Document:

Exhibit 10.8

 

Ameriprise Financial

 

Long-Term Incentive Award Program
Guide

 

 

 

 

Introduction

LTIA
Program

Ameriprise
Financial 2005 Incentive Compensation Plan

Stock-Based
Award Types

Restricted
Stock Award (“RSA”)

Non-Qualified
Stock Option (“NQSO”)

Restricted
Stock Unit (“RSU”)

Portfolio
Grant (“PG”) Program

Tax
Implications for Stock-Based and Other LTIAs (U.S. Only)

Treatment
of LTIAs upon Certain Events

Resources

 

 

 

 

 

 

 

 

 

THIS DOCUMENT IS PART OF A PROSPECTUS COVERING SECURITIES
THAT HAVE

BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933.

 

 

 

 

 

 

 

 

 

 

September 30, 2005

 

 

This Guide
is available on AMP Central.

 

 

Contents

Long-Term Incentive Award Program
Guide

Information regarding awards granted
beginning October 3, 2005.

 

	
  Introduction

  	
   

  	
  1

  	
   

  
	
  LTIA
  Philosophy

  	
   

  	
  1

  	
   

  
	
  About
  the Illustrations

  	
   

  	
  2

  	
   

  
	
  Annual
  Award Materials

  	
   

  	
  2

  	
   

  
	
  Governing
  Award Documents

  	
   

  	
  2

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LTIA Program

  	
   

  	
  3

  	
   

  
	
  Overview

  	
   

  	
  3

  	
   

  
	
  Substitution
  Awards

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ameriprise Financial 2005
  Incentive Compensation Plan

  	
   

  	
  4

  	
   

  
	
  Eligible
  Participants and Types of Awards

  	
   

  	
  4

  	
   

  
	
  AMP
  Shares Available for Grant under the Plan

  	
   

  	
  4

  	
   

  
	
  Administration

  	
   

  	
  5

  	
   

  
	
  Performance-Based
  Compensation

  	
   

  	
  6

  	
   

  
	
  General
  Plan Provisions

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Stock-Based Award Types

  	
   

  	
  8

  	
   

  
	
  Overview

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Restricted Stock Award (“RSA”)

  	
   

  	
  9

  	
   

  
	
  Overview

  	
   

  	
  9

  	
   

  
	
  Valuing
  RSA Grants

  	
   

  	
  9

  	
   

  
	
  Vesting

  	
   

  	
  9

  	
   

  
	
  Quarterly
  Dividends

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Non-Qualified Stock Option
  (“NQSO”)

  	
   

  	
  10

  	
   

  
	
  Overview

  	
   

  	
  10

  	
   

  
	
  Valuing
  NQSO Grants

  	
   

  	
  10

  	
   

  
	
  Vesting

  	
   

  	
  10

  	
   

  
	
  Steps
  for Exercising NQSOs

  	
   

  	
  10

  	
   

  
	
  NQSO
  Exercise Illustration

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Restricted Stock Unit (“RSU”)

  	
   

  	
  14

  	
   

  
	
  Overview

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Portfolio Grant (“PG”) Program

  	
   

  	
  15

  	
   

  
	
  Overview

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tax Implications for
  Stock-Based and other LTIAs (U.S. Only)

  	
   

  	
  16

  	
   

  
	
  RSA/RSU
  Tax Implications

  	
   

  	
  16

  	
   

  
	
  NQSO
  Tax Implications

  	
   

  	
  17

  	
   

  
	
  Other
  Tax Implications for LTIAs

  	
   

  	
  18

  	
   

  

 

 

	
  Treatment of LTIAs upon Certain
  Events

  	
   

  	
  20

  	
   

  
	
  Overview

  	
   

  	
  20

  	
   

  
	
  Part-Time
  Employment Status

  	
   

  	
  20

  	
   

  
	
  Employment
  Termination

  	
   

  	
  20

  	
   

  
	
  Leave
  of Absence

  	
   

  	
  21

  	
   

  
	
  Death

  	
   

  	
  21

  	
   

  
	
  Disability
  Termination

  	
   

  	
  22

  	
   

  
	
  Retirement

  	
   

  	
  22

  	
   

  
	
  Transfer
  Between Business Segments

  	
   

  	
  23

  	
   

  
	
  Situations
  of Detrimental Conduct

  	
   

  	
  23

  	
   

  
	
  Change
  in Control (“CIC”) of the Company

  	
   

  	
  24

  	
   

  
	
  Payments
  to U.S. Taxpayers upon a Change in Control of the Company

  	
   

  	
  24

  	
   

  
	
  Resale
  of AMP Shares Received under the Plan

  	
   

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Resources

  	
   

  	
  26

  	
   

  
	
  Overview

  	
   

  	
  26

  	
   

  
	
  Availability
  of Certain Information and Incorporation of Documents by Reference

  	
   

  	
  27

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Appendix A — Detrimental
  Conduct Provisions to Long-Term Incentive Awards

  	
   

  	
  A-1

  	
   

  

 

 

Introduction 

 

Overview

This Long-Term Incentive Award
Program Guide (the “Guide”) provides information about the long-term incentive award program and
related policies for long-term incentive awards (“LTIAs”) granted pursuant to
the Ameriprise Financial 2005 Incentive Compensation Plan (the “Plan”).

 

The LTIA program is designed for eligible
employees of Ameriprise Financial, Inc., and any of its affiliates
participating in the Plan (collectively referred to herein as the “Company” or
“AMP”), as determined by the Compensation
and Benefits Committee of the Board of Directors of the Company (the “CBC”).

 

In some countries, certain award features may be
different than those shown in this Guide in order to meet local regulatory or
other requirements.  Awards are granted
at the discretion of the Company and the CBC or, to the extent permitted by the
Plan, its designee, and are subject to local market regulations and
legislation, which could change at any time.  Also note that while the tax laws that apply to
participants of the LTIA program are based on each employee’s tax jurisdiction,
most tax information provided in this Guide is generally for U.S. purposes
only.  Any tax information provided in
this Guide is not intended to constitute tax advice.  The Company urges all employees to consult their
personal tax advisor with any questions or issues regarding their participation
in the LTIA program.

 

The information in this Guide does not create an
employment contract and does not imply there will be an LTIA program in the
future, nor what the participation, selection and award guidelines would be.  The Company reserves the right to amend, change or terminate all
or part of the LTIA program in accordance with applicable plans, agreements and
regulations.

 

LTIA Philosophy

The LTIA program aligns participants’
interests with those of the Company’s shareholders. By providing a stake in the
Company’s future success, LTIAs are essential to our efforts to attract and
retain talented employees.

 

Management recommends LTIAs in accordance
with program guidelines and award pools that are established at the beginning
of the annual year-end performance and compensation process. (LTIA award pools are subject to CBC
discretion, cost, dilution and shareholder plan limits.)

 

Guidelines are reviewed and set annually to
provide competitive compensation opportunities, while giving management the
flexibility to select and reward individuals. 
Management may reward some individuals in consecutive years, while
others are rewarded on a less frequent basis.

 

Management considers a variety of factors
when determining awards under the LTIA program, including performance ratings,
leadership behaviors and skills, importance to the future performance and
growth of the organization and the ability to model behaviors for others. These
factors are particularly important when selecting award recipients in those
bands where

 

1

participation is limited to less than 100% of
these employees.  This selectivity is
consistent with market practices and ensures that recipients receive meaningful
awards.

 

About the Illustrations

All LTIA illustrations and corresponding values shown in this Guide are
based on financial, stock price and other assumptions about future events or
circumstances, which may or may not actually occur, as well as continuous
employment and award requirements.

 

The illustrations are hypothetical and not meant to imply that the
Company will achieve certain stock prices or growth rates, or has achieved any
stated growth rate consistently in the past. 
The value and return on AMP common stock will fluctuate over time and
may be worth more or less than the values shown in these illustrations.  Past performance is no guarantee of future
results.  Please consult your personal
financial advisor on the value, tax and other implications of your LTIAs, as
applicable to your circumstances.  This
Guide is not intended to provide any financial or tax advice.

 

Award Confirmation Materials

Generally, all employee recipients of LTIAs
will have on-line access to their individual LTIA information through the
Company’s HR self-service.  In addition,
Restricted Stock Award (“RSA”), Restricted Stock Unit (“RSU”) and/or
Non-Qualified Stock Option (“NQSO”) Award Certificates will be distributed to
employees via electronic means (either inter-Company electronic mail or to the
employees’ desktop computers).  Those
LTIA recipients who do not have access to on-line HR tools will have
confirmation materials mailed to their home address as soon as practicable
following approval of the award.

 

You should print out and
retain these LTIA documents with any award materials you have received in the
past.

 

Governing Award Documents

The Plan, the Award Certificates and this Guide contain the controlling
provisions of each LTIA.  To view these
documents please go to AMP Central. 
While it is intended to have all LTIA documents available on the HR
Homepage, this page is currently under construction.  Therefore, please search within AMP Central
to access these LTIA documents.   These
documents, along with CBC decisions, will govern in cases of conflict,
ambiguity or miscommunication.  No
employee has the authority to change or supersede LTIA provisions or CBC
decisions.  Any representation to the
contrary shall be void and non-binding on the Company.

 

2

LTIA Program

Overview

The chart below summarizes key features of
the LTIA program.  The Plan permits a
variety of awards to be granted to Plan participants.  This Guide describes those types of awards
that we currently expect to grant under the Plan.  If the type of awards granted under the Plan
changes, we will provide you with detailed information pertaining to any such
awards.  Detailed information about
various award types, tax implications and other award information follows in
separate sections.

 

	
  Type of Award

  	
   

  	
  Key Features

  
	
  Restricted
  Stock Award (“RSA”)

  	
   

  	
  ·      RSAs will vest in equal
  installments over a four-year period.

  ·      Quarterly dividends will
  be paid during the vesting period.

  
	
  Non-Qualified Stock Option (“NQSO”)

  	
   

  	
  ·      NQSOs will vest and become
  exercisable in equal installments over a four-year period.

  ·      NQSOs may be exercised up
  to 10 years after the grant date, subject to continuous employment and award
  requirements. 

  
	
  Restricted
  Stock Unit Award (“RSU”)*

  	
   

  	
  ·      RSUs will vest at the end
  of a specified period, usually four years long.

  ·      Quarterly dividend equivalents
  will be paid during the vesting period.

  
	
  Portfolio
  Grant (“PG”)

  	
   

  	
  ·      The performance periods
  for PG awards are generally three-years and generally vest and become payable
  in the first February following the end of the third year.

  

*                 To avoid adverse tax
consequences, Restricted Stock Units (“RSUs”) may be granted in lieu of RSAs
and NQSOs in certain countries, as well as to employees in the U.S. who meet
the retirement definition during the course of the award’s term.

 

Substitution Awards

In
addition to those LTIAs newly granted to eligible Participants under the Plan,
this Guide and the applicable Award Certificates, certain incentive awards that
were granted under the American Express Company 1998 Incentive Compensation
Plan will be substituted with AMP LTIAS in connection with the spin-off of the
Company from American Express Company (such LTIAs, the “Substitution
Awards”).  Substitution Awards will be
governed by the Plan and the Form of Ameriprise Financial 2005 Incentive
Compensation Plan Master Agreement for Substitution Awards.

 

3

Ameriprise Financial 2005 Incentive Compensation
Plan

The general nature of the Plan and it terms
and conditions are described herein, but the information contained in this
Guide is for general guidance only and is not intended to be a complete
description of the Plan.  In the event of
a conflict or inconsistency between this Guide and the Plan, the Plan
provisions will govern.

 

Purpose

The purpose of the Plan is to promote the
interests of the Company and our shareholders by providing eligible
participants, who are responsible for the management, growth and protection of
the business of the Company, with incentives and rewards to encourage them to
continue in the service of the Company. 
The Plan is designed to meet this purpose by providing such participants
with a proprietary interest in pursuing the long-term growth, profitability and
financial success of our Company.

