Document:

Exhibit 10.38

    

      

      

      Exhibit
        10.38

      

      

      

      

      

      

      

      
        WRITER'S
          DIRECT DIAL:

        (813)
          227-8473

        WRITER'S
          E-MAIL:

        mbrundage@hwhlaw.com

      

      

      

      

      August
        25, 2005

      

      

      Michael
        A. Maltzman, CFO

      Stratus
        Services Group, Inc.

      500
        Craig
        Road

      Suite
        201

      Manalapan,
        New Jersey 07726

      

      

      

      
        	 	
                Re:

              	
                Continued
                  forbearance regarding default under outsourcing agreement dated
                  August 13,
                  2004, by and between ALS, LLC and Stratus Services Group, Inc.,
                  as amended
                  (the “Agreement”)

              

      

      

      Dear
        Mr.
        Maltzman:

      

      This
        law
        firm represents ALS, LLC (“Advantage”) in connection with the Agreement and
        Advantage’s business relationships with Stratus Services Group, Inc.
        (“Stratus”). Capital TempFunds (“CTF”) is Stratus’ secured lender under the
        terms and conditions of a loan and security agreement dated as of December
        8,
        2000 as amended and modified (the “Secured Loan”). As you know, by letters dated
        July 29, 2005, and August 5, 2005, Advantage has provided Stratus with written
        notices of its defaults and material breaches of payment obligations due
        under
        the Agreement. Stratus has failed to cure the material breaches of payment
        obligations within two business days of notice and therefore, pursuant to
        paragraph 3 of the Agreement, Advantage currently has the right to terminate
        the
        Agreement. Additionally, as a result of the defaults, Stratus owes to Advantage
        $1,000.00 per day of payment obligation breach or 24% annual interest on
        the
        outstanding amount, compounded daily, or a maximum allowed by law, whichever
        is
        higher. We understand that CTF has declared defaults under the Secured Loan,
        but
        has entered into a forbearance agreement with Stratus through at least September
        2, 2005.

      

      This
        letter sets forth the terms by which the parties agree to a forbearance of
        enforcement of existing defaults that have been declared by Advantage as
        to the
        Agreement and CTF as to the Secured Loan. Due to the time urgency in getting
        this letter agreement prepared and executed, the parties agree to enter a
        more
        formal agreement if reasonably necessary.

      

      Advantage
        will forbear from enforcing current defaults under the Agreement, unless
        a
        default occurs hereunder, on the following terms and conditions:

      

      
        	1.  	
                On
                  Stratus’ direction which is given hereby, CTF shall wire transfer to
                  Advantage by 5:00 p.m. Eastern on August 25, 2005 the sum of $1.1
                  million
                  dollars presently owed by Stratus to Advantage pursuant to the
                  terms of
                  the Agreement (which excludes the $600,000 subordinated receivable,
                  which
                  will remain due and owing)

              

      

       

      
        	2.  	
                Conditioned
                  upon timely receipt of the payment required in paragraph 1 above,
                  Advantage will release and fund the current payroll associated
                  with the
                  Agreement. 

              

      

       

      
        	3.  	
                Provided
                  that Stratus complies with all the terms of this forbearance agreement,
                  Advantage will continue to perform under the Agreement and forbear
                  from
                  enforcing the existing defaults through September 1,
                  2005.

              

      

       

      
        	4.  	
                Advantage
                  shall invoice to Stratus as to the payroll paid under paragraph
                  2 above
                  consistent with the Agreement except that such invoices shall have
                  two
                  components: (a) invoices totaling the amount of $1,100,000 shall
                  be due
                  and payable on or before September 1, 2005 (the “Deferred Amount”); and
                  (b) the remaining amount due under invoices after deducting $1,100,000
                  shall be due and payable immediately (the “Immediately Payable
                  Amount”).

              

      

       

      
        	5.  	
                Stratus
                  shall repay the Immediately Due Amount by directing CTF, on a daily
                  basis
                  starting Friday August 25, 2005, to advance and wire transfer to
                  Advantage
                  from available funds under the Secured Loan. Stratus shall provide
                  Advantage with an exact copy of the loan status provided by
                  CTF.

              

      

       

      
        	6.  	
                Stratus
                  shall be in default hereunder unless the Immediately Due Amount
                  is paid in
                  full by August 31, 2005. The Deferred Amount shall be due in full
                  without
                  further notice or demand at 12:00 p.m. Eastern on September 1,
                  2005.
                  

              

      

       

      
        	7.  	
                Any
                  further default under the Agreement or the Secured Loan shall be
                  a default
                  hereunder, unless specifically stated other wise herein. A default
                  hereunder or under the Agreement shall entitle Advantage to immediately
                  terminate the Agreement and immediately seek all available remedies.
                  For
                  the term hereof, CTF agrees to give Advantage and Stratus immediate
                  and
                  simultaneous notice of any default by Stratus hereunder or under
                  the
                  Secured Loan. For the term hereof, Advantage agrees to give CTF
                  and
                  Stratus immediate and simultaneous notice of any default by Stratus
                  hereunder or under the Agreement.

              

      

       

      
        	8.  	
                CTF
                  has agreed to extend the term of the forbearance agreement through
                  September 2, 2005, pursuant to and subject to such forbearance
                  agreement,
                  an executed copy of which will be immediately provided to Advantage.
                  Stratus shall provide Advantage with copies of the executed forbearance
                  agreement with CTF. Advantage’s obligation to forbear hereunder shall
                  cease if CTF ceases to forbear under its forbearance agreement
                  and
                  Advantage’s right to cease forbearing hereunder shall constitute
                  Advantages sole remedy against CTF.

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      HILL,
        WARD & HENDERSON, P.A.

      s/ 

      Michael
        P. Brundage

      

      

      
        	
                ALS,
                  LLC

                 

                 

                By: s/
                  Jay Wolin    

                 

                Its: CFO     

                 

                 

              	
                Stratus
                  Service Group, Inc.

                 

                 

                By: s/
                  Joseph J. Raymond  

                 

                Its: CEO     

              
	
                 

                Acknowledged
                  and consented to by 

                 

                Capital
                  TempFunds, Inc.

                 

                 

                By: s/
                  James Rothman   

                 

                Its: PresidentQuickLinks
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Exhibit 10.1    
    

 
 

FORM OF
  
    SEPARATION AND DISTRIBUTION AGREEMENT
  
    by and between
  
    AMERICAN EXPRESS COMPANY
  
    and
  
    AMERIPRISE FINANCIAL, INC.
  
    Dated as of August 24,
 2005    

  

 
  TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	ARTICLE I

DEFINITIONS
	

Section 1.01.	
 	

Definitions	
 	

2
	

Section 1.02.	
 	

General Interpretive Principles	
 	

7
	
ARTICLE II

THE RECAPITALIZATION, CONTRIBUTION AND SEPARATION
	

Section 2.01.	
 	

Recapitalization and Other Transactions	
 	

7
	

Section 2.02.	
 	

Contribution	
 	

8
	

Section 2.03.	
 	

The Separation and Related Transactions	
 	

8
	

Section 2.04.	
 	

Conditions Precedent to Consummation of the Recapitalization, Separation and the Contribution	
 	

12
	
ARTICLE III

THE DISTRIBUTION
	

Section 3.01.	
 	

Actions Prior to the Distribution	
 	

12
	

Section 3.02.	
 	

The Distribution	
 	

13
	

Section 3.03.	
 	

Conditions to Distribution	
 	

14
	
ARTICLE IV

SURVIVAL AND INDEMNIFICATION
	

Section 4.01.	
 	

Survival of Agreements	
 	

15
	

Section 4.02.	
 	

Indemnification by Ameriprise	
 	

15
	

Section 4.03.	
 	

Indemnification by AXP	
 	

15
	

Section 4.04.	
 	

Insurance	
 	

16
	

Section 4.05.	
 	

Procedures for Indemnification of Third-Party Claims	
 	

16
	

Section 4.06.	
 	

