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exv10w30

EXHIBIT 10.30

AMERICAN EXPRESS

SENIOR EXECUTIVE SEVERANCE PLAN

(As amended and restated effective January 1, 2011)

 

 

EXHIBIT 10.30

AMERICAN EXPRESS

SENIOR EXECUTIVE SEVERANCE PLAN

(As amended and restated effective January 1, 2011)

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	Introduction
	 	 	 	 	1	 
	 
	 	 	 	 	 	 
	Article 1
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	Article 2
	 	Participation	 	 	7	 
	 
	 	 	 	 	 	 
	Article 3
	 	Amount of Benefits	 	 	9	 
	 
	 	 	 	 	 	 
	Article 4
	 	Method of Payment	 	 	12	 
	 
	 	 	 	 	 	 
	Article 5
	 	Administration of the Plan	 	 	14	 
	 
	 	 	 	 	 	 
	Article 6
	 	Adopting Companies and Plan Mergers	 	 	16	 
	 
	 	 	 	 	 	 
	Article 7
	 	Amendment and Termination	 	 	16	 
	 
	 	 	 	 	 	 
	Article 8
	 	Financial Provisions	 	 	17	 
	 
	 	 	 	 	 	 
	Article 9
	 	Liability and Indemnification	 	 	17	 
	 
	 	 	 	 	 	 
	Article 10
	 	Miscellaneous	 	 	19	 
	 
	 	 	 	 	 	 
	Schedule A
	 	Schedule for Severance Pay Benefits	 	 	20	 

 

 

EXHIBIT 10.30

AMERICAN EXPRESS

SENIOR EXECUTIVE SEVERANCE PLAN

(As amended and restated effective January 1, 2011)

INTRODUCTION

     The Board of Directors of American Express Company established the American Express Senior
Executive Severance Plan effective as of January l, l994, to provide for severance benefits for
certain eligible executive officers of American Express Company and its participating subsidiaries
whose employment is terminated under certain conditions. Severance benefits under the Plan are to
be provided to such eligible executives in exchange for a signed agreement that includes a release
of all claims.

ARTICLE 1

DEFINITIONS

     1.1 “Administration Committee” means the Committee established and appointed by the
Board of Directors or by a committee of the Board of Directors.

     1.2 “Affiliated Company” means any corporation which is a member of a controlled group
of corporations (determined in accordance with Section 4l4(b) of the Code) of which the Company is
a member and any other trade or business (whether or not incorporated) which is controlled by, or
under common control (determined in accordance with Section 4l4(c) of the Code) with the Company,
but which is not an Employing Company.

     1.3 “Annualized Compensation” means, for an Employee for a given year, the Employee’s
annualized compensation based upon the annual rate of pay for services provided to the Employing
Company for the taxable year of the Employee for the year preceding the given year in which the
Employee has a Separation from Service (adjusted for any increases during the given year that was
expected to continue indefinitely if the Employee had not had a Separation from Service),
determined in accordance with Section 1.409A-1(b)(9)(iii)(A)(1) of the Treasury Regulations.

     1.4 “Base Salary” means the regular basic cash remuneration before deductions for
taxes and other items withheld, payable to an Employee for services rendered to an Employing
Company, but not including pay for bonuses, incentive compensation, special pay, awards or
commissions.

     1.5 “Board of Directors” means the board of directors of the Company.

     1.6 “Bonus” means annual incentive compensation paid to an Employee over and above
Base Salary earned and paid in cash or otherwise under any executive bonus or sales incentive plan
or program of an Employing Company. Annual incentive compensation shall not include incentive
compensation with a performance period longer than one year (e.g., performance grant awards), but
shall include restricted stock awards expressly granted in lieu of cash supplemental annual
incentive awards.

 

 

     1.7 “Change in Control” means the happening of any of the following:

          (a) Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) becomes the
beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25
percent or more of either (i) the then outstanding common shares of the Company (the “Outstanding
Company Common Shares”) or (ii) the combined voting power of the then outstanding voting securities
of the Company entitled to vote generally in the election of directors (the “Outstanding Company
Voting Securities”); provided, however, that such beneficial ownership shall not constitute a
Change in Control if it occurs as a result of any of the following acquisitions of securities: (A)
any acquisition directly from the Company; (B) any acquisition by the Company or any corporation,
partnership, trust or other entity controlled by the Company (a “Subsidiary”); (C) any acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company or any
Subsidiary; (D) any acquisition by an underwriter temporarily holding Company securities pursuant
to an offering of such securities; (E) any acquisition by an individual, entity or group that is
permitted to, and actually does, report its beneficial ownership on Schedule 13-G (or any successor
schedule), provided that, if any such individual, entity or group subsequently becomes required to
or does report its beneficial ownership on Schedule 13D (or any successor schedule), then, for
purposes of this subsection, such individual, entity or group shall be deemed to have first
acquired, on the first date on which such individual, entity or group becomes required to or does
so report, beneficial ownership of all of the Outstanding Company Common Stock and Outstanding
Company Voting Securities beneficially owned by it on such date; or (F) any acquisition by any
corporation pursuant to a reorganization, merger or consolidation if, following such
reorganization, merger or consolidation, the conditions described in clauses (i), (ii) and (iii) of
Section 1.7(c) are satisfied. Notwithstanding the foregoing, a Change in Control shall not be
deemed to occur solely because any Person (the “Subject Person”) became the beneficial owner of 25
percent or more of the Outstanding Company Common Shares or Outstanding Company Voting Securities
as a result of the acquisition of Outstanding Company Common Shares or Outstanding Company Voting
Securities by the Company which, by reducing the number of Outstanding Company Common Shares or
Outstanding Company Voting Securities, increases the proportional number of shares beneficially
owned by the Subject Person; provided, that if a Change in Control would be deemed to have occurred
(but for the operation of this sentence) as a result of the acquisition of Outstanding Company
Common Shares or Outstanding Company Voting Securities by the Company, and after such share
acquisition by the Company, the Subject Person becomes the beneficial owner of any additional
Outstanding Company Common Shares or Outstanding Company Voting Securities which increases the
percentage of the Outstanding Company Common Shares or Outstanding Company Voting Securities
beneficially owned by the Subject Person, then a Change in Control shall then be deemed to have
occurred; or

          (b) Individuals who, as of the date hereof, constitute the Board of Directors (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board of Directors; provided,
however, that any individual becoming a director subsequent to the date hereof whose election, or
nomination for election by the Company’s shareholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for

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this purpose, any such individual whose initial assumption of office occurs as a result of
either an actual or threatened election contest or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board of Directors, including by
reason of agreement intended to avoid or settle any such actual or threatened contest or
solicitation; or

          (c) The consummation of a reorganization, merger, statutory share exchange, consolidation, or
similar corporate transaction involving the Company or any of its direct or indirect Subsidiaries
(each a “Business Combination”), in each case, unless, following such Business Combination, (i) the
Outstanding Company Common Shares and the Outstanding Company Voting Securities immediately prior
to such Business Combination, continue to represent (either by remaining outstanding or being
converted into voting securities of the resulting or surviving entity or any parent thereof) more
than 50 percent of the then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of directors, as the
case may be, of the corporation resulting from Business Combination (including, without limitation,
a corporation that, as a result of such transaction, owns the Company or all or substantially all
of the Company’s assets either directly or through one or more subsidiaries), (ii) no Person
(excluding the Company, any employee benefit plan (or related trust) of the Company, a Subsidiary
of such corporation resulting from such Business Combination or any parent or subsidiary thereof,
and any Person beneficially owning, immediately prior to such Business Combination, directly or
indirectly, 25 percent or more of the Outstanding Company Common Shares or Outstanding Company
Voting Securities, as the case may be) beneficially owns, directly or indirectly, 25 percent or
more of, respectively, the then outstanding shares of common stock of the corporation resulting
from such Business Combination (or any parent thereof) or the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in the election of
directors and (iii) at least a majority of the members of the board of directors of the corporation
resulting from such Business Combination (or any parent thereof) were members of the Incumbent
Board at the time of the execution of the initial agreement or action of the Board of Directors
providing for such Business Combination; or

          (d) The consummation of the sale, lease, exchange or other disposition of all or substantially
all of the assets of the Company, unless such assets have been sold, leased, exchanged or disposed
of to a corporation with respect to which following such sale, lease, exchange or other disposition
(i) more than 50 percent of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting securities of such
corporation (or any parent thereof) entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding Company Common Shares and
Outstanding Company Voting Securities immediately prior to such sale, lease, exchange or other
disposition in substantially the same proportions as their ownership immediately prior to such
sale, lease, exchange or other disposition of such Outstanding Company Common Shares and
Outstanding Company Voting Shares, as the case may be, (ii) no Person (excluding the Company and
any employee benefit plan (or related trust)) of the Company or a Subsidiary or of such corporation
or a subsidiary thereof and any Person beneficially owning, immediately prior to such sale, lease,
exchange or other disposition, directly or indirectly, 25 percent or more of the Outstanding
Company

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Common Shares or Outstanding Company Voting Securities, as the case may be) beneficially owns,
directly or indirectly, 25 percent or more of respectively, the then outstanding shares of common
stock of such corporation (or any parent thereof) and the combined voting power of the then
outstanding voting securities of such corporation (or any parent thereof) entitled to vote
generally in the election of directors and (iii) at least a majority of the members of the board of
directors of such corporation (or any parent thereof) were members of the Incumbent Board at the
time of the execution of the initial agreement or action of the Board of Directors providing for
such sale, lease, exchange or other disposition of assets of the Company; or

          (e) Approval by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

     1.8 “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     1.9 “Committee” means the Compensation and Benefits Committee of the Board of
Directors or any successor committee appointed by the Board of Directors.