 

Eligible Participants and Types of
Awards

The Plan provides for the grant of cash awards (“Cash Incentive
Awards”), non-qualified and incentive stock options (“Options”) and other
stock-based awards (Options and other stock-based awards, together with Cash
Incentive Awards, are referred to in this Guide as the “LTIAs”) to our
employees.  The Plan also provides that
the CBC may grant LTIAs to other persons such as independent contractors and
non-employee directors who provide services to the Company.  LTIAs may be settled in cash or in shares of
Company common stock (“AMP Shares”) or other property pursuant to the terms of
such LTIA.  Our named executive officers
will receive annual cash bonuses as Cash Incentive Awards under the Plan.  In addition, to provide suitable incentives
to employees outside the United States, we may issue awards similar to the types
of awards listed above that also meet the requirements of foreign
jurisdictions.

 

AMP Shares Available For Grant under
the Plan

The number of AMP Shares authorized for issuance
with respect to LTIAs granted under the Plan is 37,900,000.  Of those AMP Shares, the maximum number of
AMP Shares that may be covered by “incentive stock options” within the meaning
of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”)
shall not exceed 5,000,000.  AMP Shares
issued under the Plan may be either newly issued shares or treasury shares.

 

Excluding AMP Shares that may be issued with
respect to Substitution Awards, the maximum number of AMP Shares that may be
covered by LTIAs granted under the Plan to any single participant in the Plan
(a “Participant”) in any calendar year will not exceed 3,000,000 AMP
Shares.  The amount payable to any
Participant with respect to any calendar year for all Cash Incentive Awards for
which the performance period is not longer than one year shall not exceed
$15,000,000, and for which the performance period is longer than one year shall
not exceed $10,000,000.

 

AMP Shares covered by LTIAs shall only be
counted as used to the extent they are actually issued and delivered to a
Participant (or a Participant’s permitted transferees). AMP Shares covered by
Substitution Awards that are not counted as used shall be available for use in
connection with any other LTIAs. 
Accordingly, if an LTIA is settled for cash or if AMP Shares

 

4

are withheld to pay the exercise price of an
Option or to satisfy any tax withholding requirement in connection with an
LTIA, only the AMP Shares issued (if any), net of the AMP Shares withheld, will
be deemed delivered for purposes of determining the number of AMP Shares that
remain available for delivery under the Plan. 
If AMP Shares are issued subject to conditions which may result in the
forfeiture, cancellation or return of such AMP Shares to the Company, any
portion of the AMP Shares forfeited, cancelled or returned shall be treated as
not issued pursuant to the Plan.  If AMP
Shares owned by a Participant are tendered (either actually or through
attestation) to the Company in payment of any obligation in connection with an
LTIA, the number of AMP Shares tendered shall be added to the number of AMP
Shares that are available for delivery under the Plan.

 

If the Company uses cash it receives in
payment of the exercise price or purchase price in connection with any LTIA to
repurchase AMP Shares, the AMP Shares so repurchased will be added to the
aggregate number of AMP Shares available for issuance under the Plan.  The AMP Shares covered by LTIAs granted
pursuant to the Plan in connection with the assumption, replacement, conversion
or adjustment of outstanding equity-based awards in the context of a corporate
acquisition or merger will not count as used under the Plan for these purposes.

 

Administration

The CBC shall from time to time designate
those persons who shall be granted LTIAs and the amount, type and other terms
and conditions of such LTIAs.  The CBC
will have full authority to administer the Plan, including authority to
interpret and construe any provision of the Plan and the terms of any LTIA
issued under it and to adopt such rules and regulations for administering the
Plan, as it may deem necessary.  Pursuant
to this authority, on or after the date of grant of an LTIA under the Plan, the
CBC may (i) accelerate the date on which any such LTIA becomes vested,
exercisable or transferable, as the case may be, (ii) extend the term of any
such LTIA, including, without limitation, extending the period following a
termination of a Participant’s employment during which any such LTIA may remain
outstanding, (iii) waive any conditions to the vesting, exercisability or
transferability, as the case may be, of any such LTIA or (iv) provide for the
payment of dividends or dividend equivalents with respect to any such LTIA;
provided that, the CBC shall not have any such authority to the extent that the
exercise of such authority would cause any tax to become due under Section 409A
of the Code.

 

The Company shall pay any amount payable with
respect to an LTIA in accordance with the terms of such LTIA, provided that the
CBC may, in its discretion, defer the payment of amounts payable with respect
to an LTIA subject to and in accordance with the terms of a deferred
compensation plan as adopted by the Company.

 

The Plan is not subject to the requirements
of the Employee Retirement Income Security Act of 1974, as amended.  The Plan is not qualified under the Internal
Revenue Code.

 

The Company’s Board of Directors appoints CBC
members for an annual term.  The Board
may remove any CBC member for cause and a majority of the shareholders may
remove a CBC member for any reason.  No
CBC member is an employee of the Company or has any business undertakings with
the Company.

 

5

Performance-Based
Compensation

The CBC may grant LTIAs that are intended to
qualify under the requirements of Section 162(m) of the Code as
performance-based compensation. The performance goals upon which the payment or
vesting of any LTIA (other than Options) that is intended to so qualify depends
may relate to one or more of the following performance measures: (i) net income
or operating net income (before or after taxes, interest, depreciation,
amortization, and/or nonrecurring/unusual items), (ii) return on assets, return
on capital, return on equity, return on economic capital, return on other
measures of capital, return on sales or other financial criteria, (iv) revenue
or net sales, (v) gross profit or operating gross profit, (vi) cash flow, (vii)
productivity or efficiency ratios, (viii) share price or total shareholder
return, (ix) earnings per share, (x) budget and expense management, (xi)
customer and product measures, including market share, high value client
growth, and customer growth, (xii) working capital turnover and targets, (xiii)
margins, and (xiv) economic value added or other value added measurements, in
any such case (x) considered absolutely or relative to historic performance or
relative to one or more other businesses and (y) determined for the Company or
a business unit or division thereof.

Within 90 days after the beginning of a
performance period, and in any case before 25% of the performance period has
elapsed, it is expected that the CBC shall establish (a) performance goals and
objectives for such performance period, (b) target awards for each Participant,
and (c) performance schedules or other objective methods for determining the
applicable performance percentage to be applied to each such target award.

The measurement of any performance measure(s) may exclude the impact of
charges for restructurings, discontinued operations, extraordinary items, and
other unusual or non-recurring items, and the cumulative effects of accounting
changes, each as defined by generally accepted accounting principles and as
identified in the Company’s audited financial statements, including the notes
thereto. Any performance measure(s) may be used to measure the performance of
the Company as a whole or any business unit of the Company or any combination
thereof, as the CBC may deem appropriate, or any of the above performance
measures as compared to the performance of a group of competitor companies, or
a published or special index that the CBC, in its sole discretion, deems
appropriate.

 

General
Plan Provisions

 

Adjustments
upon Changes in Capitalization

The Plan provides for an adjustment in the
number of AMP Shares available to be issued under the Plan, the number of AMP
Shares subject to LTIAs and the exercise prices of certain LTIAs upon a change
in the capitalization of the Company, a stock dividend or split, a merger or
combination of AMP Shares and certain other similar events.

 

Tax
Withholding

The Plan provides that Participants may elect
to satisfy certain federal, state and local withholding tax requirements, if
any, by remitting to the Company cash or, subject to certain conditions, AMP
Shares or by instructing the Company to withhold AMP Shares payable to the
Participant.  In the event the
Participant remits AMP Shares or instructs the Company to withhold AMP Shares
payable to such Participant, only a number of AMP Shares sufficient to satisfy
the minimum withholding tax requirements, if any, attributable to such
exercise, grant or

 

6

vesting but not greater than the minimum
withholding obligations may be remitted or withheld, as the case may be.

 

Assignment
and Transfer

Under the Plan, LTIAs may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution, except as
permitted by the CBC on a general or specific basis.

 

Amendment

Our Board of Directors may at any time
suspend or discontinue the Plan or revise or amend it in any respect whatsoever,
except that, in general, no revision or amendment may, without the approval of
shareholders of the Company, (i) increase the number of AMP Shares that may be
issued under the Plan or (ii) materially modify the requirements as to
eligibility for participation in the Plan.

 

Term of
the Plan

No grants of LTIAs may be made under the Plan
after September 30, 2015.

 

7

Stock-Based
Award Types

 

Overview

This section summarizes
general features of RSAs, NQSOs and RSUs. 
Detailed information about the various award types is contained in
sections that follow.

 

	
  Award Feature

  	
   

  	
  RSA

  	
   

  	
  NQSO

  	
   

  	
  RSU

  
	
  Intent
  and form of award

  	
   

  	
  A grant of AMP Shares in which the recipient’s
  rights in the stock are restricted until the AMP Shares vest, subject to
  continuous employment.

  	
   

  	
  The opportunity to purchase (or exercise) a
  specific number of AMP Shares when the award vests, subject to continuous
  employment.

  	
   

  	
  A promise to deliver AMP Shares when the award
  vests, subject to continuous employment.

  
	
  Size of grant

  	
   

  	
  Generally, dollar value that is converted to a
  specific number of AMP Shares on the grant date.

  	
   

  	
  Same as RSA.

  	
   

  	
  Same as RSA.

  
	
  Vesting schedule

  	
   

  	
  Generally vest in four equal annual installments.
  Individual awards may vary as specified in your award package.

  	
   

  	
  Same as RSA.

  	
   

  	
  Same as RSA.

  
	
  Dividends/ dividend equivalents

  	
   

  	
  Dividends payable as declared by AMP Board of
  Directors (usually quarterly) on unvested AMP Shares.

  	
   

  	
  No.

  	
   

  	
  Same as RSA, but dividend equivalents.

  
	
  Tax on dividends/ dividend equivalents for
  unvested AMP Shares (U.S. only)

  	
   

  	
  Taxed as ordinary income and reflected on your W-2
  Form.

  	
   

  	
  No.

  	
   

  	
  Same as RSA.

  
	
  Voting rights for unvested AMP Shares

  	
   

  	
  Yes.

  	
   

  	
  No.

  	
   

  	
  No.

  
	
  Current value

  	
   

  	
  Current share price multiplied by number of AMP
  Shares.

  	
   

  	
  Difference between the grant price (also known as
  the exercise or strike price) and the current share price, multiplied by the
  number of AMP Shares.

  	
   

  	
  Same as RSA.

  
	
  Taxation (U.S. only)

  	
   

  	
  Generally upon vesting. Subject to statutory
  federal minimum, state and local income tax withholding, Social Security and Medicare
  taxes (actual tax obligation may be higher).

  	
   

  	
  Upon exercise. Subject to statutory federal
  minimum, state and local income tax withholding, Social Security and Medicare
  taxes (actual tax obligation may be higher).

  	
   

  	
  Upon vesting of AMP Shares. Subject to statutory
  federal minimum, state and local income tax withholding, Social Security and
  Medicare taxes (actual tax obligation may be higher.

  

 

8

Restricted Stock Award (“RSA”)

 

Overview

An RSA grant is a grant of AMP Shares in
which your rights in such shares are restricted until the shares vest, subject
to continuous employment.  Once vested,
you receive the AMP Shares free from restrictions.  Quarterly dividends are paid during the
restricted period, as may be declared by the AMP Board of Directors, and you
may vote your restricted AMP Shares.

 

Valuing RSA Grants

The value of an RSA share at
vesting is equal to AMP’s average share price on that day.  We use the average of the high and low of AMP’s
trading prices on the vesting date.  For example, if
150 restricted AMP Shares vest in 1/07 and the AMP Share price at vesting is
$55, the pre-tax value of these AMP Shares would be $8,250 ($55 x 150 =
$8,250). (See “About the Illustrations” for an important disclosure.)

 

Vesting

RSAs generally vest in equal installments
over a four-year period, starting with the first anniversary of the grant date
and ending on the fourth anniversary. 
The Award Certificate you receive in connection with an RSA grant will
include a personalized schedule.  Prior
to the vesting date, the Corporate Secretary’s Office will remind you that you
may open a brokerage account with Ameriprise Financial Brokerage Services
(“AFBS”) and have the net AMP Shares transferred to this account, or hold the net AMP Shares in an account in your name
with our transfer agent, The Bank of New York.  The net AMP Shares deposited into your account
will be the number of AMP Shares specified in your RSA award less the necessary
number of AMP Shares needed to satisfy any tax withholding requirements.  Once deposited into your account, you may
sell your AMP Shares at any time, subject to securities laws governing insider
trading and Company black-out periods applicable to Bands 50 and above.

