Document:

Exhibit 10.4

 

AMERIPRISE FINANCIAL

 

SUPPLEMENTAL RETIREMENT PLAN

 

 

As Amended
and Restated Effective January 1, 2009

 

 

AMERIPRISE FINANCIAL

SUPPLEMENTAL RETIREMENT PLAN

 

As
Amended and Restated Effective January 1, 2009

 

Article 1

Purpose, Effective Date and Transition Rules

 

1.01.        Purpose.  The Ameriprise Financial Supplemental
Retirement Plan (the “Plan”) was adopted by Ameriprise Financial, Inc.
effective October 1, 2005, was amended and restated in its entirety
effective January 1, 2007 and is hereby amended and restated in its
entirety effective January 1, 2009. 
The Plan is intended to supplement retirement benefits provided under
the Retirement Plan, the 401(k) Plan (for pay periods ending prior to December 31,
2006), and any other retirement and savings plans sponsored by the Company, for
a select group of management or highly compensated individuals.  The Plan is intended to be and shall be
construed and operated as a “top-hat plan” under Sections 201(2), 301(a)(3),
and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), and Section 2520.104-23 of the United States Department
of Labor Regulations.

 

1.02.        Effective
Date.  The Plan
became effective October 1, 2005. 
Effective as of the close of business on September 30, 2005, the
American Express Company effectuated the distribution of all of the outstanding
securities of Ameriprise Financial, Inc. to the shareholders of the
American Express Company in a tax-free spin-off under the Code (the “Spin-Off”).  On that date, the Company ceased to be a
participating employer in the American Express Company’s tax-qualified
retirement plans and the components of such plans covering Company participants
were transferred to new plans established by the Company in a transaction that
complied with Section 414(l) of the Code.  In connection with this transaction, the
component of the American Express Company Supplemental Retirement Plan (the “AXP
Plan”) covering Company participants was similarly transferred to the
Company.  Effective as of the close of
business on September 30, 2005, the Company and its subsidiaries ceased to
be participating companies, and employees and retirees of the Company and its
subsidiaries ceased to be participants, in the AXP Plan.  Effective January 1, 2007, the Plan was
amended to discontinue contributions to Participants in excess of
the limits under the 401(k) Plan for pay periods ending after December 31,
2006, and to reflect certain other design changes.  Effective January 1, 2009, the Plan is
hereby amended to comply with the requirements of Section 409A, and to
reflect certain other design changes.

 

1.03.        Transition Rules

 

(a)           Opening Account Balances and
Participation.  Unless
otherwise expressly set forth herein, the account balance as of the close of
business on September 30, 2005 of any individual who had accumulated
benefits under the AXP Plan, the responsibility for which was transferred to
the Company pursuant to the Employee Benefits Agreement by and between the
American Express Company and the Company, dated as of September 30, 2005
(the “EBA”), shall be the account balance such Participant had in the AXP Plan
immediately before the Spin-Off.  For
purposes of this transition rule only, “Participant” shall include
individuals with accrued benefits under the AXP Plan, the responsibility for
which was transferred to the 

 

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Company under the EBA.  A Participant who became an Employee of the
Company and Participant under the Plan shall accrue benefits and receive
distributions of such benefits, including benefits accrued under the AXP Plan,
as set forth below in the Plan.  A
Participant who had accrued benefits under the AXP Plan, but did not become an
Employee of the Company accruing additional benefits under the Plan, shall have
benefits solely as set forth in, and shall receive payments from the Company
solely in accordance with, the terms of the AXP Plan as in effect on September 30,
2005.

 

(b)           Plan Elections and Designations.  Notwithstanding anything herein to the
contrary and in accordance with the requirements of the EBA, all beneficiary
designations, deferral election forms, investment elections, payment form
elections, and qualified domestic relations orders creating rights for
alternate payees in effect under the AXP Plan as of September 30, 2005
shall be deemed to be effective with respect to the Plan.  For purposes of this Article 1.03(b),
investment elections relating to the American Express Company Stock Fund under
the AXP Plan shall be deemed to apply to the Company Stock Fund under the Plan.

 

(c)           Calculation of Limitations.  Notwithstanding anything herein to the
contrary, for purposes of calculating the Section 415 Limitations and the Section 401(a)(17) Limitation,
compensation and benefits accrued under the AXP Plan (and the underlying AXP
qualified retirement plans) and/or while a Participant was employed by the
American Express Company or its affiliates during 2005 shall be taken into
consideration under the Plan for the 2005 Plan Year.

 

Article 2

Definitions

 

As used in the Plan, the
following terms have the meanings indicated below:

 

2.01.        “Affiliate”
means any corporation or other trade or business under common control with the
Company, as further defined in the Company’s Qualified Retirement Plans.

 

2.02.        “Beneficiary”
means the individual or entity designated by the Participant pursuant to Article 7
and in accordance with procedures established by the Committee to receive
benefits under the Plan in the event of the Participant’s death.

 

2.03.        “Board”
means the board of directors of the Company.

 

2.04.        “Change
in Control” has the meaning given such term in the Ameriprise Financial
2005 Incentive Compensation Plan, as amended.

 

2.05.        “Claimant” has the meaning
set forth in Article 12.01.

 

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

 

2.07.        “Committee” means the Compensation and Benefits Committee of
the Company or such other committee designated by the Board to administer the
Plan.  Any
reference herein to 

 

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the Committee shall
be deemed to include any  person to
whom any duty of the Committee has been delegated pursuant to Article 11.03.

 

2.08.        “Company” means Ameriprise Financial, Inc. and any of its
subsidiaries and Affiliates which have become participating employers in a
Qualified Retirement Plan.

 

2.09.        “Compensation” means, with respect to excess benefits calculated
with reference to a particular Qualified Retirement Plan, “Compensation” as
defined in the applicable Qualified Retirement Plan, as the context implies,
provided that the Committee may, in its discretion, designate additional or
different items, such as the value of certain equity awards, as Compensation
for purposes of one or more of the benefits provided under the Plan.

 

2.10.        “Deferral Plan” means the Ameriprise Financial
Deferred Compensation Plan, or any similar or successor non-qualified plan for
the deferral of compensation in accordance with Section 409A.

 

2.11.        “Defined Termination” has
the meaning given such term in the Senior Executive Severance Plan.

 

2.12.        “Employee” means an elected or appointed officer of the Company or
any other individual whom the Committee identifies as an employee of the
Company, and whose compensation is reported on a Form W-2, regardless of
whether the use of such form is subsequently determined to be erroneous.

 

2.13.        “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

2.14.        “Insiders” means such Participants who are or may be required to
file reports under Section 16(a) of the Exchange Act, with respect to
equity securities of  Ameriprise
Financial, Inc.

 

2.15.        “401(k) Plan” means the Ameriprise Financial 401(k) Plan,
as amended.

 

2.16.        “Participant” means an eligible Employee who accrues benefits under
the Plan.

 

2.17.        “Plan Year” means the calendar year with reference to which benefits
are determined under the Plan.

 

2.18.        “Qualified Retirement Plan” means the Retirement Plan and/or the 401(k) Plan,
as the context may imply.

 

2.19.        “Retirement Plan” means the Ameriprise Financial Retirement Plan, as
amended.

 

2.20.        “Section 401(a)(17) Limitation” refers to the limitation on the
dollar amount of Compensation which may be taken into account under the
Qualified Retirement Plans under Section 401(a)(17) of the Code.

 

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

 

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2.22.        “Section 415 Limitations” refer to the limitations on benefits
for defined benefit pension plans and defined contribution plans which are
imposed by Section 415 of the Code.

 

2.23.        “Senior Executive Severance Plan” means the Ameriprise Financial
Senior Executive Severance Plan, as amended.

 

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

 

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

 

Article 3

Eligibility

 

3.01.        Automatic Participation.  Participation in the Plan shall be
limited to Employees who meet the requirements of Articles 3.02(a) and
(b), and shall automatically occur for such Employees; provided, that the
Committee may designate, on a case-by-case basis, Employees or categories of
Employees who shall not be eligible to participate in all or any portion of the
Plan.

 

3.02.        Participation Requirements.  To become a Participant in the
Plan, an Employee must:

 

(a)           be a participant under a Qualified Retirement Plan
maintained by the Company.  Participation
by an Employee in a Qualified Retirement Plan shall be determined pursuant to
and in accordance with the eligibility criteria applicable under such Qualified
Retirement Plan; and

 

(b)           for the relevant Plan Year:

 

(i)            be credited with Compensation earned from the Company in an
amount in excess of the applicable Code Section 401(a)(17) Limitation or
accrue benefits under a Qualified Retirement Plan in excess of the Section 415
Limitation; or

 

(ii)           have deferred Compensation under a Deferral Plan and be
classified as a level “Grade Band 50” personnel or greater (as such classification
is defined by the Committee from time-to-time); provided, however, that the
Committee may, in its sole discretion, set a different required pay level or
grade for participation in the Plan.

 

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Article 4

Plan Benefits

 

4.01.        Benefits Under the Retirement Plan.  For purposes of this Article 4.01,
capitalized terms not otherwise defined herein shall have the same meaning set
forth in the Retirement Plan.

 

(a)           Benefits in Excess of Limits Under the Retirement Plan.  If a Participant is
a participant under the Retirement Plan, other than a terminated participant,
the Company shall establish a book reserve account to be determined as follows:

 

(i)            Initial Book Reserve Account Balance.  A Participant’s
initial book reserve account balance shall be zero unless the Participant was a
participant in the AXP Plan.  A
Participant who was a participant in the AXP Plan shall have an initial book
reserve account balance equal to his or her book reserve account balance in the
AXP Plan on September 30, 2005.

 

(ii)           Contribution Credits.  There shall be credited to a
Participant’s book reserve account, in accordance with Article 4.04, an
amount equal to the excess, if any, of:  (x) the Contribution
Credits that would have been credited to a Participant’s Defined Benefit
Account Balance under the Retirement Plan for the Plan Year if the Plan’s
definition of Compensation was used, the Section 401(a)(17) Limitation was
ignored, and the Participant had not elected or been required to defer the
receipt of any Compensation pursuant to a Deferral Plan, over (y) the
actual Contribution Credits credited to the Participant’s Defined Benefit
Account Balance under the Retirement Plan for the Plan Year.  In the event a Participant terminates from
service as a result of a disability, as determined under the Retirement Plan,
this Article 4.01(a)(ii) will apply as if the Section 401(a)(17)
Limitation and Section 415 Limitations applied to the deemed Compensation
considered by the Retirement Plan.