     1.10 “Company” means American Express Company, a New York corporation, its successors
and assigns.

     1.11 “Comparable Position” means a job with the Company, an Employing Company, an
Affiliated Company or successor company at the same or higher Base Salary as an Employee’s current
job and at a work location within reasonable commuting distance from an Employee’s home, as
determined by such Employee’s Employing Company. For Employees in the Employing Company’s
international expatriate program, Comparable Position means a job with an Employing Company, an
Affiliated Company or successor company at the same or higher Base Salary as an Employee’s current
job and at a work location in the Employee’s country of assignment, home country or career base
country.

     1.12 “Completed Years of Service” means the number of full one year periods that have
transpired since the Employee’s original date of hire or, in the case of someone who has incurred a
break in service, the date of rehire, through the Employee’s Separation from Service with the
Company.

     1.13 “Constructive Termination” means a Separation from Service by an Employee from an
Employing Company as a result of one or more of the following without the Employee’s written
consent within two years after a Change in Control (each of the following, a “Good Reason”):

          (a) a material reduction in Base Salary, except for across-the-board changes similarly
affecting all Employees of the Employing Company and all Employees of any Person in control of the
Employing Company, or any material reduction in the aggregate of the Employee’s annual and long
term incentive opportunity, in each case from that in effect immediately prior to the Change in
Control;

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          (b) the Employing Company’s requirement that the Employee be based more than 50 miles from the
location at which the Employee was based immediately prior to the Change in Control and which
location is more than 35 miles from the Employee’s residence;

          (c) the assignment to the Employee of any duties that are materially inconsistent with the
Employee’s duties prior to the Change in Control; or

          (d) a significant reduction in the Employee’s position, duties, or responsibilities from those
in effect prior to the Change in Control.

The Employee shall notify the Employing Company within 30 days after the occurrence of an event
giving rise to a Good Reason and the Employing Company shall have 30 days to remedy the condition,
and if remedied by the Employing Company within such 30-day period, no Good Reason shall exist on
account of the remedied event. A “Constructive Termination” is intended to qualify as an
involuntary separation from service for purposes of Section 409A, and this definition of
“Constructive Termination” shall be administered and interpreted consistent with such intention.

     1.14 “Defined Termination” means a Separation from Service of an Employee within two
years after a Change in Control that occurs as a result of either: (a) an Involuntary Termination,
or (b) a Constructive Termination.

     1.15 “Employee” means any person, at the senior executive level as defined by the
Administration Committee, paid through the payroll function of the Employing Company (as opposed to
the accounts payable function of the Employing Company) and employed on a regular full-time basis
(i.e., an employee whose scheduled workweek is consistent with the standard workweek schedule of a
business unit or department) or regular part-time basis (i.e., an employee who is scheduled to work
at least 20 hours per week, but fewer than the hours of a regular full-time employee) by an
Employing Company, who receives from an Employing Company a regular stated compensation and an
annual IRS Form W-2; provided, however, that an Employing Company or operating business unit
thereof, due to business, marketplace or employee relations reasons, may, in its sole discretion,
by policy exclude from the definition of Employee under the Plan any category or level of employee
employed in a non-exempt, exempt or executive level position or in an initial probationary or trial
period of employment. The term “Employee” shall not include any person who has entered into an
independent contractor agreement, consulting agreement, franchise agreement or any similar
agreement with an Employing Company, nor the employees of any such person, regardless of whether
that person (including his or her employees) is later found to be an employee by any court of law
or regulatory authority.

     1.16 “Employing Company” means the Company and such of its subsidiaries and affiliated
companies and other trades or businesses as have adopted the Plan and have been admitted to
participation by the Committee or any one or more of them, and any corporation or other entity
succeeding to the rights and assuming the obligations of any such company hereunder in the manner
described in Section 6.1.

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     1.17 “ERISA” means the Employee Retirement Income Security Act of l974, as amended
from time to time.

     1.18 “Executive Officer” means an employee of the Company or one of its subsidiaries
who is in a position which is designated by the Board of Directors of the Company as a position
which is subject to the reporting requirements under Section 16(a) of the Securities Exchange Act
of 1934, as amended, and the rules and regulations promulgated thereunder in respect of the equity
securities of the Company; provided, however, that the Comptroller of the Company (although subject
to the above reporting requirements) shall not be deemed to be an Executive Officer.

     1.19 “Good Cause” means a discontinuance of an Employee’s employment by an Employing
Company upon one of the following:

          (a) the Employee’s Willful and continued failure to adequately perform substantially all of
the Employee’s duties with the Employing Company;

          (b) the Employee’s Willful engagement in conduct which is demonstrably and materially
injurious to the Employing Company or an affiliate thereof, monetarily or otherwise; or

          (c) the Employee’s conviction of a felony.

     1.20 “Involuntary Termination” means any involuntary Separation from Service by an
Employee from an Employing Company for reasons other than Good Cause within two years after a
Change in Control. An “Involuntary Termination” is intended to qualify as an involuntary
separation from service for purposes of Section 409A, and this definition of “Involuntary
Termination” shall be administered and interpreted consistent with such intention.

     1.21 “Leave of Absence” means the period during which an Employee is absent from work
pursuant to a leave of absence granted by an Employing Company where such leave of absence does not
result in a Separation from Service.

     1.22 “Mutually Satisfactory Resignation” means an Employee’s resignation where the
Employing Company would have terminated the Employee’s services if the Employee did not voluntarily
resign, and the Employee was aware of that fact. A “Mutually Satisfactory Resignation” is intended
to qualify as an involuntary separation from service for purposes of Section 409A, and this
definition of “Mutually Satisfactory Resignation” shall be administered and interpreted consistent
with such intention.

     1.23 “Plan” means the American Express Senior Executive Severance Plan, as set forth
herein and as hereafter amended from time to time.

     1.24 “Plan Year” means a calendar year.

     1.25 “Policy” means the American Express Section 409A Compliance Policy, as amended
from time to time, and any successor policy thereto.

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     1.26 “Predecessor Company” means any corporation or unincorporated entity heretofore
or hereafter merged or consolidated with or otherwise absorbed by an Employing Company or any
substantial part of the business of which has been or shall be acquired by an Employing Company.

     1.27 “Retirement” means a Separation from Service that qualifies as a “normal
retirement,” as defined in and meeting the terms and conditions of the American Express Retirement
Savings Plan, as amended from time to time, and any successor plan thereto.

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

     1.29 “Section 409A Change in Control” means a “change in the ownership,” a “change in
the effective control” or a “change in the ownership of a substantial portion of the assets” of the
Employing Company, each as determined in accordance with Section 409A.

     1.30 “Section 401(a)(17) Limit” means, with respect to a given year, the maximum
amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the
Code for such year, determined in accordance with Section 1.409A-1(b)(9)(iii)(A)(2) of the Treasury
Regulations.

     1.31 “Separation from Service” means a “separation from service” for purposes of
Section 409A, as determined in accordance with the Policy.

     1.32 “Separation Period” means the period of time over which an Employee receives
severance benefits under the Plan in substantially equal installment payments, which shall be equal
to the number of weeks of severance benefits to which the Employee is entitled pursuant to Schedule
A hereto.

     1.33 “Willful” means that an act or failure to act on an Employee’s part is done, or
omitted to be done, by the Employee in a manner that is not in good faith, and that is without
reasonable belief that such action or omission was in the best interests of an Employing Company.

ARTICLE 2

PARTICIPATION

     2.1 Eligibility to Receive Benefits. Subject to Section 2.2, each Employee shall be
eligible to receive benefits under the Plan in the event of such Employee’s Separation from Service
from an Employing Company for one of the following reasons:

          (a) reduction in force;

          (b) position elimination;

          (c) office closing;

          (d) poor performance;

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          (e) Mutually Satisfactory Resignation;

          (f) relocation of an employee’s current position that does not meet the definition of
Comparable Position; or

          (g) Defined Termination (notwithstanding any provision of Section 2.3).

     2.2 Limitations on Eligibility In the event an Employee who is otherwise eligible to
receive benefits under the Plan is offered a Comparable Position (whether the position is accepted
or rejected by the Employee), the Employee will not be eligible to receive benefits under the Plan
with respect to any resultant Separation from Service. In addition, an Employee is not eligible to
receive benefits under the Plan if the Employee accepts any position in the Company, an Employing
Company, an Affiliated Company or successor company (regardless of whether it is a Comparable
Position). An Employee who is an Executive Officer and who otherwise meets the eligibility
criteria may only receive benefits under the Plan if approved by the Committee in advance. An
Employee who is offered or placed on a temporary layoff status (often referred to as a furlough)
with reduced or no pay for a period of less than six months during which time the Employee
continues to participate in certain benefit plans as determined by the Company is not eligible to
receive benefits under the Plan.

