumstances and may be  more or less than the income tax withheld.) The net  AMP Shares deposited into your account will be the  number of AMP Shares specified in your RSA or  RSU award less the necessary number of AMP  Shares needed to satisfy any tax withholding  requirements. Please note that in some instances  FICA taxes may be payable before an Award  vests and you receive AMP Shares. For example,  if you become eligible to retire during the vesting  period for an RSU, generally, the RSU will be  taxable for FICA purposes on the date that you  become eligible to retire and not on the later  vesting date or the date that you actually retire.  In this case, only income taxes would apply at  vesting or delivery, as applicable, of the AMP  Shares.      If you later sell AMP Shares acquired from the  vesting of RSA shares or the delivery of RSU  shares, you will realize a short-term or long-term  capital gain (or loss) on the spread between the  market value on the date of vesting or delivery (your  cost basis) and the net proceeds you receive when  you sell the AMP Shares. If you realize a gain after  satisfying a minimum holding period (currently  greater than one year) and are in a net capital gain  position under applicable U.S. tax rules, you may be  able to pay tax on the gain based on long-term  capital gains tax rates. These rates are generally  lower than ordinary income and short-term capital  gains tax rates. If you realize a loss, you may be  able to use that loss to offset any capital gains you  may otherwise have. Any loss in excess of capital  gains may, to a limited extent, be used to offset  ordinary income, as permitted under applicable U.S.   tax rules.      During the vesting period, any dividends or dividend  equivalents paid on unvested RSA or RSU shares  will be paid through the transfer agent and reflected  in the earnings column under “R Stock Div” on your  paycheck. Dividends or dividend equivalents paid on  these shares are also considered ordinary income  and are subject to the taxes described above. This  ordinary income will appear on your Form W-2 wage  and tax statement.      In advance of an RSA or RSU vesting event, you will  receive a notification of this pending vesting from the  Ameriprise LTIA Administration Group. This  notification will provide you with important  information and instructions in advance of the  vesting date. Details of your RSA or RSU vesting  event, including vesting date, market value of your  vested AMP Shares, stock price used to calculate  the fair market value, number of shares withheld to  satisfy your tax obligation, breakdown of the taxes  withheld and net shares delivered to you are  available via Shareworks.      

 

9        NQSOs: Income and Employment Tax  Implications      The tax implications that apply when you exercise  your NQSOs vary based on your tax jurisdiction.  Below is a summary of the general U.S. federal  income and employment tax implications for holders  of NQSOs who are U.S. taxpayers. The Company  is not providing advice to you on the tax  treatment of any LTIA, including the exercise of  an NQSO. You are strongly urged to consult with  your personal tax advisor on the applicable tax  implications of NQSOs and selling acquired AMP  Shares in light of your individual circumstances.      For employees subject to U.S. federal income tax, in  the year that you exercise an NQSO, your Form W-2  wage and tax statement will indicate that you had  ordinary compensation income equal to the  difference between the per-share exercise price and  the market value of an AMP Share on the day of the  exercise multiplied by the number of shares  exercised on such date.      Income resulting from an NQSO exercise is subject  to statutory withholding for U.S. federal income tax  and FICA taxes (Social Security and Medicare), plus  any applicable statutory state and local withholding.  (NOTE: The actual income tax you owe will be  based on your individual circumstances and may be  more or less than the income tax withheld.) How you  pay any required tax withholdings is determined  based on which of the payment options you use to  exercise your NQSO. Please refer to the sections in  this Guide titled “Illustration of NQSO Exercise  Methods” and “Steps for Exercising NQSOs” for  additional information on the methods for paying  required tax withholdings.      If you later sell AMP Shares acquired from an NQSO  exercise, you will realize a short-term or long-term  capital gain (or loss) on the spread between the  market value on the date of exercise (your cost  basis) and the net proceeds you receive when you  sell the AMP Shares. If you realize a gain after  satisfying a minimum holding period (currently  greater than one year) and are in a net capital gain  position under applicable U.S. tax rules, you may be  able to pay tax on the gain based on long-term  capital gains tax rates. These rates are generally  lower than ordinary income and short-term capital  gains tax rates. If you realize a loss, you may be  able to use that loss to offset any capital gains you  may otherwise have and any loss in excess of  capital gains may, to a limited extent, be used to  offset ordinary income, to the extent permitted under  applicable U.S. tax rules.      Multi-State Taxation Process      If you work in multiple states or have transferred  between states during your work tenure and awards  have been granted during those years under the  LTIA Program, a state wage adjustment may be  done to properly allocate your earnings. Some  individual states require a “look-back” allocation for  various types of income, including the exercising of  non-qualified stock options, vesting of restricted  stock awards including RSAs and RSUs, as well as  some other compensation distributions not granted  under the LTIA Program.       Each year, the company engages the professional  services of EY (Ernst & Young) to assist with the  recalculation of the appropriate state wages for the  various earnings. A year-end adjustment is then  made so that the appropriate state allocation amount  is reported correctly on your Form W-2, based on  individual state rules for allocating these various  types of compensation items. If you are affected by  the multi-state taxation process, you will receive a  report in early February each year for the prior year’s  activity from HR Services to support the final state  allocations reported on your Form W-2.      Please Note: If you are affected by the multi-state  taxation process, the state tax withholding amounts  recorded in Shareworks are a record of the taxes  withheld for NQSO exercises and/or RSA/RSU  vesting events based upon the withholding rates as  recorded in Payroll at the time the activity took place.  Please consult your tax professional regarding the  effect on your personal state tax return(s).      Section 409A of the Code      It is intended that all Awards under the Plan either  comply with or are exempt from the requirements of  Section 409A so as to prevent the inclusion in gross  income of any benefits accrued thereunder 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 Participant. All  Awards under the Plan shall be administered and  interpreted in a manner that is consistent with such  intention and the Company’s Policy Regarding  Section 409A Compliance.       Notwithstanding any other provision of this Guide to  the contrary, to the extent that an Award constitutes  nonqualified deferred compensation to which  