 

(b)           Additional Years of Service.  Certain Participants, as
determined by the Company in its sole discretion, may be deemed to have
rendered five additional Years of Service under the Plan.  For each such Participant, subject to such
terms and conditions as the Company may impose upon such benefits by special
agreement with such Participant (in the event of a conflict with this Article 4.01(b),
such special agreement shall control), an additional amount shall be credited
to the Participant’s book reserve account equal to the excess, if any
of:  (x) the total cumulative Contribution Credits that would
have been credited to the Participant’s book reserve account under Article 4.01(a) had
the Participant rendered such additional Years of Service under the Retirement
Plan, over (y) the actual total cumulative Contribution Credits credited
to the Participant’s book reserve account under Article 4.01(a) as of
the date the Participant is eligible for such benefits under the Plan.  Subject to the terms of the special agreement
with each such Participant, such amounts shall be calculated and credited in
accordance with Article 4.04 under procedures to be determined from time
to time by the Committee and consistently applied to similarly situated
Employees.  Unless otherwise determined
by the Committee or agreed in a special agreement with the Participant, amounts
credited under this Article 4.01(b) shall be subject to five year
vesting, and such amounts shall be forfeited by the Participant if the
Participant’s service with the Company terminates for any reason other than
death or disability (as defined in the Retirement Plan) before five years of
actual service have been rendered to the Company by such Participant.

 

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(c)           Benefits Formula.  The formula of the benefits for a
Plan Year under this Article 4.01 shall be determined by the Committee and
applied in a uniform manner for all similarly situated Employees.

 

(d)           Benefits Restricted to Vested Portion.  The benefits
credited under this Article 4.01 at the time of distribution to a
Participant shall be restricted to a Participant’s vested portion.  Unless otherwise expressly provided in the
Plan, a Participant’s vested portion shall be determined under the vesting provisions
of the Retirement Plan; provided, that vesting shall cease as of the date a
Participant commences payment pursuant to Article 6.02.  Any non-vested portion of amounts credited to
a Participant hereunder shall be forfeited.

 

(e)           Additional Accounts.  The Committee may, in its sole and
exclusive discretion, establish additional book reserve accounts from time to
time.  The procedures to reflect and
credit increases, decreases, interest, dividends, and other income, gains and
losses shall be determined by the Committee in its sole and exclusive
discretion.

 

4.02.        Benefits Under the 401(k) Plan.  For purposes of this Article 4.02,
capitalized terms not otherwise defined herein shall have the same meaning set
forth in the 401(k) Plan.

 

(a)           Benefits in Excess of Limits Under the 401(k) Plan.  If a Participant is
a participant in the 401(k) Plan for a Plan Year ending on or before December 31,
2006, the Company shall establish book reserve accounts under the Plan on
behalf of such Participant.  A Participant’s initial book
reserve account balance shall be zero unless the Participant was a participant
in the AXP Plan.  A Participant who was a
participant in the AXP Plan shall have an initial balance in each book reserve
account equal to such Participant’s book reserve account balance in the
equivalent account under the AXP Plan on September 30, 2005.  The following amounts shall be credited to
the Participant’s book reserve accounts as described in Article 4.04:

 

(i)            Company Stock Contribution Allocation.  For pay periods
ending on or before December 31, 2006, an amount shall be credited to the
Participant’s book reserve account for each Plan Year equal to:  (A) one percent, or such other amount as
may be set by the Committee for some or all Participants, of the sum of:  (1) the Participant’s Compensation,
calculated without the Section 401(a)(17) Limitation or Section 415
Limitations, plus (2) that portion of a Participant’s Compensation
deferred during such Plan Year pursuant to a Deferral Plan, minus (B) the
amount actually allocated as a Company Stock Contribution to the account of the
Participant under the 401(k) Plan.

 

(ii)           Company Profit-Sharing Contribution Allocation.  For pay periods
ending on or before December 31, 2006, an amount shall be credited to the
Participant’s book reserve account for each Plan Year equal to:  (A) the Company Profit-Sharing
Contribution percentage utilized for purposes of the 401(k) Plan for that
Plan Year for such Participant times the sum of:  (1) the Participant’s Compensation,
calculated without the Section 401(a)(17) Limitation or Section 415
Limitations, plus (2) that portion of a Participant’s Compensation
deferred during such Plan Year pursuant to a Deferral Plan, minus (B) the
amount actually allocated as a Company Profit-Sharing Contribution to the
account of the Participant under the 401(k) Plan.  Unless otherwise expressly provided in the
Plan, benefits credited under this Article 4.02(a)(ii) at the time of
distribution shall be restricted to a Participant’s vested portion as 

 

6

 

determined under the
applicable provisions of the 401(k) Plan. 
Any non-vested portion of such deferred compensation to be paid shall be
forfeited.

 

(iii)          Company Matching Contribution Allocation.  For pay periods
ending on or before December 31, 2006, a Company matching contribution,
whether or not the Participant actually elects to defer Compensation under the
401(k) Plan, for each Plan Year equal to three percent, or such other
amount as may be set by the Committee for some or all Participants, of:  (A) that portion of the Participant’s
Compensation which was deferred during the Plan Year pursuant to a Deferral
Plan, plus (B) that portion of the Participant’s Compensation (not
including the amounts deferred as described in clause (A) above) in excess
of the Section 401(a)(17) Limitation, shall be contributed and allocated
to the account of a Participant by the Company as a matching contribution on
behalf of such Participant; provided, however, for purposes of this Company
matching contribution, Compensation shall not be subject to the Section 401(a)(17)
Limitation.

 

(b)           Additional
Accounts.  The Committee may,
in its discretion, establish additional book reserve accounts from time to
time.  The procedures to reflect and
credit increases, decreases, interest, dividends, and other income, gains and
losses shall be determined by the Committee in its sole and exclusive
discretion.

 

4.03.        Benefits
Upon a Change in Control.  If
a Participant who is eligible to receive benefits under the Senior Executive
Severance Plan experiences a Defined Termination, then the Participant shall be
entitled to an additional benefit under the Plan in an amount equal to the contributions that would have been made by the Company
on behalf of the Participant under the Retirement Plan or the Plan (and other
similar plans of the Company), during a period equal to the number of weeks of
severance pay to which the Participant is entitled under the Senior Executive
Severance Plan, as in effect immediately prior to the Change in Control,
assuming compensation per week during such period of an amount equal to the
Participant’s weekly severance benefit under the Senior Executive Severance
Plan (for avoidance of doubt, without consideration of any offsets which
may be provided in such plan against severance benefits, such as termination
pay, office closing amounts, etc.).  The full amount of such benefit shall be
credited to the Participant’s book reserve accounts, as described in Article 4.04,
effective as of the date of the Defined Termination.

 

4.04.        Crediting of Accounts

 

(a)           Time and Manner.  Amounts described in this Article 4
shall be credited to a book reserve account established for a Participant at
such times and in such manner as may be determined by the Committee.  In making such credits, the Committee shall
generally attempt to, but shall not be required to, credit accounts at a time
and in a manner as similar as possible to the time and manner for the crediting
of similar amounts under the Qualified Retirement Plans; provided that, unless
the Committee determines otherwise, amounts credited to an account with respect
to the application of the Section 415 Limitations to the Retirement Plan
shall be credited upon the commencement of the benefit payment under the
Retirement Plan, and may, pursuant to rules determined by the Committee,
include for purposes of such calculation years of service, compensation, and
other crediting information accrued under the AXP Plan.  The Committee shall apply such procedures
consistently to similarly situated Participants.

 

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(b)           Company Stock Contributions.  Amounts described in Article 4.02(a)(i) shall
be initially credited to a book reserve account established for a Participant
which shall be denominated in units (“Units”). 
For purposes of the Plan, the price and value of a Unit shall be
determined by the Committee in a manner determined by the Committee to be
reasonably consistent with similar determinations made under the 401(k) Plan
Company Stock Fund (the “Stock Fund”).

 

(c)           Other Contributions.  Amounts
described in Articles 4.02(a)(ii) (profit-sharing contributions), 4.02(a)(iii) (matching
contributions) and 4.03 (benefits upon a change in control) shall be credited
to a book reserve account established for a Participant which shall contain
various subaccounts selected by the Committee in its sole and exclusive
discretion, representing the various investment funds available to a Participant
under the 401(k) Plan as provided for in the Plan; provided that, unless
otherwise determined by the Committee, no subaccount shall be established under
the Plan to coincide with any self-directed brokerage account which may be
available under the 401(k) Plan.

 

Article 5

Subaccounts, Investment Performance and Transfers

 

5.01.        Earnings Crediting.  For each
Participant, the book reserve accounts established pursuant to Article 4.01
shall be increased by the Imputed Earnings Credit (as such term is defined in
the Retirement Plan), not less frequently than annually, under procedures and
at times determined by the Committee and consistently applied for similarly
situated Participants.  Such earnings
shall be credited at the same interest rate and computed in a similar manner
(to the extent administratively feasible) as Imputed Earnings Credits are
computed under the Retirement Plan for each Plan Year.

 

5.02.        Performance of Company Stock.  Subject to Article 5.06,
and to such rules as may be adopted by the Committee, the performance of
the book reserve account established for each Participant pursuant to Article 4.04(b) shall
reflect the performance of the Stock Fund. 
Such book reserve account shall reflect such increases or decreases in
value from time to time, whether from dividends, gains, losses or otherwise, as
may be experienced by the Stock Fund. 
Subject to Article 9, and to such rules as may be adopted by
the Committee, a Participant may elect to transfer credits to the book reserve
account established pursuant to Article 4.04(b) to or from such
account to or from one or more subaccounts established pursuant to Article 4.04(c),
in a manner similar to the rules for such transfers under the 401(k) Plan.

 

5.03.        Investment following Change in Control.  Notwithstanding the above, effective
immediately upon a Change in Control, to the extent a book reserve account established on behalf of a Participant
reflects, or by the terms of the Plan should in the future reflect, the
performance of the Stock Fund, it shall thereafter reflect the performance of
the 401(k) Plan Income Fund, or a default subaccount selected by the
Committee.

 

5.04.        Investment Allocation.  For each
Participant, credits to the book reserve account established pursuant to Article 4.04(c) shall
be made to such subaccounts thereunder as directed by such Participant.  If more than one subaccount is selected, a
Participant must designate, on a form or other medium acceptable to the
Committee, in one-percent increments, the amounts to be 

 

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credited to each subaccount.  A
Participant shall be allowed to amend such designation consistent with the
frequency of investment changes offered the Participant under rules governing
the 401(k) Plan for a given Plan Year.