     2.3 Ineligibility for Participation. An Employee is ineligible to receive benefits
under the Plan in the event his Separation from Service by an Employing Company for a reason other
than those enumerated in Section 2.1, including, but not limited to, the following:

          (a) voluntary resignation;

          (b) failure to report for work;

          (c) failure to return from leave;

          (d) return from a Leave of Absence which extends beyond the policy reinstatement period, if
applicable, and no position is available;

          (e) excessive absenteeism or lateness;

          (f) merger, acquisition, sale, transfer, outsourcing or reorganization of all or part of the
Employing Company or any affiliate thereof where either (i) a Comparable Position is offered with,
or (ii) the Employee accepts any position (regardless of whether it is a Comparable Position) with,
a successor company, whether affiliated or unaffiliated with the Employing Company, including an
outside contractor, and whether or not the successor company adopts the Plan;

          (g) violation of a policy or procedure of the Employing Company, insubordination,
unwillingness to perform the duties of a position, suspected dishonesty, or other misconduct;

          (h) Retirement, including the acceptance of any Employing Company sponsored retirement
incentive; provided, however, that in the event an Employee is otherwise

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eligible for a severance pay benefit in accordance with Section 2.1 and also eligible for
Retirement, the Employee shall be eligible to receive benefits under the Plan in accordance with
Article 3; or

          (i) death.

ARTICLE 3

AMOUNT OF BENEFITS

     3.1 Amount of Benefits. The severance benefit payable to an eligible Employee under
the Plan shall be based on his Completed Years of Service and position with the Company, Employing
Company or Affiliated Company. The formula for determining an Employee’s severance benefit payment
shall be calculated by first adding together (a) the Employee’s annual Base Salary in effect
immediately prior to the date of Separation from Service and (b) the last annual Bonus paid to the
Employee as of the date management tenders to him the Agreement required pursuant to Section 3.5.
In the case of a recently hired Employee who has not yet received a Bonus, the Employee’s
designated target Bonus may be used as the Section 3.1(b) portion of the foregoing calculation.
The sum of Section 3.1(a) and (b) shall then be divided by 52 to calculate the weekly severance
benefit (the “Weekly Severance Benefit Amount”). The amount of the total severance benefit (the
“Gross Severance Benefit Amount”) shall be determined by multiplying the Weekly Severance Benefit
Amount by the number of weeks of severance benefits to which the Employee is entitled pursuant to
Schedule A hereto. The number of weeks over which severance benefits are payable under the Plan to
any eligible Employee who is not an Executive Officer shall not exceed 78 weeks, and the number of
weeks over which severance benefits are payable under the Plan to any eligible Employee who is an
Executive Officer shall not exceed 104 weeks. The total amount of severance calculated pursuant to
Schedule A hereto shall not exceed 78 weeks for Employees who are not Executive Officers or 104
weeks for Executive Officers.

     3.2 Limitations on Amount of Severance Benefits. To the extent permissible under
Section 409A, benefits payable under the Plan to an Employee shall be inclusive of and offset by
any other severance, redundancy or termination payment made by an Employing Company to the
Employee, including, but not limited to, any amounts paid pursuant to federal, state, local or
foreign government worker notification (e.g., Worker Adjustment and Retraining Notification Act) or
office closing requirements, any amounts owed the Employee pursuant to a contract with the
Employing Company (unless the contract specifically provides otherwise) and amounts paid to an
Employee placed in a temporary layoff status (often referred to as a furlough) which immediately
precedes the commencement of the severance payments.

     3.3 Reemployment. In the event an Employee is reemployed by the Employing Company or
an Affiliated Company within the period covered by the schedule of severance benefits on Schedule A
hereto, the severance benefits, if any, that are in excess of the number of weeks between the
Separation from Service and the rehire date shall be repaid by the Employee or withheld by the
Employing Company, as the case may be; and any benefits withheld or repaid shall be forfeited by
the Employee. In the further event an eligible Employee who is receiving severance benefits under
the Plan is later rehired by an Employing Company or an Affiliated Company, and employment later
terminates under conditions making such Employee eligible for

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severance benefits under the Plan, the amount of the second severance benefit will be based on
such Employee’s actual date of reemployment and not the original date of employment.

     3.4 Withholding Tax. The Employing Company shall deduct from the amount of any
severance benefits payable under the Plan, any amount required to be withheld by the Employing
Company by reason of any law or regulation, for the payment of taxes or otherwise to any federal,
state, local or foreign government. In determining the amount of any applicable tax, the Employing
Company shall be entitled to rely on the number of personal exemptions on the official form(s)
filed by the Employee with the Employing Company for purposes of income tax withholding on regular
wages.

     3.5
Requirement of Signed Agreement. Receipt of severance benefits under the Plan is
conditioned upon the Employee signing an agreement with the Employee’s Employing Company in a form
satisfactory to the Company and in accordance with the requirements of applicable law (the
“Agreement”). The Agreement must include a release of claims and may include whatever other terms
the Employing Company deems appropriate, including restrictive covenants. If the terms of the
Agreement are found to be legally unenforceable, the Employee must return any severance benefits
paid pursuant to Section 3.1 of the Plan plus the value of any long term incentive awards which
vested during the Separation Period; provided, however, that in the event the Employee has a
Defined Termination, such restrictive covenants shall (a) be reasonable under the applicable facts
and circumstances; (b) include the following (i) non-solicitation of customers and employees; (ii)
confidentiality of business data; (iii) full release of claims; and (iv) non-denigration of the
Company and its affiliates, and their officers, directors and agents; and (c) not include any
non-competition limitations. Notwithstanding anything herein to the contrary, the Company shall,
for a period of two years and one day following a Change in Control, be prohibited from entering
into any agreement with an Employee, which contains a more expansive Competitor List (as provided
in Paragraph 2 of the “Consent to the Application of Forfeiture and Detrimental Conduct Provisions
to Incentive Compensation Plan Awards”) than that which was in effect for such Employee immediately
prior to the date of such Change in Control. If an Employee has already signed the Agreement
required by this Section 3.5 prior to the date of a Change in Control, the Employee is not eligible
to receive any benefits that would otherwise be triggered by a Change in Control, except as
provided by Section 4.1(g).

     3.6 Excise Tax.

          (a) This Section 3.6 shall apply in the event of a Change in Control.

          (b) In the event that any payment or benefit received or to be received by an Employee
hereunder in connection with a Change in Control or such Employee’s Separation from Service (such
payments and benefits hereinafter referred to collectively as the “Payments”), will be
subject to the excise tax (the “Excise Tax”) referred to in Section 4999 of the Code, then
the Payments shall be reduced to the extent necessary so that no portion of the Payments is subject
to the Excise Tax but only if (A) the net amount of all Total Payments (as hereinafter defined), as
so reduced (and after subtracting the net amount of federal, state and local income and employment
taxes on such reduced Total Payments), is greater than or equal to (B) the net amount of such Total
Payments without any such reduction (but after subtracting the net amount

10

 

of federal, state and
local income and employment taxes on such Total Payments and the
amount of Excise Tax to which an Employee would be subject in respect of such unreduced Total
Payments); provided, however, that the Employee may elect in writing to have other components of
his or her Total Payments reduced prior to any reduction in the Payments hereunder.

          (c) For purposes of determining whether the Payments will be subject to the Excise Tax, the
amount of such Excise Tax and whether any Payments are to be reduced hereunder: (i) all payments
and benefits received or to be received by an Employee in connection with such Change in Control or
such Employee’s Separation from Service, whether pursuant to the terms of the Plan or any other
plan, arrangement or agreement with the Company, any Person (as such term is defined in Section
1.7) whose actions result in such Change in Control or any Person affiliated with the Company or
such Person (all such payments and benefits being hereinafter referred to as the “Total
Payments”), shall be treated as “parachute payments” (within the meaning of Section 280G(b)(2)
of the Code) unless, in the opinion of the accounting firm which was, immediately prior to the
Change in Control, the Company’s independent auditor, or if that firm refuses to serve, by another
qualified firm, whether or not serving as independent auditors, designated by the Administration
Committee (the “Firm”), such payments or benefits (in whole or in part) do not constitute
parachute payments, including by reason of Section 280G(b)(2)(A) or Section 280G(b)(4)(A) of the
Code; (ii) no portion of the Total Payments the receipt or enjoyment of which the Employee shall
have waived at such time and in such manner as not to constitute a “payment” within the meaning of
Section 280G(b) of the Code shall be taken into account; (iii) all “excess parachute payments”
within the meaning of Section 280G(b)(l) of the Code shall be treated as subject to the Excise Tax
unless, in the opinion of the Firm, such excess parachute payments (in whole or in part) represent
reasonable compensation for services actually rendered (within the meaning of Section 280G(b)(4)(B)
of the Code) in excess of the Base Amount (within the meaning of Section 280G(b)(3) of the Code)
allocable to such reasonable compensation, or are otherwise not subject to the Excise Tax; and (iv)
the value of any noncash benefits or any deferred payment or benefit shall be determined by the
Firm in accordance with the principles of Sections 280G(d)(3) and (4) of the Code and regulations
or other guidance there under. For purposes of determining whether any Payments in respect of a
Employee shall be reduced, the Employee shall be deemed to pay federal income tax at the highest
marginal rate of federal income taxation (and state and local income taxes at the highest marginal
rate of taxation in the state and locality of such Employee’s residence, net of the maximum
reduction in federal income taxes which could be obtained from deduction of such state and local
taxes) in the calendar year in which the Payments are made. The Firm will be paid reasonable
compensation by the Company for its services.

          (d) As soon as practicable following a Change in Control, but in no event later than 30 days
thereafter, the Company shall provide to each Employee with respect to whom it is proposed that
Payments be reduced, a written statement setting forth the manner in which the Total Payments in
respect of such Employee were calculated and the basis for such calculations, including, without
limitation, any opinions or other advice the Company has received from the Firm or other advisors
or consultants (and any such opinions or advice which are in writing shall be attached to the
statement).