 

Quarterly
Dividends

AMP
Share dividends are paid quarterly during the restricted period, as may be
declared by the AMP Board of Directors. The dividend payment amount is
determined each quarter and stated as a per share amount that is multiplied by
the number of restricted AMP Shares in your award.  For example, if a quarterly dividend is $0.12
per share and you have 500 restricted AMP Shares, your quarterly dividend
payment would equal $60 ($0.12 x 500 = $60).

 

To
change the address where your dividend check is mailed or to request a dividend
check replacement, visit The Bank of New York’s website at
www.stockbny.com.  You can also reach The
Bank of New York at (800) 463-5911 or (212) 815-3700.  For the hearing impaired, the TDD Number is (888)
269-5221.

 

Treatment
of RSAs upon Certain Events

For information on the treatment
of RSAs upon retirement, employment termination, leave of absence, etc., please
see “Treatment of LTIAs upon Certain Events.”

 

9

Non-Qualified Stock Option
(“NQSO”)

 

Overview

An NQSO gives you the right
to purchase a specified number of AMP Shares for a 10-year period at the
exercise price (which is the price at grant) on the day the option is granted,
subject to continuous employment and vesting requirements. The exercise price
is the average of the high and low of AMP’s trading prices on the day the
option is granted.  Once an option
becomes vested, you determine when to exercise the option and how to pay for
the option exercise.

 

“Non-qualified”
refers to the tax treatment of the option under the Code.  A non-qualified stock option does not receive
special individual tax treatment under the Code, but preserves the Company’s
tax deduction for the gain at exercise. This means the gain is treated as
ordinary income and you must pay tax on the gain when you exercise the NQSO.  (See “Tax Implications for Stock-Based Awards
(U.S. Only)” for more detailed information).

 

Valuing NQSO Grants

NQSOs earn value when AMP’s
stock price increases above the exercise price. 
Once an NQSO becomes vested, you have the right to exercise the
NQSO.  For example, assume that 500
vested NQSOs were granted at the exercise price of $35 per share and the AMP
Share price is now $55.  If you decide to
exercise the NQSO, the pre-tax value of these shares would be $10,000 ($55 -
$35 = $20 x 500 = $10,000). (See “About the Illustrations” for an important
disclosure.)

 

Vesting

Outstanding NQSOs generally become vested and
available for exercise in equal installments over a four-year period, starting
with the first anniversary of the grant date and ending on the fourth
anniversary.  The Award Certificate you
receive in connection with an NQSO grant will include a personalized schedule.

 

Steps for Exercising NQSOs

(For U.S. employees; exercise steps outside the
U.S. may differ due to local requirements) You may exercise an NQSO as soon as it vests or at
any subsequent time during the 10-year option term, subject to continuous
employment.  Please keep track of your
NQSO expiration date(s) to ensure you realize any value through a timely
exercise. As with any investment decision, please consult with your personal
financial advisor before exercising an NQSO.

 

Follow these steps to exercise an NQSO:

 

1.               Complete
the Notice of Exercise of Employee Stock Option Form.  To access this form, please go to AMP Central
and search on “Exercise Form”.  Also, you
may e-mail Brokerage Services for the Notice of Exercise Form.  Their address is “ESO Group”.  On the form indicate how you plan to pay for
the AMP Shares you are purchasing through exercising the option and any
required minimum tax withholding.  You
may pay the exercise cost (exercise price times the number of shares) using one
of these payment options (in U.S. dollars):

 

·                  Cashless: Instruct
Ameriprise Financial Brokerage Services (“AFBS”), our exclusive broker, to sell
the number of AMP Shares required to pay the exercise cost and tax

 

10

payment due. There is no fee
to open a brokerage account with AFBS and you will pay a reduced commission
when AFBS sells shares on your behalf.

 

·                  Check: Made payable
to Ameriprise Financial, Inc.

 

 

·                  Stock-for-Stock
(“Swap”): Swap AMP Shares you have owned for at least six
months that are held in either your name or a joint account with your name.
(AMP Shares within a U.S. Individual Retirement Account, the Ameriprise
Financial 401(k) Plan, or other similar program cannot be used for this transaction.) You may pay the exercise
cost by completing an Attestation Form and attaching documentation that affirms
you own the required AMP Shares.  To
access this form, please go to AMP Central and search on “Attestation Form”.

 

If you choose to pay the
exercise cost using the cashless method, required tax withholding will be
deducted from the proceeds of the sale. 
If you choose to pay the exercise cost by check or with AMP Shares (i.e., Swap), you may pay any required minimum
tax withholding using one of these payment options (in U.S. dollars):

 

·                  Check made payable to Ameriprise
Financial, Inc.

 

·                  Request the
Corporate Secretary’s Office to retain shares
otherwise available from the exercise.

 

·                  Instruct AFBS
to sell the appropriate number of shares
to pay the required minimum tax withholding.

 

 

2.               (For Bands
50 and above only) Verify special provisions and restrictions.

 

·                  Obtain
required approval. All Band 50 and above Participants must pre-clear
their intent to exercise through the Company’s Corporate Secretary’s
Office.  Additional approvals may be
required if the exercise request exceeds certain hurdles, e.g., the request
that would result in the exercise of more than 40% of your available AMP Shares
(25% for Executive Team members) within any 90-day period.  The Corporate Secretary’s Office will provide
instruction on necessary approvals required.

 

·                  Black-out period. There is a quarterly black-out period when
the trading window closes and remains closed for approximately six weeks until
the Company’s earnings for the preceding quarter are made public.  Other black-out periods may apply as
determined by the Corporate Secretary’s Office.

 

·                  (For
Bands 70 and above only) Affirm stock ownership
requirements are met or requirements understood if not yet met. The
Company will be implementing stock ownership guidelines for executives.  These guidelines are currently being
developed and will be communicated to affected executives after CBC approval.

 

11

3.               Submit
your Notice of Exercise of Employee Stock Option Form.  If you plan to sell all or a portion of your
AMP Shares, fax the form directly to Ameriprise Financial Brokerage Services at
(612) 671-6023.  If you are paying for
the exercise by check or with AMP Shares you already own, mail the form to
Ameriprise Financial Stock Administration, 361 AMP Financial Center,
Minneapolis, MN  55474 or fax it to (612)
671-3948.  Stock Administration will send
you a note confirming the amount needed to cover the exercise cost and the
required minimum tax withholding. (Forms submitted via e-mail are not accepted
at this time.)

 

4.              To
place a stop order on your account, contact Ameriprise Financial Brokerage
Services directly at (612) 671-5355 or (800) 555-9826.

 

The above described
provisions and procedures are subject to change as the Company implements more
integrated and automated processes.

 

NQSO Exercise Illustration

(For U.S. purposes only) The illustration shows
three ways to exercise an NQSO. In this example, assume a U.S. employee chooses
to exercise 1,000 NQSO shares with a grant price of $30 per share. Assume that
the market price on the exercise date is $50 per share.

 

NQSO Exercise Alternatives

 

	
   

  	
   

  	
  Exercise
  Step

  	
   

  	
  Cashless
  Via Broker

  	
   

  	
  Cash
  (using check

  or money order)

  	
   

  	
  Stock-for-Stock

  
	
  A

  	
   

  	
  Market value of exercised AMP Shares at $50
  ($50/share x 1,000 shares)

  	
   

  	
  $50,000

  	
   

  	
  $50,000

  	
   

  	
  $50,000

  
	
  B

  	
   

  	
  Exercise price paid ($30/share x 1,000 shares)

  	
   

  	
  $30,000
(use sale proceeds)

  	
   

  	
  $30,000

  	
   

  	
  $30,000 (swap 600
AMP Shares)

  
	
  C

  	
   

  	
  Pre-Tax Gain (Step A–Step B) 

  	
   

  	
  $20,000

  	
   

  	
  $20,000

  	
   

  	
  $20,000

  
	
  D

  	
   

  	
  Minimum U.S. tax withholding paid (Step C x
  40% assumed tax)

  	
   

  	
  $8,000

  	
   

  	
  $8,000
(withhold 160 AMP shares from
  exercise)

  	
   

  	
  $8,000

  
	
  E

  	
   

  	
  Incremental value after exercise and tax
  withholding (Step A–Step B–Step D)

  	
   

  	
  $12,000 (broker commission applies)

  	
   

  	
  $12,000

  	
   

  	
  $12,000

  
	
  F

  	
   

  	
  Incremental share ownership (or
net proceeds) from exercise

  	
   

  	
  $12,000

  	
   

  	
  840 AMP Shares

  (1,000–160 AMP Shares withheld for taxes)

  	
   

  	
  240 AMP Shares
(1,000–160 AMP Shares withheld for taxes;
  600 AMP Shares swapped)

  

 

(See “About the Illustrations” for an
important disclosure.)

 

12

Treatment
of NQSOs upon Certain Events

To find out how
your NQSOs will be treated upon retirement, employment termination, leave of
absence, etc., please see “Treatment of LTIAs upon Certain Events.”

 

13

Restricted Stock Unit
(“RSU”)

 

Overview

The Company has the right to
grant an RSU in place of an RSA or NQSO when it is advantageous to the employee
and/or the Company from a tax perspective.

 

In the U.S., RSUs are
granted in lieu of RSAs to employees who meet the retirement definition during
the course of the award’s term, in order to avoid adverse tax consequences. In
certain countries outside the U.S., RSAs or NQSOs are taxable at the time of
grant even though they have not vested. For this reason, RSUs may be granted
and they may have country-specific provisions.

 

Generally, an RSU represents
the Company’s intent to provide a specified number of AMP Shares at the end of
a four-year period of continuous employment. 
During this period, you receive quarterly payments that are the
equivalent of AMP Share dividends.  You
do not have voting rights for shares promised under the RSU.

 

After vesting, you will
receive the number of vested AMP Shares specified in your RSU award.  Tax withholding on the market value of these
shares will depend on the tax regulations in your country.  Any required minimum tax withholding will be
paid by surrendering AMP Shares.

 

Treatment
of RSUs upon Certain Events

For information
about how your RSUs will be treated upon certain events, such as retirement,
employment termination, leave of absence, etc., please see “Treatment of LTIAs
upon Certain Events.”

 

14

Portfolio Grant (“PG”) Program

 

Overview

(For Bands 50 and above)  Portfolio Grants (“PGs”) are
long-term cash incentives designed to earn
value based on three-year business segment and overall Company financial and
performance metrics. Generally, PGs vest and become payable in
February following the three-year performance period, as specified in your
individual award agreement and are based
on values generated from the Financial Incentive Component (“FIC”) and Stock
Incentive Component (“SIC”) grids, after CBC adjustments are made.  We project that PG payments will be made in
cash, but they may also be made in AMP Shares or other forms of payment, or a
combination of cash, AMP Shares and other forms of payment.  Certain terms and conditions, including
applicable performance and payout grids, with respect to PG awards are being
developed by the Company and will be communicated to PG recipients after CBC
approval.

 

15

Tax
Implications for Stock-Based and Other LTIAs (U.S. Only)

 

The following is a summary description of the
United States federal income tax consequences generally arising with respect to
grants of RSAs, NQSOs, RSUs and other LTIAs issued pursuant to the Plan.  There may also be state and local taxes
applicable to these awards.  This summary
is not intended to be a complete description of all possible tax consequences
of LTIAs issued under the Plan and you should be aware that different tax
treatments may apply outside of the United States depending upon your country
of residence and/or citizenship.

 

NO REPRESENTATION RESPECTING TAX
TREATMENT OF ANY LTIA, INCLUDING THE EXERCISE OF ANY NQSOS, HAS BEEN MADE TO
YOU.  YOU ARE URGED TO CONSULT YOUR
COUNSEL, ACCOUNTANTS, OR OTHER TAX ADVISORS REGARDING THE TAX CONSEQUENCES OF
LTIAS GRANTED TO YOU IN RELATION TO YOUR OWN PARTICULAR TAX SITUATION.

RSA/RSU Tax Implications

(U.S. Only)  The tax
rules that apply to your RSA or RSU award vary based on your tax jurisdiction.
Below is a brief summary of the general tax implications for U.S. taxpayers.  You are urged to consult with your personal
tax advisor on applicable tax implications of RSA or RSU awards and selling
acquired AMP Shares in light of your individual circumstances.