 

10      Section 409A of the Code applies: (1) payments  under such Award shall be made at a time and in a  manner that satisfies the requirements of Section  409A of the Code and guidance of general  applicability issued thereunder, including the  provisions of Section 409A(a)(2)(B) of the Code to  the extent distributions to any employee are required  to be delayed six months; (2) references to  “termination of employment” and similar terms mean  the date that the Participant first incurs a “separation  from service” within the meaning of Section 409A of  the Code; and (3) payment shall be made as soon  as administratively practicable following the  permissible payment event, but in no event later  than the end of the year in which the permissible  payment event occurs, or, if later, by the 15th day of  the third month following the date of the permissible  payment event (and the Participant will not be  permitted, either directly or indirectly, to designate  the year of payment). If any payment that would  otherwise be made under an Award is required to be  delayed by reason of this section, such payment  shall be made at the earliest date permitted by  Section 409A of the Code. The amount of any  delayed payment shall be the amount that would  have been paid prior to the delay and shall be paid  without interest.        Existing policies regarding the treatment of  outstanding RSAs, NQSOs and RSUs under certain  circumstances are described below. For the  treatment of outstanding PSUs and PCUs, please  refer to the PSU Supplement to this Guide or PCU  Supplement to this Guide, as applicable. The  Committee may amend the following policies for any  or all outstanding and future LTIAs. For specific  information about the treatment of your LTIAs,  please see the applicable section of this Guide that  describes the following specific events:      • Part-time employment status   • Employment termination   • Rehire   • Leave of absence   • Death   • Disability termination   • Retirement    • Transfer between business segments   • Transfer from field eligible employee to  franchise advisor   • Situations of Detrimental Conduct (Bands 50  and above) and   • Change in Control of the Company      Part-Time Employment Status   Outstanding LTIAs continue to vest while you are on  part-time status, subject to the Company’s right to  adjust or terminate any outstanding LTIAs, based on  its determination of a significant change in your  duties and responsibilities.      Employment Termination   This section pertains to employment terminations  other than retirement, death or disability (which are  separately described below).   Voluntary Termination: If you terminate your  employment with the Company for any reason other  than death, disability or retirement, your unvested  LTIAs will be forfeited on your last day of  employment. There are no exceptions to this rule.  Any vested and exercisable NQSOs that you do not  exercise within 90 days after your last day of  employment (and before the award expiration date, if  earlier) will expire and be canceled.      Involuntary Termination Not Eligible for  Severance Under Company Plan: Except as  indicated below, if your employment is terminated for  any reason other than death, disability or retirement  or in connection with a Change in Control (which is  separately described below) and you are not entitled  to receive benefits under a Company severance plan  (as defined by the Company), your outstanding  LTIAs, including any exercisable NQSO shares that  have not been exercised, will expire and be  canceled on your last day of employment (or the  award expiration date, if earlier). For the avoidance  of doubt, your vested NQSOs will be canceled on  your last day of employment and you will not have  90 days after your last day of employment during  which to exercise your vested NQSOs.      Terminations in Connection with Certain  Company Actions: If your employment is  terminated as a result of certain Company actions,  such as the divestiture of a business unit, and you  are not entitled to receive benefits under a Company  severance plan (as defined by the Company), your  unvested NQSOs, RSAs and RSUs will be canceled  on the earlier of the award expiration date or your  last day of employment. You will have 90 days from  your last day of employment (or until the award  expiration date, if earlier) to exercise any vested and  exercisable NQSO shares. Your vested NQSOs will  expire and be canceled upon the earlier of the end  of the 90-day period following your termination and  award expiration date.  Treatment of LTIAs upon  Certain Events   

 