11

 

ARTICLE 4

METHOD OF PAYMENT

     4.1 Payment.

          (a) Except as otherwise provided by this Article 4 or the Plan, the Company shall pay the
Gross Severance Benefit Amount to the Employee during the Separation Period in substantially equal
payments in accordance with the normal payroll schedule applicable to the Employee, commencing with
the applicable payroll period immediately following the Employee’s Separation from Service.

          (b) If the severance benefits provided under the Plan qualify for the involuntary separation
pay exception under Section 409A, the Employee is a “specified employee” (for purposes of Section
409A and as determined in accordance with the Policy) on the date of his Separation from Service,
and the total amount of benefits to be paid to the Employee during the six-month period following
his Separation from Service is more than two times the lesser of the Employee’s Annualized
Compensation or the Section 401(a)(17) Limit, each for the year in which the Separation from
Service occurs, then:

               (i) the severance benefits to be paid during the six-month period following the Employee’s
Separation from Service shall be two times the lesser of the Employee’s Annualized Compensation or
the Section 401(a)(17) Limit, each for the year in which the Separation from Service occurs,
divided by the number of severance payments to be made during such six-month period (given the
normal payroll schedule applicable to the Employee);

               (ii) the difference between the amount of the severance benefits actually paid by the Company
or Employing Company pursuant to Section 4.1(b)(i) and the amount the Employee would have received
during such six-month period but for the application of Section 4.1(b)(i), shall be paid to the
Employee on the first payroll date immediately following the first day of the seventh month
following the Employee’s Separation from Service; and

               (iii) the balance of the severance benefits to be paid for the remainder of the Separation
Period following the expiration of the six-month period shall be paid in accordance with Section
4.1(a).

          (c) In the event that the severance benefits provided under the Plan do not qualify for the
involuntary separation pay exception under Section 409A and the Employee is a “specified employee”
(for purposes of Section 409A and as determined in accordance with the Policy) on the date of his
Separation from Service, then:

12

 

               (i) the amount the Employee would have received during the six-month period following the
Employee’s Separation from Service had the severance benefits been paid in installments in
accordance with Section 4.1(a) during such six-month period shall be paid to the Employee in a lump
sum on the first payroll date immediately following the first day of the seventh month following
the Employee’s Separation from Service; and

               (ii) the balance of the severance benefits to be paid for the remainder of the Separation
Period following the expiration of the six-month period shall be paid in accordance with Section
4.1(a).

          (d) In the event the Employee has a Defined Termination, and the Change in Control to which
the Defined Termination relates qualifies as a Section 409A Change in Control, then:

               (i) if the Employee is not a “specified employee” (for purposes of Section 409A and as
determined in accordance with the Policy) on the date of his Separation from Service, the
Employee’s Gross Severance Benefit Amount will be paid to him in a lump sum within 15 days
following the Employee’s Separation from Service; and

               (ii) if the Employee is a “specified employee” (for purposes of Section 409A and as determined
in accordance with the Policy) on the date of his Separation from Service, the Employee’s Gross
Severance Benefit Amount will be paid to him as follows:

                    (1) if the severance benefits provided under the Plan qualify for the involuntary separation
pay exception under Section 409A, an amount equal to two times the lesser of the Employee’s
Annualized Compensation or the Section 401(a)(17) Limit, each for the year in which the Separation
from Service occurs, shall be paid to him in a lump sum within 15 days following the Employee’s
Separation from Service; and

                    (2) the Employee’s Gross Severance Benefit Amount, less the amount, if any, paid to the
Employee pursuant to Section 4.1(d)(ii)(1), will be paid to him in a lump sum on the first day of
the seventh month following the Employee’s Separation from Service.

          (e) Notwithstanding anything in the Plan to the contrary, if the Employee’s Separation from
Service occurs within two years following a Change in Control, then to the extent permissible under
Section 409A, the Employee shall continue to be eligible to receive benefits under the Company’s
medical and dental plans for the applicable period as if the Employee were paid severance in
installments, such benefits to be substantially identical to the benefits provided immediately
prior to the Change in Control. In the event that the continuation of any such benefits during the
six-month period following Separation from Service would result in the imposition of a tax under
Section 409A, the Company shall allow the Employee to pay the out-of-pocket cost of such benefits
during such six-month period and the Company will make a lump-sum payment to the Employee in an
amount equal to the out-of-pocket costs so paid by the Employee, on the first day of the seventh
month following the Employee’s Separation from Service.

13

 

          (f) Notwithstanding anything in the Plan to the contrary, if the Employee is not a United
States citizen and has not been taxable for US federal income tax purposes as a resident alien at
any time during his employment with the Employing Company, then, to the extent it would not result
in the imposition of the excise tax or penalty under Section 409A to the Employee, the Employing
Company may pay the Gross Severance Benefit Amount to the Employee in a lump sum or in
installments, in the Employing Company’s sole discretion.

          (g) Inactive Employment Status. During the Separation Period, the Employee will
remain in an inactive employment status until receipt of such payments is completed, at which time
employment will be terminated. During the Separation Period, to the extent permissible under
Section 409A, certain other employee benefits may be continued, payment for which shall be deducted
from such severance payments in accordance with the Employee’s previously elected benefit coverage.
During the Separation Period, the Company reserves the right, to the extent permissible under
Section 409A, to continue other programs such as the Incentive Compensation Plan and the Perquisite
Program in accordance with its policies, which may be changed or terminated from time to time.
Nothing in this Section 4.1(g) shall create a contract to provide such benefits.

     4.2 Limitations on Severance Payments. In no event shall the period of time during
which an Employee receives severance payments exceed 104 weeks. Nothing in this Section 4.2 shall
affect the total number of weeks payable under the Plan pursuant to Schedule A hereto, including,
but not limited to, the 104-week maximum payment.

     4.3 Death. In the event an Employee dies before full receipt of severance benefits
payable under the Plan, the remaining severance benefits will be paid to the legal representative
of such Employee’s estate in a lump sum after receipt of notice of such death and evidence
satisfactory to the Company of the payment or provision for the payment of any estate, transfer,
inheritance or death taxes which may be payable with respect thereto; provided, however, payment
must be made within 90 days of the date of the Employee’s death, or such later date permitted by
Section 409A.

ARTICLE 5

ADMINISTRATION OF THE PLAN

     5.1 Powers of the Employing Company. The Employing Company shall have such powers,
authorities and discretion as are necessary or appropriate in order to carry out its duties under
the Plan, including, but not limited to, the power:

          (a) to obtain such information as it shall deem necessary or appropriate in order to carry out
its duties under the Plan;

          (b) to make determinations with respect to the grounds for termination of employment of any
Employee; and

          (c) to establish and maintain necessary records.

14

 

     5.2 Employing Company Authority. Nothing contained in the Plan shall be deemed to
qualify, limit or alter in any manner the Employing Company’s sole and complete authority and
discretion to establish, regulate, determine or modify at any time, the terms and conditions of
employment, including, but not limited to, levels of employment, hours of work, the extent of
hiring and employment termination, when and where work shall be done, marketing of its products, or
any other matter related to the conduct of its business or the manner in which its business is to
be maintained or carried on, in the same manner and to the same extent as if the Plan were not in
existence.

     5.3 Administration Committee Duties and Powers. The Administration Committee shall be
responsible for the general administration and interpretation of the Plan and the proper execution
of its provisions and shall have full discretion to carry out its duties. The Administration
Committee shall be the “Administrator” of the Plan and shall be, in its capacity as Administrator,
a “Named Fiduciary,” as such terms are defined or used in ERISA. For the purposes of carrying out
its duties as Administrator, the Administration Committee may, in its sole discretion, allocate its
responsibilities under the Plan among its members, and may, in its sole discretion, designate
persons other than members of the Administration Committee to carry out such of its
responsibilities under the Plan as it may deem fit. In addition to the powers of the
Administration Committee specified elsewhere in the Plan, the Administration Committee shall have
all discretionary powers necessary to discharge its duties under the Plan, including, but not
limited to, the following discretionary powers and duties:

          (a) to interpret or construe the Plan, and resolve ambiguities, inconsistencies and omissions;

          (b) to make and enforce such rules and regulations and prescribe the use of such forms as it
deems necessary or appropriate for the efficient administration of the Plan; and

          (c) to decide all questions on appeal concerning the Plan and the eligibility of any person to
receive benefits under the Plan.

     5.4 Determinations. The determination of the Administration Committee as to any
question involving the general administration and interpretation or construction of the Plan shall
be within its sole discretion and shall be final, conclusive and binding on all persons, except as
otherwise provided herein or by law.

     5.5 Claims Review Procedure. Consistent with the requirements of ERISA and the
regulations thereunder as promulgated by the Secretary of Labor from time to time, the following
claims review procedure shall be followed with respect to the denial of severance benefits to any
Employee:

          (a) Within 30 days from the date of an Employee’s Separation from Service, the Employing
Company shall furnish such Employee either an agreement offering severance benefits under the Plan
or notice of such Employee’s ineligibility for or denial of severance benefits, either in whole or
in part. Such notice from the Employing Company will be in writing and sent to the Employee or the
legal representative of his estate stating the reasons for such ineligibility or denial and, if
applicable, a description of additional information that might cause a

15

 

reconsideration by the Administration Committee or its delegate of the decision and an
explanation of the Plan’s claims review procedure. In the event such notice is not furnished
within 30 days, any claim for severance benefits shall be deemed denied and the Employee shall be
permitted to proceed to Section 5.5(b).