Additional Matters	
 	

17
	

Section 4.07.	
 	

Contribution	
 	

18
	

Section 4.08.	
 	

Survival of Indemnities	
 	

18
	

Section 4.09.	
 	

Remedies Cumulative	
 	

18
	

Section 4.10.	
 	

Ancillary Agreements	
 	

18
	
ARTICLE V

CERTAIN ADDITIONAL COVENANTS
	

Section 5.01.	
 	

Consents for Business	
 	

18
	

Section 5.02.	
 	

Additional Consents	
 	

19

i

 

	

Section 5.03.	
 	

Further Assurances	
 	

19
	

Section 5.04.	
 	

Certain Business Matters	
 	

20
	

Section 5.05.	
 	

Settlement of Certain Insurance Claims; Business Interruption Release.	
 	

20
	
ARTICLE VI

ACCESS TO INFORMATION
	

Section 6.01.	
 	

Agreement for Exchange of Information	
 	

21
	

Section 6.02.	
 	

Ownership of Information	
 	

22
	

Section 6.03.	
 	

Compensation for Providing Information	
 	

22
	

Section 6.04.	
 	

Record Retention	
 	

22
	

Section 6.05.	
 	

Limitation of Liability	
 	

23
	

Section 6.06.	
 	

Other Agreements Providing for Exchange of Information	
 	

23
	

Section 6.07.	
 	

Production of Witnesses; Records; Cooperation	
 	

23
	

Section 6.08.	
 	

Confidentiality	
 	

24
	
ARTICLE VII

NO REPRESENTATION OR WARRANTY
	

Section 7.01.	
 	

No Representations or Warranties	
 	

25
	
ARTICLE VIII

TERMINATION
	

Section 8.01.	
 	

Termination	
 	

25
	

Section 8.02.	
 	

Effect of Termination	
 	

26
	
ARTICLE IX

MISCELLANEOUS
	

Section 9.01.	
 	

Complete Agreement; Representations	
 	

26
	

Section 9.02.	
 	

Costs and Expenses	
 	

26
	

Section 9.03.	
 	

Governing Law	
 	

26
	

Section 9.04.	
 	

Notices	
 	

26
	

Section 9.05.	
 	

Amendment, Modification or Waiver	
 	

27
	

Section 9.06.	
 	

No Assignment; Binding Effect; No Third-Party Beneficiaries	
 	

27
	

Section 9.07.	
 	

Counterparts	
 	

28
	

Section 9.08.	
 	

Negotiation	
 	

28
	

Section 9.09.	
 	

Specific Performance	
 	

28
	

Section 9.10.	
 	

New York Forum	
 	

28
	

Section 9.11.	
 	

Interpretation; Conflict With Ancillary Agreements	
 	

29
	

Section 9.12.	
 	

Severability	
 	

29

ii

 

	Exhibits
	

Amended and Restated Bylaws of Ameriprise	
 	

Exhibit A
	Amended and Restated Certificate of Incorporation of Ameriprise	 	Exhibit B
	Form of Employee Benefits Agreement	 	Exhibit C
	Form of FSB Purchase and Assumption Agreement	 	Exhibit D
	Form of Intellectual Property License and Transfer Agreement	 	Exhibit E
	Form of Marketing and Branding Agreement	 	Exhibit F
	Form of Reinsurance and Purchase Agreements	 	Exhibit G
	Form of Tax Allocation Agreement	 	Exhibit H
	Form of Transition Services Agreements	 	Exhibit I
	
Schedules
	

AXP Assigned Agreements	
 	

Schedule 2.03(c)(i)
	Ameriprise Assigned Agreements	 	Schedule 2.03(c)(ii)
	Surviving AXP Group and Ameriprise Group Agreements	 	Schedule 2.03(d)
	AXP Statements in Information Statement	 	Schedule 4.03(f)
	Reimbursable Expenses Apportionment	 	Schedule 9.02

iii

 
 

FORM OF SEPARATION AND DISTRIBUTION AGREEMENT    
    

        This SEPARATION AND DISTRIBUTION AGREEMENT (this "Agreement"), dated as of August 24, 2005, by and between American Express
Company, a New York corporation ("AXP"), and Ameriprise Financial, Inc., a Delaware corporation and a wholly owned subsidiary of AXP
("Ameriprise", and, together with AXP, each, a "Party" and collectively, the "Parties"). 

 
 

RECITALS    

        WHEREAS,
the Board of Directors of AXP has determined that it is in the best interests of AXP to separate the Ameriprise Business (as defined below) and the AXP Business (as defined
below) into two independent public companies (the "Separation"), on the terms and subject to the conditions set forth in this Agreement, in order to resolve issues related
to the allocation of capital and management resources between the Ameriprise Business and the AXP Business, and to give Ameriprise greater flexibility to manage, invest in, and expand the Ameriprise
Business while ensuring that AXP can focus its time and resources on the development of the AXP Business; 

        WHEREAS,
to effect the Separation, AXP intends to make the Contribution (as defined below); 

        WHEREAS,
to further effect the Separation, Ameriprise intends to retain ownership and possession of all Ameriprise Assets (as defined below) and AXP intends to retain ownership and
possession of all AXP Assets (as defined below); 

        WHEREAS,
to further effect the Separation, Ameriprise intends to remain solely liable for all Ameriprise Liabilities (as defined below) and AXP intends to remain solely liable for all
AXP Liabilities (as defined below); 

        WHEREAS,
AXP intends to distribute on a pro rata basis to holders of issued and outstanding shares of common stock, par value $0.20 per
share, of AXP ("AXP Common Stock"), other than shares of AXP Common Stock held in the treasury of AXP, all of the issued and outstanding shares of Ameriprise Common Stock,
par value $0.01 per share, ("Ameriprise Common Stock") beneficially owned by AXP, by means of a dividend of such Ameriprise Common Stock to such shareholders (the
"Distribution"), on the terms and subject to the conditions set forth in this Agreement; 

        WHEREAS,
it is the intention of the Parties that, for United States federal income tax purposes, the Separation, Contribution and Distribution and the other transactions contemplated
herein shall qualify as transactions that are generally tax-free within the meaning of Section 355 (and other related provisions) of the U.S. Internal Revenue Code of 1986, as
amended (the "Code"); 

        WHEREAS,
the Board of Directors of AXP has (i) determined that the Separation, the Contribution, the Distribution and the other transactions contemplated by this Agreement and the
Ancillary Agreements (as defined below) are in furtherance of and consistent with its business strategy and are in the best interests of AXP and (ii) approved this Agreement and each of the
Ancillary Agreements; and 

        WHEREAS,
it is appropriate and desirable to set forth the principal corporate transactions required to effect the Separation, the Contribution and the Distribution and certain other
agreements that will govern certain matters relating to these transactions and the relationship of AXP and Ameriprise and their respective Subsidiaries following the Distribution. 

        NOW,
THEREFORE, in consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein and for other good and valuable consideration, the
receipt 

 

and
sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows: 

 
 

ARTICLE I
  
    DEFINITIONS    

        SECTION    1.01.    Definitions.    As
used in this Agreement, the following terms shall have the meanings set forth below: 

        "Action"
means any claim, demand, action, cause of action, suit, countersuit, arbitration, litigation, inquiry, proceeding or investigation by or before any
Governmental Authority or any arbitration or mediation tribunal or authority. 

        "AEIDC"
means American Express International Deposit Company, a Cayman Islands company. 

        "Affiliate"
means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is
controlled by or is under common control with, such specified Person; provided, however, that for purposes of this Agreement, no member of
either Group shall be deemed to be an Affiliate of any member of the other Group. As used herein, "control" means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of such entity, whether through ownership of voting securities or other interests, by contract or otherwise. 

        "Agreement"
has the meaning assigned to such term in the Preamble hereto. 

        "Amended
and Restated Bylaws" means the Amended and Restated Bylaws of Ameriprise substantially in the form of Exhibit A
hereto, with such changes as may be agreed to by the Parties. 