11      Involuntary Termination Eligible for Severance  Under Company Plan: If your employment is  terminated and you receive benefits under a  Company severance plan (as defined by the  Company) in the form of payments over a specified  severance period, your unvested NQSOs, RSAs and  RSUs will be canceled on the earlier of the award  expiration date or last day of your severance period.  You will have 90 days from the last day of your  severance period (or until the award expiration date,  if earlier) to exercise any vested and exercisable  NQSOs. However, if you begin a new full-time  position outside the Company (other than self- employment) during the severance period, your  outstanding LTIAs will be canceled upon  commencement of such employment, regardless of  the continuation of severance payments.   If your employment is terminated and you receive  benefits under a Company severance plan (as  defined by the Company) in the form of a lump-sum  payment, your outstanding unvested NQSOs, RSAs  and RSUs will be canceled as of your last day of  employment. You will have 90 days from your last  day of employment (or until the award expiration  date, if earlier) to exercise any vested and  exercisable NQSOs.  Your vested NQSOs will expire  and be canceled upon the earliest of the end of the  90-day period following your termination, the date  that you commence a new full-time position outside  the Company (other than self-employment) and the  award expiration date.   Rehire: Please note that in the event you terminate  your employment with the Company or your  employment is terminated by the Company and any  of your outstanding LTIAs are canceled and/or  forfeited, and you are subsequently rehired by the  Company, any LTIAs that were canceled and or  forfeited at termination will not be reinstated upon  rehire.       Leave of Absence       Outstanding LTIAs continue to vest when you are on a leave of absence (as determined by the applicable  Company policies) subject to the Company’s right to adjust or terminate any outstanding LTIAs, based on its  discretion of a significant change in your duties and responsibilities and/or related employment.      Death      The following chart shows how RSAs, RSUs and NQSOs are treated if your employment with the Company  terminates due to your death.      Award Type  Provisions   RSA and RSU      Outstanding RSAs and RSUs become 100% vested and are paid as soon as  administratively practicable following the date of death.   NQSO  Outstanding NQSOs at death become 100% exercisable. NQSOs are exercisable by the  estate for up to 12 months after the date of death or the remaining term of the NQSO,  whichever is earlier.       In the event of your death, shares for all RSAs and RSUs that vest will automatically be issued to your estate.   Because NQSO Awards cannot be transferred, the Executor/Executrix of your estate must open an Ameriprise  Financial estate brokerage account to exercise any NQSOs. The estate is then responsible for distributing any  funds or shares according to the laws of descent and distribution.      Disability Termination      The following chart shows how your RSAs, RSUs and NQSOs are treated if your employment with the Company  terminates due to a qualifying disability (as defined by the Company).       Award Type  Provisions   RSA and RSU      Outstanding RSAs and RSUs become 100% vested and are paid as soon as  administratively practicable following your termination of employment due to disability.   

 

12      NQSO  Outstanding NQSOs become 100% exercisable. NQSOs are exercisable for up to 12  months after termination of employment due to disability or the remaining term of the  NQSO, whichever is earlier.      Retirement      The following chart shows how RSAs, RSUs and NQSOs are treated upon “Retirement.” The applicable definition  of Retirement for all LTIAs granted to U.S.-based Participants is attainment of age 55 with at least 10 years of  applicable service at the point of termination, regardless of any pension plan or other definitions of retirement.      Award Type  Provisions   RSA and RSU   Grants awarded in the calendar year you retire are forfeited. All other awards remain  outstanding and continue to vest and will be paid upon the otherwise applicable vesting  date under your Award certificate.   NQSO   Grants awarded in the calendar year you retire are forfeited. All other awards remain  outstanding and continue to vest. NQSOs are exercisable for up to five years after your  retirement or the remaining term of the NQSO, whichever is earlier. Your NQSOs expire  and are forfeited upon the earlier of the end of the five-year post-retirement period or the  applicable expiration date.      Transfer between Business Segments      Outstanding LTIAs continue to vest when you  transfer from one business segment to another,  subject to the Company’s right to adjust or terminate  any outstanding LTIAs, based on its discretion of a  significant change in your duties and responsibilities  and/or related employment.      Transfer from Field Eligible Employee to  Franchise Advisor      Certain provisions for LTIA continuation apply to  awards held by employees (limited to those  employees in eligible field sales leadership roles)  who transition to franchise advisor without a break in  service. The applicable provisions are available on  Inside, and such provisions are incorporated into,  and part of the terms and conditions of, Awards  under the Plan.      Situations of Detrimental Conduct      (Bands 50 and above)   To protect the interests of the Company and all  employees, the Company has implemented  Detrimental Conduct Provisions, affecting Plan  Participants in Bands 50 and above. These  provisions support the multi-year performance  objectives of LTIAs, and such provisions are  incorporated into, and part of the terms and  conditions of, Awards under the Plan.      Detrimental Conduct Provisions specify how LTIAs  and LTIA payments will be handled in the event a  Band 50 or above employee joins a defined  competitor (“Competition”), leaves and solicits  business customers, solicits or hires Ameriprise  Financial employees, discloses confidential  information or trade secrets, denigrates the  Company or Company employees or otherwise  engages in conduct that is against the Company’s  interests during certain time periods, in each case,  as defined by the Company (each, a “Restricted   Activity”).      For Bands 50 and 60 Participants: Competition  during employment or the six-month period after  termination of employment or engaging in any  Restricted Activity during the twelve-month period  after termination of employment results in the  cancellation of all outstanding Awards and  repayment of any gain realized upon the exercise of  NQSOs (as of the exercise date), any payments  made or shares delivered under PSUs or PCUs and  any shares delivered under RSAs and RSUs, in  each case, during the twelve months prior to, and  the 90 days following, your termination of  employment.      For Bands 70 and above Participants:  Competition during employment or the twelve-month  period after termination of employment or engaging  in any Restricted Activity during the twelve-month  