          (b) Within 60 days after receiving notice of such denial or ineligibility or within 90 days
after the Employee’s Separation from Service if no notice is received, the Employee, the legal
representative of his estate or a duly authorized representative may then submit to the
Administration Committee a written request for a review of such decision of denial.

          (c) The Administration Committee will review the claim and within 60 days (or 120 days in
special circumstances) provide a written response to the appeal setting forth specific reasons for
such decision. In the event the decision on review is not furnished within such time period, the
claim shall be deemed denied.

ARTICLE 6

ADOPTING COMPANIES AND PLAN MERGERS

     6.1 Adopting Companies. Any corporation which succeeds to the business and assets of
the Company or any part of its operations, may by appropriate resolution adopt the Plan and shall
thereupon succeed to such rights and assume such obligations hereunder as the Company and said
corporation shall have agreed upon in writing. Any corporation which succeeds to the business of
any Employing Company other than the Company, or any part of the operations of such Employing
Company, may by appropriate resolution adopt the Plan and shall thereupon succeed to such rights
and assume such obligations hereunder as such Employing Company and said corporation shall have
agreed upon in writing, provided, however, that such adoption and the terms thereof agreed upon in
such writing have been approved by the Company.

ARTICLE 7

AMENDMENT AND TERMINATION

     7.1 Right to Amend or Terminate. The Company reserves the right, by action of the
Board of Directors or the Committee, to amend or terminate the Plan in whole or in part at any time
and from time to time, and any amendment or effective date of termination may be given retroactive
effect; provided, however, that the Plan may not be amended or terminated if such amendment or
termination would cause the Plan to fail to comply with, or cause an Employee to be subject to tax
under, Section 409A. The foregoing sentence to the contrary notwithstanding, for a period of two
years and one day after the date of an occurrence of a Change in Control, neither the Board of
Directors nor the Committee may terminate the Plan or amend the Plan in a manner that is
detrimental to the rights of any eligible Employee under the Plan without his or her written
consent.

     7.2 Termination by an Employing Company. Any Employing Company other than the Company
may withdraw from participation in the Plan at any time by delivering to the Administration
Committee written notification to that effect signed by such Employing Company’s chief executive
officer or his delegate. Withdrawal by any Employing Company pursuant to this Section 7.2, or complete discontinuance of severance benefits under the Plan
by

16

 

any Employing Company other than the Company, shall constitute termination of the Plan with
respect to such Employing Company. The foregoing sentence to the contrary notwithstanding, neither
the Board of Directors nor the Committee may terminate the Plan or amend the Plan in a manner that
(a) would cause the Plan to fail to comply with, or cause an Employee to be subject to tax under,
Section 409A; (b) is detrimental to the rights of any eligible Employee of the Plan without his
written consent (i) with respect to the provisions of the Plan which become applicable upon a
Change in Control, and (ii) with respect to all provisions of the Plan for a period of two years
and one day after the date of a Change in Control.

     7.3 Limitation on Benefits. In the event any Employing Company withdraws from
participation or the Company terminates the Plan as provided in this Article 7, no Employee shall
be entitled to receive benefits hereunder for employment either before or after such action.

ARTICLE 8

FINANCIAL PROVISIONS

     8.1 Funding. All severance benefits payable under the Plan shall be payable and
provided for solely from the general assets of the Employing Company in accordance with the Plan,
at the time such severance benefits are payable, unless otherwise determined by the Employing
Company. The Employing Company shall not be required to establish any special or separate fund or
to make any other segregation of assets to assure the payment of any severance benefits under the
Plan.

ARTICLE 9

LIABILITY AND INDEMNIFICATION

     9.1 Standard of Conduct. To the extent permitted by ERISA and other applicable law,
no member (which term, as used in this Article 9, shall include any employee of any Employing
Company designated to carry out any responsibility of the Administration Committee pursuant to
Section 5.3) of the Administration Committee shall be liable for anything done or omitted to be
done by him in connection with the Plan, unless the member failed to act (a) in good faith and (b)
for a purpose which such member reasonably believed to be in accordance with the intent of the
Plan. The Company or Employing Company, as applicable, hereby indemnifies each person made, or
threatened to be made, a party to an action or proceeding, whether civil or criminal, or against
whom any claim or demand is made, by reason of the fact that he, his testator or intestate, was or
is a member of the Administration Committee, against judgments, fines, amounts paid in settlement
and reasonable expenses (including attorney’s fees) actually and necessarily incurred as a result
of such action or proceeding, or any appeal therein, or as a result of such claim or demand, if
such member of the Administration Committee acted in good faith for a purpose which he reasonably
believed to be in accordance with the intent of the Plan and, in criminal actions or proceedings,
in addition, had no reasonable cause to believe that his conduct was unlawful. Any reimbursement
shall be paid to a member of the Administration Committee in accordance with the Policy.

     9.2 Presumption of Good Faith. The termination of any such civil or criminal action
or proceeding, or the disposition of any such claim or demand, by
judgment, settlement, conviction, or upon a plea of nolo contendere, or its equivalent, shall not in itself create a

17

 

presumption that any such member of the Administration Committee did not act (a) in good faith and
(b) for a purpose which he reasonably believed to be in accordance with the intent of the Plan.

     9.3 Successful Defense. A person who has been wholly successful, on the merits or
otherwise, in the defense of a civil or criminal action or proceeding or claim or demand of the
character described in Section 9.1 shall be entitled to indemnification as authorized in such
Section 9.1.

     9.4 Unsuccessful Defense. Except as provided in Section 9.3, any indemnification
under Section 9.1, unless ordered by a court of competent jurisdiction, shall be made by the
Company only if authorized in the specific case:

          (a) by the Board of Directors acting by a quorum consisting of directors who are not parties
to such action, proceeding, claim or demand, upon a finding that the member of the Administration
Committee has met the standard of conduct set forth in Section 9.1; or

          (b) if a quorum under Section 9.4(a) is not obtainable with due diligence:

               (i) by the Board of Directors upon the opinion in writing of independent legal counsel (who
may be counsel to any Employing Company) that indemnification is proper under the circumstances
because the standard of conduct set forth in Section 9.1 has been met by such member of the
Administration Committee; or

               (ii) by the shareholders of the Company upon a finding that the member of the Administration
Committee has met the standard of conduct set forth in such Section 9.1.

     9.5 Advance Payments. Expenses incurred in defending a civil or criminal action or
proceeding or claim or demand may be paid by the Company or Employing Company, as applicable, in
advance of the final disposition of such action or proceeding, claim or demand, if authorized in
the manner specified in Section 9.4, except that, in view of the obligation of repayment set forth
in Section 9.6, there need be no finding or opinion that the required standard of conduct has been
met.

     9.6 Repayment of Advance Payments. All expenses incurred in defending a civil or
criminal action or proceeding, claim or demand, which are advanced by the Company or Employing
Company, as applicable, under Section 9.5 shall be repaid upon demand by the Company or Employing
Company in case the person receiving such advance is ultimately found, under the procedures set
forth in this Article 9, not to be entitled to indemnification or, where indemnification is
granted, to the extent the expenses so advanced by the Company or Employing Company, as applicable,
exceed the indemnification to which he is entitled.

     9.7 Right to Indemnification. Notwithstanding the failure of the Company or Employing
Company, as applicable, to provide indemnification in the manner set forth in Section 9.4 or 9.5,
and despite any contrary resolution of the Board of Directors or of
the shareholders in the specific case, if the member of the Administration Committee has met the

18

 

standard of conduct set forth in Section 9.1, the person made or threatened to be made a party to
the action or proceeding or against whom the claim or demand has been made, shall have the legal
right to indemnification from the Company or Employing Company, as applicable, as a matter of
contract by virtue of the Plan, it being the intention that each such person shall have the right
to enforce such right of indemnification against the Company or Employing Company, as applicable,
in any court of competent jurisdiction.

ARTICLE 10

MISCELLANEOUS

     10.1 No Right to Continued Employment. Nothing in the Plan shall be construed as
giving any Employee the right to be retained in the employ of any Employing Company or any right to
any payment whatsoever, except to the extent of the severance benefits provided for by the Plan.
Each Employing Company expressly reserves the right to dismiss any Employee at any time and for any
reason without liability for the effect which such dismissal might have upon him as an eligible
Employee under the Plan.

     10.2 Construction. The masculine pronoun shall be construed to mean the feminine and
the singular shall be construed to mean the plural, wherever appropriate herein. Headings in this
document are for identification purposes only and do not constitute a part of the Plan.

     10.3 Governing Law. The Plan shall be governed by and construed in accordance with
the substantive laws but not the choice of law rules of the state of New York, except to the extent
that such laws have been superseded by federal law.

     10.4 Expenses of the Plan. The expenses for establishment and administration of the
Plan shall be paid by the Employing Companies. Any expenses paid by the Company pursuant to this
Section 10.4 and indemnification under Article 9 shall be subject to reimbursement by the other
Employing Companies of their proportionate shares of such expenses and indemnification, as
determined by the Administration Committee in its sole discretion.

     10.5 Section 409A. It is intended that the benefits under the Plan are either exempt
from, or compliant with, the requirements 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 Employees. The
Plan shall be administered and interpreted to the extent possible in a manner consistent with that
intent and the Policy. To the extent that a distribution to an Employee is not exempt from Section
409A, and 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 Employee’s Separation from
Service, and the payments that otherwise would have been paid to the Employee during the six-month
period immediately following the Employee’s Separation from Service shall be paid to the Employee
in a lump sum on the first day of the seventh month following the Employee’s Separation from
Service, or as soon as administratively practicable thereafter, but in no event later than 90 days
thereafter.