        "Amended
and Restated Certificate of Incorporation" means the Amended and Restated Certificate of Incorporation of Ameriprise substantially in the form of
Exhibit B hereto, with such changes as may be agreed to by the Parties. 

        "Ameriprise"
has the meaning assigned to such term in the Preamble hereto. 

        "Ameriprise
Assets" means, without duplication: 

        (i)    all
of the outstanding shares of all classes of capital stock of Ameriprise Subsidiaries owned (either of record or beneficially) by Ameriprise, as of the Effective
Time; 

        (ii)   all
of the Assets included on the unaudited interim consolidated balance sheet of Ameriprise, including the notes thereto, as of March 31, 2005 (the
"Balance Sheet") to the extent such Assets would have been included as Assets on a consolidated balance sheet of Ameriprise, and the notes thereto, as of the Effective
Time (were such balance sheet and notes to be prepared) on a basis consistent with the determination of Assets included on the Balance Sheet; 

        (iii)  all
other Assets that are of a nature or type that would have resulted in such Assets being included as Assets on a consolidated balance sheet of Ameriprise, and the
notes thereto, as of the Effective
Time (were such balance sheet and notes to be prepared) on a basis consistent with the determination of Assets included on the Balance Sheet; 

        (iv)  the
Assets expressly contributed, assigned, transferred, conveyed or delivered to Ameriprise pursuant to the Ancillary Agreements; 

        (v)   the
Contribution; 

        (vi)  the
contract rights, licenses, Trade Secrets, know-how, and any other rights and Intellectual Property, and any other rights, claims or properties
(including any and all rights as an insured party under any AXP insurance policy), in each case of Ameriprise and as of the Effective Time; and 

2

 

        (vii) all
other Assets that are held by Ameriprise and that are used or held primarily for use in or necessary to the operation of the Ameriprise Business. 

        "Ameriprise
Business" means the business and operations conducted by the Ameriprise Group from time to time, whether prior to, at or after the Effective
Time, including the business and operations conducted by the Ameriprise Group, as more fully described in the Information Statement; provided that
"Ameriprise Business" shall not include AMEX Assurance. 

        "Ameriprise
Common Stock" has the meaning assigned to such term in the Recitals hereto. 

        "Ameriprise
Group" means Ameriprise and each of its Subsidiaries and Affiliates and any corporation or entity that may become part of such Group from time to
time. 

        "Ameriprise
Indemnified Parties" has the meaning assigned to such term in Section 4.03. 

        "Ameriprise
Liabilities" means, without duplication: 

        (i)    all
outstanding Liabilities included on the Balance Sheet, to the extent such Liabilities would have been included on a consolidated balance sheet of Ameriprise, and the
notes thereto, as of the Effective Time (were such balance sheet and notes to be prepared) on a basis consistent with the determination of Liabilities included on the Balance Sheet; 

        (ii)   all
other Liabilities that are of a nature or type that would have resulted in such Liabilities being included as Liabilities on a consolidated balance sheet of
Ameriprise, and the notes thereto, as of the Effective Time (were such balance sheet and notes to be prepared) on a basis consistent with the determination of Liabilities included on the Balance
Sheet; 

        (iii)  all
Liabilities expressly assumed by Ameriprise pursuant to the Ancillary Agreements; and 

        (iv)  all
Liabilities to the extent relating to, arising out of or resulting from actions, inactions, events, omissions, conditions, facts or circumstances occurring or
existing prior to, at or after the Effective Time, in each case to the extent such Liabilities relate to, arise out of or result from any Ameriprise Asset or the Ameriprise Business. 

        "AMEX
Assurance" means AMEX Assurance Company, an Illinois stock insurance company. 

        "Amexco"
means Amexco Insurance Company, a Vermont insurance company. 

        "Ancillary
Agreements" means the Employee Benefits Agreement, the Marketing and Branding Agreement, the Intellectual Property License and Transfer Agreement,
the FSB Purchase and Assumption Agreement, the Transition Services Agreements, the Tax Allocation Agreement and the Reinsurance and Purchase Agreements. 

        "Asset"
means any right, property or asset, whether real, personal or mixed, tangible or intangible, of any kind, nature and description, whether accrued,
contingent or otherwise, and wheresoever situated and whether or not carried or reflected, or required to be carried or reflected, on the books of any Person. 

        "AXP"
has the meaning assigned to such term in the Preamble hereto. 

        "AXP
Assets" means all Assets of the AXP Group, other than the Ameriprise Assets. 

        "AXP
Business" means all businesses and operations of the AXP Group, other than the Ameriprise Business. 

        "AXP
Common Stock" has the meaning assigned to such term in the Recitals hereto. 

        "AXP
Group" means AXP and each of its Affiliates and Subsidiaries, and any corporation or entity that may become part of such Group from time to time, other
than the Ameriprise Group. 

        "AXP
Indemnified Parties" has the meaning assigned to such term in Section 4.02. 

        "AXP
Liabilities" means those Liabilities of AXP, other than the Ameriprise Liabilities. 

3

 

        "Business"
means the Ameriprise Business and/or the AXP Business, as the context requires. 

        "Code"
has the meaning assigned to such term in the Recitals hereto. 

        "Consents"
means any consents, waivers, notices, reports or other filings to be made, or any registrations, licenses, permits, authorizations to be obtained
from, or approvals from, or notification requirements to, any third parties, including any Governmental Authority. 

        "Contribution"
means a contribution of capital in an amount equal to one billion sixty-five million dollars ($1,065,000,000). 

        "Delayed
Transfer Asset and/or Liability" has the meaning assigned to such term in Section 2.03(b). 

        "Dispute
Escalation Notice" has the meaning assigned to such term in Section 9.08. 

        "Distribution"
has the meaning assigned to such term in the Recitals hereto. 

        "Distribution
Agent" means The Bank of New York. 

        "Distribution
Agent Agreement" has the meaning assigned to such term in Section 3.01(b). 

        "D&O/Fid.
Claims" shall have the meaning assigned to such term in Section 5.05(e). 

        "D&O/Fid.
Insurers" shall have the meaning assigned to such term in Section 5.05(e). 

        "D&O/Fid.
Policies" shall have the meaning assigned to such term in Section 5.05(e). 

        "Distribution
Date" means the date on which the Distribution shall be effected, such date to be determined by, or under the authority of, the Board of
Directors of AXP in its sole and absolute discretion. 

        "Effective
Time" means the time at which the Distribution occurs on the Distribution Date. 

        "Employee
Benefits Agreement" means the employee benefits agreement to be entered into by and between AXP and Ameriprise, substantially in the form of
Exhibit C hereto, with such changes as may be agreed to by the Parties. 

        "Exchange
Act" means the United States Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder. 

        "FIFO
Basis" means, with respect to the payment of Unrelated Claims pursuant to the same AXP insurance policy, the payment in full of each successful claim
(regardless of whether AXP or Ameriprise is the claimant) in the order in which such successful claim is approved by the insurance carrier, until the limit of the applicable AXP insurance policy is
met. 

        "FSB
Purchase and Assumption Agreement" means the FSB purchase and assumption agreement to be entered into between AXP and Ameriprise, substantially in the
form attached hereto as Exhibit D, with such changes as may be agreed to by the Parties. 

        "Governmental
Authority" means any federal, state, local, foreign or international court, government, department, commission, board, bureau or agency, or any
other regulatory, self-regulatory, administrative or governmental organization or authority, including the NYSE. 

        "Group"
means the AXP Group and/or the Ameriprise Group, as the context requires. 

        "Indemnified
Party" has the meaning assigned to such term in Section 4.03. 

        "Indemnifying
Party" means Ameriprise, for any indemnification obligation arising under Section 4.02, and AXP, for any indemnification obligation
arising under Section 4.03. 

        "Information"
means all information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms, stored
in any medium, including non-public financial information, studies, reports, records, books, accountants' work papers, contracts, instruments, surveys, 

4

 

discoveries,
ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks,
diskettes, tapes, computer programs or other Software, marketing plans, customer data, communications by or to attorneys, memos and other materials prepared by attorneys and accountants or under their
direction (including attorney work product), and other technical, financial, legal, employee or business information or data. 