 

5.05.        Investment Performance.  Subject to Article 5.06,
for each Participant, the performance of such subaccounts shall reflect the
performance of the investment fund under the 401(k) Plan that such
subaccount represents.  Each such
subaccount shall reflect such increases or decreases in value from time to
time, whether from dividends, gains, losses or otherwise, as that experienced
by the related investment fund under the 401(k) Plan.  Subject to Article 9, credits to such
subaccounts may be transferred to any other subaccount under the Plan on such
terms and at such times as permitted with respect to the related investment
funds under the 401(k) Plan, and to such rules as may be adopted by
the Committee.  If a Participant fails to
affirmatively designate one or more subaccounts pursuant to this Article 5.05,
subject to rules established by the Committee, such Participant shall be
deemed to have selected either a default account selected by the Committee or,
to the extent feasible, the subaccount(s) that relate to the Participant’s
investment direction under the 401(k) Plan; provided, however, to the
extent an Insider has directed 401(k) Plan amounts to the Stock Fund, such
Insider shall be deemed to have selected the subaccount relating to the 401(k) Plan
Income Fund or a default subaccount selected by the Committee.  Notwithstanding the foregoing, the Committee
may, in its sole discretion, provide that one or more investment funds
available under the 401(k) Plan, including any self-directed brokerage account
which may be available under the 401(k) Plan, shall not be available for
designation under the Plan.

 

5.06.        Valuation.  Subject to Article 4.04(c),
the subaccounts shall be valued subject to such reasonable rules and
procedures as the Committee may adopt and apply to all Participants similarly
situated with an effort to value such subaccounts as if amounts designated were
invested in at similar times and in manners, subject to administrative
convenience, as amounts are invested, and subject to the same market
fluctuation factors used in valuing such investments in the 401(k) Plan.

 

Article 6

Distribution of Book Reserve Accounts

 

6.01.        Distribution Elections.

 

(a)           Initial Elections.  In accordance with rules and
procedures adopted by the Committee, and in compliance with Section 409A,
existing Participants, including Participants (other than those in pay status
on December 31, 2004) who were participants under the AXP Plan, may make a
distribution election to receive benefits in a single lump-sum payment or in
annual installments payable over a period of five, ten or 15 consecutive
calendar years.  The amount of
each installment payment shall be equal to the value of the Participant’s
respective book reserve accounts divided by the number of installments
remaining to be paid.

 

(i)            Participants who have not previously made an initial
distribution election, whether under the Plan or under the AXP Plan, may make
such an initial election on or before the date set by the Committee.

 

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(ii)           Employees who first become Participants after December 31,
2005 may make an initial distribution election in accordance with rules and
procedures adopted by the Committee in compliance with Section 409A.

 

(iii)          A Participant’s distribution election is irrevocable and may
not be modified except as provided in Article 6.01(b).  Such
election shall apply to the payment of all benefits under the Plan, including
benefits accrued under the AXP Plan (except for benefits that were in pay
status under the AXP Plan on December 31, 2004).

 

(iv)          If a Participant fails to make a valid, timely distribution
election in accordance with this Article 6.01(a) and the rules and
procedures adopted by the Committee, such Participant shall be deemed to have
made an initial distribution election to receive benefits in the form of a
single lump sum.

 

(b)           Subsequent Distribution Elections.  A Participant who has not
previously modified an initial distribution election, whether under the Plan or
under the AXP Plan, may make a one-time modification to such Participant’s
initial distribution election to elect a different form of payment.  To be effective, such a modification shall be
made by filing a written notice of modification in such form and manner as the
Committee may prescribe; provided, however, that the modification (i) must
be submitted no later than a date specified by the Committee in accordance with the requirements of Section 409A,
(ii) shall not take effect until 12 months after the date on which such
modification becomes effective, and (iii) specifies a new distribution
date (or a new initial distribution date in the case of installment
distributions) that is no sooner than five years after the original
distribution date (or the original initial distribution date in the case of
installment distributions), or such later date specified by the Committee.  A Participant may
not change the payment method after Termination of Employment.  For the avoidance
of doubt, any such distribution which accelerates payments from the Plan shall
not cause any reduction in the amounts otherwise payable hereunder (notwithstanding Section V(E)(1)(b)(ii) of
the AXP Plan).

 

6.02.        Payment of Benefits.

 

(a)           Subject to Article 8, if a Participant has not made an
effective one-time modification to his or her initial distribution election
pursuant to Article 6.01(b), then payment of benefits shall be made (or
commence in the case of installment distributions) as follows:  (i) if a Participant has elected (or is
deemed to have elected) a lump sum payment, it shall be made on the first January 1
or July 1 which is at least six months following the Participant’s
Termination of Employment for any reason from the Company, or as soon
thereafter as administratively practicable, but in no event later than 90 days
thereafter; and (ii) if a Participant has elected annual installment
payments, they shall begin on July 1 of the calendar year following the
Participant’s Termination of Employment for any reason from the Company, or as
soon thereafter as administratively practicable, but in no event later than 90
days thereafter, and shall continue on each July 1 thereafter for the
period selected by the Participant.

 

(b)           Subject to Article 8, if a Participant has made an
effective one-time modification to his or her initial distribution election
pursuant to Article 6.01(b), then payment of benefits shall be made (or
commence in the case of installment distributions) as follows:  (i) if a Participant has elected (or is
deemed to have elected) a lump sum payment, it shall be made on

 

10

 

the first January 1 or July 1 which is at least five years
and six months following the Participant’s Termination of Employment for any
reason from the Company, or as soon thereafter as administratively practicable,
but in no event later than 90 days thereafter; and (ii) if a Participant
has elected annual installment payments, they shall begin on July 1 of the
calendar year following the five-year anniversary of the Participant’s
Termination of Employment for any reason from the Company, or as soon thereafter
as administratively practicable, but in no event later than 90 days thereafter,
and shall continue on each July 1 thereafter for the period selected by
the Participant.

 

(c)           A Participant who has experienced a Termination of
Employment and has begun receiving payments as set forth above, shall continue
receiving any remaining payments according to the terms in effect on the date
of such Participant’s Termination of Employment, even if later re-employed by
the Company.

 

6.03.        Offsets.  Notwithstanding
anything in the Plan, the Retirement Plan or the 401(k) Plan to the
contrary and subject to the requirements of Section 409A and the Company’s
Policy Regarding Section 409A Compliance, any amount otherwise due or
payable under the Plan may be forfeited at the discretion of the Committee, to
apply toward or recover any claim the Company may have against the Participant,
including but not limited to, for the enforcement of the Company’s Detrimental
Conduct Provisions under its long-term incentive award plan, to recover a debt
to the Company or to recover a benefit overpayment under a Company benefit plan
or program.

 

6.04.        Effect of Severance Plans.  The benefits of a Participant
under the Plan are subject to the terms of any severance plan of the Company or
an Affiliate applicable to such Participant, which plans may provide for the
reduction of such benefits in accordance with the terms thereof.

 

6.05.        Withholding.  The Company
shall be entitled to deduct from any payment under the Plan, regardless of the
form of such payment, the amount of all applicable income and employment taxes,
if any, required by law to be withheld with respect to such payment or may
require the Participant to pay to it such tax prior to and as a condition of
the making of such payment.

 

6.06.        Payment Medium.  Any benefits
payable under the Plan shall be paid in cash from the general assets of the
Company.

 

Article 7

Beneficiary Designation

 

7.01.        Beneficiary.  A Participant shall designate such
Participant’s Beneficiary or Beneficiaries entitled to receive benefits under
the Plan by filing written notice of such designation with the Committee in
such form as the Committee may prescribe.

 

7.02.        Beneficiary Designation; Change.  A Participant may
revoke or modify such designation at any time by a further written designation
in such form as the Committee may prescribe. 
A Participant’s Beneficiary designation shall be deemed
automatically revoked in the event of the death of the Beneficiary or, if the
Beneficiary is the Participant’s spouse, in the event of dissolution of
marriage.

 

11

 

7.03.        No Beneficiary Designation.  If no designation
is in effect at the time benefits payable under the Plan become due, the
Beneficiary shall be deemed to be the Participant’s surviving spouse, if any,
and if not, the Participant’s estate.

 

Article 8

Effect of Certain Events

 

8.01.        Death.  Upon
a Participant’s death, benefits under the Plan shall be payable in cash to a
Participant’s Beneficiary.  If a Participant
dies while still actively employed by the Company, such payment shall be made
as a single lump-sum payment on the first January 1 or July 1 which
is at least six months following the Participant’s death.  If a Participant elects annual installment payments
and dies after such installment payments have commenced, any remaining
installment payments shall be made to such Participant’s Beneficiary as a
single lump-sum payment within 90 days of the date of the Participant’s death,
or such later date permissible under Section 409A.

 

8.02.        Unforeseeable Emergency.  In the event that a
Participant experiences an Unforeseeable Emergency, the Participant may
petition the Committee to receive a partial or full payout of amounts credited
to one or more of the Participant’s book reserve accounts.  The Committee shall determine, in its sole
discretion, whether the requested payout shall be made, the amount of the
payout and the Plan Accounts from which the payout will be made; provided,
however, that the payout shall not exceed the lesser of the Participant’s
vested balance in his or her book reserve accounts or the amount reasonably
needed to satisfy the Unforeseeable Emergency plus amounts necessary to pay
taxes reasonably anticipated as a result of the distribution.  In making its determination under this Article 8.02,
the Committee shall be guided by the requirements of Section 409A and any
other related prevailing legal authorities and the Committee shall take into
account the extent to which a Participant’s Unforeseeable Emergency is or may
be relieved through reimbursement or compensation by insurance or otherwise or
by the liquidation by the Participant of his or her assets (to the extent the
liquidation of such assets would not itself cause severe financial hardship).  If, subject to the sole discretion of the
Committee, the petition for a payout is approved, the payout shall be made
within 90 days of the date of the Unforeseeable Emergency.