 

13      period after termination of employment results in the  cancellation of all outstanding Awards and  repayment of any gain realized upon the exercise of  NQSOs (as of the exercise date), any payments  made or shares delivered under PSUs or PCUs and  any shares delivered under RSAs and RSUs, in  each case, during the two years prior to, and the 90  days following, your termination of employment.      Please note: This is a summary of the   Detrimental Conduct Provisions that apply to  LTIAs generally. Please review the Consent to  the Application of Forfeiture and Detrimental  Conduct Provisions to Long-Term Incentive  Awards and/or any other restrictive covenant  agreements between you and the Company or  any of its subsidiaries for the specific  detrimental conduct provisions and/or restrictive  covenants that apply to your Awards.      Compensation Recovery or “Clawback” Policy  (For executive officers only)      The Committee approved a compensation recovery  or “clawback” policy (the “Clawback Policy”) that  applies to all Awards granted to executive officers,  including the Company’s Executive Leadership  Team, on or after January 1, 2011. Under the  Clawback Policy, if you engage in intentional  misconduct that causes or substantially causes a  material restatement of the Company’s financial  reports, and the restated financial results would  have resulted in a lesser number of AMP Shares or  a lesser amount of cash being granted to you under  an Award, or a lesser number of AMP Shares or a  lesser amount of cash being paid or delivered to  you, in each case, within the 12-month period  following the issuance of such inaccurate financial  statement, then the Committee, in its sole discretion,  may require you to forfeit all or a portion of your  outstanding Awards or to repay all or a portion of the  gains that you realized under your Awards during  such period. In addition, effective for Awards made  on or after January 1, 2020, if you are found liable  for having engaged in an intentional and material  violation of law that results in significant reputational  harm or financial loss to the Company, the  Committee, in its sole discretion, has the right to  require you to forfeit all or a portion of your  outstanding Awards. The Committee may amend the  Clawback Policy from time to time as it determines  necessary or advisable, and such amended policy  will apply to your Awards.      Change in Control of the Company      The Plan’s provisions regarding a Change in Control  of the Company (a “CIC”) have been designed to  preserve earned or anticipated compensation and  benefits if a CIC were to occur. The goal of the  Plan’s CIC provisions is to help you maintain your  focus on your work during the uncertainty that  accompanies a potential CIC.      Generally, as the term is used in this Guide, a CIC  includes the following:      1. A third party acquires 25% or more of the  Company’s common shares or voting  securities.  2. A majority of the Board is replaced.   3. The consummation of certain mergers,  reorganizations, consolidations and sales of  assets.   4. The consummation of a complete liquidation  or dissolution of the Company.      If a merger or other business combination  transaction between the Company and another party  occurs, a CIC will occur if any of the following  conditions are present:      • Parties who were Ameriprise Financial  shareholders before the transaction own  50% or less of the voting securities of the  new company resulting from the business  combination, or their ownership is not  substantially in the same proportions as  before the transaction.   • An unaffiliated party ends up owning 25% or  more of the voting securities of the new  company (other than a party who owns 25%  or more before the transaction).   • A majority of the Board of the new company  is made up of individuals who were not  Ameriprise Financial Board members at the  time the deal was signed or approved.      In the event of a CIC, outstanding RSAs, RSUs and  NQSOs issued on or before December 31, 2012  would vest immediately if those Awards are not  continued, assumed, or replaced in connection with  the Change in Control. The vesting of RSAs, RSUs  and NQSO awards granted on or after January 1,  2013 will accelerate only upon the occurrence of  both a CIC and your termination of employment in a  

 