        "Information
Statement" means the information statement and any related documentation to be distributed to holders of AXP Common Stock in connection with the
Distribution, including any amendments or supplements thereto. 

        "Insurer"
has the meaning assigned to such term in Section 5.05(d). 

        "Intellectual
Property" means all intellectual property and other similar proprietary rights in any jurisdiction, whether owned or held for use under
license, whether registered or unregistered, including such rights in and to: (i) trademarks, trade dress, service marks, certification marks, logos, and trade names, and the goodwill
associated with the foregoing (collectively, "Trademarks"); (ii) patents and patent applications, and any and all divisions, continuations,
continuations-in-part, reissues, continuing patent applications, reexaminations, and extensions thereof, any counterparts claiming priority therefrom, utility models, patents
of importation/confirmation, certificates of invention, certificates of registration, design registrations or patents and like rights (collectively, "Patents");
inventions, invention disclosures, discoveries and improvements, whether or not patentable; (iii) writings and other works of authorship ("Copyrights");
(iv) trade secrets (including, those trade secrets defined in the Uniform Trade Secrets Act and under corresponding foreign statutory Law and common law), Information, business, technical and
know-how information, business processes, non-public information, proprietary information and confidential information and rights to limit the use or disclosure thereof by any
Person (collectively, "Trade Secrets"); (v) software, including data files, source code, object code, application programming interfaces, databases and other
software-related specifications and documentation (collectively, "Software"); (vi) domain names and uniform resource locators; (vii) moral rights;
(viii) privacy and publicity rights; (ix) any and all technical information, Software, specifications, drawings, records, documentation, works of authorship or other creative works,
ideas, knowledge, invention disclosures or other data, not including works subject to Copyright, Patent or Trademark protection ("Technology"); (x) advertising and
promotional materials, whether or not copyrightable; and (xi) claims, causes of action and defenses relating to the enforcement of any of the foregoing; in each case, including any
registrations of, applications to register, and renewals and extensions of, any of the foregoing with or by any Governmental Authority in any jurisdiction. 

        "Intellectual
Property License and Transfer Agreement" means the intellectual property license and transfer agreement to be entered into between AXP and
Ameriprise, substantially in the form attached hereto as Exhibit E, with such changes as may be agreed to by the Parties. 

        "Inter-Group
Indebtedness" means any intercompany receivables, payables, accounts, advances, loans, guarantees, commitments and indebtedness for borrowed
funds between a member of the AXP Group and a member of the Ameriprise Group; provided, that "Inter-Group Indebtedness" shall not include any
contingent Liabilities and accounts payable arising pursuant to the Ancillary Agreements, any agreements with respect to continuing transactions between AXP and Ameriprise and any other agreements
entered into in the ordinary course of business. 

        "Law"
means any applicable foreign, federal, national, state, provincial or local law (including common law), statute, ordinance, rule, regulation, code or
other requirement enacted, promulgated, issued or entered into, or act taken, by a Governmental Authority. 

        "Liabilities"
means all debts, liabilities, obligations, responsibilities, response actions, Losses, damages (whether compensatory, punitive, consequential,
treble or other), fines, penalties and sanctions, absolute or contingent, matured or unmatured, liquidated or unliquidated, foreseen or 

5

 

unforeseen,
on- or off-balance sheet, joint, several or individual, asserted or unasserted, accrued or unaccrued, known or unknown, whenever arising, including those arising
under or in connection with any Law, or other pronouncements of Governmental Authorities constituting an Action, order or consent decree of any Governmental Authority or any award of any arbitration
tribunal, and those arising under any contract, guarantee, commitment or undertaking, whether sought to be imposed by a Governmental Authority, private party, or a Party, whether based in contract,
tort, implied or express warranty, strict liability, criminal or civil statute, or otherwise, and including any costs, expenses, interest, attorneys' fees, disbursements and expense of counsel, expert
and consulting fees, fees of third party administrators, and costs related thereto or to the investigation or defense thereof. 

        "Loss"
means any claim, demand, complaint, damages, loss, liability, cost or expense arising out of, relating to or in connection with any Action. 

        "Marketing
and Branding Agreement" means the marketing and branding agreement to be entered into between AXP and Ameriprise, substantially in the form
attached hereto as Exhibit F, with such changes as may be agreed to by the Parties. 

        "Mixed
Account" has the meaning assigned to such term in Section 2.03(g)(ii). 

        "Mixed
Contract" has the meaning assigned to such term in Section 2.03(g)(i). 

        "NYSE"
means the New York Stock Exchange, Inc. 

        "Parties"
has the meaning assigned to such term in the Preamble hereto. 

        "Person"
means any natural person, corporation, general or limited partnership, limited liability company or partnership, joint stock company, joint venture,
association, trust, bank, trust company, land trust, business trust or other organization, whether or not a legal entity, and any Governmental Authority. 

        "Policies"
has the meaning assigned to such term in Section 5.05(d). 

        "Recapitalization"
has the meaning assigned to such term in Section 2.01(a). 

        "Record
Date" means the date to be determined by the Board of Directors of AXP as the record date for determining shareholders of AXP entitled to receive
shares of Ameriprise Common Stock pursuant to the Distribution. 

        "Registration
Statement" means the Registration Statement on Form 10 of Ameriprise relating to the registration under the Exchange Act of Ameriprise
Common Stock, including any amendments or supplements thereto. 

        "Reimbursable
Expenses" means the costs and expenses incurred by AXP or Ameriprise, as the case may be, that are set forth on
Schedule 9.02 hereof. 

        "Reimbursing
Party" has the meaning assigned to such term in Section 9.02. 

        "Reinsurance
and Purchase Agreements" means the (i) reinsurance agreement to be entered into by and between Amexco and AMEX Assurance and
(ii) the share purchase agreement to be entered into by and between Ameriprise, IDS Property Casualty Insurance Company and American Express Travel Related Services Company, Inc., in each case,
substantially in the forms attached hereto as Exhibit G, with such changes as may be agreed to by the parties thereto. 

        "Related
Claims" means a claim or claims against an AXP insurance policy made by each of AXP and/or its insured parties, on the one hand, or Ameriprise
and/or its insured parties, on the other hand, filed in connection with Losses suffered by each of AXP and Ameriprise arising out of the same underlying transaction, transactions, event or events. 

        "Release"
has the meaning assigned to such term in Section 5.05(d). 

6

  

        "SEC" means the United States Securities and Exchange Commission. 

        "Separation"
has the meaning assigned to such term in the Recitals hereto. 

        "Shared
Employee" has the meaning assigned to such term in Section 2.03(h). 

        "SOX"
means the Sarbanes-Oxley Act of 2002, as amended from time to time. 

        "Subsidiary"
means, with respect to any Person, any other Person of which a Person (either alone or through or together with any other Subsidiary of such
Person) owns, directly or indirectly, a majority of the stock or other equity interests the holders of which are generally entitled to vote for the election of the board of directors or other
governing body of such corporation or other legal entity. 

        "Tax
Allocation Agreement" means the tax allocation agreement to be entered into by and between AXP and Ameriprise, substantially in the form attached hereto
as Exhibit H, with such changes as may be agreed to by the Parties. 

        "Third-Party
Claim" has the meaning assigned to such term in Section 4.05(a). 

        "Transition
Services Agreements" means (i) the transition services agreement to be entered into by and between AXP and Ameriprise, (ii) the
Transition Banking Services Agreement for Ameriprise One Financial Account and Direct Banking to be entered into by and between American Express Bank, FSB and Ameriprise, and (iii) the
Transition Banking Services Agreement for Personal Trust Services to be entered into by and between American Express Bank, FSB and Ameriprise, in each case, substantially in the forms attached hereto
as Exhibit I, with such changes as may be agreed to by the Parties. 