 

8.03.        Change In Control.  Notwithstanding
the above and any other provision herein to the contrary, to the extent
permitted by Section 409A without excise tax or penalty, effective
immediately upon a Change of Control, the entire value of each Participant’s
book reserve accounts under the Plan shall be maintained in a trust (the “Trust”)
established by the Company for this purpose and the Company shall transfer to
the Trust an amount sufficient to fund the entire value of each Participant’s
book reserve accounts.  The Trust is
intended to be classified for federal income tax purposes as a “grantor trust”
within the meaning of Subpart E, Part I, Subchapter J, Chapter 1, Subtitle
A of the Code.

 

8.04.        Plan Termination. 
In the event of a termination of the Plan pursuant to Article 10.02
as it relates to any Participant, then subject to Article 4.04, all
amounts credited to each of the book reserve accounts of each affected
Participant shall be 100 percent vested and shall be paid to the Participant
or, in the case of the Participant’s death, to the Participant’s Beneficiary,
in a lump sum.  Such lump-sum payment
shall be made 13 months after such 

 

12

 

termination (or such
earlier date permitted under Section 409A), notwithstanding any elections
made by the Participant, except that the Company shall not have any right to so
accelerate the payment of any amount to the extent such right would cause the
Plan to fail to comply with, or cause a Participant to be subject to a tax
under, the provisions of Section 409A.

 

Article 9

Special Restrictions

 

9.01.        Insider Status.  The provisions of this Article 9 shall
apply to Insiders.  Such provisions shall
apply during all periods that Insiders are subject to reporting under Section 16(a) of
the Exchange Act, including any period following cessation of Insider status
during which such Insiders are required to report transactions pursuant to Rule 16a-2(b) (or
its successor) under the Exchange Act. 
At such time as any Insider ceases to be subject to Section 16(a) reporting
(and any period contemplated by Rule 16a-2(b) has expired), this Article 9
shall cease to be applicable to such Participant.

 

9.02.        Applicability.  This Article 9 shall be automatically
applicable to any person who, on and after the date hereof, becomes an
Insider.  For purposes of the foregoing,
the effective date of this Article shall be the date the person becomes an
Insider.

 

9.03.        Stock Fund Limitations.  Notwithstanding anything in the
Plan to the contrary, (a) except as set forth below, credits to the
account of an Insider pursuant to Article 4.04 may not be made to any
subaccount that reflects the performance of the Stock Fund, (b) credits
made pursuant to Article 4.04 to the account of an Insider at any time may
not be transferred to any book reserve account or subaccount that reflects the
performance of the Stock Fund, and (c) credits made to an Insider’s book
reserve account pursuant to Article 4.04(b) at any time and credits
to the account of an Insider pursuant to Article 4.04 that were made to a
subaccount that reflects the performance of the Stock Fund (which credits could
only have been made when such individual was not an Insider) may not be
transferred, withdrawn, paid out or otherwise changed, other than (i) pursuant
to Article 4.04(a) or (b) (but only at such time as such person
is no longer an Insider), or (ii) pursuant to the forfeiture provisions
contained in the last sentence of Article 4.02(a)(ii).

 

9.04.        Exchange Act Exemption.  It is intended that the crediting
of amounts to the accounts of Insiders that represents the performance of the
Stock Fund is intended to qualify for exemption from Section 16 under Rule 16b-3(d) under
the Exchange Act.  The Committee shall,
with respect to Insiders, administer and interpret all Plan provisions in a
manner consistent with such exemption.

 

Article 10

Amendment And Termination

 

10.01.      Plan Amendment.  The Committee may, at any time, amend or modify the Plan in whole or in part, provided that the Committee may not reduce or modify the
amount of any benefit payable to a Participant or any Beneficiary receiving
benefit payments at the time the Plan is amended or modified.  Notwithstanding the foregoing, the Committee
shall not have the 

 

13

 

right to amend the Plan to the extent such
amendment or modification would result in a violation of Section 409A.

 

10.02.      Plan
Termination.  Although the Company may anticipate that it will continue the Plan for
an indefinite period of time, there is no guarantee that the Company will
continue the Plan or will not terminate the Plan at any time in the
future.  Accordingly, the
Committee reserves the right to discontinue its sponsorship of the Plan and to
terminate the Plan; provided, however, that: 
(a) the Committee may not reduce or
modify the amount of any benefit payable to a Participant or any Beneficiary
receiving benefit payments at the time the Plan is terminated; (b) all
plans that are aggregated with the Plan for purposes of Section 409A are
also terminated; and (c) the Plan is not terminated proximate to a
downturn in the financial health of the Company, or any entity other than the
Company with whom the Company would be considered a single employer under
Sections 414(b) or 414(c) of the Code 
In the event of a termination described in this Article 10.02, no
new deferred compensation plans may be established by the Company for a minimum
period of three years following the termination and liquidation of the Plan if
such new plan would be aggregated with the Plan under Section 409A.

 

Article 11

Administration

 

11.01.      Committee Duties.  The Plan shall be administered by the
Committee.  The Committee shall have full
power, authority and discretion to interpret, construe and administer the Plan,
and such interpretation and construction thereof and actions taken thereunder
shall be binding on all persons for the purposes so stated by the
Committee.  The Committee may correct any
defect, supply any omission or reconcile any inconsistency in the Plan in the
manner and to the extent the Committee deems necessary or desirable.  The Committee may prescribe a form of
agreement to be used by a Participant and the Company, to the extent deemed
necessary, to defer compensation under the Plan.

 

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

 

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

 

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

 

14

 

Article 12

Claims Procedures

 

12.01.      Presentation of Claim.  Any Participant or the
Beneficiary of a deceased Participant (such Participant or Beneficiary being
referred to below as a “Claimant”) may deliver to the Committee a written claim
for a determination with respect to the amounts distributable to such Claimant
from the Plan.  If such a claim relates
to the contents of a notice received by the Claimant, the claim must be made
within 60 days after such notice was received by the Claimant.  The claim must state with particularity the
determination desired by the Claimant. 
All other claims must be made within 180 days of the date on which the
event that caused the claim to arise occurred. 
The claim must state with particularity the determination desired by the
Claimant.

 

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

 

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

 

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

 

12.05.      Cause
of Action.  No legal
or equitable action for benefits under the Plan may be brought after the
earliest of 90 days after the claim denial or one year after the date the cause
of action accrued.  For this purpose, a
cause of action is considered to have accrued when the person bringing the
legal action knew, or in the exercise of reasonable diligence should have
known, that a plan party has clearly repudiated the claim or legal position
which is the subject of the action, regardless of whether such person has filed
a claim for benefits.  The Committee’s
decisions are final.  As described
above, an individual is required to follow the procedures 

 

15

 

described in this Article 12
and a lawsuit generally cannot be filed unless the claims and appeals process
is complete.  The deadlines for filing a
lawsuit apply regardless of whether the claims procedures are followed, and the
deadline generally will expire sooner if the claims and appeals process has not
been completed.  For example, the 90-day
period for filing a lawsuit involving a Plan change or amendment starts to run
as of the date the change or amendment is first communicated to Plan
participants even if a claim is not filed.

 

Article 13

Miscellaneous

 

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

 

13.02.      Section 409A.  It is intended that the
Plan (including all amendments thereto) comply with provisions of Section 409A,
so as to prevent the inclusion in gross income of any benefits accrued
hereunder in a taxable year prior to the taxable year or years in which such
amount would otherwise be actually distributed or made available to the
Participants.  The Plan shall be administered
and interpreted to the extent possible in a manner consistent with that intent
and the Company’s Policy Regarding Section 409A Compliance.

 

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

 

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

 

13.05.      Limitations on Liability.  Neither the establishment of the
Plan nor any modification thereof, nor the creation of any account under the
Plan, nor the payment of any benefits under the Plan shall be construed as
giving to any Participant or other person any legal or equitable right against
the Company, or any officer or employer thereof except as provided by law or by
any Plan provision.  No person (including
the Company) in any way guarantees any Participant’s book reserve account from
loss or depreciation, whether caused by poor investment performance of a deemed
investment or the inability to realize upon an investment due to an 

 

16

 

insolvency affecting an investment vehicle or
any other reason.  In no event shall the
Company or any successor, employee, officer, director or stockholder of the
Company, be liable to any person on account of any claim arising by reason of
the provisions of the Plan or of any instrument or instruments implementing its
provisions (except that the Company shall make benefit payments in accordance
with the terms of the Plan), or for the failure of any Participant, Beneficiary
or other person to be entitled to any particular tax consequences with respect
to the Plan, or any credit or distribution hereunder.

 

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

 

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

 

13.08.      No Guarantee of Tax Consequences.

 

(a)           The Company makes no representations or warranties and
assumes no responsibility as to the tax consequences to any Participant in the
Plan.  Further, payment by the Company to
a Participant (or to a Participant’s Beneficiary or Beneficiaries) in
accordance with the terms of the Plan, including any designation of Beneficiary
on file with the Committee at the time of such Participant’s death, shall be
binding on all interested parties and persons, including such Participant’s
heirs, executors, administrators and assigns, and shall discharge the Company,
its directors, officers and employees from all claims, demands, actions or
causes of action of every kind arising out of or on account of Participant’s
participation in the Plan, known or unknown, for himself or herself, his or her
heirs, executors, administrators and assigns.

 

(b)           No person connected with the
Plan in any capacity, including, but not limited to, the Company and its
directors, officers, agents and employees, makes any representation,
commitment, or guarantee that any tax treatment, including, but not limited to,
Federal, state and local income, estate and gift tax treatment, will be
applicable to any amounts deferred under the Plan, or paid to or for the
benefit of a Participant or Beneficiary under the Plan, or that such tax
treatment will apply to or be available to a Participant or Beneficiary on
account of participation in the Plan.

 

17

 

(c)           Any agreement executed pursuant to the Plan shall be deemed
to include the above provisions of this Article 13.08.

 

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

 

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

 

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

 

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

 

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

 

Ameriprise Financial, Inc.

360 Ameriprise Financial Center

Minneapolis, Minnesota 55474

Attn:  Vice President, Benefits

 

with a copy to:

 

General Counsel’s Office

 

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

 

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

 

13.14.      Successors. 
The provisions of the Plan shall bind and inure to the benefit of the
Company and its successors and assigns and the Participant and the Participant’s
designated Beneficiaries.