14      manner that entitles you to severance under the  applicable severance plan within two years following  the CIC. For the treatment of outstanding PSUs and  PCUs, please refer to the PSU Supplement to this  Guide or PCU Supplement to this Guide, as  applicable.      Change in Control situations are complex and  involve a variety of possible circumstances. In the  event of a CIC, the Company will provide detailed  information to you about any compensation and  benefits programs that may have special CIC  provisions.     Payments to Certain U.S. Taxpayers upon a  Change in Control of the Company       (This section applies to U.S. taxpayers only. This  material is highly complex. In the event of a CIC, the   Company will provide detailed information to you.)      In summary, Sections 280G and 4999 of the Code  impose a 20 percent excise tax (in addition to  regular income and employment taxes) on certain  compensatory payments (referred to as “excess  parachute payments”) to certain individuals (referred  to as “disqualified individuals”) that are made in  connection with a change in ownership or control of  a corporation. Generally, disqualified individuals  include individual shareholders who own more than  one percent of the fair market value of the stock of  the Company, the top 50 most highly compensated  officers of the Company and its subsidiaries and the  top 250 most highly compensated employees or  independent contractors of the Company and its  subsidiaries. The actual list of disqualified individuals  can only be determined based on information  available at the time of a CIC, based on applicable  IRS guidance.      In the event of a CIC, a disqualified individual may  be liable for the 20 percent excise tax on a portion of  his or her LTIAs and other compensation and  benefits if the value of such compensation and  benefits constitute excess parachute payments. The  determination of whether all or a portion of the value  of a payment or a benefit is an excess parachute  payment is highly complex and can only be  determined based on information available at the  time of a CIC, based on applicable IRS guidance.      In the event of a CIC, if the Company determines  that you are a disqualified individual and that you will  receive excess parachute payments, then the  Company will perform a “best net” calculation to  determine whether you receive a better economic  result by continuing to be entitled to all of the  compensation and benefits and by paying the excise  tax yourself or by having your entitlement to  accelerated vesting and/or payment limited to the  minimum extent necessary to avoid the excise tax.  The Company will determine, in its sole discretion,  which approach is more favorable to you and will  apply it. You will not be eligible for additional  payments to offset the impact of any excise tax. If  the limit is applied, LTIAs and value not accelerated  for disqualified individuals will continue to be  governed by applicable award documents and paid  out as applicable.           Resale of Shares Received Under the Plan     The U.S. securities laws impose restrictions on the resale of  AMP Shares by individuals who are “affiliates” of the  Company. Affiliates may resell their AMP Shares by  complying with Rule 144 under the Securities Act of 1933, as  amended (the “Securities Act”) or by registering their AMP  Shares for sale under the Securities Act. These restrictions  do not apply to individuals who are not affiliates of the  Company.     Major Terms and Conditions of NQSOs, RSAs and RSUs      The terms and provisions of LTIAs granted on or after Jan. 1, 2007, are different than the terms and conditions  of LTIAs granted prior to January 1, 2007. The terms and conditions of the prior LTIA Guide will continue to  apply to all awards granted prior to Jan. 1, 2007.   

 

15         Non-Qualified Stock Options    The following table summarizes the terms and conditions of NQSOs. Keep in mind this is only a summary, and  the actual Plan document, Program Guide and Award details will govern.      NQSO Awards     Voluntary Termination and   Involuntary Termination   Eligible for Severance     -- Unvested  Forfeited   -- Exercise Period for Vested   90 days after termination or remaining term of grant, whichever is earlier   Involuntary Termination Not  Eligible for Severance (except  for Terminations in  Connection with Certain  Company Actions; see  applicable section in Guide)     -- Unvested  Forfeited   -- Exercise Period for Vested  0 days after termination    Death & Disability     -- Unvested  Vesting accelerated   -- Exercise Period for Vested  Up to 12 months after death or disability or remaining term of grant, whichever  is earlier   Retirement     -- Unvested  (Age 55+ and 10 years of service)   Grants awarded in calendar year of retirement are forfeited. All other grants  remain outstanding and continue to vest   -- Exercise Period for Vested  Up to five years or remaining term of grant, whichever is earlier   Vesting  Three-year vesting schedule: vest at    33 1/3% per year for three years following the date of grant, or another  vesting schedule as specified.   Detrimental Conduct   Provisions (Bands 50 and   Above Only)   See your Detrimental Conduct Agreement and the Competitor List posted on  Inside   Clawback Policy – Executive  Officers, including Executive  Leadership Team, Only  A compensation recovery or “clawback” policy applies to all Awards granted  to executive officers on or after January 1, 2011.  Transfer to Franchise Advisor   (Eligible Field employees   Only)  Please refer to the Treatment of Long-Term Incentive Awards for Employees   Transferring to Ameriprise Financial Franchise Advisor Status found on Inside  for most recent information    Restricted Stock Awards and Restricted Stock Units     The following table summarizes the terms and conditions of RSAs and RSUs. Keep in mind this is only a  summary, and the actual Plan document, Program Guide and Award details will govern.      