* * * * *

19

 

AMERICAN EXPRESS

SENIOR EXECUTIVE SEVERANCE PLAN

(As amended and restated effective January 1, 2009)

SCHEDULE A

SCHEDULE FOR SEVERANCE PAY BENEFITS

	 	 	 	 	 
	Completed Years of Service	 	Number of Weekly Severance Benefit Payments
	 	 	Employees Who Are Not	 	 
	 	 	Executive Officers	 	Executive Officers
	12 or fewer	 	52	 	104
	13	 	56	 	104
	14	 	60	 	104
	15	 	65	 	104
	16	 	69	 	104
	17	 	73	 	104
	18 or more
	 	78 Maximum
	 	104 Maximum

20exv10w34

EXHIBIT 10.34

AMERICAN EXPRESS

ANNUAL INCENTIVE AWARD PLAN

(As amended and restated effective January 1, 2011)

PURPOSE

     The purpose of this Annual Incentive Award Plan (the “Plan”) is to provide added incentive for
those officers and key executives of American Express Company (the “Company”) and its subsidiaries
who are in a position to make substantial contributions to the earnings and growth of these
companies and to reward them collectively and individually for performance which contributes
significantly toward such earnings and growth. The companies participating in the Plan (the
“Participating Companies”) include the Company and such other corporations as may be taking
part in the Plan from time to time pursuant to Article 8.

ARTICLE 1

ADMINISTRATION OF THE PLAN

     1.1 Administration. The Plan shall be administered by the Compensation and Benefits
Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) as
constituted from time to time, unless and until the Board provides otherwise.

     1.2 Authority and Delegation. The Committee shall be responsible for the general
administration of the Plan. It shall also be responsible for the interpretation of the Plan and
the determination of all questions arising hereunder. It shall have power to establish, interpret,
enforce, amend and revoke from time to time such rules and regulations for the administration of
the Plan and the conduct of its business as it deems appropriate. The Committee shall also have
the power to delegate any of its authority under the Plan as allowed by law. Any action taken by
the Committee within the scope of its authority shall be final and binding upon the Participating
Companies, upon each and every person who participates in the Plan and any successors in interest
of such persons, and any and all other persons claiming under or through any such person.

     1.3 Indemnification. No member of the Committee shall be liable for anything done or
omitted to be done by him or by any other member of the Committee in connection with the Plan,
unless such act or omission constitutes willful misconduct on his part.

ARTICLE 2

ANNUAL PERFORMANCE GOALS, PAYMENT GRID AND AWARD GUIDELINES

     2.1 Establishment. As soon as practicable at the beginning of each calendar year, the
Committee shall determine the individual, division/group, Company or other appropriate performance
goals, payment grid and award guidelines for such calendar year. In fixing such goals, grid and
guidelines, the Committee shall receive and consider the recommendations of the Chief Executive
Officer of the Company (the “CEO”), who, in turn, shall have received and

 

 

considered the respective recommendations of other appropriate officers and executives of the
Participating Companies.

     2.2 Adjustment. If the Committee finds, during the course of and with respect to any
year, that any of the performance goals, payment grid or award guidelines determined as herein
above provided would not be justified for such year in the circumstances, it may in its sole
discretion fix such performance goals, payment grid or award guidelines for such year at such
different levels as it deems appropriate.

ARTICLE 3

PARTICIPATION IN THE PLAN

     3.1 Participation. Those eligible to participate in the Plan for any calendar year
shall include such key executives of the Participating Companies as shall be designated by the
Committee. In designating such persons the Committee shall receive and consider the
recommendations of the CEO, who, in turn, shall have received and considered the respective
recommendations of other appropriate officers and executives of the Participating Companies.
However, the Committee shall have full authority to act in the matter and its determination shall
be in all respects final and conclusive. Further, the Committee shall have full authority to
delegate eligibility determination. Participants shall be designated prior to the beginning of the
year or as soon as practicable thereafter, but new executives or executives whose duties and
responsibilities have been materially increased during the year may be designated participants for
such year at any time during the year. Designation as a participant shall not of itself entitle a
person to receive payment of an award under the Plan. Participants must generally remain in
continuous active employment with the Participating Company (or an affiliate thereof), through the
end of the performance period (calendar-year end) and up until the payment date, and shall also
make progress towards the applicable award goals and shall fulfill the conditions of Article 7.

     3.2 Special Awards. The Committee, upon recommendations as provided by Section 4.1,
may also make special awards to a limited number of participants under the Plan. The CEO may also
authorize special awards under the Plan, at any time or times during the year, provided that any
special awards authorized by the CEO shall be reported to the Committee at its next regular
meeting. These special awards shall be made in recognition of outstanding individual achievement.

     3.3 Committee Members Ineligible. No member of the Committee shall be eligible to
participate in or receive any awards under the Plan.

ARTICLE 4

DETERMINATION OF AWARDS

     4.1 Determination of Awards. As soon as practicable after the end of each calendar
year, the Committee shall fix the amount of each award. The Committee shall also have the power to
delegate to the CEO the authority to approve individual awards and award changes for employees
below the Senior Vice President level (below Band 70). Notwithstanding the previous sentence, the
Committee shall continue to approve awards for Senior Vice Presidents

2

 

and higher (Band 70 and above), and to approve the aggregate awards for all participants in
Bands 35 and above, subject to adjustment for delegated award changes after each February. In
determining the aggregate awards, the Committee may approve the establishment of maximum award
guidelines for employees of a Participating Company, division, business unit or other designated
group, based upon specified company and other applicable organizational performance goals subject
to applicable past limitations. In fixing such awards the Committee shall receive and consider the
recommendations of the CEO who, in turn, shall have received and considered the respective
recommendations of other appropriate officers and executives of the Participating Companies, as to
whether and to what extent the individual, division/group or company performance goals have been
met for such year, and as to where in the range of award guidelines each participant’s performance
falls. Individual awards shall then be calculated based on the applicable payment grid, subject to
available pool monies.

     4.2 Award Limits. Except for awards payable as a result of a Change in Control
pursuant to Section 6.1, no award to a single participant for any year shall exceed (a) 200 percent
of the Participant’s total award guideline for such year, or (b) 200 percent of the participant’s
base salary for such year.

ARTICLE 5

PAYMENT OF AWARDS

     5.1 Payment. Each award, if any, shall be paid on or after January 31st of the
calendar year immediately following the end of the performance period, as soon as practicable after
the amount of the award shall have been determined, or at such subsequent time or times as the
Committee shall determine, but in no event later than 90 days after January 31st of the calendar
year immediately following the end of the performance period. Such payment shall be made in cash
unless the Committee, at any time or from time to time, according to rules and regulations of
general application, provides for a different method of payment, in whole or in part, of awards,
including, but not limited to, the issuance or transfer of securities or other property, including
common shares or other securities of the Company, another corporation or of a regulated investment
company or companies, subject to restrictions and requirements to assure compliance with the
conditions set forth in Article 7 and elsewhere in the Plan and such other restrictions and
requirements as the Committee shall prescribe.

     5.2 Effect of Termination, Retirement, Disability and Death. The Committee has the
sole discretion to consider the payment, if any, of an award for a participant in the event of the
participant’s termination, retirement, disability, death or other individual circumstances before
the award payment date; provided, however, the payment of an award by reason of the occurrence of
such an event shall still be made at the time specified in Section 5.1. The Committee, upon
recommendation provided by management, will approve to what extent, if any, payment of an award
should be made if termination occurs after December 31, but before the actual payment date.

     5.3 Payment in the Event of Death. If any award shall become payable by reason of or
following the death of a participant or former participant, such award shall be payable, at the
time specified in Section 5.1 and in the same manner as if such participant or former participant
were alive, to such beneficiaries of the participant or former participant as he shall have

3

 

designated in the manner described herein. If such participant or former participant shall
have failed to designate any beneficiary, or if no such beneficiary shall survive him, then such
payments shall be made to his legal representatives. With the approval of the Committee, a
participant or former participant may designate one or more beneficiaries by executing and
delivering to the Committee or its delegate written notice thereof at any time prior to his death,
and may revoke or change the beneficiaries designated therein without their consent by written
notices similarly executed and delivered to the Committee at any time and from time to time prior
to his death. No such Participating Company is required to pay any amount to the beneficiary or
legal representatives of any former participant until such beneficiary or legal representatives
shall have furnished evidence satisfactory to it of the payment or provision for the payment of all
estate, transfer, inheritance and death taxes, if any, which may be payable with respect thereto.

     5.4 Withholding. Any Participating Company required to make payments under the Plan
shall deduct and withhold from any such payment all amounts which its officers believe in good
faith the Participating Company is required to deduct or withhold pursuant to the laws of any
jurisdiction whatsoever or, in the event that any such payment shall be made in securities, shall
require that arrangements satisfactory to such Participating Company shall be made for the payment
of all such amounts before such securities are delivered.