 

18

 

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

 

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

 

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

 

13.18.      Legal Fees To Enforce Rights After
Change in Control.  The Company is aware that upon the occurrence
of a Change in Control, the Board (which might then be composed of new
members), or a stockholder of the Company or of any successor corporation might
then cause or attempt to cause the Company or such successor to refuse to
comply with its obligations under the Plan and might cause or attempt to cause
the Company to institute, or may institute, arbitration or litigation seeking
to deny Participants the benefits intended under the Plan.  In these circumstances, the purpose of the
Plan could be frustrated.  Accordingly,
if, following a Change in Control, it should appear to any Participant that the
Company or any successor corporation has failed to comply with any of its
obligations under the Plan or any agreement thereunder, or if the Company or
any other person takes any action to declare the Plan void or unenforceable or
institutes any arbitration, litigation or other legal action designed to deny,
diminish or to recover from any Participant the benefits intended to be provided,
then the Company irrevocably authorize such Participant to retain counsel of
his or her choice at the expense of the Company to represent such Participant
in connection with the initiation or defense of any arbitration, litigation or
other legal action, whether by or against the Company or any director, officer,
stockholder or other person affiliated with the Company or any successor
thereto in any jurisdiction; provided, however, that in the event that the
trier in any such legal action determines that the Participant’s claim was not
made in good faith or was wholly without merit, the Participant shall return to
the Company any amount received pursuant to this Article 13.18.  Any
reimbursements shall be paid in accordance with the Company’s Policy Regarding Section 409A
Compliance.

 

*  * 
*  *  *

 

19Exhibit 10.11

 

AMERIPRISE
FINANCIAL

 

 

DEFERRED SHARE
PLAN

 

 

FOR OUTSIDE DIRECTORS

 

 

As
Amended and Restated Effective January 1, 2009

 

 

AMERIPRISE
FINANCIAL

DEFERRED
SHARE PLAN

FOR OUTSIDE DIRECTORS

 

As Amended and Restated Effective January 1, 2009

 

Purpose

 

The purpose of the
Plan is to (a) provide for the crediting of Deferred Share Units to
Eligible Directors in respect of services rendered by such individuals as
members of the Board, (b) permit Eligible Directors to elect to receive a
portion of their Eligible Compensation on a deferred basis, and (c) promote
a greater alignment of interests between Eligible Directors and the
stockholders of the Company.  The Plan
shall be unfunded for tax purposes and for purposes of Title I of ERISA.

 

Article 1

Definitions

 

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

 

1.01.        “Account” shall mean,
collectively, a Participant’s Stock Account and a Participant’s Cash Account,
in each case as established under the terms and conditions of the Plan.

 

1.02.        “Affiliate” shall mean any entity
other than the Company with whom the Company would be considered a single
employer under Sections 414(b) or 414(c) of the Code; provided,
however, that for determining whether a Termination of Service has occurred,
the language “at least 50 percent” shall be used instead of “at least 80
percent” each place it appears in such Code Sections.

 

1.03.      “Aggregate Vested Balance” shall
mean, with respect to the Accounts of any Participant as of a given date, the
sum of the amounts that have become vested under the Participant’s Accounts, as
adjusted to reflect all applicable dividends and all prior withdrawals and
distributions, in accordance with Article 3 and Article 4 and the
provisions of the applicable Annual Enrollment Materials.

 

1.04.        “Amended Distribution Election Form”
shall mean the written form required by the Committee to be signed and
submitted by a Participant to effect a permitted change in the Distribution
Election previously made by the Participant with respect to an Account of the
Participant.

 

1.05.        “Annual DSU Grant” shall mean the
annual grant to an Eligible Director of DSUs, which will be credited to a
Director’s Stock Account on an annual basis in accordance with Article 3.01.

 

1

 

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

 

1.07.        “Annual Elective Deferral” shall
mean the aggregate amount electively deferred by a Participant in respect of a
particular Plan Year under Article 4.

 

1.08.        “Annual Enrollment Forms” shall
mean, with respect to the portion of any Account that relates to a Participant’s
Annual Elective Deferrals under the Plan, the Annual Election Form and the
Distribution Election Form (or the Amended Distribution Election Form last
signed and submitted by the Participant) with respect to that Account.

 

1.09.        “Annual Enrollment Materials”
shall mean, for any Plan Year, the Annual Enrollment Forms and any other forms,
documents or materials concerning the terms of any Annual DSU Grant or Annual
Elective Deferral for such Plan Year.

 

1.10.        “Annual Fee” shall mean, with
respect to an Eligible Director, such Eligible Director’s annual cash retainer
fee.

 

1.11.        “Beneficiary” shall mean one
natural person designated in accordance with Article 7, whom is entitled
to receive the distribution of a Participant’s Account under the Plan in the
event of the Participant’s death.

 

1.12.        “Beneficiary Designation Form”
shall mean the Beneficiary Designation Form or amended Beneficiary
Designation Form last signed and submitted by a Participant and accepted
by the Committee.

 

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

 

1.14.        “Cash Account” shall mean a
notional, bookkeeping account established under the Plan for a Participant to
measure the value of any portion of a Participant’s Annual Elective Deferral
for a Plan Year that is not deemed to be invested in DSUs.

 

1.15.        “Cash Account Interest Rate”
shall mean Moody’s Composite Yield on Seasoned Aaa Corporate Bonds.

 

1.16.        “Change in Control” shall have
the meaning set forth in the Ameriprise Financial 2005 Incentive Compensation
Plan; provided, that notwithstanding anything to the contrary therein, a Change
in Control shall not be deemed to occur under the Plan as a result of any event
or transaction to the extent that treating such event or transaction as a
Change in Control under the Plan would cause any tax to become due under Section 409A.

 

1.17.        “Claimant” shall have the meaning
set forth in Article 11.01.

 

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

 

2

 

1.19.        “Committee” shall mean the
Compensation and Benefits Committee of the Company or such other committee
designated by the Board to administer the Plan.  Any reference herein to the
Committee shall be deemed to include any  person to
whom any duty of the Committee has been delegated pursuant to Article 10.02.

 

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

 

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

 

1.22.        “Deferred Share Unit” or “DSU”
shall mean a unit credited to a Participant’s Stock Account in accordance with
the terms and conditions of the Plan. 
Each DSU shall represent the right to receive one share of Company Stock
at the time or times designated in the Plan.

 

1.23.        “Disability” shall mean, with
respect to a Participant, the Participant is unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months.  In making its determination, the Committee
shall be guided by the prevailing authorities applicable under Section 409A.

 

1.24.        “Distribution Election” shall
mean an election made in accordance with Article 6.01.

 

1.25.        “Distribution Election Form”
shall mean the written form required by the Committee to be signed and
submitted by a Participant with respect to a Distribution Election.

 

1.26.        “Eligible Compensation” shall mean
the Annual Fees, annual chair retainer fees and any other cash compensation
payable to Eligible Directors, designated by the Committee in the applicable
Annual Enrollment Materials as eligible for deferral under the Plan for such
Plan Year.

 

1.27.        “Eligible Director” shall mean a
member of the Board who is not also an employee of the Company or any of its
Affiliates.

 

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

 

1.29.        “Market Value” of a share of
Company Stock shall mean the fair market value thereof, which shall be the
price per common share which is equal to the average closing price for a board
lot of Company Stock on the New York Stock Exchange (the “NYSE”) during the
five trading days immediately preceding the date of determination.  If at any time the Company Stock is no longer
listed or traded on the NYSE, the Market Value shall be calculated in such
manner as may be determined by the Committee in its good faith judgment from
time to time.

 

3

 

1.30.        “Newly Eligible Director” shall
mean a member of the Board who becomes eligible to participate in the Plan
during a Plan Year and who has not previously participated in the Plan or an
elective or non-elective account-balance deferred compensation arrangement (as
defined for purposes of Section 409A) of the Company or any Affiliate, to
the extent permissible under Section 409A.

 

1.31.        “Participant” shall mean any
Eligible Director who commences participation in the Plan and whose
participation in the Plan has not terminated. 
A spouse or former spouse of a Participant shall not be treated as a
Participant in the Plan or have an account balance under the Plan, even if he
or she has an interest in the Participant’s benefits under the Plan as a result
of applicable law or property settlements resulting from legal separation or
divorce.

 

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

 

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

 

1.34.        “Pro Rata Annual DSU Grant” shall
have the meaning set forth in Article 3.01(c).

 

1.35.        “Pro Rata Annual Fee” shall mean,
with respect to an Eligible Director, the product obtained by multiplying such
Eligible Director’s Annual Fee by a fraction, the numerator of which is the
number of full months in the applicable Service Period that follow the date on
which such Eligible Director first becomes an Eligible Director under the Plan
and the denominator of which is 12.

 

1.36.        “Quarter” shall mean any of the
four quarters of any financial year of the Company as may be adopted from time
to time and, unless and until the financial year of the Company is changed,
shall mean the quarters ending March 31, June 30, September 30
and December 31.

 

1.37.        “Reference Date” shall mean the
date used to determine the Market Value of a share of Company Stock for
purposes of determining the number of DSUs to be credited to a Participant’s Stock
Account.  Unless otherwise determined by
the Committee and approved by the Board, the Reference Date shall be:  (a) with respect to an Annual DSU Grant,
the date of the Company’s Annual Meeting of Stockholders at which the
stockholders elect directors to the Board; (b) with respect to a Pro Rata
Annual DSU Grant, the fifth trading day following the release by the Company of
its financial statements for the Quarter in which the applicable Eligible
Director first becomes an Eligible Director; (c) with respect to the
portion of a Participant’s Annual Elective Deferral that is notionally invested
in DSUs in respect of any Quarter, the fifth trading day following the release
by the Company of its financial statements for such Quarter; and (d) with
respect to an Eligible Director’s election pursuant to Article 5.01 to
notionally invest a portion of the funds in his or her Cash Account in DSUs,
the fifth trading day following the release by the Company of its financial
statements for the applicable Quarter to which the election relates.

 

4

 

1.38.        “Section 409A” shall mean Section 409A
of the Code, and the Treasury Regulations promulgated and other official
guidance issued thereunder.

 

1.39.        “Service Period” shall mean the
12-month period between the Company’s Annual Meetings of Stockholders at which
the stockholders elect directors to the Board.

 

1.40.        “Settlement Date” shall mean,
unless otherwise determined by the Committee, the date on which shares of
Company Stock shall be delivered in settlement of DSUs in accordance with Article 6.

 

1.41.        “Stock Account” shall mean a
notional, bookkeeping account established under the Plan for a Participant to
measure the value of (a) any portion of a Participant’s Annual Elective
Deferral for a Plan Year that is deemed to be invested in DSUs and (b) all
DSUs credited to the Participant in connection with his or her Annual DSU Grant
or Pro Rata Annual DSU Grant.