 

16      RSAs and RSUs Awards     Voluntary Termination and   Involuntary Termination   Eligible for Severance –  Unvested   Forfeited   Involuntary Termination Not   Eligible for Severance (except  for Terminations in  Connection with Certain  Business Dispositions; see  applicable section in Guide)  -- Unvested   Forfeited   Death & Disability –  Unvested   Vesting and distribution of shares accelerated   Retirement –  Unvested   (Age 55+ and 10 years of service)   RSAs and RSUs awarded in calendar year of retirement are forfeited      All other RSAs and RSUs remain outstanding and continue to vest and  shares will be distributed at the otherwise applicable vesting date      Vesting  Three-year vesting schedule: vest at    33 1/3% per year for three years following the date of grant, or another  vesting schedule as specified.   Detrimental Conduct   Provisions (Bands 50 and   Above Only)   See your Detrimental Conduct Agreement and the Competitor List posted on  Inside   Clawback Policy – Executive  Officers, including Executive  Leadership Team, Only   A compensation recovery or “clawback” policy applies to all Awards granted  to executive officers on or after January 1, 2011   Transfer to Franchise Advisor   (Eligible Field employees   Only)   Please refer to the Treatment of Long-Term Incentive Awards for Employees   Transferring to Ameriprise Financial Franchise Advisor Status found on   Inside for most recent information      Administrative Information about this Guide      About this Guide      This Guide sets forth the terms, conditions and  features of Awards granted pursuant to the Plan. In  the event of a conflict or inconsistency between this  Guide and the Plan, the Plan provisions will govern.  The general nature of the Plan and its terms and  conditions are described here, but the information  contained in this Guide is for general guidance only  and is not intended to be a complete description of  the Plan.       The LTIA program is designed for eligible employees  of the Company, and any of its subsidiaries  participating in the Plan, as determined by the  Committee. Awards are granted at the discretion of  the Committee, or, to the extent permitted by the  Plan, its delegate, and are subject to local market  regulations and legislation, which could change at  any time. Also note that while the tax laws that apply  to Participants are based on each employee’s tax  jurisdiction, and the tax information provided in this  Guide is for U.S. purposes only. The Company  strongly urges all employees to consult their  personal tax advisor with any questions or  issues regarding their Awards or their  participation in the Plan.      The Board, and to the extent authority has been  delegated to the Committee, the Committee, may,  from time to time, alter, amend, interpret, suspend or  

 

17      terminate the Plan and applicable Plan documents  as it shall deem advisable, without the prior consent  or notice of employees (including, but not limited to,  alignment with legislative or regulatory  developments) subject to the terms of the Plan  document, including the rules and regulations of the  principal securities market on which AMP Shares are  traded.      This Guide does not constitute a contract of  employment between the Company and any  individual or an obligation by the Company to  maintain any particular compensation or benefit plan,  program, practice or policy. This Guide does not  replace or change an existing contract of  employment between the Company and any  individual. The Company has taken steps to ensure  the accuracy of this Guide; however, it reserves the  right to issue corrected information in the event of an  error.      About the Illustrations      All Award illustrations and corresponding values  shown in this Guide are for hypothetical purposes  only and are based upon financial, share price and  other assumptions about future events or  circumstances, which may or may not actually occur.  All Awards are subject to continuous employment  and other award requirements.      The illustrations are hypothetical and not meant to  imply that the Company will achieve certain stock  prices or growth rates, or has achieved any stated  growth rate consistently in the past. The value and  return on Company common stock will fluctuate over  time and may be worth more or less than the values  shown in these illustrations. Past performance is no  guarantee of future results. Please consult your  personal financial advisor on the value, tax and other  implications of your LTIAs under the Plan, as  applicable to your circumstances. This Guide is not  intended to provide any financial or tax advice.      Award Confirmation Materials      All employee recipients of LTIAs will have online  access to their individual LTIA information and grant  details through the Company’s online administrative  platform, Shareworks.            Governing Award Documents    The Plan, the applicable Award communications or  detail, this Guide and any supplement to this Guide  contain the controlling provisions of each Award  granted pursuant to the Plan. These documents,  along with Committee decisions, will govern in cases  of conflict, ambiguity or miscommunication. No  employee has the authority to change or supersede  LTIA provisions or Committee decisions. Any  representation to the contrary will be void and  nonbinding on the Company.      The provisions of all Awards and this Guide are  governed by, and subject to, the laws of the State of  New York, United States of America, without regard  to its conflict of law provisions, as provided in the  Plan.      AMP Shares Available for Grant under the Plan       54,400,000 AMP Shares are authorized for issuance  under the Plan. Of such total, as of April 30, 2014,  no more than 4,500,000 shares may be issued for  what are referred to as “full value” awards, which are  Awards other than stock options or stock  appreciation rights. AMP Shares issued under the  Plan may be either newly issued shares or treasury  shares.       Excluding AMP Shares that may be issued with  respect to Substitution Awards, the maximum  number of AMP Shares that may be covered by  options or stock appreciation rights granted to any  Participant in any calendar year will not exceed  3,000,000 AMP Shares. Further, the amount payable  in cash to any Participant for any calendar year for  all Awards other than options or stock appreciation  rights will not exceed $30,000,000.      If any shares subject to an award are forfeited,  expire or otherwise terminate without issuance of  such shares, or any award is settled for cash or  otherwise does not result in the issuance of all or a  portion of the shares subject to such award, such  shares shall, to the extent of such forfeiture,  expiration, termination, cash settlement or  nonissuance, again be available for issuance under  the Plan. Shares withheld by the Company to satisfy  tax withholding requirements for Awards other than  options or stock appreciation rights will also again be  available for issuance under the Plan.      