        "Unrelated
Claims" means a claim or claims against an AXP insurance policy made by each of AXP and/or its insured parties, on the one hand, or Ameriprise
and/or its insured parties, on the other hand, filed in connection with Losses suffered by each of AXP and Ameriprise arising out of unrelated and separate transactions or events. 

        SECTION
1.02.    General Interpretive Principles. (a) Words in the singular shall include the plural and vice versa, and words of one
gender shall include the other gender, in each case, as the context requires, (b) the words "hereof," "herein," "hereunder," and "herewith" and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement and not to any particular provision of this Agreement, and references to Article, Section, paragraph, exhibit and schedule are references to the
Articles, Sections, paragraphs, exhibits and schedules to this Agreement unless otherwise specified, (c) the word "including" and words of similar import when used in this Agreement shall mean
"including, without limitation," unless otherwise specified and (d) any reference to any federal, state, local or non-U.S. statute or Law shall be deemed to also refer to all rules
and regulations promulgated thereunder, unless the context otherwise requires. 

 
 

ARTICLE II
  
    THE RECAPITALIZATION, CONTRIBUTION AND SEPARATION    

        SECTION
2.01.    Recapitalization and Other Transactions.    On or prior to the Distribution Date, and subject to satisfaction or waiver
of the conditions set forth in Section 2.04: 

        (a)    the
Ameriprise Common Stock shall be recapitalized (the "Recapitalization") such that the number of shares of Ameriprise Common Stock issued
and outstanding and owned by AXP immediately prior to the Effective Time shall be in an amount calculated on the basis of the following: one (1) share of Ameriprise Common Stock shall equal five (5)
shares of AXP Common Stock issued 

7

 

and
outstanding immediately prior to the Distribution. Such Ameriprise Common Stock owned by AXP will constitute all of the issued and outstanding capital stock of Ameriprise; and 

        (b)    Ameriprise
shall enter into a bridge loan facility with a third-party creditor or third-party creditors, in form and substance acceptable to AXP, which (i) shall
be for the account of Ameriprise, (ii) shall be deemed to constitute an Ameriprise Liability and (iii) shall be used by Ameriprise for the purpose of satisfying those obligations set
forth in Section 2.03(e). 

        SECTION
2.02.    Contribution. On or prior to the Distribution Date and subject to the satisfaction or waiver of the conditions set forth in
Section 2.04, AXP shall make the Contribution to Ameriprise. 

        SECTION
2.03.    The Separation and Related Transactions.    (a)    (i)    The Parties acknowledge that the
Separation, subject to the terms and conditions hereof and of the Ancillary Agreements, will result in (A) Ameriprise directly or indirectly operating the Ameriprise Group and the Ameriprise
Business, continuing to own the Ameriprise Assets and retaining and continuing to be liable for the Ameriprise Liabilities and (B) AXP directly or indirectly operating the AXP Group and the AXP
Business, continuing to own the AXP Assets and retaining and continuing to be liable for the AXP Liabilities. 

        (ii)    Pursuant
to the Separation, Ameriprise, or a member of the Ameriprise Group, shall remain and be the sole owner, and shall have exclusive right, title and interest in
and to, all Ameriprise Assets. Concurrently therewith, Ameriprise shall remain solely liable for and shall faithfully perform, fulfill and discharge fully in due course all of the Ameriprise
Liabilities in accordance with their respective terms. Pursuant to the Separation, AXP, or a member of the AXP Group, shall remain the sole owner, and shall have exclusive right, title and interest in
and to, all AXP Assets. Concurrently therewith, AXP shall remain and be solely liable for and shall faithfully perform, fulfill and discharge fully in due course all of the AXP Liabilities in
accordance with their respective terms. From and after the Effective Time, Ameriprise or a member of the Ameriprise Group shall be solely responsible for all Ameriprise Liabilities and AXP or a member
of the AXP Group shall be solely responsible for all AXP Liabilities, regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to, on or
subsequent to the Distribution Date, regardless of where or against whom such Liabilities are asserted or determined (including any Liabilities arising out of claims made by AXP's or Ameriprise's
respective directors, officers, employees, agents, Subsidiaries or Affiliates against any member of the AXP Group or the Ameriprise Group, as the case may be) or whether asserted or determined prior
to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the AXP Group or the
Ameriprise Group or any of their respective directors, officers, employees, agents, Subsidiaries or Affiliates, as the case may be. Notwithstanding anything herein to the contrary, this
Section 2.03(a)(ii) shall not apply to any Assets or Liabilities contributed, assigned, transferred, conveyed, delivered and/or assumed under any Ancillary Agreement, which shall be
governed by the terms thereof. 

        (iii)    Subject
to any Ancillary Agreement and to the extent that prior to the Effective Time, (A) AXP owns or is in possession of any Ameriprise Asset or Ameriprise
owns or is in possession of any AXP Asset or (B) AXP is liable to any third party for any Ameriprise Liability or Ameriprise is liable to any third party for any AXP Liability, AXP and
Ameriprise shall, and shall cause the respective members of their Groups to, cooperate and use their respective reasonable best efforts to obtain the necessary Consents to, and shall, contribute,
assign, transfer, convey and/or deliver any AXP Asset or Ameriprise Asset, as the case may be, and/or assume any AXP Liability or Ameriprise Liability, as the case may be, such that, on or prior to
the Effective Time, Ameriprise or a member of the Ameriprise Group owns and is in possession of the Ameriprise 

8

 

Assets
and is solely liable for the Ameriprise Liabilities and AXP or a member of the AXP Group owns and is in possession of the AXP Assets and is solely liable for the AXP Liabilities. 

        (b)    Delayed Transfer of Assets and/or Liabilities.    To the extent that any contribution, assignment, transfer,
conveyance, delivery or assumption required pursuant to Section 2.03 shall not have been consummated
as of the Effective Time, whether by its terms or by operation of Law (any such Asset and/or Liability, a "Delayed Transfer Asset and/or Liability") and subject to any
Ancillary Agreement: (i) AXP and Ameriprise thereafter shall, and shall cause the members of their respective Groups to, use reasonable best efforts and cooperate to effect such contribution,
assignment, transfer, conveyance, delivery or assumption as promptly following the Effective Time as shall be practicable; (ii) AXP shall thereafter, with respect to any such Ameriprise Asset,
use reasonable best efforts, with the costs of AXP related thereto to be promptly reimbursed by Ameriprise, to hold such Ameriprise Asset in trust for the use and benefit of Ameriprise and, with
respect to any such Ameriprise Liability, retain such Ameriprise Liability for the account of Ameriprise; and (iii) Ameriprise shall thereafter, with respect to any such AXP Asset, use
reasonable best efforts, with the costs of Ameriprise related thereto to be promptly reimbursed by AXP, to hold such AXP Asset in trust for the use and benefit of AXP and, with respect to any such AXP
Liability, to retain such AXP Liability for the account of AXP, in each case in order to place each Party, insofar as is reasonably possible, in the same position as would have existed had such
Delayed Transfer Asset and/or Liability been contributed, assigned, transferred, conveyed, delivered or assumed as contemplated hereby (it being understood that neither AXP (with respect to any
Ameriprise Asset or Ameriprise Liability) nor Ameriprise (with respect to any AXP Asset or AXP Liability) shall be required to take any action pursuant to this clause that would, or could reasonably
be expected to, result in any financial obligation to it or any restriction on its business or operations, except as may be required in any Ancillary Agreement. To the extent that Ameriprise is
provided the use or benefit of any Ameriprise Asset or has any Ameriprise Liability held for its account pursuant to this Section 2.03(b), Ameriprise shall perform, for the benefit of AXP and
any third Person, the obligations of AXP thereunder or in connection therewith, or as may be directed by AXP and if Ameriprise shall fail to perform to the extent required herein, Ameriprise shall
hold AXP harmless and indemnify AXP therefor. To the extent that AXP is provided the use or benefit of any AXP Asset or has any AXP Liability held for its account pursuant to this
Section 2.03(b), AXP shall perform, for the benefit of Ameriprise and any third Person, the obligations of Ameriprise thereunder or in connection therewith, or as may be directed by Ameriprise
and if AXP shall fail to perform to the extent required herein, AXP shall hold Ameriprise harmless and indemnify Ameriprise therefor. Each Party shall, and/or shall cause members of its Group to, as
and when any such Delayed Transfer Asset and/or Liability becomes contributable, assignable, transferable, conveyable, deliverable or assumable by such Party, effect such contribution, assignment,
transfer, conveyance, delivery or assumption, as applicable, as promptly as practicable thereafter. 