     5.5 Deferral of Awards. Upon a deferral of the payment of an award pursuant to a
deferral plan of a Participating Company, the terms of the deferral and the payments thereunder
shall be governed by the provision of such deferral plan. The obligation of any Participating
Company to make deferred payments when due is merely contractual, and no amount credited to an
account of a participant or former participant on the books of any Participating Company shall be
deemed to be held in trust for such participant or former participant or for his beneficiary or
legal representatives. Nothing contained in the Plan shall require any Participating Company to
segregate or earmark any cash or other property. Any securities or other property held or acquired
by any such Participating Company specifically for use under the Plan or otherwise shall, unless
and until transferred in accordance with the terms and conditions of the Plan, be and at all times
remain the property of such Participating Company, irrespective of whether such securities or other
property are entered in a special account for the purpose of the Plan, and such securities or other
property shall at all times be and remain available for any corporate purpose.

ARTICLE 6

CHANGE IN CONTROL

     6.1 Effect of Change in Control. If within two years following the occurrence of a
Change in Control (as defined in Section 6.3), a participant experiences a separation from service
(as that term is defined for purposes of Section 409A of the Code) that would otherwise entitle him
to receive the payment of severance benefits under the provisions of the severance plan that is in
effect and in which he participates as of the date of such Change in Control, and the participant
is at Job Band 50 or higher on the date of such separation from service, then such participant
shall, notwithstanding the provisions of Article 5, be paid, within five days after the date of
such separation from service, a pro rata award under the Plan equal to: (a) the average
award paid or payable to such participant under the Plan (or any other award program of the
Participating Company or one of its subsidiaries at the time of such prior payment) for the two

4

 

years prior to the Change in Control (or if such participant has not received two such awards, the
most recent award paid or payable (or target amount so payable if such participant has not
previously received any such award) to such participant under the Plan (or any other award program
of the Participating Company or one of its subsidiaries at the time
of such prior payment));
multiplied by (b) the number of full or partial months that have elapsed during the performance
year under the Plan at the time of such separation from service divided by 12; provided that in the
event such separation from service occurs after the end of the performance year, but before the
payment date, then the multiplier in clause (b) of the preceding sentence shall be one.

     6.2 Excise Tax. This Section 6.2 shall apply in the event of Change in Control.

          (a) In the event that any payment or benefit received or to be received by a participant
hereunder in connection with a Change in Control or such participant’s termination of employment
(hereinafter referred to collectively as the “Payments”), will be subject to the excise tax (the
“Excise Tax”) referred to in Section 4999 of the Code, then the Payments shall be reduced to the
extent necessary so that no portion of the Payments is subject to the Excise Tax but only if (A)
the net amount of all Total Payments (as hereinafter defined), as so reduced (and after subtracting
the net amount of federal, state and local income and employment taxes on such reduced Total
Payments), is greater than or equal to (B) the net amount of such Total Payments without any such
reduction (but after subtracting the net amount of federal, state and local income and employment
taxes on such Total Payments and the amount of Excise Tax to which a participant would be subject
in respect of such unreduced Total Payments); provided, however, that the participant may elect in
writing to have other components of his Total Payments reduced prior to any reduction in the
Payments hereunder.

          (b) For purposes of determining whether the Payments will be subject to the Excise Tax, the
amount of such Excise Tax and whether any Payments are to be reduced hereunder: (i) all payments
and benefits received or to be received by a participant in connection with such Change in Control
or such participant’s termination of employment, whether pursuant to the terms of the Plan or any
other plan, arrangement or agreement with a Participating Company, any Person (as such term is
defined in Section 6.3(a)) whose actions result in such Change in Control or any Person affiliated
with the Participating Company or such Person (all such payments and benefits being hereinafter
referred to as the “Total Payments”), shall be treated as “parachute payments” (within the meaning
of Section 280G(b)(2) of the Code) unless, in the opinion of the accounting firm which was,
immediately prior to the Change in Control, the Company’s independent auditor, or if that firm
refuses to serve, by another qualified firm, whether or not serving as independent auditors,
designated by the Administration Committee (the “Auditor”), such payments or benefits (in whole or
in part) do not constitute parachute payments, including by reason of Section 280G(b)(2)(A) or
Section 280G(b)(4)(A) of the Code; (ii) no portion of the Total Payments the receipt or enjoyment
of which the participant shall have waived at such time and in such manner as not to constitute a
“payment” within the meaning of Section 280G(b) of the Code shall be taken into account; (iii) all
“excess parachute payments” within the meaning of Section 280G(b)(l) of the Code shall be treated
as subject to the Excise
Tax unless, in the opinion of the Auditor, such excess parachute payments (in whole or in
part) represent reasonable compensation for services actually rendered (within the meaning of
Section 280G(b)(4)(B) of the Code) in excess of the Base Amount (within the meaning of Section

5

 

280G(b)(3) of the Code) allocable to such reasonable compensation, or are otherwise not subject to
the Excise Tax; and (iv) the value of any noncash benefits or any deferred payment or benefit shall
be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of
the Code and regulations or other guidance thereunder. For purposes of determining whether any
Payments in respect of a participant shall be reduced, the participant shall be deemed to pay
federal income tax at the highest marginal rate of federal income taxation (and state and local
income taxes at the highest marginal rate of taxation in the state and locality of such
participant’s residence, net of the maximum reduction in federal income taxes which could be
obtained from deduction of such state and local taxes) in the calendar year in which the Payments
are made. The Auditor will be paid reasonable compensation by the Company for its services.

          (c) As soon as practicable following a Change in Control, but in no event later than 30 days
thereafter, the Company shall provide to each participant with respect to whom it is proposed that
Payments be reduced, a written statement setting forth the manner in which the Total Payments in
respect of such participant were calculated and the basis for such calculations, including, without
limitation, any opinions or other advice the Company has received from the Auditor or other
advisors or consultants (and any such opinions or advice which are in writing shall be attached to
the statement).

     6.3 Definition of Change in Control. For purposes of the Plan, “Change in Control”
means the happening of any of the following:

          (a) Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) becomes the
beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25
percent or more of either (i) the then-outstanding common shares of the Company (the “Outstanding
Company Common Shares”); or (ii) the combined voting power of the then-outstanding voting
securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that such beneficial ownership shall not constitute
a Change in Control if it occurs as a result of any of the following acquisitions of securities:
(i) any acquisition directly from the Company; (ii) any acquisition by the Company or any
corporation, partnership, trust or other entity controlled by the Company (a “Subsidiary”); (iii)
any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any Subsidiary; (iv) any acquisition by an underwriter temporarily holding Company
securities pursuant to an offering of such securities; (v) any acquisition by an individual, entity
or group that is permitted to, and actually does, report its beneficial ownership on Schedule 13-G
(or any successor schedule), provided that, if any such individual, entity or group subsequently
becomes required to or does report its beneficial ownership on Schedule 13D (or any successor
schedule), then, for purposes of this subsection, such individual, entity or group shall be deemed
to have first acquired, on the first date on which such individual, entity or group becomes
required to or does so report, beneficial ownership of all of the Outstanding Company Common Stock
and Outstanding Company Voting Securities
beneficially owned by it on such date; or (vi) any acquisition by any corporation pursuant to
a reorganization, merger or consolidation if, following such reorganization, merger or

6

 

consolidation, the conditions described in clauses (i), (ii) and (iii) of Section 6.3(c) are
satisfied. Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely
because any Person (the “Subject Person”) became the beneficial owner of 25 percent or more of the
Outstanding Company Common Shares or Outstanding Company Voting Securities as a result of the
acquisition of Outstanding Company Common Shares or Outstanding Company Voting Securities by the
Company which, by reducing the number of Outstanding Company Common Shares or Outstanding Company
Voting Securities, increases the proportional number of shares beneficially owned by the Subject
Person; provided, that if a Change in Control would be deemed to have occurred (but for the
operation of this sentence) as a result of the acquisition of Outstanding Company Common Shares or
Outstanding Company Voting Securities by the Company, and after such share acquisition by the
Company, the Subject Person becomes the beneficial owner of any additional Outstanding Company
Common Shares or Outstanding Company Voting Securities which increases the percentage of the
Outstanding Company Common Shares or Outstanding Company Voting Securities beneficially owned by
the Subject Person, then a Change in Control shall then be deemed to have occurred; or

          (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of either an actual or threatened election contest or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Board, including by reason of agreement intended to avoid or settle any such actual or threatened
contest or solicitation; or

          (c) The consummation of a reorganization, merger, statutory share exchange, consolidation, or
similar corporate transaction involving the Company or any of its direct or indirect Subsidiaries
(each a “Business Combination”), in each case, unless, following such Business Combination, (i) the
Outstanding Company Common Shares and the Outstanding Company Voting Securities immediately prior
to such Business Combination, continue to represent (either by remaining outstanding or being
converted into voting securities of the resulting or surviving entity or any parent thereof) more
than 50 percent of the then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election of directors, as the
case may be, of the corporation resulting from Business Combination (including, without limitation,
a corporation that, as a result of such transaction, owns the Company or all or substantially all
of the Company’s assets either directly or through one or more subsidiaries); (ii) no Person
(excluding the Company, any employee benefit plan (or related trust) of the Company, a Subsidiary
or such corporation resulting from such Business Combination or any parent or subsidiary thereof,
and any Person beneficially owning, immediately prior to such Business Combination, directly or
indirectly, 25 percent or more of the Outstanding Company Common Shares or Outstanding Company
Voting Securities, as the case may be) beneficially owns, directly or indirectly, 25 percent or
more of,
respectively, the then-outstanding shares of common stock of the corporation resulting from
such Business Combination (or any parent thereof) or the combined voting power of the