 

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

 

1.43.        “Trust” shall mean a trust
established in accordance with Article 12.

 

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

 

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

 

Article 2

Eligibility

 

2.01.        Eligibility.  All Eligible Directors shall participate in
the Plan.  An Annual DSU Grant or Pro
Rata Annual DSU Grant will be credited to the Stock Account of each Eligible
Director on an annual basis pursuant to Article 3.01.  In addition, each Eligible Director may elect
to make an Annual Elective Deferral in respect of each Plan Year in accordance
with Article 4.

 

Article 3

Annual DSU Grants

 

3.01.        Annual DSU Grants.

 

(a)           Establishment of Stock
Account.  A Stock Account will
be established under the Plan for each Eligible Director at the time that he or
she becomes an Eligible Director.

 

5

 

(b)           Crediting of Annual DSU
Grant.  An Annual DSU Grant
will be made at the commencement of each Service Period to all persons who are
Eligible Directors on the Reference Date for such Annual DSU Grant; provided,
however, that in the event of a contested election, a member of the Board who
is not re-elected to the Board at the Company’s Annual Meeting of Stockholders
shall not be treated as an Eligible Director as of the Reference Date.  The Annual DSU Grant will equal the quotient
determined by dividing: (a) the Eligible Director’s Annual Fee by (b) the
Market Value of a share of Company Stock on the Reference Date for such Annual
DSU Grant.  Fractional DSUs will be
credited to an Eligible Director’s Stock Account rounded to three decimal
places.

 

(c)           Crediting of Pro Rata Annual DSU Grant.  An Eligible
Director who first becomes an Eligible Director in a Service Period after the
Reference Date for the Annual DSU Grant made in respect of such Service Period
has occurred will be eligible to receive a “Pro Rata Annual DSU Grant” for such Service Period.  The Pro Rata Annual DSU Grant will be
credited to the Eligible Director’s Stock Account on the Reference Date for
such Pro Rata Annual DSU Grant and will equal the quotient determined by
dividing: (a) the Eligible Director’s Pro Rata Annual Fee by (b) the
Market Value of a share of Company Stock on the Reference Date for such Pro
Rata Annual DSU Grant.  Fractional DSUs
will be credited to an Eligible Director’s Stock Account rounded to three
decimal places.

 

(d)           Revocability of Annual DSU
Grant.  An Annual DSU Grant by
the Committee is revocable until the date upon which the Committee actually
credits the DSUs to the Participant’s Stock Account.

 

(e)           Effective of Subsequent
Employment.  A Participant who
becomes an employee of the Company or any of its Affiliates, or who, as a
result of a determination by the Committee, shall no longer be eligible to
continue to participate in the Plan, shall not be entitled to receive any
additional Annual DSU Grants under this Article 3.01 in respect of any of
his or her future services.  DSUs already
credited to any such Participant’s Stock Account in respect of past Annual DSU
Grants shall remain governed by the Plan and the Annual Enrollment Forms on
file for such Participant, and such Participant shall be entitled to continue
to have DSUs credited to such Participant’s Stock Account under Articles 5.03
and 5.04  until such
Participant’s Settlement Date.

 

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

 

Article 4

Annual Elective Deferrals

 

4.01.        Enrollment Requirements for Annual
Elective Deferrals.  As a condition
to being eligible to make an Annual Elective Deferral for any Plan Year, each
Eligible Director shall be 

 

6

 

required to
complete, execute and return to the Committee each of the required Annual
Enrollment Forms no later than the last day of the immediately preceding Plan
Year or such earlier date as the Committee may establish from time to time, and
in accordance with the requirements of Section 409A.  Notwithstanding the foregoing, in the case of
a Newly Eligible Director, such Eligible Director shall complete, execute and
return to the Committee or its designee each of the required Annual Enrollment
Forms no later than 30 days following the date on which such Eligible Director
first becomes eligible to participate in the Plan or such earlier date as the
Committee may establish from time to time. 
If an Eligible Director fails to meet all such requirements within the
specified time period with respect to any Plan Year, the Eligible Director
shall not be eligible to make any deferrals for that Plan Year.  An Eligible Director’s Annual Election Form shall
be irrevocable once filed with the Committee, and may only be suspended
pursuant to Article 4.07.

 

4.02.        Annual Elective Deferrals.

 

(a)           Deferral Election.  The Committee shall have sole discretion to
determine the terms and conditions applicable to the Annual Elective
Deferral.  To the extent permitted by the
Committee and subject to the terms and conditions provided by the Committee, a
Participant for a given Plan Year may make an election to defer the receipt of
all or a portion of his or her Eligible Compensation for services rendered
during that Plan Year.  The Participant’s
election shall be evidenced by an Annual Election Form completed and
submitted to the Committee in accordance with the procedures as may be
established by the Committee in its sole discretion.

 

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

 

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

 

4.03.        Commencement of Participation.  Provided an Eligible Director has met all
enrollment requirements set forth in the Plan in respect of a particular Plan
Year and any other requirements imposed by the Committee, including signing and
submitting all Annual Enrollment Forms to the Committee within the specified
time period, the Eligible Director’s designated deferrals shall commence as of
the first day of the particular Plan Year. 
In the case of a Newly Eligible Director, designated deferrals shall
commence as of the date such Newly Eligible Director’s Annual Enrollment Forms
are received by the Committee, which shall be no later than 30 days following
the date on which such individual first became eligible to participate in the
Plan, and such Annual Election Form shall apply only with respect to the
Eligible Compensation earned for services performed subsequent to the time such
Annual Election Form is received by the Committee.

 

7

 

4.04.        Crediting of Account.  The amounts deferred by a Participant in
respect of services rendered during a Plan Year shall be referred to
collectively as the “Annual Elective Deferral.” 
The Annual Elective Deferral shall be credited on a quarterly basis to
the Participant’s Stock Account and/or Cash Account, as determined in accordance
with the Participant’s investment election pursuant to Article 5.01, with
such crediting to occur on the Reference Date in respect of each Quarter.

 

4.05.        Subsequent Plan Year Annual Elective
Deferrals.  The Annual Enrollment
Forms submitted by a Participant in respect of such Participant’s elective
deferrals for a particular Plan Year will not be effective with respect to any
subsequent Plan Year.  If an Eligible
Director is eligible to make elective deferrals under the Plan for a subsequent
Plan Year and the required Annual Enrollment Forms are not timely delivered for
the subsequent Plan Year, the Participant shall not be eligible to make any
elective deferrals with respect to such subsequent Plan Year.

 

4.06.        Vesting.  A Participant shall be vested in her or her
Annual Elective Deferrals as of the date such amounts are credited to such
Participant’s Stock Account and/or Cash Account.  Notwithstanding anything to the contrary
contained in the Plan or any of the Annual Enrollment Materials, the Committee
shall have the authority, exercisable in its sole discretion, to accelerate the
vesting of any amounts credited to any Account of any Participant.

 

4.07.      Suspension of Deferrals.

 

(a)           Unforeseeable Emergencies.  If a Participant experiences an Unforeseeable
Emergency, the Participant may petition the Committee to suspend any deferrals
required to be made by the Participant. 
A petition shall be made on the form required by the Committee to be
used for such request and shall include all financial information requested by
the Committee in order to make a determination on such petition, as determined
by the Committee in its sole discretion. 
The Committee shall determine, in its sole discretion, whether to
approve the Participant’s petition.  If
the petition for a suspension is approved, suspension shall take effect upon
the date of approval.  Notwithstanding
the foregoing, the Committee shall not have any right to approve a request for
suspension of deferrals if such approval (or right to approve) would cause the
Plan to fail to comply with, or cause a Participant to be subject to a tax
under the provisions of Section 409A.

 

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

 

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

 

8

 

Article 5

Investment
Elections

 

5.01.        Initial Investment Elections.  Each Eligible Director who elects to make an
Annual Elective Deferral under the Plan will be required to designate, at the
time that he or she makes an Annual Elective Deferral, the portion of the
Annual Elective Deferral that will be notionally invested in DSUs, which may be
zero.  If a Participant elects to
notionally invest a portion of his or her Annual Elective Deferral in DSUs, the
number of DSUs that will be credited to a Participant’s Stock Account in
respect of his or her Annual Elective Deferral will be determined quarterly on
the Reference Date and credited to such Participant’s Stock Account as of such
date, and will be equal to the quotient obtained by dividing (a) the
amount of the Annual Elective Deferral for such Quarter that the Participant
has notionally elected to invest in DSUs by (b) the Market Value of a
share of Company Stock on the Reference Date for such Quarter.  Any portion of the Participant’s Annual
Elective Deferral that is not notionally invested in DSUs will be credited to
the Participant’s Cash Account, where it will earn interest at the Cash Account
Interest Rate.

 

5.02.        Changes to Investment Elections.  A Participant may, on a Quarterly basis,
elect to notionally invest a portion of the funds notionally invested in his or
her Cash Account in DSUs at such times as the Committee may designate by
completing and submitting to the Committee an investment change on a form
provided by the Committee for such purpose, and in accordance with such
procedure and time frames as may be established from time to time at the sole
discretion of the Committee.  In
connection with any such election, the Participant’s Cash Account will be
debited by the amount the Participant designates for notional investment in
DSUs (the “DSU Investment Amount”), and the Participant’s Stock Account will be
increased by a number of DSUs determined by dividing the DSU Investment Amount
by the Market Value of a share of Company Stock on the applicable Reference
Date.  Notwithstanding anything to the
contrary in the Plan, a Participant may not at any time make any changes with
respect to the amounts credited to the Participant’s Stock Account in the form
of DSUs pursuant to Article 3 or with respect to the portion of the
Participant’s Annual Elective Deferral that he or she elects to notionally
invest in DSUs pursuant to this Article 5, in each case as adjusted
pursuant to Articles 5.03 and 5.04.

 

5.03.        Dividends and Related Amounts.  A Participant’s
Stock Account shall, from time to time during such Participant’s period of
participation under the Plan, including during the period following the
Participant’s Termination of Service and until the Settlement Date, be credited
on each dividend payment date in respect of Company Stock with additional DSUs,
the number of which shall be equal to the quotient determined by dividing (a) the
product determined by multiplying (i) 100 percent of each dividend
declared and paid by the Company on the Company Stock on a per share basis by (ii) the
number of DSUs recorded in the Participant’s Account on the record date for the
payment of any such dividend, by (b) the Market Value of a share of
Company Stock on the dividend payment date for such dividend, in each case,
with fractions computed to three decimal places.