 

For employees subject to U.S. taxes, there
are no specific income tax consequences when an RSA/RSU award is granted.  As the restricted period expires and RSA/RSU
shares vest (i.e., the RSA/RSU
shares become transferable or no longer subject to a substantial risk of
forfeiture, whichever occurs earlier), ordinary compensation income taxes are
triggered based on the market value of an AMP Share on the day of vesting. Your
W-2 wage and earnings statement will indicate that you had ordinary
compensation income equal to the market value of your vested AMP Shares.

 

Income resulting from an RSA/RSU vesting is
subject to U.S. statutory federal minimum income tax withholding, plus any
applicable statutory state and local withholding. (NOTE:
The actual income tax you owe will be based on your individual circumstances
and may be more or less than the income tax withheld.)  This income is also subject to Social
Security and Medicare taxes.  The net AMP
Shares deposited into your account will be the number of AMP Shares specified
in your RSA/RSU award less the necessary number of AMP Shares needed to satisfy
any tax withholding requirements.

 

If you later sell AMP Shares acquired from an
RSA/RSU vesting, you will realize a short-term or long-term capital gain (or
loss) on the spread between the market value on the date of vesting (your cost
basis) and the net proceeds you receive when you sell the AMP Shares.  If you realize a gain after satisfying a
minimum holding period (currently greater than one year) and are in a net
capital gain position under applicable U.S. tax rules, you may be able to pay
tax on the gain based on long-term capital gains tax rates.  These rates are generally lower than ordinary
income and short-term capital gains tax rates. 
If you realize a loss, you may be able to use that loss to offset any
capital gains you may otherwise have and any loss in excess of capital gains
may, to a

 

16

limited extent, be used to offset ordinary
income, to the extent permitted under applicable U.S. tax rules.

 

During the restricted period, any dividends
or dividend-equivalents paid on unvested RSA/RSU shares will be paid through
The Bank of New York and reflected in the earnings column under “Taxable Other”
on your payroll check.  Dividends or
dividend-equivalents paid on these shares are also considered ordinary
compensation income and are subject to taxes, as described above.  Ordinary income incurred will appear on your
W-2 statement.

 

In advance of an
RSA vesting event, you will receive a notification of this pending RSA vesting
from LTIA Stock Administration.  This
notification will provide you with important information and instructions in
advance of the vesting date.  Following
actual vesting, you will receive a Share Release Receipt that reflects the
grant date, vesting date, market value of your vested AMP Shares, average AMP
stock price used to calculate the fair market value, number of shares withheld
to satisfy your tax obligation, breakdown of the taxes withheld and net shares
delivered to you.  It is extremely
important that you retain this document for income tax purposes.

 

NQSO Tax Implications

(U.S. Only) The
tax implications that apply when you exercise your NQSOs vary based on your tax
jurisdiction.  Below is a summary of the
general tax implications for holders of NQSOs who are U.S. taxpayers.  You are urged to consult with your personal
tax advisor on the applicable U.S. and non-U.S. tax implications of receiving
and exercising NQSOs and selling acquired AMP Shares in light of your
individual circumstances.

 

For employees subject to U.S. taxes, in the
year that you exercise an NQSO, your W-2 wage and earnings statement will
indicate that you had ordinary compensation income equal to the difference
between the exercise price and the market value of AMP Shares on the day of the
exercise.

 

Income resulting from an NQSO exercise is
subject to U.S. statutory minimum federal income tax withholding, plus any
applicable statutory state and local withholding. (NOTE:
The actual income tax you owe will be based on your individual circumstances
and may be more or less than the income tax withheld.)  This income is also subject to Social
Security and Medicare taxes.  You may pay
any required minimum tax withholding using one of three payments options:  check, selling of AMP Shares or retention of
AMP Shares by the Corporate Secretary’s Office. 
Please refer to the section in this Guide titled “NQSO Exercise
Illustration” for withholding tax payment details.

 

If you later sell AMP Shares acquired from an
NQSO exercise, you will realize a short-term of long-term capital gain (or
loss) on the spread between the market value on the date of exercise (your cost
basis) and the net proceeds you receive when you sell the AMP Shares. If you
realize a gain after satisfying a minimum holding period (currently greater
than one year) and are in a net capital gain position under applicable U.S. tax
rules, you may be able to pay tax on the gain based on long-term capital gains
tax rates. These rates are generally lower than ordinary income and short-term
capital gains tax rates.  If you realize
a loss, you may be able to use that loss to offset any capital gains you may
otherwise have and any loss in excess of capital gains may, to a

 

17

limited extent, be used to offset ordinary
income, to the extent permitted under applicable U.S. tax rules.

 

If you pay for an NQSO exercise with AMP
Shares you have owned for at least six months, generally under current U.S. tax
laws, this does not result in the taxable sale or other disposition of these
old AMP Shares.  In fact, if you use the
“attestation” procedure to do this (described in this Guide as a
“stock-for-stock exercise”), the old AMP Shares will retain their cost or other
tax basis and their holding period.

 

Other Tax Implications for LTIAs

 

Performance-based LTIAs

Section 162(m) of the Code limits the ability
of the Company to deduct compensation paid during a fiscal year to a Covered
Employee (see definition of Covered Employee under “Payments to U.S. Taxpayers
upon a Change in Control of the Company”) in excess of one million dollars,
unless such compensation qualifies as “performance-based compensation” (as
defined in Code Section 162(m)) or meets another exception specified in Code
Section 162(m).  Generally, LTIAs granted
under the Plan may be deductible by the Company, without regard to the limit set
by Code Section 162(m); however, the Plan does permit awards to be granted that
would be subject to such limit and that would not qualify as “performance-based
compensation” or meet another exception in Code Section 162(m).  In such case, the Company’s deductions with
respect to such awards would be subject to the limitations imposed by Code
Section 162(m).

 

Generally, you will not have income at the
time the CBC grants a performance-based award to you.  Under current tax laws, you generally will
have income at the time that the Company pays cash, AMP Shares, other Company
securities or property to you under such award, which will equal the amount of
cash and the fair market value of the AMP Shares, securities, or property you
receive.

 

Code
Section 83(b) Election

Under the Plan, you may be permitted or
required to elect to be taxed at the time of receipt of AMP Shares or other
property rather than upon lapse of restrictions on transferability or
substantial risk of forfeiture, but if you subsequently forfeit such AMP Shares
or property, you would not be entitled to any tax deduction, including as a
capital loss, for the value of the AMP Shares or property on which you
previously paid tax.  In such case, you
must file any such election with the IRS within thirty (30) days of the receipt
of the AMP Shares or other property.  The
Company generally will be entitled to a deduction in an amount equal to the
ordinary income recognized by the Participant.

 

Parachute Payments

In certain
circumstances, a Participant in the Plan might be deemed to have received
“parachute payments” under Code Section 280G to the extent that a Change of
Control of the Company results in the grant of, or increase in the amount of,
any LTIA or accelerates a such Participant’s rights under any LTIA (such as the
right to exercise, retain, or earn such LTIA). 
In general, if the present value of all payments to a Participant
constituting parachute payments equals or

 

18

exceeds three times the Participant’s “base
amount” (the Participant’s average annual compensation, determined over the
five-year period preceding the year the payment is made), the Participant will
be subject to a 20% excise tax (in addition to regular tax) on the excess of
the parachute payments over the Participant’s base amount, and the Company will
be denied any tax deduction for the amount of the excess parachute
payments.  See “Payments to U.S.
Taxpayers upon a Change in Control of the Company” for more information.).

 

Code Section 409A

Congress recently passed tax legislation
geared toward certain deferred compensation programs.  This statute, Code Section 409A, was
generally effective January 1, 2005. 
LTIAs that are earned and vested prior to the end of 2004 are generally
exempt from the new law, provided that they are not materially modified after
October 3, 2004.  All LTIAs that are
subject to the new law will be administered in compliance with the new law,
even if it conflicts with the information in this Guide, the Plan or the
governing award documents described above. 
The information in this Guide, as well as the Plan and the governing
award documents, will be amended in accordance with IRS deadlines to comply
with Section 409A.  Further information
on Section 409A and the nature of the required amendments to comply with
recently released IRS guidance will be provided when it becomes available.

 

19

Treatment of LTIAs upon Certain Events

 

Overview

Existing policies regarding the treatment of
outstanding RSAs, NQSOs and RSUs under certain circumstances are described
below.  The CBC may amend the following
policies for any or all outstanding and future LTIAs.  For specific information about the treatment
of your LTIAs, please see the applicable section that describes the following
specific events:

 

·                  part-time
employment status,

 

·                  employment
termination,

 

·                  leave of
absence,

 

·                  death,

 

·                  disability
termination,

 

·                  retirement,

 

·                  transfer from
one business segment to another,

 

·                  situations of
Detrimental Conduct (Bands 50 and above), and

 

·                  Change in
Control of the Company.

 

Part-Time Employment Status

Outstanding LTIAs continue to vest while you
are on part-time status, subject to the Company’s right to adjust or terminate
any outstanding LTIAs, based on its discretionary determination of a significant
change in your duties and responsibilities.

 

Employment Termination

This section pertains to employment
terminations other than
retirement, death, or disability (as described separately).

 

·                  Voluntary Termination: If you terminate your
employment with the Company, your outstanding LTIAs, including any exercisable
NQSO shares that have not been exercised, will be cancelled on your last day of
employment.

 

·                  Termination Not Eligible for Severance under Company Plan:  If your employment is terminated for any
reason other than death, disability or retirement or pursuant to a Change in
Control and you are not entitled to receive benefits under a Company severance
plan (as defined by the Company), your outstanding LTIAs, including any
exercisable NQSO shares that have not been exercised, will be cancelled on your
last day of employment.

 

20

·                  Termination Eligible for Severance under Company Plan: If your
employment is terminated and you receive benefits under a Company severance
plan (as defined by the Company) in the form of payments over a specified
severance period, your outstanding LTIAs, including any exercisable NQSO shares
that have not been exercised, will be cancelled on the earlier of the award
expiration date or the end of your severance payments. However, if you begin a
new full-time position outside the Company (other than self-employment) during
the severance period, your outstanding LTIAs will be cancelled upon such
employment, regardless of the continuation of severance payments. If your
employment is terminated and you receive benefits under a Company severance
plan (as defined by the Company) in the form of a lump sum payment, your
outstanding LTIAs, including any exercisable shares that have not been
exercised, will be cancelled as of your last day of employment.

 

Leave of Absence

Outstanding LTIAs continue to vest when you
are on a leave of absence (as determined in accordance with the applicable
Company policies) subject to the Company’s right to adjust or terminate any
outstanding LTIAs, based on its discretionary determination of a significant
change in your duties and responsibilities and/or related employment, as
defined by the Company.

 

Death

The following chart shows how RSAs/RSUs and NQSOs are treated if your
employment with the Company terminates due to your death, subject to the
Company receiving required documentation from the legal representatives of your
estate.

 

	
  Award

  Type

  	
   

  	
  Age:           Any Age

  Service:    
  Any Service

  	
   

  	
  60–61

  At Least 10 Years

  	
   

  	
  62 or Over

  At Least 10 Years

  
	
  RSA/RSU

  	
   

  	
  Outstanding
  RSAs/RSUs become 100% vested.

  	
   

  	
  No
  difference for age or service.

  	
   

  	
  No
  difference for age or service.

  
	
  NQSO

  	
   

  	
  Outstanding
  NQSOs at death become 100% exercisable. NQSOs are exercisable by the estate
  for up to five years after death, subject to the original 10-year option
  expiration date.

  	
   

  	
  No
  difference for age or service.

  	
   

  	
  No
  difference for age or service.

  

 

In the event of your death, shares for all
RSAs/RSUs that vest will automatically be issued to your estate. Since NQSO
shares cannot be transferred, the Executor/Executrix of your estate must open
an estate brokerage account in order to exercise any NQSOs. The estate is then
responsible for distributing any funds according to your Last Will and
Testament.

 

Subject to the provisions of
the Plan, you may name a beneficiary or beneficiaries to receive any payments
of LTIAs in the event of your death by completing a form that is acceptable to
the Company and returning it in a timely manner to the Corporate Secretary’s
Office, at Ameriprise Financial, Inc., 55 Ameriprise Financial Center,
Minneapolis, MN 55474,.  You may change
your

 

21

beneficiary or beneficiaries
from time to time by submitting a new form to the Corporate Secretary’s Office
at the same address.  If you do not
designate a beneficiary, or if no designated beneficiary is living on the date
any LTIA amount becomes payable, such payment will be made to the legal
representatives of your estate, which will be deemed to be your designated
beneficiary.