 

18      For the avoidance of doubt, in the event that (i) any  stock option is exercised through the tendering of  shares (either actually or by attestation) or by the  withholding of shares by the Company, (ii)  withholding tax liabilities arising from such option or  stock appreciation right are satisfied by the tendering  of shares (either actually or by attestation) or by the  withholding of shares by the Company, or (iii) any  shares are repurchased by the Company with the  proceeds from option exercises, the shares so  tendered or withheld or repurchased shall not  become available for issuance under the Plan.      Plan Administration       The Committee may from time to time designate the  people who should be granted Awards under the  Plan and the amount, type and other terms and  conditions of Awards. Subject to the terms and  limitations of the Plan, the Committee will have full  discretion and authority to administer the Plan,  including authority to interpret and construe the  provisions and terms of Awards and to adopt rules  and regulations under the Plan.      Notwithstanding the Committee’s broad authority  under the Plan, the Committee generally may not  reprice, adjust or amend the exercise price of  outstanding stock options or the strike price of  outstanding stock appreciation rights, whether  through amendment, cancellation and replacement  grant, or any other means, nor permit the exchange  of an outstanding option for cash or another award,  unless such action is approved by the Company’s  shareholders. In addition, certain amendments to the  Plan require shareholder approval.      The Plan is not subject to the requirements of the  Employee Retirement Income Security Act of 1974,  as amended (ERISA) and it is not qualified under the  Internal Revenue Code.       The Board appoints Committee members for an  annual term. The Board may remove any Committee  member for cause, and a majority of the  shareholders may remove a Committee member for  any reason. No Committee member is an employee  of the Company or has any business undertakings  with the Company.             Performance-Based Compensation      To the extent that an Award is intended to qualify as  performance-based compensation under Section  162(m) of the Code, the Committee may grant  Awards based on achievement of one or more of the  following performance measures:    • Net income or operating net income (before  or after taxes, interest, depreciation,  amortization, and/or nonrecurring/unusual  items),    • Return on assets, return on capital, return on  equity, return on economic capital, return on  other measures of capital, return on sales or  other financial criteria,    • Revenue or net sales,    • Gross profit or operating gross profit,    • Cash flow,    • Productivity or efficiency ratios,    • Share price or total shareholder return,    • Earnings per share,    • Budget and expense management,    • Customer and product measures, including  market share, high value client growth, and  customer growth,    • Working capital turnover and targets,    • Margins, and    • Economic value added or other value-added  measurements (considered absolutely or  relative to historic performance or relative to  one or more other businesses and  determined for the Company or a business  unit or division).      Such performance goals shall be established and  measured by the Committee within the time period  prescribed by, and shall otherwise comply with, the  requirements of Section 162(m) of the Code.      Adjustments upon Changes in Capitalization       If the outstanding shares of Company common stock  are changed by reason of any stock split, stock  dividend, combination, subdivision or exchange of  shares, recapitalization, merger, consolidation,  reorganization or other extraordinary or unusual  event, the Committee, to the extent that it  determines adjustments to be appropriate, will direct  that appropriate changes be made in the maximum  number or kind of securities that may be issued  under the Plan and in the terms of certain  outstanding awards, including the number of shares  or securities subject to awards and the exercise  

 