 

5.04.        Anti-Dilution Adjustment.  In the event of a change in the outstanding
shares of Company Stock by reason of any change in corporate capitalization,
such as a stock split or dividend, or a corporate transaction, such as any
merger of the Company into another 

 

9

 

corporation, any
consolidation of two or more corporations into another corporation, any
separation of a corporation (including a spin-off or other distribution of
stock or property by a corporation), any reorganization of a corporation
(whether or not such reorganization comes within the definition of such term in
Section 368 of the Code), or any partial or complete liquidation by the
Company, the Committee shall make such adjustment in the class and number of
DSUs credited to Participants’ Accounts to reflect any such change as may be
determined to be appropriate by the Committee, and such adjustments shall be
final, conclusive and binding for all purposes of the Plan.  Any adjustments or substitutions under this Article 5.04
shall conform to the requirements of Section 409A.

 

5.05.        No
Investment Liability; Indemnification. 
None of the Company, its directors and employees (including, without
limitation, each member of the Committee), and their designated agents and
representatives, shall have any liability whatsoever for the investment
performance of a Participant’s Accounts. 
Each Participant hereunder, as a condition to his or her participation
in the Plan, agrees to indemnify and hold harmless the Company, its directors
and employees (including, without limitation, each member of the Committee),
and their designated agents and representatives, from any losses or damages of
any kind (including, without limitation, lost opportunity costs) relating to
the investment of a Participant’s Accounts.

 

Article 6

Distribution of
Accounts

 

6.01.        Distribution
Elections.

 

(a)           Initial Elections.  The Participant shall make a Distribution
Election by filing a Distribution Election Form at the time he or she
files an Annual Election Form for a given Plan Year to have the Participant’s
Cash Account and the portion of the Participant’s Stock Account that relates to
his or her Annual Elective Deferrals for that Plan Year distributed:

 

(i)            in a lump sum at the end of the
Quarter immediately following the Quarter in which the Participant’s
Termination of Service occurs;

 

(ii)           in a lump sum on March 31 of a
specified year; or

 

(iii)          in two to five substantially
equivalent annual installments, in each case commencing, in accordance with
administrative guidelines determined by the Committee, at the end of the
Quarter immediately following the Quarter in which the Participant has a
Termination of Service, with subsequent installments made on March 31st of
each year.  The amount of each
installment payment shall be equal to the value of the Participant’s respective
Accounts for that Plan Year divided by the number of installments remaining to
be paid.

 

(b)           Subsequent Elections.  Subject to any restrictions that may be
imposed by the Committee, a Participant may amend his or her Distribution
Election with respect to his or her Cash Account and the portion of the
Participant’s Stock Account for a given Plan Year that relates to his or her
Annual Elective Deferrals by completing and submitting to the Committee within
such time frame as the Committee may designate, an Amended Distribution
Election Form; provided, however, such Amended Distribution Election Form (i) is
submitted no later than a date specified by the Committee in accordance with
the requirements of Section 409A,

 

10

 

(ii) shall
not take effect until 12 months after the date on which such Amended
Distribution Election Form becomes effective, and (iii) specifies a
new distribution date (or a new initial distribution date in the case of
installment distributions) that is no sooner than five years after the original
distribution date (or the original initial distribution date in the case of
installment distributions), or such later date specified by the Committee.

 

6.02.        Distribution of Annual
Elective Deferrals.  Except as
otherwise provided by Article 8, the distribution of a Participant’s Cash
Account and the portion of the Participant’s Stock Account that relates to his
or her Annual Elective Deferrals shall be made in accordance with the
Participant’s election in effect as of the applicable specified event or the
date of the Participant’s Termination of Service.

 

6.03.        Distribution of Annual
DSU Grants.  Except as otherwise
provided by Article 8, the portion of a Participant’s Stock Account that
relates to the Participant’s Annual DSU Grant shall be distributed in a lump
sum at the end of the Quarter immediately following the Quarter in which the
Participant’s Termination of Service occurs.

 

6.04.        Valuation of Accounts
Pending Distribution.  To the extent
that the distribution of any portion of any Account is deferred, whether
pursuant to the limitations imposed under this Article 6 or for any other
reason, any amounts remaining to the credit of the Account shall continue to be
adjusted in accordance with Articles 5.03 and 5.04.

 

6.05.        Form of Payment.  Except as may be otherwise determined by the
Committee, all distributions under the Plan with respect to DSUs credited to
the Participant’s Stock Account will be made in Company Stock.  All distributions under the Plan with respect
to amounts credited to a Participant’s Cash Account will be paid in cash.  Except as may be otherwise determined by the
Committee, all distributions under the Plan in the form of Company Stock shall
be distributed pursuant to the Ameriprise Financial 2005 Incentive Compensation
Plan, as amended from time to time, or any successor plan thereto, and will
count against the limit on the number of shares of Company Stock available for
distribution thereunder.

 

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

 

Article 7

Beneficiary Designation

 

7.01.        Beneficiary.  Each Participant shall have the right, at any
time, to designate his or her Beneficiary to receive any benefits payable under
the Plan upon the death of a Participant. 
The Beneficiary designated under the Plan may be the same as or
different from the beneficiary designation under any other plan or arrangement
in which the Participant participates.

 

7.02.        Beneficiary
Designation; Change.  A Participant
shall designate his or her Beneficiary by completing and signing a Beneficiary
Designation Form, and returning it to the Committee.  A Participant shall have the right to change
a Beneficiary by completing, signing and submitting to the Committee an amended
Beneficiary Designation Form in accordance with the Committee’s rules and
procedures, as in effect from time to time. 
Upon the acceptance by 

 

11

 

the Committee of
an amended Beneficiary Designation Form, all Beneficiary designations
previously filed shall be canceled.  The
Committee shall be entitled to rely on the last Beneficiary Designation Form filed
by the Participant and accepted by the Committee prior to his or her death.

 

7.03.        Acknowledgment.  No designation or change in designation of a
Beneficiary shall be effective until received, accepted and acknowledged in
writing by the Committee.

 

7.04.        No Beneficiary
Designation.  If a Participant fails
to designate a Beneficiary as provided above or, if the designated Beneficiary
predeceases the Participant, then the Participant’s designated Beneficiary
shall be deemed to be his or her surviving spouse.  If the Participant has no surviving spouse,
the benefits remaining under the Plan to be paid to a Beneficiary shall be
payable to the executor or personal representative of the Participant’s estate.

 

7.05.        Doubt as to Beneficiary.  If the Committee has any doubt as to the
proper Beneficiary to receive payments pursuant to the Plan, to the extent
permissible under Section 409A, the Committee shall have the right,
exercisable in its discretion, to cause the Company to withhold such payments
until this matter is resolved to the Committee’s satisfaction.

 

7.06.        Discharge of
Obligations.  The payment of benefits
under the Plan to a Beneficiary shall fully and completely discharge the
Company and the Committee from all further obligations under the Plan with
respect to the Participant.

 

Article 8

Effects of Certain Events

 

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

 

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

 

8.03.        Other Termination of
Service.  As of the date of a
Participant’s Termination of Service for any reason other than Disability or
death, the amounts credited to each of the Participant’s Accounts shall be
reduced by the amount which has not become vested in accordance with the
vesting provisions set forth herein and in the Annual Enrollment Materials
applicable to such Account, and such unvested amounts shall be forfeited by the
Participant.  Notwithstanding anything to
the contrary in a Participant’s Distribution Election or otherwise, in the
event of a Participant’s Termination of Service for any reason other than
Disability or death, 

 

12

 

the portion of the
Participant’s Aggregate Vested Balance will be paid out in either a lump sum,
or two to five substantially equivalent annual installments, as specified by
the Participant in his or her Distribution Election, commencing in accordance
with the Participant’s Distribution Election and the administrative guidelines
determined by the Committee.

 

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

 

8.05.        Unforeseeable Emergency.  In the event that a Participant experiences
an Unforeseeable Emergency, the Participant may petition the Committee to
receive a partial or full payout of amounts credited to one or more of the Participant’s
Accounts.  The Committee shall determine,
in its sole discretion, whether the requested payout shall be made, the amount
of the payout and the Accounts from which the payout will be made; provided,
however, that the payout shall not exceed the lesser of the Participant’s
Aggregate Vested Balance or the amount reasonably needed to satisfy the
Unforeseeable Emergency plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution. 
In making its determination under this Article 8.05, the Committee
shall be guided by the requirements of Section 409A and any other related
prevailing legal authorities, and the Committee shall take into account the
extent to which a Participant’s Unforeseeable Emergency is or may be relieved through
reimbursement or compensation by insurance or otherwise or by the liquidation
by the Participant of his or her assets (to the extent the liquidation of such
assets would not itself cause severe financial hardship).  If, subject to the sole discretion of the
Committee, the petition for a payout is approved, the payout shall be made
within 90 days of the date of the Unforeseeable Emergency.

 

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

 

8.07.        Plan Termination.  In the event of a termination of the Plan
pursuant to Article 9.02 as it relates to any Participant, then subject to
Article 6.04, all amounts credited to each of the Accounts of each
affected Participant shall be 100 percent vested and shall be paid to the
Participant or, in the case of the Participant’s death, to the Participant’s
Beneficiary, in a lump sum.  Such
lump-sum payment shall be made 13 months after such termination (or such 

 

13

 

earlier or later
date permitted under Section 409A), notwithstanding any elections made by
the Participant, and the Annual Election Forms relating to each of the
Participant’s Accounts shall terminate upon full payment of such Aggregate
Vested Balance, except that the Company shall not have any right to so
accelerate the payment of any amount to the extent such right would cause the
Plan to fail to comply with, or cause a Participant or such Participant’s
Beneficiary to be subject to a tax under, the provisions of Section 409A.

 

Article 9

Amendment and Termination

 

9.01.        Amendment.  The
Company may, at any time, amend or modify the Plan in whole or in part by the
actions of the Committee; provided, however, that (a) no amendment or modification
shall be effective to decrease or restrict the value of a Participant’s
Aggregate Vested Balance at the time the amendment or modification is made,
calculated as if the Participant had experienced a Termination of Service as of
the effective date of the amendment or modification, (b) no amendment or
modification may be made if such amendment or modification would cause the Plan
to fail to comply with, or cause a Participant or his or her Beneficiary to be
subject to tax under, the provisions of Section 409A, and (c) except
as specifically provided in Article 9.02, no amendment or modification
shall be made after a Change in Control which adversely affects the vesting,
calculation or payment of benefits hereunder or diminishes any other rights or
protections any Participant or Beneficiary would have had but for such
amendment or modification, unless each affected Participant or Beneficiary
consents in writing to such amendment.