 

Disability Termination

The following chart shows how your RSAs/RSUs and NQSOs are treated if
your employment with the Company terminates due to a qualifying disability, as
defined by the Company.

 

	
  Award

  Type

  	
   

  	
  Age:           Any Age

  Service:    
  Any Service

  	
   

  	
  60–61

  At Least 10 Years

  	
   

  	
  62 or Over

  At Least 10 Years

  
	
  RSA/RSU

  	
   

  	
  Outstanding
  RSAs/RSUs become 100% vested.

  	
   

  	
  No
  difference for age or service.

  	
   

  	
  No
  difference for age or service.

  
	
  NQSO

  	
   

  	
  Outstanding
  NQSOs at employment termination become 100% exercisable. NQSOs are
  exercisable for five years after employment termination, subject to the
  original option expiration date.

  	
   

  	
  No
  difference for age or service.

  	
   

  	
  No
  difference for age or service.

  

 

Retirement

The following chart shows how RSAs/RSUs and
NQSOs are treated upon retirement. The worldwide definition of retirement for
all outstanding LTIAs, is a minimum of 55 years of age with at least 10 years
of applicable service at the point of termination, regardless of any pension plan or other definitions of retirement.
IMPORTANT: If you do not meet the definition of retirement, your LTIAs are
forfeited immediately upon termination, as described above.

 

	
  Award

  Type

  	
   

  	
  Age:           55–59

  Service:    
  At Least 10 Years

  	
   

  	
  60–61

  At Least 10 Years

  	
   

  	
  62 or Over

  At Least 10 Years

  
	
  RSA/RSU

  	
   

  	
  For
  RSA/RSU awards or installments that vest in four years or less, if your
  retirement date is more than two years after your grant date, outstanding
  RSA/RSU shares vest in full. If your retirement date is two years or less
  after your grant date, outstanding RSA/RSU shares are forfeited. (For RSA/RSU
  awards or installments that vest after more than four years, other provisions
  apply.)

  	
   

  	
  In
  addition to the benefit in the “Age 55–59” column, 50% of the otherwise
  forfeited amount vests. The remaining 50% of the amount is forfeited.

  	
   

  	
  In
  addition to the benefit in the “Age 55–59” column, 100% of the otherwise
  forfeited amount vests.

  

 

22

 

	
  Award

  Type

  	
   

  	
  Age:           55–59

  Service:    
  At Least 10 Years

  	
   

  	
  60–61

  At Least 10 Years

  	
   

  	
  62 or Over

  At Least 10 Years

  
	
  NQSOs

  	
   

  	
  Same as above plus: 50% of unvested NQSOs that are
  outstanding more than one year at retirement continue to vest according to
  the original award schedule. The remaining unvested NQSOs are forfeited.

  	
   

  	
  In
  addition to the benefit in the “Age 55–59” column, 100% of the unvested NQSOs
  that are outstanding more than one year at retirement continue to vest
  according to the original award schedule. The remaining unvested NQSOs are
  forfeited.

  	
   

  	
  In addition to the benefit in the “Age 55–59”
  column, 100% of the otherwise forfeited amount vests for all NQSOs,
  regardless of grant date.

  

 

Transfer Between Business
Segments

Outstanding LTIAs continue to vest when you
transfer from one business segment to another, subject to the Company’s right
to adjust or terminate any outstanding LTIAs, based on its discretionary
determination of a significant change in your duties and responsibilities
and/or related employment, as defined by the Company.

 

Situations of Detrimental Conduct

(Bands 50 and above)

To protect the interests of
the Company and all employees, the Company has implemented Detrimental Conduct
Provisions, affecting Plan Participants in Bands 50 and above.  These provisions support the multi-year
performance objectives of LTIAs.

 

Detrimental Conduct Provisions specify how
LTIAs and LTIA payments will be handled in the event a Band 50 or above
employee joins a defined competitor, leaves and solicits business customers,
solicits or hires AMP employees or otherwise engages in conduct that is against
the Company’s interests during certain time periods, as defined by the Company.

 

·        
For Bands
50 and 60 Participants, Detrimental Conduct during
employment and up to one year after employment termination would result in the
repayment of NQSO exercise gains realized in the six months prior to employment
termination.

 

·        
For Bands
70 and above Participants, Detrimental Conduct during
employment and up to one year after employment termination would result in the
repayment of all LTIA value realized in the two years prior to termination of
employment.

 

For the
full Detrimental Conduct Provisions, see Appendix A attached to this Guide.

 

23

 

Change in Control (“CIC”) of the Company

We designed the CIC (as defined in the Plan)
provisions to preserve earned or anticipated compensation and benefits if a CIC
were to occur, thereby helping you focus on your job during the uncertainty
that accompanies a potential CIC.

 

Generally, as the term is used in this Guide,
a CIC includes the following:

 

1.               A third party acquires 25%
or more of the Company’s common shares or voting securities.

 

2.     A
majority of the AMP Board of Directors is replaced.

 

3.     The
consummation of certain mergers, reorganizations, consolidations and sales of
assets.

 

4.     The
consummation of a complete liquidation or dissolution of AMP.

 

If a merger or other business combination
transaction between AMP and another party occurs, a CIC and the applicable LTIA
treatment would be triggered if any of the following conditions were present:

 

·        
Parties who were AMP
shareholders before the transaction own 50% or less of the voting securities of
the new company resulting from the business combination, or their ownership is
not substantially in the same proportions as before the transaction.

 

·        
An unaffiliated party ends
up owning 25% or more of the voting securities of the new company (other than a
party who owns 25% or more before the transaction).

 

·        
A majority of the board of
the new company is made up of individuals who were not AMP Board members at the
time the deal was signed or approved.

 

In the event of a CIC, outstanding RSAs/RSUs
and NQSOs would be treated as follows:

 

·        
RSAs/RSUs and NQSOs would vest immediately.  In addition, if your employment terminates
within two years after a CIC for reasons other than misconduct, you will have
an additional 90 days after your employment termination date to exercise your
vested NQSOs.

 

Change in Control situations are complex and
involve a variety of possible circumstances. 
In the event of a CIC, the Company will provide detailed information to
you about any compensation and benefits programs that may have special CIC
provisions.

 

Payments to U.S. Taxpayers upon a Change in Control
of the Company

(This section applies to U.S.
Taxpayers only. This material is highly complex. In the event of a CIC, the
Company will provide detailed information to you.)

 

In the event of a CIC, you may be liable for
an excise tax on a portion of your LTIA and other compensation/benefits
payments if you are considered a covered employee (as defined in the box below)
and your payments exceed a certain total value under U.S. tax definitions.

 

24

Most employees are not covered employees, so there is no limit on the
total value of their vesting/payment actions upon a CIC.  If you are considered a covered employee in
the event of a CIC, we will do the calculation to determine whether you will be
better off exceeding the limit and paying the excise tax or having your vesting/payment
actions limited to avoid the excise tax. 
The Company will determine, in its sole discretion, which approach is
more favorable to you and will apply it. 
You will not be eligible for additional payments to offset the impact of
any excise tax.  LTIAs and value not
accelerated for covered employees if the limit is applied will continue to be
governed by applicable award documents and paid out as applicable.  Generally, for employees in Bands 70 or above
at the time of the CIC, there is no limit on the total value of your LTIA
payments, any severance payments and any other vesting/payment actions upon a
CIC.  In addition, you may be eligible to
receive payments to offset the impact of U.S. excise taxes that may apply to
you.

 

	
  Definition of Covered Employee

  Generally, covered employees of the Company and its subsidiaries are the
  employees subject to U.S. taxes who are the most highly compensated 250
  employees or the top 1% (who earn at least $75,000 annually), whichever is
  less, as well as the most highly compensated 50 officers and employees who
  hold AMP Shares with a market value exceeding $1 million. The actual list of
  covered employees can only be determined based on information available at
  the time of a CIC, based on applicable IRS guidance.

  

 

Resale of
Shares Received under the Plan

The U.S. securities laws impose restrictions
on the resale of AMP Shares by individuals who are “affiliates” of the
Company.  Affiliates may resell their AMP
Shares by complying with Rule 144 under the Securities Act of 1933, as amended
(the “Securities Act”) or by registering their AMP Shares for sale under the
Securities Act.  These restrictions do
not apply to individuals who are not affiliates of the Company.

 

25

 Resources1

 

Overview

 

	
  Type of Question or
  Information Needed

  	
   

  	
  Contact/E-mail/Web
  Address

  	
   

  	
  Phone
  Number

  	
   

  	
  Fax
  Number

  
	
  Cashless stock option exercise (simultaneous
  exercise and sell)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stock option exercises, RSA vesting or to request
  a current LTIA history report

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notice of Exercise of Employee Stock Option and
  Attestation Forms, Frequently-Asked Questions, Detrimental Conduct provisions
  for Bands 50 and above

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other information requests (e.g., LTIA policy questions for HR,
  general LTIA questions)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Senior Management Stock Ownership Program (Bands
  70 and above)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stock Transfer Agent:

  Shareholder inquiries

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stock Transfer Agent:

  Send certificates for transfer and address changes to:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

1       To be completed.

 

26

Availability of Certain
Information and Incorporation of Documents by Reference

 

Pursuant to the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company
will provide, without charge, upon the written or oral request of any person to
whom this Guide is delivered by the Company or one of its affiliated entities
to the Corporate Secretary’s Office, Ameriprise Financial, Inc., 55 Amerprise
Financial Center, Minneapolis, MN 55474, (612) 671-3131, a copy of any of the
following documents, all of which are incorporated by reference in this Guide:

(a)   The Company’s Registration Statement on Form
10, as amended, as filed with the Securities and Exchange Commission (the
“Commission”) August 19, 2005 (the “Form 10 Registration Statement”);

(b)   All other reports filed by the Company
pursuant to Section 13(a) or 15(d) of the Exchange Act since the end of the
fiscal year covered by the Form 10 Registration Statement; and

(c)   The description of the Company’s Common Stock
contained in the Company’s Form 10 Registration Statement, including any
amendment or report filed for the purpose of updating such description.

All documents filed by
the Company with the Commission pursuant to Sections 13(a), 13(c), 14 or 15(d)
of the Exchange Act subsequent to the date of the Registration Statement on
Form S-8 to which this Guide relates and prior to the filing of a
post-effective amendment that indicates that all securities offered hereby have
been sold or that deregisters all securities then remaining unsold, shall be
deemed to be incorporated by reference in, and to be a part of, this Guide from
the date of filing of such documents. 
Any statement contained herein or in a document incorporated or deemed
to be incorporated by reference herein shall be deemed to be modified or
superseded for purposes of this Guide to the extent that a statement contained
in any subsequently filed document which also is or is deemed to be
incorporated by reference herein modifies or supersedes such statement.  Any such statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part
of this Guide.

Nothing in this Guide
shall be deemed to incorporate information furnished but not filed with the
Commission pursuant to Item 2.02 or Item 7.01 of Form 8-K.

In addition, the Company
will provide, without charge, upon the written or oral request of any person to
whom this Guide is delivered by the Company or one of its affiliated entities
to the Corporate Secretary’s Office (contact information noted above), copies
of all reports, proxy statements and other communications distributed by the
Company to the holders of AMP Shares.

27

Appendix
A

DETRIMENTAL
CONDUCT PROVISIONS TO LONG-TERM INCENTIVE AWARDS

 

 

1.     Introduction.
  Stock Options, Restricted Stock Awards,
Restricted Stock Unit Awards, and other stock-based awards (collectively
referred to herein as “Awards”) are issued to employees pursuant to the
Ameriprise Financial 2005 Incentive Compensation Plan, as amended from time to
time (the “Ameriprise 2005 ICP”), at the discretion and subject to the
administration of the Compensation and Benefits Committee of the Board of
Directors of Ameriprise Financial, Inc. (the “Ameriprise CBC”).  These Detrimental Conduct Provisions (the
“Provisions”) supplement the terms of the Ameriprise 2005 ICP and the
applicable Award Certificates and Award Agreements issued thereunder, and any
other agreement or certificate for the grant of any Awards under the Ameriprise
2005 ICP, and apply to all Awards that have been issued to you under the
Ameriprise 2005 ICP, unless the Ameriprise CBC determines otherwise.