19      price or other stock price or share-related provisions  of awards.      Tax Withholding       The Plan provides that the Committee is authorized  to establish procedures to enable Participants to  elect to satisfy certain federal, state and local  withholding tax requirements using any method  approved by the Committee. Such methods may  include, but are not required to include, withholding  such amounts from the Participant’s compensation,  the Participant paying such amounts in cash, the  Participant tendering previously acquired AMP   Shares or the Company withholding AMP Shares  otherwise issuable under the Award. If a Participant  tenders AMP Shares or instructs the Company to  withhold AMP Shares, only the number of AMP  Shares sufficient to satisfy the minimum withholding  tax requirements will be tendered or withheld.      Assignment and Transfer      LTIAs may not be sold, pledged, assigned,  hypothecated, transferred or disposed of in any  manner other than by will or by the laws of descent  or distribution, except as permitted by the  Committee.       Amendment       Our Board of Directors may at any time suspend or  discontinue the Plan or revise or amend it in any  way; however, the Board generally may not reprice,  adjust or amend the exercise price of outstanding  stock options or the strike price of outstanding stock  appreciation rights, whether through amendment,  cancellation and replacement grant, or any other  means, nor permit the exchange of an outstanding  option for cash or another award, unless such action  is approved by the Company’s shareholders. In  addition, certain amendments to the Plan require  shareholder approval.      Term of the Plan      No grants of LTIAs may be made under the Plan  after February 25, 2024.         Resources     Availability of Certain Information and  Incorporation of Documents by Reference      Pursuant to the Securities Exchange Act of 1934, as  amended (the “Exchange Act”), the Company will  provide, without charge, upon the written or oral  request of any person to whom this Guide is  delivered by the Company or one of its affiliated  entities to the Corporate Secretary’s Office,  Ameriprise Financial, Inc., 55 Ameriprise Financial  Center, Minneapolis, MN 55474, 612.671.3131, a  copy of any of the following documents, all of which  are incorporated by reference in this Guide:      (a) The Company’s Registration Statement on  Form 10, as amended, as filed with the   Securities and Exchange Commission (the   “Commission”) August 19, 2005 (the “Form   10 Registration Statement”);   (b) All other reports filed by the Company  pursuant to Section 13(a) or 15(d) of the  Exchange Act since the end of the fiscal  year covered by the Form 10 Registration   Statement; and   (c) The description of the Company’s common  stock contained in the Company’s Form 10  Registration Statement, including any  amendment or report filed for the purpose of  updating such description.      All documents filed by the Company with the   Commission pursuant to Sections 13(a), 13(c), 14 or  15(d) of the Exchange Act subsequent to the date of  the Registration Statement on Form S-8 to which this  Guide relates and prior to the filing of a post-effective  amendment that indicates that all securities offered  hereby have been sold or that deregisters all  securities then remaining unsold, will be deemed to  be incorporated by reference in, and to be a part of,  this Guide from the date of filing of such documents.  Any statement contained herein or in a document  incorporated or deemed to be incorporated by  reference herein will be deemed to be modified or  superseded for purposes of this Guide to the extent  that a statement contained in any subsequently filed  document which also is or is deemed to be  incorporated by reference herein modifies or  supersedes such statement. Any such statement so  modified or superseded will not be deemed, except  as so modified or superseded, to constitute a part of  this Guide.   

 

20      Nothing in this Guide will be deemed to incorporate  information furnished but not filed with the  Commission pursuant to Item 2.02 or Item 7.01 of  Form 8-K.      In addition, the Company will provide, without  charge, upon the written or oral request of any  person to whom this Guide is delivered by the  Company or one of its affiliated entities to the  Corporate Secretary’s Office (contact information  noted above), copies of all reports, proxy statements  and other communications distributed by the  Company to the holders of AMP Shares.                                                                                                                          

 

21      Contact Information      Type of question or  information needed      Contact/email/web address   Phone   number      Fax number   All stock option exercises   (Net, cashless or buy- and-hold)   Ameriprise Financial Brokerage Services   Email: ESO.Group@ampf.com    612.671.5355   800.555.9826  612.671.6023   Ameriprise Brokerage   Account   (to access brokerage  account information)   Ameriprise Financial Brokerage Services   Website: ameriprise.com      612.671.5355   800.555.9826  612.671.6023   RSA/RSU, PCU/PSU and  NQSO grant information  (grants, exercise options,  vesting detail, tax  information, brokerage  account number on file   with Stock Administration)   Website: ameriprise.solium.com (Can also search  for Shareworks site on Inside and  AdvisorCompass®).   Email: Ameriprise.LTIA.Administration@ampf.com         612.678.7128  612.671.3948  Detrimental Conduct  Provisions for Bands 50  and above   Email: Ameriprise.compensation@ampf.com  612.671.3072     612.671.3948      Other information  requests (e.g., LTIA policy  questions for HR, general  LTIA questions)   Email: Ameriprise.LTIA.Administration@ampf.com  612.678.7128  612.671.3948   Senior Management   Stock Ownership  Program (Bands 70 and  above)   Email: Ameriprise.compensation@ampf.com  612.671.3072    612.671.3948   Pre-clearance,   Ameriprise Securities  Trading Policy including  information about  Blackout Periods   Ameriprise Corporate Secretary’s Office      612.678.0106   612.671.4471   612.671.4841   Stock Transfer Agent:  Shareholder inquiries,   Address changes,  Dividend check  replacement   Broadridge Corporate Issuer Solutions, Inc.  Email: shareholder@broadridge.com  Website: shareholder.broadridge.com/amp  866.337.4999 U.S.   and Canada      303.974.3777  International         None Available   American Express LTIA  information   Outsourced to Morgan Stanley Smith Barney  516.227.5605      Not Applicable

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