7

 

then-outstanding voting securities of such corporation entitled to vote generally in the election
of directors and (iii) at least a majority of the members of the board of directors of the
corporation resulting from such Business Combination (or any parent thereof) were members of the
Incumbent Board at the time of the execution of the initial agreement or action of the Board
providing for such Business Combination; or

          (d) The consummation of the sale, lease, exchange or other disposition of all or substantially
all of the assets of the Company, unless such assets have been sold, leased, exchanged or disposed
of to a corporation with respect to which following such sale, lease, exchange or other disposition
(i) more than 50 percent of, respectively, the then-outstanding shares of common stock of such
corporation and the combined voting power of the then-outstanding voting securities of such
corporation (or any parent thereof) entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding Company Common Shares and
Outstanding Company Voting Securities immediately prior to such sale, lease, exchange or other
disposition in substantially the same proportions as their ownership immediately prior to such
sale, lease, exchange or other disposition of such Outstanding Company Common Shares and
Outstanding Company Voting Shares, as the case may be; (ii) no Person (excluding the Company and
any employee benefit plan (or related trust) of the Company or a Subsidiary or of such corporation
or a subsidiary thereof and any Person beneficially owning, immediately prior to such sale, lease,
exchange or other disposition, directly or indirectly, 25 percent or more of the Outstanding
Company Common Shares or Outstanding Company Voting Securities, as the case may be) beneficially
owns, directly or indirectly, 25 percent or more of respectively, the then-outstanding shares of
common stock of such corporation (or any parent thereof) and the combined voting power of the
then-outstanding voting securities of such corporation (or any parent thereof) entitled to vote
generally in the election of directors; and (iii) at least a majority of the members of the board
of directors of such corporation (or any parent thereof) were members of the Incumbent Board at the
time of the execution of the initial agreement or action of the Board providing for such sale,
lease, exchange or other disposition of assets of the Company; or

          (e) Approval by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

ARTICLE 7

CONDITIONS AND FORFEITURES

     7.1 Conditions. In addition to any other condition that may be imposed by the
Committee, the payment of all awards (or any part thereof) under the Plan shall be contingent on
the following:

          (a) The participant or former participant entitled thereto shall refrain from engaging (i) in
any business or other activity which, in the judgment of the Committee is competitive with any
activity of any Participating Company or any affiliate thereof, in which he was engaged at any time
during the last five years of his employment by a Participating
Company or any affiliate thereof; or (ii) in any business or other activity which is so
competitive and of which he shall have special knowledge as the result of having been employed by
the Participating

8

 

Company or any affiliate thereof; and from counseling or otherwise assisting any
person, firm or organization that is so engaged;

          (b) The participant shall not furnish, divulge or disclose to any unauthorized person, firm or
other organization any trade secrets, information or data with respect to any Participating Company
or any affiliate thereof, or any of their employees, that he shall have reason to believe is
confidential;

          (c) The participant will make himself available for such consultation and advice concerning
matters with respect to which he was familiar while employed by any Participating Company or
affiliate as may reasonably be requested, taking fairly into consideration his age, health,
residence and individual circumstances and the total amount of the payments that he is receiving,
and shall render such assistance and cooperation (including testimony and depositions) in respect
of matters of which he shall have knowledge, as may reasonably be requested in any action,
proceeding or other dispute, pending or prospective, to which any Participating Company or
affiliate may be a party or in which it may have an interest. The participant or former
participant shall have no obligation to render any services after he shall have ceased to be an
employee of the Participating Companies and affiliates thereof, except as may be required under
this subparagraph, and the death of the participant or former participant, or the failure to call
upon him for the rendition of services called for under this Section 7.1(c), shall not in any way
affect the right of the participant or former participant or his beneficiary or legal
representatives, as the case may be, to receive any unpaid portion of any amounts payable to him;
and

          (d) The participant’s employment by any Participating Company, subsidiary or any affiliate
thereof, shall not have terminated as a result of his gross negligence, willful misconduct or poor
performance and he shall not, while employed by a Participating Company, subsidiary or affiliate,
have engaged in conduct which, had it been known at the time, would have resulted, on grounds of
gross negligence or willful misconduct, in the termination of his employment by the Participating
Company, subsidiary or affiliate by which he had been employed.

     7.2 Forfeiture. If, in the judgment of the Committee, reasonably exercised, a
participant or former participant shall have failed at any time to comply with any of the
conditions set forth in Section 7.1, the obligation of the Participating Company to make further
payments to such participant or former participant or his beneficiary or legal representatives
shall forthwith terminate, provided that no amount paid prior to the date of any such determination
by the Committee shall be required to be repaid.

     7.3 No Assignment. No payment of any award under the Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and
any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same
shall be void. No payment of any award shall be subject to any jurisdictional payment requirement
upon death or termination. No such payments shall be in any manner liable for or subject to the
debts, contracts, liabilities, engagements or torts of the person entitled thereto,
except as specifically provided in rules or regulations established by the Committee under the
Plan; and in the event that any participant, former participant or beneficiary under the Plan

9

 

becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or
charge any such payment or a part thereof, then all such payments due him shall cease and in that
event, the Participating Company shall hold and apply the same to or for his benefit or that of his
spouse, children, or other dependents, or any of them, in such manner and in such proportions as
the Committee, with the approval of the chief executive officer of such Participating Company, may
deem proper.

ARTICLE 8

PARTICIPATING COMPANIES

     8.1 Participating Companies. Any subsidiary that the Committee (based on the
recommendations of the CEO) or the Board has approved as a Participating Company may, with such
approval, become a Participating Company upon delivering to the Committee certified copies of
resolutions duly adopted by its board of directors to the effect that it adopts the Plan and
consents to have the Plan administered by the Committee.

     8.2 Withdrawal. Any subsidiary which is a Participating Company may cease to be a
Participating Company at any time and shall cease to be one upon delivering to the Committee
certified copies of an appropriate resolution duly adopted by its board of directors terminating
its participation. If any Participating Company hereunder ceases to be a subsidiary, such
corporation may continue to be a Participating Company hereunder only upon such terms and
conditions as the Company and such corporation shall agree upon in writing. In no event shall the
termination of a corporation’s participation in the Plan relieve it of obligations theretofore
incurred by it under the Plan, except to the extent that the same have been assumed by another
corporation pursuant to Section 8.3.

     8.3 Successors. Any corporation which succeeds to all or any part of the business or
assets of a Participating Company may, by appropriate resolution of its board of directors, adopt
the Plan and shall thereupon succeed to such rights and assume such obligations hereunder as such
corporation, such Participating Company and the Company shall have agreed upon in writing.

     8.4 Definition of Subsidiary. For the purposes of this Article 8, the term
“subsidiary” shall mean any corporation (other than the Company and any non-Participating Company
specifically designated by the Committee) in one or more unbroken chains of corporations connected
through stock ownership with the Company, if the Company directly or indirectly through one or more
such chains owns stock possessing more than 50 percent of the total combined voting power of all
classes of stock and more than 50 percent of each class of non-voting stock of such corporation.

ARTICLE 9

GENERAL PROVISIONS

     9.1 Amendment and Termination. The Board may amend the Plan in whole or in part from
time to time, and may terminate it at any time, without prior notice to any interested party,
provided, however, that the Plan may not be amended in a manner that would cause the Plan to
fail to comply with Section 409A. The Board may delegate its amendment power to such

10

 

individual or
individuals as it deems appropriate in its sole discretion. The foregoing sentence to the contrary
notwithstanding, for a period of two years and one day following a Change in Control, neither the
Board nor the Committee may amend the Plan in a manner that is detrimental to the rights of any
participant of the Plan without his written consent. No amendment or termination shall deprive any
participant, former participant, beneficiary or legal representatives of a former participant of
any right under the Plan as such right exists at the time of such amendment or termination, nor
increase the obligations of any company that is or has been a Participating Company without its
consent.

     9.2 No Right to Employment. Nothing in the Plan shall be construed as giving any
person employed by a company which is or has been a Participating Company the right to be retained
in the employ of such company or any right to any payment whatsoever, except to the extent provided
by the Plan. Each such company shall have the right to dismiss any employee at any time with or
without cause and without liability for the effect which such dismissal might have upon him as a
participant under the Plan.

     9.3 Other Benefits. The Plan shall not be deemed a substitute for any other employee
benefit or compensation plans or arrangements that may now or hereafter be provided for employees.
The Plan shall not preclude any group, division, subsidiary or affiliate of the Company, whether or
not a Participating Company, from continuing or adopting one or more separate or additional such
plans or arrangements for all or a defined class of the employees of such group, division,
subsidiary or affiliate. Any payment under any such plan or arrangement may be made independently
of the Plan.

     9.4 Consent to Actions Taken. By accepting any benefits under the Plan, each
participant, each beneficiary and each person claiming under or through him shall be conclusively
bound by any action or decision taken or made, or to be taken or to be made under the Plan, by the
Company, the Board or the Committee.

     9.5 Interpretation. The masculine pronoun includes the feminine, the singular the
plural, and vice versa wherever appropriate.

     9.6 Governing Law. The Plan shall be governed by and construed in accordance with the
laws of the State of New York.

     9.7 Section 409A. It is intended that the benefits under the Plan comply with the
requirements of Section 409A of the Code and the Treasury Regulations promulgated and other
official guidance issued thereunder, and the Plan shall be administered and interpreted to the
extent possible in a manner consistent with that intent and the American Express Section 409A
Compliance Policy, as amended from time to time, and any successor policy thereto.

* * * * *

11

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