 

2.     Detrimental Conduct.  If you engage in Detrimental Conduct (as
defined below), Awards previously issued to you may be canceled, rescinded or
otherwise restricted and the Company (as defined in Paragraph 2(a) below) can
recover any payments you received and stock delivered to you in accordance with
the terms of Paragraph 3 of these Provisions. 
For purposes of these Provisions, “Detrimental Conduct” shall mean the
conduct described in Paragraphs 2(a) through 2(g) of these Provisions.

 

                        (a)   Noncompete. 
For a one year period after your last day of active employment if you
are a Band 70 or above employee, or for a six-month period after your last day
of active employment if you are a Band 50 or 60 employee, and during your
employment with Ameriprise Financial, Inc. and its subsidiaries and affiliates
(collectively, the “Company”), you shall not be employed by, provide advice to or act
as a consultant for any Competitor.  The
Company has defined Competitor for certain lines of business, departments or
job functions by establishing a specific standard and/or by name as set forth
in the attached Competitor List.  Your
personal list of competitors will be the sum of either:

 

(i)  all
competitors derived from the Standard Competitors column on the Competitor List
for the lines of business and departments (under the Line of Business,
Department or Job Function column) that you provided services to or managed
during the two-year period preceding the date your employment with the Company
terminates, or

 

(ii)  if the job
function you are employed in at the time your employment with the Company
terminates is listed on the Competitor List under the Line of Business,
Department or Job Function column, the competitors under the Standard
Competitors column of the Competitor List,

 

plus the Entities (as that term is defined in Paragraph 8
of these Provisions) listed on the Competitor List under the column titled
Business Unit Wide Competitors for the business units that you provided
services to or managed during the two-year period preceding the date your
employment with the Company terminates. 
If any line(s) of business you provided services to or managed during
the two-year period preceding the date your employment with the Company

 

A-1

terminates is not listed on the Competitor List then, with respect to
such line(s) of business, you shall not be employed by, provide advice or act
as a consultant for (i) an Entity’s line of business that competes with those
line(s) of business and (ii) the Entities listed on the Competitor List under
the column titled Business Unit Wide Competitors for the business units you
provided services to or managed during the two-year period preceding the date
your employment with the Company terminates. 
Except for Business Unit Wide Competitors, the prohibition against being
employed by, providing advice to or acting as a consultant for a Competitor is
limited to the line(s) of business of the Competitor that compete with the
line(s) of business of the Company that you provided services to or
managed.  With respect to Business Unit
Wide Competitors, you agree not to be employed by, provide advice or act as a
consultant for such Entities in any line of business because these Entities
compete with several of the Company’s lines of business.  The Company can revise the Competitor List at
its discretion at any time and from time to time and as revised will become
part of these Provisions.  A copy of the
current Competitor List will be available through the Corporate Secretary’s
Office.  Notwithstanding anything in
these Provisions to the contrary, the Company shall not make any additions to
the Competitor List for a period of two years following the date of Change in
Control (as such term is defined in the Ameriprise 2005 ICP, as amended from
time to time, or any successor thereto).

 

        (b)   Nondenigration.  For a
one-year period after your last day of active employment (“the Restricted
Period”) and during your employment with the Company, you or anyone acting at
your direction will not denigrate the Company or the Company’s employees to the
media or financial analysts.  You agree
during the Restricted Period not to (i) provide information considered
proprietary by the Company to the media or financial analysts or (ii) discuss
the Company with the media or financial analysts, without the explicit written
permission of the Senior Vice President of Public Affairs, Communications and
Government Relations.  This Paragraph
shall not be applicable to any truthful statement required to be made by you in
any legal proceeding.

 

        (c)   Nonsolicitation of Employees. 
During the Restricted Period, you shall not employ or solicit for
employment any employee of the Company. 
In addition, during the Restricted Period you shall not advise or
recommend to any other person that he or she employ or solicit for employment,
any person employed by the Company for the purpose of employing that person at
an Entity at which you are or are intending to be (i) employed, (ii) a member
of the board of directors, or (iii) providing consulting services.

 

        (d)   Nonsolicitation of Customers. 
During the Restricted Period you shall not directly or indirectly
solicit or enter into any arrangement with any Entity, which is, at the time of
such solicitation, a significant customer of the Company for the purpose of
engaging in any business transactions of the nature performed or contemplated
by the Company.  This Paragraph shall
apply only to customers whom you personally serviced while employed by the
Company or customers you acquired material information about while employed by
the Company.

 

        (e)   Misconduct.  During your
employment with the Company, you will not engage in any conduct that results in
termination of your employment for Misconduct. 
For purposes of this Paragraph 2(e), Misconduct is (i) material
violation of the Ameriprise Financial Code of Conduct, (ii) criminal activity,
(iii) gross insubordination, and (iv) gross negligence in the

 

A-2

performance of your duties.

 

        (f)    Confidential Information. 
During the Restricted Period and during your employment with the
Company, you shall not misappropriate or improperly disclose confidential
information or trade secrets of the Company and its businesses, including but
not limited to information about marketing or business plans, possible
acquisitions or divestitures, potential new products or markets and other data
not available to the public.

 

        (g)   Other Detrimental Conduct. 
During the Restricted Period, you shall not take any actions that the
Company reasonably deems detrimental to its interests.  To the extent practicable, the Company will
request you to cease and desist or rectify the conduct prior to seeking any
legal remedies under this Paragraph and will only seek legal remedies if you do
not comply with such request.  This
Paragraph shall not be applied to conduct that is otherwise permitted by
Paragraphs 2(a) through 2(f).  For
example, if you leave the Company’s employment to work for an Entity that is
not a Competitor under Paragraph 2(a), the Company will not claim that
employment with that Entity violates Paragraph 2(g).  Notwithstanding anything in these Provisions
to the contrary, this Paragraph 2(g) shall not be applicable to you form and
after your last day of active employment, if your employment terminates for any
reason (other than for Misconduct, as defined in Paragraph 2(e) above) within
two years following a Change in Control (as such term is defined in the
Ameriprise 2005 ICP, as amended from time to time, or any successor thereto).

 

3.     Detrimental Conduct
Remedies.

 

        (a)   Repayment of Financial Gain.  If you fail to comply with the requirements
of Paragraphs 2(a) through 2(g) and you are a Band 70 employee or above at the
time your employment with the Company terminates, the Company may cancel any
outstanding Awards and recover (i) the amount of any gain realized on stock
options and stock appreciation rights issued under the Ameriprise 2005 ICP or
issued under the American Express Company 1998 Incentive Compensation
Plan or the American Express Company 1989 Long-Term Incentive Plan (together, the “AXP Incentive Plans”),
that you have exercised, as of the date you exercised them, (ii) any payments
you received for Portfolio Grant Awards or other Awards issued under the
Ameriprise 2005 ICP or the AXP Incentive Plans and (iii) stock whose restrictions
lapsed (or the value of the stock at the time the restrictions lapsed) pursuant
to a Restricted Stock Award, Restricted Stock Unit Award or other Award, or any
other stock-based award issued under the Ameriprise 2005 ICP or the AXP
Incentive Plans, during the last two years you were employed by the Company
(including employment with American Express Company).  If you fail to comply with the requirements
of Paragraphs 2(a) through 2(g) and you are a Band 50 or 60 employee at the
time your employment with the Company terminates, the Company may cancel any
outstanding Awards and recover the amount of any gain realized on stock options
and stock appreciation rights issued under the Ameriprise 2005 ICP or the AXP
Incentive Plans that you have exercised, as of the date you exercised them,
which were exercised during the last six months you were employed by the
Company, including employment with American Express Company.  If you fail to comply with the requirements
of Paragraphs 2(a) through 2(g), you agree to repay the Company in accordance
with the terms of this Paragraph 3(a) and the Company shall be entitled to
set-off against the amount of any such repayment obligation any

 

A-3

amount owed to you by the Company.

 

        (b)   Other Remedies.  The
remedy provided pursuant to Paragraph 3(a) shall be without prejudice to the
Company’s right to recover any losses resulting from a violation of these
Provisions and shall be in addition to whatever other remedies the Company may
have, at law or equity, for violating the terms of these Provisions.

 

4.     Approval to Exercise
Options.  If you are a Band 50
employee or above, you may be required to obtain written approval to exercise a
specified percent all your outstanding vested stock options issued under the
Ameriprise 2005 ICP in any 90-day period. 
The standard for determining whether to approve your request to exercise
options will be whether you are complying and will comply with the requirements
of paragraphs 2(a) through 2(g) of these Provisions.  You may contact the Corporate Secretary’s
Office for additional information on any applicable policies.

 

5.     Compensation Band
Changes.  If the Company changes its
current system of classifying employees in compensation bands and management
tiers, the references to Bands 50, 60 and 70, Executive Officers in these
Provisions will be construed to mean the compensation level(s) and management
tiers in the new or revised system that, in the Company’s discretion, most
closely approximates these bands and management tiers under the current system.

 

6.     Involuntary Terminations.  These Provisions will not apply to employees
of the Company who enter into a severance agreement with the Company or other
involuntary terminations as determined by the Company (excluding termination
covered by Paragraph 2(e) hereof).  In
the event of a spin-off or a sale of a business, the terms of Paragraph 2(b),
2(c) and 2(f) of these Provisions shall continue to apply during the Restricted
Period but the other terms of Paragraph 2 will not continue to apply.

 

7.     Modification.  If any term of these Provisions is determined
by a court or arbitrator of competent jurisdiction not to be enforceable in the
manner set forth in these Provisions, that such term should be enforceable to
the maximum extent permissible under applicable law and that such court or
arbitrator shall reform such term to make it enforceable.

 

8.     Definition of Entity.
As used in these Provisions, the word Entity or Entities shall mean any
corporation, partnership, association, joint venture, trust, government,
governmental agency or authority, person or other organization or entity.

 

9.     Waivers. The failure
of the Company to enforce at any time any term of these Provisions shall not be
construed to be a waiver of such term or of any other term.  Any waiver or modification of the terms of
these Provisions will only be effective if reduced to writing and signed by both
you and the President or Chief Executive Officer of Ameriprise Financial, Inc.

 

A-4Exhibit
10.9

AMERIPRISE FINANCIAL

DEFERRED SHARE PLAN

FOR OUTSIDE DIRECTORS

Adopted effective as of September 30, 2005

 

AMERIPRISE
FINANCIAL

DEFERRED STOCK
PLAN

FOR OUTSIDE
DIRECTORS

Adopted effective as of September 30, 2005

Purpose

Effective September 30, 2005, the Board approved the Ameriprise
Financial Deferred Share Plan for Outside Directors to (a) provide for the
crediting of Deferred Share Units or “DSUs” to Eligible Directors in respect of
services rendered by such Participants as members of the Board and (b) permit
Eligible Directors to elect to receive a portion of their Director Fees on a
deferred basis.  The purpose of the Plan
is to provide a means for the deferral by Eligible Directors of the Company of
Director Fees and to promote a greater alignment of interests between Eligible
Directors and the shareholders of the Company. 
This Plan shall be unfunded for tax purposes.

Article
1

Definitions

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

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

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

1.03
                                    “Amended Beneficiary Designation Form”
shall mean the Amended Beneficiary Designation Form required by the Committee
to be signed and submitted by a Participant to effect a permitted change in the
designation of a Participant’s Beneficiary or Beneficiaries previously made by
the Participant under any Beneficiary Designation Form.

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

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

 

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

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

1.08                                       “Annual Elective Deferral” shall mean the
aggregate amount electively deferred by a Participant in respect of a
particular Plan Year under Section 3.02.

1.09                                       “Beneficiary” shall mean one or more
persons, trusts, estates or other entities, designated in accordance with
Article 6, that are entitled to receive a distribution of a Participant’s Account
under the Plan in the event of the Participant’s death.

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

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

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

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

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

1.15                                       “Claimant” shall have the meaning set
forth in Section 10.01.

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

1.17                                       “Committee” shall mean the Compensation
and Benefits Committee of the Company or such other committee designated by the
Board to administer the Plan.

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

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

 

2

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

1.21                                       “Distribution Election” shall mean an
election made in accordance with Section 2 of the Plan.

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

1.23                                       “Election Form” shall mean, with respect
to the portion of any Account that relates to a Participant’s Annual Elective
Deferrals under the Plan, the Annual Election Form or the Amended Annual
Election Form last signed and submitted by the Participant and accepted by the
Committee with respect to that Account.