        (c)    Assignment of Certain Agreements.    Subject to the Ancillary Agreements and to Section 2.03(g) hereof,
(i) AXP shall assign to Ameriprise all of its right, title and interest under the agreements comprising Ameriprise Assets, as set forth on
Schedule 2.03(c)(i) attached hereto, and (ii) Ameriprise shall assign to AXP all of its right, title and interest under the agreements comprising AXP
Assets, as set forth on Schedule 2.03(c)(ii) attached hereto, and each Party shall execute and deliver any and all instruments of substitution and such other
instruments or agreements as shall be necessary in connection with the discharge of the other Party from its respective obligations with respect to such agreements. 

        (d)    Termination of Certain Agreements.    Subject to Section 2.03(e), all contracts, licenses, agreements,
commitments or other arrangements, formal or informal, between any member of the AXP Group, on the one hand, and any member of the Ameriprise Group, on the other hand, in existence on or prior to the
Distribution Date, shall be automatically settled, cancelled, assigned, assumed or terminated by the Parties at the Effective Time, except (i) for (A) such agreements specifically set
forth 

9

 

on
Schedule 2.03(d) attached hereto, (B) this Agreement and (C) each Ancillary Agreement (including each other agreement or instrument expressly
contemplated by this Agreement or any Ancillary Agreement to be entered into by any of the Parties or any of the members of their respective Groups), (ii) for any contracts, licenses,
agreements, commitments or other arrangements to which any Person is a party in addition to either Party or any member of either Group, or (iii) as otherwise agreed to in good faith by the
Parties in writing on or after the date hereof. Except as expressly provided in Section 2.03(e), from and after the Distribution Date, no member of either Group shall have any rights or
obligations under any such settled, cancelled, assigned, assumed or terminated contract, license, agreement, commitment or arrangement with any member of the other Group. 

        (e)    Settlement of Inter-Group Indebtedness.    Except with respect to the agreements specifically set forth on
Schedule 2.03(d), the Parties shall use their reasonable best efforts to settle all amounts payable in connection with any Inter-Group Indebtedness on or prior to
the Distribution Date, and in any event shall settle all such amounts payable in connection with such Inter-Group Indebtedness no later than the 60th day following the Distribution Date. 

        (f)    Guarantee Obligations.    (i) AXP and Ameriprise shall cooperate, and shall cause their respective
Groups to cooperate, to terminate, or to cause a member of the AXP Group to be substituted in all respects for any member of the Ameriprise Group in respect of, all obligations of such member of the
Ameriprise Group under any AXP Liability for which such member of the Ameriprise Group may be liable, as guarantor, original tenant, primary obligor or otherwise. If such termination or substitution
is not effected by the Distribution Date, (A) AXP shall indemnify and hold harmless the Ameriprise Indemnified Party for any Liability arising from or relating thereto and (B) without
the prior written consent of Ameriprise, from and after the Distribution Date, AXP shall not, and shall not permit any member of the AXP Group or any of its Affiliates to, amend, renew or extend the
term of, increase its obligations under, or transfer to a third Person, any loan, lease, contract or other obligation for which any member of the Ameriprise Group is or may be liable, unless all
obligations of the Ameriprise Group with respect thereto are thereupon terminated by documentation reasonably satisfactory in form and substance to Ameriprise; provided,
that the limitations in clause (B) shall not apply in the event that a member of the AXP Group obtains a letter of credit from a financial institution reasonably acceptable to Ameriprise and
for the benefit of any member of the Ameriprise Group with respect to such obligation of the Ameriprise Group. 

        (ii)    AXP
and Ameriprise shall cooperate, and shall cause their respective Groups to cooperate, to terminate, or to cause a member of the Ameriprise Group to be substituted
in all respects for any member of the AXP Group in respect of, all obligations of such member of the AXP Group under any Ameriprise Liability for which such member of the AXP Group may be liable, as
guarantor, original tenant, primary obligor or otherwise. If such termination or substitution is not effected by the Distribution Date, (A) Ameriprise shall indemnify and hold harmless the AXP
Indemnified Party for
any Liability arising from or relating thereto and (B) without the prior written consent of AXP, from and after the Distribution Date, Ameriprise shall not, and shall not permit any member of
the Ameriprise Group to, amend, renew or extend the term of, increase its obligations under, or transfer to a third Person, any loan, lease, contract or other obligation for which any member of the
AXP Group is or may be liable, unless all obligations of the AXP Group with respect thereto are thereupon terminated by documentation reasonably satisfactory in form and substance to AXP;
provided, that the limitations in clause (B) shall not apply in the event that a member of the Ameriprise Group obtains a letter of credit from a financial
institution reasonably acceptable to AXP and for the benefit of any member of the AXP Group with respect to such obligation of the AXP Group. 

        (g)    Mixed Contracts; Mixed Accounts.    (i) Unless the Parties agree otherwise, any agreement to which any
member of the AXP Group or the Ameriprise Group is a party prior to the Effective Time 

10

 

that
inures to the benefit or burden of both of the AXP Business and the Ameriprise Business (a "Mixed Contract") shall be assigned in part to Ameriprise or one of its
Subsidiaries, and/or to AXP or one of its Subsidiaries, as the case may be, if so assignable, prior to or as of the Effective Time, such that each Party or its respective Subsidiaries shall be
entitled to the rights and benefits thereof and shall assume the related portion of any obligations thereunder and any Liabilities inuring to their respective Businesses;
provided, however, that in no event shall either Party be required to assign any Mixed Contract in its entirety. If any Mixed Contract cannot
be so partially assigned, AXP and Ameriprise shall, and shall cause each of their respective Subsidiaries to, take such other reasonable and permissible actions to cause: (A) the Assets
associated with that portion of each Mixed Contract that relates to the Ameriprise Business to be enjoyed by Ameriprise or an Ameriprise Subsidiary; (B) the Liabilities associated with that
portion of each Mixed Contract that relates to the Ameriprise Business to be borne by Ameriprise or an Ameriprise Subsidiary; (C) the Assets associated with that portion of each Mixed Contract
that relates to the AXP Business to be enjoyed by AXP or an AXP Subsidiary; and (D) the Liabilities associated with that portion of each Mixed Contract that relates to the AXP Business to be
borne by AXP or an AXP Subsidiary; provided, however, that the arrangements described in clauses (A), (B), (C) and (D) shall
terminate on the earlier to occur of (1) the termination of the applicable Mixed Contract and (2) the second anniversary of the Distribution Date. 

        (ii)    Except
as may otherwise be agreed by the Parties, neither Party shall seek to assign any accounts receivable or accounts payable relating to both the AXP Business and
the Ameriprise Business ("Mixed Accounts"). AXP and Ameriprise shall, and shall cause each of their respective Subsidiaries to, take such other reasonable and permissible
actions to cause: (A) the Assets associated with that portion of each Mixed Account that relates to the AXP Business to be enjoyed solely by AXP or an AXP Subsidiary; (B) the Liabilities
associated with that portion of each Mixed Account that relates to the AXP Business to be borne solely by AXP or an AXP Subsidiary; (C) the Assets associated with that portion of each Mixed
Account that relates to the Ameriprise Business to be enjoyed solely by Ameriprise or an Ameriprise Subsidiary; and (D) the Liabilities associated with that portion of each Mixed Account that
relates to the Ameriprise Business to be borne solely by Ameriprise or an Ameriprise Subsidiary; provided, however, that the arrangements
described in clauses (A), (B), (C) and (D) shall terminate no later than the second anniversary of the Distribution Date. 