 

9.02.        Termination. 
Although the Company may anticipate that it will continue the Plan for
an indefinite period of time, there is no guarantee that the Company will
continue the Plan or will not terminate the Plan at any time in the
future.  Accordingly, the
Committee reserves the right to discontinue its sponsorship of the Plan and to
terminate the Plan; provided, however, that (a) all plans that are
aggregated with the Plan for purposes of Section 409A are also terminated;
and (b) the Plan is not terminated proximate to a downturn in the
financial health of the Company, or any entity other than the Company with whom
the Company would be considered a single employer under Sections 414(b) or
414(c) of the Code.  In the event of
a termination described in this Article 9.02, no new deferred compensation
plans may be established by the Company for a minimum period of three years
following the termination and liquidation of the Plan if such new plan would be
aggregated with the Plan under Section 409A.

 

Article 10

Administration

 

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

 

14

 

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

 

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

 

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

 

Article 11

Claims Procedures

 

11.01.      Presentation of Claim.  Any Participant or Beneficiary of a deceased
Participant (such Participant or Beneficiary being referred to below as a “Claimant”)
may deliver to the Committee a written claim for a determination with respect
to the amounts distributable to such Claimant from the Plan.  If such a claim relates to the contents of a
notice received by the Claimant, the claim must be made within 60 days after
such notice was received by the Claimant. 
The claim must state with particularity the determination desired by the
Claimant.  All other claims must be made
within 180 days of the date on which the event that caused the claim to arise
occurred.  The claim must state with
particularity the determination desired by the Claimant.

 

11.02.      Notification of Decision.  The Committee shall consider a Claimant’s
claim within a reasonable time, and shall notify the Claimant in writing:  (a) that the Claimant’s requested
determination has been made, and that the claim has been allowed in full; or (b) that
the Committee has reached a conclusion contrary, in whole or in part, to the
Claimant’s requested determination, and such notice must set forth in a manner
calculated to be understood by the Claimant: 
(i) the specific reason(s) for the denial of the claim, or any
part of it; (ii) specific reference(s) to pertinent provisions of the
Plan upon which  such denial was based; (iii) a
description of any additional material or information necessary  for the Claimant to perfect the claim, and an
explanation of why such material or information is necessary; and (iv) an
explanation of the claim review procedure set forth in Article 11.03.

 

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

 

15

 

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

 

11.05.      Arbitration.  A
Claimant’s compliance with the foregoing provisions of this Article 11 is
a mandatory prerequisite to a Claimant’s right to commence any arbitration with
respect to any claim for benefits under the Plan.  Any dispute, claim or controversy that may
arise between a Participant and the Company or any other person (the “Claims”)
under the Plan is subject to arbitration, unless otherwise agreed to in writing
by the Participant and the Company.  The
Claims shall be finally decided by arbitration conducted pursuant to the
Commercial Dispute Resolution Procedures of the American Arbitration
Association (the “AAA”), and its Supplementary Rules for Securities
Arbitration, or other applicable rules promulgated by the AAA.  In addition, all claims, statutory or
otherwise, which allege discrimination or other violation of employment laws,
including but not limited to claims of sexual harassment, shall be finally decided
by arbitration pursuant to the AAA unless otherwise agreed to in writing by a
Participant and the Company.  By
agreement of a Participant and the Company in writing, disputes may be resolved
in arbitration by a mutually agreed-upon organization other than the AAA.  In consideration of the promises and the
compensation provided in the Plan, neither a Participant nor the Company shall
have a right: (a) to arbitrate a Claim on a class action basis or in a
purported representative capacity on behalf of any Participants, employees,
applicants or other persons similarly situated; (b) to join or to
consolidate in an arbitration Claims brought by or against another Participant,
employee, applicant or the Participant, unless otherwise agreed to in writing
by the Participant and the Company; (c) to litigate any Claims in court or
to have a jury trial on any Claims; and (d) to participate in a
representative capacity or as a member of any class of claimants in an action
in a court of law pertaining to any Claims. 
Nothing in the Plan relieves a Participant or the Company from any
obligation the Participant or the Company may have to exhaust certain
administrative remedies before arbitrating any claims or disputes under this Article 11.05.  Either a Participant or the Company may compel
arbitration of any Claims filed in a court of law.  In addition, either a Participant or the
Company may apply to a court of law for an injunction to enforce the terms of
the Plan pending a final decision on the merits by an arbitration panel
pursuant to this provision.  The Company
shall pay all fees, costs or other charges charged by the AAA or any other
organization administering arbitration proceeding agreed upon pursuant to this Article 11
that are above and beyond the filing fees of the federal or state court in the
jurisdiction in which the dispute arises, whichever is less.  A Participant or the Company shall each be
responsible for their own costs of legal representation, if any, except where
such costs of legal representation may be awarded as a statutory remedy by the
arbitrator.  Any award by an arbitration
panel shall be final and binding upon a Participant or the Company.  Judgment upon the award may be entered by any
court having jurisdiction thereof or having jurisdiction over the relevant
party or its assets.  This provision is
covered and enforceable under the terms of the Federal Arbitration Act.

 

16

 

Article 12

Trust

 

12.01.    Establishment of the Trust.  The Company may establish one or more Trusts
to which the Company may transfer such assets as it determines in its sole
discretion to assist in meeting its obligations under the Plan.

 

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

 

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

 

Article 13

Miscellaneous

 

13.01.      Status of Plan.  The Plan is intended to be a plan that is not
qualified within the meaning of Section 401(a) of the Code.  The Plan shall be administered and
interpreted to the extent possible in a manner consistent with that intent.  All Accounts and all credits and other
adjustments to such Accounts shall be bookkeeping entries only and shall be
utilized solely as a device for the measurement and determination of amounts to
be paid under the Plan.  No Accounts,
credits or other adjustments under the Plan shall be interpreted as an
indication that any benefits under the Plan are in any way funded.

 

13.02.      Section 409A.  It is intended that the Plan (including all
amendments thereto) comply with provisions of Section 409A, so as to
prevent the inclusion in gross income of any benefits accrued hereunder in a
taxable year prior to the taxable year or years in which such amount would
otherwise be actually distributed or made available to the Participants.  The Plan shall be administered and
interpreted to the extent possible in a manner consistent with that intent and
the Company’s Policy Regarding Section 409A Compliance.  Notwithstanding the terms of Article 6,
to the extent that a distribution to a Participant who is a Specified Employee
at the time of his or her Termination of Service is required to be delayed by
six months pursuant to Section 409A, such distribution shall be made no
earlier than the first day of the seventh month following the Participant’s
Termination of Service.  The amount of
such payment will equal the sum of the payments that would have been paid to
the Specified Employee during the six-month period immediately following the
Specified Employee’s Termination of Employment had the payment commenced as of
such date.  If the Specified Employee
elected to receive installment payments, the remaining balance of the Specified
Employee’s Accounts shall be paid in substantially equivalent
installments.  For purposes of this
paragraph, “Specified Employee” shall mean a key employee as defined under Section 409A,
as determined in accordance with the Company’s Policy Regarding Section 409A
Compliance.

 

13.03.      Unsecured General
Creditor.  Participants and their
Beneficiaries, heirs, successors and assigns shall have no legal or equitable
rights, interests or claims in any property 

 

17

 

or assets of the
Company.  For purposes of the payment of
benefits under the Plan, any and all of the Company’s assets, shall be, and
remain, the general, unpledged unrestricted assets of the Company. The Company’s
obligation under the Plan shall be merely that of an unfunded and unsecured
promise to pay money in the future.

 

13.04.      Other Benefits and
Agreements.  The benefits provided
for a Participant and his or her Beneficiary under the Plan are in addition to
any other benefits available to such Participant under any other plan or
program made available to the Participant. 
The Plan shall supplement and shall not supersede, modify or amend any other
such plan or program except as may otherwise be expressly provided.

 

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

 

13.06.      Not a Contract of Service.  The terms and conditions of the Plan and the
Annual Enrollment Materials under the Plan shall not be deemed to constitute a
contract of service between the Company and a Participant.  Nothing in the Plan or any Annual Election Form shall
be deemed to give a Participant the right to continue in the service of the
Company.

 

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

 

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

 

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

 

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

 

18

 

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

 

Ameriprise Financial, Inc.

361 Ameriprise Financial
Center

Minneapolis, Minnesota
55474

Attn:  Vice President, Compensation and Benefits

 

with a copy to:

 

General Counsel’s Office

 

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

 

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

 

13.12.      Successors.  The provisions of the Plan shall bind and
inure to the benefit of the Company and its successors and assigns and the
Participant and the Participant’s Beneficiaries.

 

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

 

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

 

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

 

13.16.      Legal
Fees to Enforce Rights After Change in Control.  The Company is aware that upon the occurrence
of a Change in Control, the Board (which might then be composed of new members)
or a stockholder of the Company, or of any successor corporation might then
cause or attempt to cause the Company or such successor to refuse to comply
with its obligations under the Plan and might cause or attempt to cause the
Company to institute, or may institute, arbitration or litigation seeking to
deny Participants the benefits intended under the Plan.  In 

 

19

 

these circumstances,
the purpose of the Plan could be frustrated. 
Accordingly, if, following a Change in Control, it should appear to any
Participant that the Company or any successor corporation has failed to comply
with any of its obligations under the Plan or any agreement thereunder, or if
the Company or any other person takes any action to declare the Plan void or
unenforceable or institutes any arbitration, litigation or other legal action
designed to deny, diminish or to recover from any Participant the benefits
intended to be provided, then the Company irrevocably authorize such
Participant to retain counsel of his or her choice at the expense of the
Company to represent such Participant in connection with the initiation or
defense of any arbitration, litigation
or other legal action, whether by or against the Company or any director,
officer, stockholder or other person affiliated with the Company or any
successor thereto in any jurisdiction; provided, however, that in the event
that the trier in any such legal action determines that the Participant’s claim
was not made in good faith or was wholly without merit, the Participant shall
return to the Company any amount received pursuant to this Article 13.16.  Any reimbursements shall be paid in
accordance with the Company’s Policy Regarding Section 409A Compliance.

 

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

 

*  * 
*  *  *  *

 

20

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