1.24                                       “Eligible Compensation” shall mean annual
retainer fees, chair retainer fees and any other cash compensation payable to
Eligible Directors.

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

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

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

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

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

 

3

1.30                                       “Plan Year” shall mean the period
beginning on January 1 of each year and ending on December 31 of such year.

1.31                                       “Pro Rata Annual DSU Grant” shall have
the meaning set forth in Section 3.01(c) of the Plan.

1.32                                       “Pro Rata Annual Fee” shall mean, with
respect to an Eligible Director, the product obtained by multiplying such
Eligible Director’s annual cash retainer fee by a fraction, the numerator of
which is the number of full months in the applicable Service Period that follow
the date on which such Eligible Director first becomes an Eligible Director
under the Plan and the denominator of which is twelve; provided, that with
respect to the Service Period that commences on September 30, 2005, the
denominator for purposes of calculating the Pro Rata Annual Fee will be equal
to the number of full months from September 30, 2005 through the first Annual
Meeting of Shareholders at which the shareholders elect directors to the Board
that occurs after September 30, 2005.

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

1.34                                       “Reference Date” shall mean the date used
to determine the Market Value of a share of Company Stock for purposes of
determining the number of DSUs to be credited to a Participant’s Stock
Account.  Unless otherwise determined by
the Committee and approved by the Board, the Reference Date shall be:  (a) with respect to the Annual DSU Grant made
in 2005, the fifth trading day following September 30, 2005, (b) with respect
to an Annual DSU Grant made in any Plan Year commencing on or after January 1,
2006, the date of the Company’s Annual Meeting of Shareholders at which the
shareholders elect directors to the Board, (c) with respect to a Pro Rata
Annual DSU Grant, the fifth trading day following the release by the Company of
its financial statements for the Quarter in which the applicable Eligible
Director first becomes an Eligible Director, (d) with respect to the portion of
a Participant’s Annual Elective Deferral that is notionally invested in DSUs in
respect of any Quarter, the fifth trading day following the release by the
Company of its financial statements for such Quarter, and (e) with respect to
an Eligible Director’s election pursuant to Section 3.03 of the Plan to
notionally invest a portion of the funds in his or her Cash Account in DSUs,
the fifth trading day following the release by the Company of its financial
statements for the applicable Quarter to which the election relates.

1.35                                       “Service Period” shall mean the
twelve-month period between the Company’s Annual Meetings of Shareholders at
which the shareholders elect directors to the Board; provided, that, the first
Service Period under the Plan will be the period commencing on September 30,
2005 and will continue until the first Annual Meeting of Shareholders at which
the shareholders elect directors to the Board that occurs after September 30,
2005.

 

4

1.36                                       “Settlement Date” shall mean, unless
otherwise determined by the Committee, the date on which shares of Company
Stock shall be delivered in settlement of DSUs in accordance with Article 4
hereof.

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

1.38                                       “Survivor Benefit” shall mean the benefit
set forth in Article 6.

1.39                                       “Termination of Service” shall mean, with
respect to a Participant, the termination of such Participant’s service on the
Board, voluntarily or involuntarily, under circumstances that would constitute
a “separation from service” for purposes of Section 409A of the Code.

Article 2

Eligibility, Selection, Enrollment

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

                    2.02 
                   Enrollment
Forms related to Automatic Crediting of DSUs. 
Each Eligible Director will complete, execute and return to the
Committee a Beneficiary Designation Form, which will remain in full force and
effect with respect to all DSUs that are automatically credited to the Eligible
Director’s Stock Account pursuant to Section 3.01 (as adjusted to take into
account the payment of dividends) for all Plan Years unless amended by the
Eligible Director in accordance with the terms of the Plan.

                    2.03                     Enrollment Requirements for
Annual Elective Deferrals.  As a
condition to being eligible to make an Annual Elective Deferral for any Plan
Year, each Eligible Director shall be required to complete, execute and return
to the Committee each of the required Enrollment Forms no later than the last
day of the immediately preceding Plan Year (or such earlier date as the
Committee may establish from time to time). 
Notwithstanding the foregoing, in the case of an Eligible Director who
first becomes eligible to participate in the Plan during any Plan Year, such
Eligible Director shall complete, execute and return to the Committee or its
designee each of the required Enrollment Forms no later than thirty (30) days following
the date on which such Eligible Director first becomes eligible to participate
in the Plan (or such earlier date as the Committee may establish from time to
time) provided that such Annual Elective Deferral shall apply only with respect
to services performed subsequent to the time such Enrollment Forms are accepted
by the Committee.  Each Eligible Director
shall have on file with the Committee or its designee a completed Beneficiary
Designation Form prior to the date

 

5

specified by the Committee, and the
Committee shall establish from time to time such other enrollment requirements
as it determines necessary, in its sole discretion.

                                Provided
an Eligible Director in respect of a particular Plan Year has met all
enrollment requirements set forth in the Plan and any other requirements
imposed by the Committee, including signing and submitting all Enrollment Forms
to the Committee or its designee within the specified time period, the Eligible
Director’s designated deferrals shall commence as of the date established by
the Committee in its sole discretion.  If
an Eligible Director fails to meet all such requirements within the specified
time period with respect to any Plan Year, the Eligible Director shall not be
eligible to make any deferrals for that Plan Year.

                    2.04                     Subsequent Elections for
Annual Elective Deferrals.  The
Enrollment Forms submitted by a Participant in respect of such Participant’s
elective deferrals for a particular Plan Year will not be effective with
respect to any subsequent Plan Year, except that the Beneficiary Designation
Form on file with the Committee will remain effective for all subsequent Plan
Years unless and until an Amended Beneficiary Designation Form is submitted.  If an Eligible Director is eligible to make
elective deferrals under the Plan for a subsequent Plan Year and the required
Enrollment Forms are not timely delivered for the subsequent Plan Year, the
Participant shall not be eligible to make any elective deferrals with respect
to such subsequent Plan Year.

Article 3

Participant Deferrals, Commitments and Adjustments

3.01                     Automatic
Annual DSU Grant.

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

(b)         Automatic
Crediting of Annual DSU Grant.  An Annual
DSU Grant will be made at the commencement of each Service Period to all
persons who are Eligible Directors on the Reference Date for such Annual DSU
Grant.  The Annual DSU Grant will be
automatically credited to each Eligible Director’s Stock Account on the
Reference Date and will equal the quotient determined by dividing: (a) the
Eligible Director’s Annual Fee by (b) the Market Value of a share of Company
Stock on the Reference Date for such Annual DSU Grant.  Fractional DSUs will be credited to an
Eligible Director’s Stock Account rounded to three decimal places.  The first Annual DSU Grant will be made under
the Plan in respect of the Service Period commencing on September 30, 2005.

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

 

6

such
Pro Rata Annual DSU Grant.  Fractional DSUs
will be credited to an Eligible Director’s Stock Account rounded to three
decimal places.

(d)         A
Participant who becomes an employee of the Company or any of its subsidiaries
or who, as a result of a determination by the Committee, shall no longer be eligible
to continue to participate in the Plan, shall not be entitled to receive any
additional Annual DSU Grants under this Section 3.01 in respect of any of his
or her future fees.  DSUs already
credited to any such Participant’s Stock Account in respect of past Annual DSU
Grants shall remain governed by the Plan and the Annual Election Form (or
Amended Annual Election Form) on file for such Participant, and such
Participant shall be entitled to continue to have DSUs credited to such
Participant’s Stock Account under Section 3.04 until such Participant’s
Settlement Date.

3.02                     Participant
Elective Deferrals.

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

(b)                       Crediting
of Account.  The amounts deferred by a
Participant in respect of services rendered during a Plan Year shall be
referred to collectively as the “Annual Elective Deferral.”  The Annual Elective Deferral shall be
credited on a quarterly basis to the Participant’s Stock Account and Cash
Account, as determined in accordance with the Participant’s investment election
pursuant to Section 3.02(d), with such crediting to occur on the Reference Date
in respect of each Quarter.

(c)                       Minimum and Maximum
Deferrals.  In respect of the Plan Year
that commences on January 1, 2006, (i) an Eligible Director who elects to make
an elective deferral under the Plan must elect to defer at least twenty-five
percent (25%) of his or her Eligible Compensation and (ii) an Eligible Director
may elect to defer up to 100% of his or her Eligible Compensation in increments
of twenty-fine percent (25%) of his or her Eligible Compensation.  In respect of Plan Years commencing on or
after January 1, 2007, the Committee may designate different minimum and
maximum amounts that an Eligible Director may elect to defer under the Plan.

(d)                       Investment
Election.  Each Eligible Director
who elects to make an Annual Elective
Deferral under the Plan will be required to designate, at the time that he or
she makes an Annual Investment Election, the portion of the Annual Elective
Deferral that will be notionally invested in DSUs, which may be zero (0).  If a Participant elects to notionally invest
a portion of his or her Annual Elective Deferral in DSUs, the number of DSUs
that will be credited to a Participant’s Stock Account in respect of his or her
Annual Elective Deferral will be determined quarterly on the Reference Date and
credited to such Participant’s Stock Account as of such date, and will be equal
to the quotient obtained by dividing (a) the amount of the Annual

 

7

Elective Deferral for such Quarter that
the Participant has notionally elected to invest in DSUs by (b) the Market
Value of a share of Company Stock on the Reference Date for such Quarter.  Any portion of the Participant’s Annual
Elective Deferral that is not notionally invested in DSUs will be credited to
the Participant’s Cash Account, where it will earn interest at the Cash Account
Interest Rate.

3.03                     Changes
to Investment Elections.  A Participant
may, on a Quarterly basis, elect to notionally invest a portion of the funds
notionally invested in his or her Cash Account in DSUs at such times as the
Committee may designate by completing and submitting to the Committee an
Amended Election Form in accordance with such procedure and time frames as may
be established from time to time at the sole discretion of the Committee.  In connection with any such election, the Participant’s
Cash Account will be debited by the amount the Participant designates for
notional investment in DSUs (the “DSU Investment Amount”), and the
Participant’s Stock Account will be increased by a number of DSUs determined by
dividing the DSU Investment Amount by the Market Value of a share of Company
Stock on the applicable Reference Date. 
Notwithstanding anything to the contrary in the Plan, a Participant may
not at any time make any changes with respect to the amounts credited to the
Participant’s Stock Account in the form of DSUs pursuant to Section 3.01 or
with respect to the portion of the Participant’s Annual Elective Deferral that
he or she elects to notionally invest in DSUs pursuant to Section 3.02 or 3.03,
in each case as adjusted pursuant to Section 3.04.

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

 

                In
the event of any change in the capitalization of the Company, the Committee may
make such adjustments in the DSUs credited to Participants’ Stock Account on
the date on which such change occurs and in such other terms of such DSUs as
the Committee may consider appropriate.

Article 4

Distribution of Accounts

4.01                     Distribution
Elections with respect to Annual Elective Deferrals.

(a)                       Initial Elections.  The Participant shall make a Distribution
Election at the times set forth in Section 2 of the Plan to have the
Participant’s Cash Account and the portion of the Participant’s Stock Account
that relates to his or her Annual Elective Deferrals distributed in
incrementally increasing ratios (e.g., 1/5, 1/4, 1/3, 1/2, 1) as
follows:

 

8

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

 

(ii)           Lump sum payment on March 31 of a
specified year; or

 

(iii)          Annual installment payments following
the Termination of Service.  If this
option is elected, the first installment will be paid at the end of the Quarter
that follows the Quarter in which the Participant’s Termination of Service
occurs and all future installments will be paid on March 31 of a given year,
commencing on the March 31 of the year following the year in which the initial
installment distribution is made.

(b)                       Subsequent
Elections.   A Participant may amend his
or her Distribution Election in accordance with such procedures as may be
adopted by the Committee from time to time.

                    4.02                     Distribution of Annual DSU
Grant.  The portion of a Participant’s Stock Account that relates to the
Participant’s Annual DSU Grant shall be distributed in a lump sum at the end of
the Quarter immediately following the Quarter in which the Participant’s
Termination of Service occurs.

                    4.03                     Payment on a Change in
Control.  Nothwithstanding anything to
the contrary set forth in a Participant’s Annual Distribution Election Form or
the Plan, upon the occurrence of a Change in Control, the Company will
distribute all previously undistributed amounts under the Plan to Participants
(or their Beneficiaries, as the case may be).