        (iii)    Nothing
in this Section 2.03(g) shall require any member of either Group to make any payment, incur any obligation or grant any concession to any third party in
order to effect any transaction contemplated by this Section 2.03(g). 

        (h)    Shared Employees. Immediately prior to the Distribution Date, (i) each Person who is an officer, director or
employee of any member of the Ameriprise Group and an officer, director or employee of any member of the AXP Group (a "Shared Employee") and who is to continue as an
officer, director or employee of any member of the Ameriprise Group after the Distribution Date shall resign, effective at or prior to the Effective Time, from each of such Person's positions with
each member of the AXP Group and (ii) each such Shared Employee who is to continue as an officer, director or employee of any member of the AXP Group after the Distribution Date shall resign,
effective at or prior to the Effective Time, from each of such Person's positions with each member of the Ameriprise Group. 

11

 

        SECTION
2.04.    Conditions Precedent to Consummation of the Recapitalization, Separation and the Contribution.    The obligations of the
Parties to consummate each of the Recapitalization, the Contribution and the Separation is subject to the prior or simultaneous satisfaction, or waiver by AXP in its sole and absolute discretion, of
each of the following conditions: 

        (a)   final
approval of the Recapitalization, the Contribution and the Separation shall have been given by the Board of Directors of AXP in its sole and absolute discretion;
and 

        (b)   each
of the conditions precedent to the consummation of the Distribution set forth in Section 3.03 hereof (other than Section 3.03(j)) shall have been
satisfied or waived by AXP in its sole and absolute discretion. 

Each
of the foregoing conditions is for the benefit of AXP and AXP may, in its sole and absolute discretion, determine whether to waive any such condition. Any determination made by AXP prior to the
Recapitalization, the Contribution or the Separation concerning the satisfaction or waiver of any or all of the conditions set forth in this Section 2.04 shall be conclusive and binding on the
Parties. 

 
 

ARTICLE III
  
    THE DISTRIBUTION    

        Section 3.01.    Actions
Prior to the Distribution.    Subject to the satisfaction or waiver of the conditions set forth in
Section 3.03, the actions set forth in this Section 3.01 shall be taken prior to the Distribution Date. 

        (a)    The
Board of Directors of AXP shall establish the Distribution Date and any appropriate procedures in connection with the Distribution. AXP and Ameriprise shall use
reasonable best efforts to (i) cooperate with each other with respect to the preparation of the Registration Statement and the Information Statement, (ii) cause the Registration
Statement to become effective under the Exchange Act and to keep the Registration Statement effective until the Effective Time, and (iii) mail, promptly after effectiveness of the Registration
Statement and on or promptly after the Record Date, and in any event prior to the Distribution Date, to the holders of AXP Common Stock as of the Record Date, the Information Statement. 

        (b)    AXP
shall enter into a distribution agreement with the Distribution Agent (the "Distribution Agent Agreement") providing for, among other
things, (i) the payment of the Distribution to the holders of AXP Common Stock in accordance with this Article III and the Distribution Agent Agreement, and (ii) the designation
of Ameriprise as a third-party beneficiary. 

        (c)    AXP
and Ameriprise shall deliver to the Distribution Agent (i) share certificates representing (or book-entry transfer authorizations for) all of the
outstanding shares of Ameriprise Common Stock to be distributed in connection with the payment of the Distribution and (ii) all information required to complete the Distribution on the basis
set forth herein and under the Distribution Agent Agreement. Following the Distribution Date, upon the request of the Distribution Agent, Ameriprise shall provide to the Distribution Agent all
certificates for shares (or book-entry transfer authorizations) of Ameriprise Common Stock that the Distribution Agent shall require in order to further effect the Distribution. 

        (d)    Each
of AXP and Ameriprise shall execute and deliver to the other Party, or cause the appropriate members of its Group to execute and deliver to the other Party, each of
the Ancillary Agreements and any other document necessary to effect the transactions contemplated by this Agreement. 

        (e)    AXP
will establish the Record Date and, to the extent possible, give the NYSE not less than ten days' advance notice of the Record Date in compliance with
Rule 10b-17 under the Exchange Act. 

        (f)    Each
Party shall cooperate with the other Party to accomplish the Distribution and shall take any and all actions necessary or desirable to effect the Distribution. 

12

 

        (g)    The
Parties will take all actions and make all filings, as AXP, in consultation with Ameriprise but ultimately in its sole and absolute discretion, determines is
necessary or appropriate, to cause the transfer or issuance of all material Consents in order for AXP and Ameriprise to operate their respective Businesses independently of each other in the manner
contemplated hereunder and under the Ancillary Agreements. Ameriprise will prepare, file and use reasonable best efforts to make effective an application for listing of the Ameriprise Common Stock on
the NYSE, subject to official notice of issuance. 

        (h)    AXP
shall, in its sole discretion, determine (i) whether to proceed with all or part of the Distribution, (ii) the Distribution Date, (iii) the
timing and conditions to the Distribution and (iv) the terms thereof. AXP may, at any time and from time to time, change the terms of the Distribution, including by delaying or accelerating the
timing of the Distribution. AXP shall use good faith efforts to provide notice to Ameriprise of any such change. AXP shall select the outside financial advisors, outside counsel, agents and the
financial printer employed in connection with the transactions hereunder in its sole and absolute discretion. 

        (i)    AXP
and Ameriprise shall take all actions necessary so that the Amended and Restated Certificate of Incorporation and the Amended and Restated Bylaws shall be in effect
at or prior to the Effective Time. 

        (j)    AXP
and Ameriprise shall take all such actions as AXP, in consultation with Ameriprise but ultimately in its sole and absolute discretion, determines is necessary or
appropriate under applicable federal or state securities or blue sky laws of the United States (and any comparable laws under any foreign jurisdiction) in connection with the Distribution. 

        SECTION
3.02.    The Distribution.    Subject to the satisfaction or waiver of the conditions set forth in Section 3.03, the
actions set forth in this Section 3.02 shall be taken on the Distribution Date. 

        (a)    AXP
shall effect the Distribution by causing all of the issued and outstanding shares of Ameriprise Common Stock beneficially owned by AXP to be distributed to record
holders of shares of AXP Common Stock as of the Record Date, other than with respect to shares of AXP Common Stock held in the treasury of AXP, by means of a pro
rata dividend of such Ameriprise Common Stock to holders
of shares of AXP Common Stock, on the terms and subject to the conditions set forth in this Agreement. 

        (b)    Each
record holder of AXP Common Stock on the Record Date (or such holder's designated transferee or transferees), other than in respect of shares of AXP Common Stock
held in the treasury of AXP, will be entitled to receive in the Distribution, one (1) share of Ameriprise Common Stock with respect to every five (5) shares of AXP Common Stock held by such record
holder on the Record Date. AXP shall direct the Distribution Agent to distribute on the Distribution Date or as soon as reasonably practicable thereafter the appropriate number of shares of Ameriprise
Common Stock to each such record holder or designated transferee(s) of such holder of record. 

        (c)    AXP
shall direct the Distribution Agent, to determine, as soon as is practicable after the Distribution Date, the number of fractional shares, if any, of Ameriprise
Common Stock allocable to each holder of record of AXP Common Stock entitled to receive Ameriprise Common Stock in the Distribution and to promptly thereafter aggregate all such fractional shares and
sell the whole shares obtained thereby, in open market transactions or otherwise at the then-prevailing trading prices, and to cause to be distributed to each such holder, in lieu of any
fractional share, such holder's ratable share of the proceeds of such sale, after making appropriate deductions of the amounts required to be withheld for federal income tax purposes and after
deducting an amount equal to all brokerage charges, commissions and transfer taxes attributed to such sale. 