                    4.04                     Form of
Payment.  Except as may be otherwise
determined by the Committee, all distributions under the Plan with respect to
DSUs credited to the Participant’s Stock Account will be made in Company
Stock.  All distributions under the Plan
with respect to amounts credited to a Participant’s Cash Account will be paid
in cash.  Except as may be otherwise determined by the Board, all
distributions under the Plan in the form of Company Stock shall be distributed
pursuant to the Ameriprise Financial 2005 Incentive Compensation Plan or any
successor plan thereto.

Article 5

Survivor Benefit

                    5.01                     Survivor Benefit. A
Participant’s Beneficiary shall receive a Survivor Benefit equal to the
Participant’s Accounts, if the Participant dies before he or she has received a
complete distribution of his or her Accounts.

                    5.02                     Payment of Survivor
Benefit.  The Survivor Benefit shall be
payable to the Beneficiary indicated on the Participant’s Beneficiary Designation
Form in a lump sum payment.  Subject to
Article 5, the lump sum payment will be made as soon as practical after the
date on which the Committee is notified in writing of the Participant’s death.

Article 6

 

9

Beneficiary Designation

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

                    6.02                     Beneficiary Designation;
Change.  A Participant shall designate
his or her Beneficiary by completing and signing a Beneficiary Designation
Form, and returning it to the Committee or its designated agent.  A Participant shall have the right to change
a Beneficiary by completing, signing and submitting to the Committee an Amended
Beneficiary Designation Form in accordance with the Committee’s rules and
procedures, as in effect from time to time. 
Upon the acceptance by the Committee of an Amended Beneficiary Designation
Form, all Beneficiary designations previously filed shall be canceled.  The Committee shall be entitled to rely on
the last Beneficiary Designation Form filed by the Participant and accepted by
the Committee prior to his or her death.

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

                    6.04                     No Beneficiary
Designation.  If a Participant fails to
designate a Beneficiary as provided above or, if all designated Beneficiaries
predecease the Participant or die prior to complete distribution of the
Participant’s Accounts, then the Participant’s designated Beneficiary shall be
deemed to be his or her surviving spouse. 
If the Participant has no surviving spouse, the benefits remaining under
the Plan to be paid to a Beneficiary shall be payable to the executor or
personal representative of the Participant’s estate.

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

                    6.06                     Discharge of
Obligations.  The payment of benefits
under the Plan to a Beneficiary shall fully and completely discharge the
Company and the Committee from all further obligations under the Plan with
respect to the Participant, and each of the Participant’s Annual Election Forms
shall terminate upon such full payment of benefits.

Article 7

Termination, Amendment or Modification

                    7.01                     Termination.  Although the Company anticipates that it will
continue the Plan for an indefinite period of time, there is no guarantee that
the Company will continue the Plan or will not terminate the Plan at any time
in the future.  Accordingly, the Company
reserves the right to terminate the Plan at any time or to terminate an
Eligible Director’s participation in

 

10

the Plan. 
Upon the termination of the Plan, all amounts credited to each of the
Accounts of each affected Participant shall be paid to the Participant or, in
the case of the Participant’s death, to the Participant’s Beneficiary, in a
lump sum notwithstanding any elections made by the Participant, and the Annual
Election Forms relating to each of the Participant’s Accounts shall terminate
upon full payment of such Accounts, except that the Company shall not have any
right to so accelerate the payment of any amount to the extent such right would
cause the Plan to fail to comply with, or cause a Participant or such
Participant’s Beneficiary to be subject to a tax under, the provisions of
Section 409A of the Code.

                    7.02                     Amendment.  The Company may, at any time, amend or modify
the Plan in whole or in part by the actions of the Committee; provided,
however, that (i) no amendment or modification shall be effective to decrease
or restrict the value of a Participant’s Aggregate Vested Balance in existence
at the time the amendment or modification is made, calculated as if the
Participant had experienced a Termination of Service as of the effective date
of the amendment or modification and (ii) except as specifically provided in
the Plan, no amendment or modification shall be made after a Change in Control
which adversely affects the calculation or payment of benefits hereunder or
diminishes any other rights or protections any Participant or Beneficiary would
have had but for such amendment or modification, unless each affected
Participant or Beneficiary consents in writing to such amendment.

                    7.03                     Effect of Payment.  The full payment of the applicable benefit
under the provisions of the Plan shall completely discharge all obligations to
a Participant and his or her designated Beneficiaries under the Plan and each
of the Participant’s Annual Election Forms shall terminate.

Article 8

Administration

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

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

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

 

11

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

                    8.05                     No Registration.  The Company shall be under no obligation to
effect the registration pursuant to the U.S. Securities Act of 1933 of any
shares of Company Stock to be issued hereunder or to effect similar compliance
under any state laws.  Notwithstanding anything
herein to the contrary, the Company shall not be obligated to cause to be
issued or delivered any certificates evidencing shares of Company Stock
pursuant to the Plan unless and until the Company is advised by its counsel
that the issuance and delivery of such certificates is in compliance with all
applicable laws, regulations of governmental authority and the requirements of
any securities exchange on which shares of Company Stock are traded.  The Committee may require, as a condition to
the issuance and delivery of certificates evidencing shares of Company Stock
pursuant to the terms hereof, that the recipient of such shares make such
covenants, agreements and representations, and that such certificates bear such
legends, as the Committee deems necessary or desirable.

Article 9

Other Benefits and Agreements

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

Article 10

Claims Procedures

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

                    10.02                   Notification
of Decision.  The Committee shall
consider a Claimant’s claim within a reasonable time, and shall notify the
Claimant in writing:

(a)                       that the Claimant’s
requested determination has been made, and that the claim has been allowed in
full; or

12

(b)                          that the Committee has
reached a conclusion contrary, in whole or in part, to the Claimant’s requested
determination, and such notice must set forth in a manner calculated to be
understood by the Claimant:

(i)             the
specific reason(s) for the denial of the claim, or any part of it;

(ii)                                  specific reference(s) to pertinent
provisions of the Plan upon which such denial was based;

(iii)                               a description of any additional material or
information necessary for the Claimant to perfect the claim, and an explanation
of why such material or information is necessary; and

(iv)                              an explanation of the claim review
procedure set forth in Section 10.03 below.

   10.03                           Review of a Denied Claim.  Within sixty (60) days after receiving a
notice from the Committee that a claim has been denied, in whole or in part, a
Claimant (or the Claimant’s duly authorized representative) may file with the
Committee a written request for a review of the denial of the claim.  Thereafter, but not later than thirty (30)
days after the review procedure began, the Claimant (or the Claimant’s duly
authorized representative):

                                                                                                                                                (a)       may
review pertinent documents;

                                                            (b)       may
submit written comments or other documents; and/or

                                                            (c)       may
request a hearing, which the Committee, in its sole discretion, may grant.

   10.04                           Decision on Review.  The Committee shall render its decision on
review promptly, and not later than sixty (60) days after the filing of a
written request for review of the denial, unless a hearing is held or other
special circumstances require additional time, in which case the Committee’s
decision must be rendered within one hundred twenty (120) days after such
date.  Such decision must be written in a
manner calculated to be understood by the Claimant, and it must contain:

                                                                                                                                                (a)       specific
reasons for the decision;

(b)       specific
reference(s) to the pertinent Plan provisions upon which the decision was
based; and

                                                            (c)       such
other matters as the Committee deems relevant.

   10.05                           Arbitration.  A Claimant’s compliance with the foregoing
provisions of this Article 10 is a mandatory prerequisite to a Claimant’s right
to commence any arbitration with respect to any claim for benefits under the
Plan.  Any and all claims that are not
resolved to the satisfaction of a Claimant under the above provisions of this
Article 10 shall be subject to arbitration conducted in the State of Minnesota,
Hennepin County, and shall be administered by, and pursuant to the Commercial
Arbitration Rules and Mediation Procedures of, the American

 

13

Arbitration Association (“AAA”).  Unless otherwise provided herein each party
shall bear its own costs and expenses in connection with such arbitration and
the parties shall contribute equally the arbitrator’s fees.  The arbitrator’s decision in any dispute
shall be final and binding and shall not be subject to appeal or judicial
review.

Article 11

Miscellaneous

                    11.01                   Status
of Plan.  The Plan is intended to be a
plan that is not qualified within the meaning of Code Section 401(a).  The Plan shall be administered and
interpreted to the extent possible in a manner consistent with that
intent.  All Accounts and all credits and
other adjustments to such Accounts shall be bookkeeping entries only and shall
be utilized solely as a device for the measurement and determination of amounts
to be paid under the Plan.  No Accounts,
credits or other adjustments under the Plan shall be interpreted as an
indication that any benefits under the Plan are in any way funded.  In addition, the Committee shall use its
reasonable best efforts to interpret and administer the Plan in a manner that
satisfies the requirements of Section 409A of the Code.

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

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

                    11.04                   Nothing
in the Plan or any Annual Election Form shall be deemed to give a Participant
the right to continue to be retained in the service of the Company.

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

                    11.06                   Terms.  Whenever any words are used herein in the
masculine, they shall be construed as though they were in the feminine in all
cases where they would so apply; and 

 

14

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

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

                    11.08                   Governing
Law.  The provisions of the Plan shall be
construed and interpreted according to the internal laws of the State of New
York without regard to its conflicts of laws principles.

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

 

Ameriprise
Financial, Inc.

361 Ameriprise
Financial Center

Minneapolis,
Minnesota  55474

Attn:  VP, Compensation and Benefits

with a copy to:  General Counsel’s Office

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

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

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

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

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

                    11.13                   Incompetent.  If the Committee determines in its discretion
that a benefit under the Plan is to be paid to a minor, a person declared
incompetent or to a person incapable of handling the disposition of that
person’s property, the Committee may direct payment of such benefit to the
guardian, legal representative or person having the care and custody of such minor,

 

15

incompetent or incapable person.  The Committee may require proof of minority,
incompetence, incapacity or guardianship, as it may deem appropriate prior to
distribution of the benefit.  Any payment
of a benefit shall be a payment for the Account of the Participant and the
Participant’s Beneficiary, as the case may be, and shall be a complete
discharge of any liability under the Plan for such payment amount.

                    11.14                   Distribution
in the Event of Taxation.  If, for any
reason, all or any portion of a Participant’s benefit under the Plan becomes
taxable to the Participant prior to receipt, a Participant may petition the
Committee before a Change in Control, or the trustee of the Trust after a
Change in Control, for a distribution of that portion of his or her benefit
that has become taxable.  Upon the grant
of such a petition, which grant shall not be unreasonably withheld, the Company
shall distribute to the Participant immediately available funds in an amount
equal to the taxable portion of his or her benefit (which amount shall not
exceed a Participant’s unpaid Account Balances under the Plan).  If the petition is granted, the tax liability
distribution shall be made within ninety (90) days of the date when the
Participant’s petition is granted.  Such
a distribution shall affect and reduce the benefits to be paid under the Plan.

                    11.15                   Legal
Fees To Enforce Rights After Change in Control. 
The Company is aware that upon the occurrence of a Change in Control,
the Board (which might then be composed of new members) or a shareholder of the
Company, or of any successor corporation might then cause or attempt to cause
the Company or such successor to refuse to comply with its obligations under
the Plan and might cause or attempt to cause the Company to institute, or may
institute, arbitration or litigation seeking to deny Participants the benefits
intended under the Plan.  In these
circumstances, the purpose of the Plan could be frustrated.  Accordingly, if, following a Change in
Control, it should appear to any Participant that the Company or any successor
corporation has failed to comply with any of its obligations under the Plan or
any agreement thereunder or, if the Company or any other person takes any action
to declare the Plan void or unenforceable or institutes any arbitration,
litigation or other legal action designed to deny, diminish or to recover from
any Participant the benefits intended to be provided, then the Company
irrevocably authorize such Participant to retain counsel of his or her choice
at the expense of the Company to represent such Participant in connection with
the initiation or defense of any arbitration, litigation or other legal action,
whether by or against the Company or any director, officer, shareholder or
other person affiliated with the Company or any successor thereto in any
jurisdiction; provided, however, that in the event that the trier in any such
legal action determines that the Participant’s claim was not made in good faith
or was wholly without merit, the Participant shall return to the Company any
amount received pursuant to this Section 11.15.

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]