        (d)    Any
Ameriprise Common Stock or cash, in lieu of fractional shares, with respect to Ameriprise Common Stock that remains unclaimed by any holder of record 180 days
after the Distribution Date shall be delivered to Ameriprise. Ameriprise shall hold such Ameriprise Common Stock and/or cash for the account of such holder of record and any such holder of record
shall look only to Ameriprise for such Ameriprise Common Stock and/or cash, if any, in lieu of fractional share interests, subject in each case to applicable escheat or other abandoned property laws. 

13

  

        SECTION 3.03.    Conditions to Distribution.    The obligation of AXP to consummate the
Distribution is subject to the prior or simultaneous satisfaction, or waiver by AXP, in its sole and absolute discretion, of each of the following conditions: 

        (a)   final
approval of the Distribution shall have been given by the Board of Directors of AXP, and the Board of Directors of AXP shall have declared the dividend of
Ameriprise Common Stock, each such action in its sole and absolute discretion; 

        (b)   the
Registration Statement shall have been filed with, and declared effective by, the SEC, and there shall be no stop-order in effect with respect thereto
and the Information Statement shall have been mailed to AXP shareholders; 

        (c)   the
actions and filings necessary or appropriate under applicable federal and state securities laws and state blue sky laws of the United States (and any comparable laws
under any foreign jurisdictions) in connection with the Distribution (including, if applicable, any actions and filings relating to the Registration Statement) and any other necessary and applicable
Consents shall have been taken, obtained and, where applicable, have become effective or been accepted, each as the case may be; 

        (d)   the
Ameriprise Common Stock to be delivered in the Distribution shall have been accepted for listing on the NYSE, subject to official notice of issuance; 

        (e)   no
order, injunction or decree issued by any Governmental Authority or other legal restraint or prohibition preventing the consummation of the Separation, the
Contribution or the Distribution or any of the other transactions contemplated by this Agreement or any Ancillary Agreement shall have been threatened or be in effect; 

        (f)    AXP
shall have received a tax opinion from Cleary Gottlieb Steen & Hamilton LLP, in form and substance satisfactory to AXP, to the effect that the transactions
contemplated hereunder will qualify as transactions that are generally tax free under Sections 355, 361, and 368 of the Code, and the private letter ruling issued to AXP by the Internal Revenue
Service regarding the tax free status of the transactions contemplated hereunder shall not have been revoked or materially amended; 

        (g)   AXP
shall have established the Record Date and shall have given the NYSE not less than ten days' advance notice of the Record Date in compliance with
Rule 10b-17 under the Exchange Act; 

        (h)   the
Distribution will not violate or result in a breach of Law or any material agreement; 

        (i)    all
Consents required in connection with the transactions contemplated hereby shall have been received and be in full force and effect; 

        (j)    the
Separation, Contribution and Recapitalization shall have been consummated in accordance with this Agreement; 

        (k)   Ameriprise,
IDS Life Insurance Company and IDS Property Casualty Insurance Company shall have received credit ratings from the rating agencies rating such entities that
are satisfactory to AXP; 

        (l)    Ameriprise
shall have transferred to AXP all of its right, title and interest in AEIDC; 

        (m)  Ameriprise
shall have entered into the bridge loan facility; 

        (n)   the
Ancillary Agreements shall have been duly executed and delivered and such agreements shall be in full force and effect and the parties thereto shall have performed
or complied with all of their respective covenants, obligations and agreements contained herein and therein and as required to be performed or complied with prior to the Effective Time; and 

        (o)   the
Board of Directors of AXP shall have not determined that any event or development shall have occurred or exists that makes it inadvisable to effect the Distribution. 

14

 

Each
of the foregoing conditions is for the sole benefit of AXP and AXP may, in its sole and absolute discretion, determine whether to waive any such condition. Any determination made by AXP, in its
sole and absolute discretion, prior to the Distribution concerning the satisfaction or waiver of any or all of
the conditions set forth in this Section 3.03 shall be conclusive and binding on the Parties. Each Party will use good faith efforts to keep the other Party apprised of its efforts with respect
to, and the status of, each of the foregoing conditions. 

 
 

ARTICLE IV
  
    SURVIVAL AND INDEMNIFICATION    

        SECTION 4.01.    Survival of Agreements.    All covenants and agreements of the
Parties contained in this Agreement shall survive each of the Separation, the Contribution and the Distribution. 

        SECTION
4.02.    Indemnification by Ameriprise.    Ameriprise shall indemnify, defend,
release and hold harmless AXP, each member of the AXP Group and each of their respective directors, officers and employees, and each of the heirs, executors, successors and assigns of any of the
foregoing (collectively, the "AXP Indemnified Parties"), from and against any and all Losses or Liabilities of the AXP Indemnified Parties relating to, arising out of or
resulting from any of the following items regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud, misrepresentation or otherwise (without
duplication): 

        (a)   the
failure of Ameriprise or any other member of the Ameriprise Group or any other Person to pay, perform or otherwise promptly discharge any Ameriprise Liability or any
contract, agreement or arrangement included in the Ameriprise Assets in accordance with their respective terms, whether arising prior to, on or after the Distribution Date; 

        (b)   any
Ameriprise Liability, any Ameriprise Asset or the Ameriprise Business (subject to Section 4.03(g)), whether arising prior to, on or after the Distribution
Date; 

        (c)   any
breach by Ameriprise or any member of the Ameriprise Group of this Agreement; 

        (d)   except
to the extent set forth in Section 4.03(f), any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements therein not misleading, contained in the Registration Statement or the Information Statement or in any registration
statement filed by Ameriprise (or related prospectus); 

        (e)   the
failure by Ameriprise to substitute a member of the Ameriprise Group for any member of the AXP Group as guarantor or primary obligor for any Ameriprise Agreement or
Ameriprise Liability according to the terms and conditions of Section 2.03(f)(ii); and 

        (f)    the
failure by Ameriprise to perform in connection with any Delayed Transfer Asset and/or Liability held by AXP for Ameriprise's benefit pursuant to
Section 2.03(b). 

        SECTION
4.03.    Indemnification by AXP.    AXP shall indemnify, defend,
release and hold harmless Ameriprise, each member of the Ameriprise Group and each of their respective directors, officers and employees, and each of the heirs, executors, successors and assigns of
any of the foregoing (collectively, the "Ameriprise Indemnified Parties," and, together with AXP Indemnified Parties, the "Indemnified
Parties"), from and against any and all Losses or Liabilities of the Ameriprise Indemnified Parties relating to, arising out of or resulting from any of the following items regardless
of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud, misrepresentation or otherwise (without duplication): 

        (a)   the
failure of AXP or any other member of the AXP Group or any other Person to pay, perform or otherwise promptly discharge any AXP Liability or any contract, agreement
or arrangement included in the AXP Assets in accordance with their respective terms, whether arising prior to, on or after the Distribution Date; 

15

 

        (b)   any
AXP Liability, AXP Asset or the AXP Business, whether arising prior to, on or after the Distribution Date; 

        (c)   any
breach by AXP or any member of the AXP Group of this Agreement; 

        (d)   the
failure by AXP to substitute a member of the AXP Group for any member of the Ameriprise Group as guarantor or primary obligor for any AXP agreement or AXP Liability,
according to the terms and conditions of Section 2.03(f)(i); 

        (e)   the
failure by AXP to perform in connection with any Delayed Transfer Asset and/or Liability held by Ameriprise for AXP's benefit pursuant to Section 2.03(b); 

        (f)    any
untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, but only with respect to the information contained in the Registration Statement or the Information Statement that is set forth on
Schedule 4.03(f); and 

        (g)   to
the extent arising from certain matters to be specifically identified by the Parties, subject to such terms and conditions as shall be agreed to by the Parties. 

        SECTION
4.04.    Insurance.    (a) Each of AXP and Ameriprise shall use its
respective reasonable best efforts to collect any proceeds under its respective available and applicable third party insurance policies (not reinsured by captive insurance Subsidiaries of AXP or
Ameriprise, as applicable) to which it or any of its Subsidiaries is entitled prior to seeking indemnification or contribution under this Agreement, where allowed;
provided, however, that any such actions by an Indemnified Party will not relieve the Indemnifying Party of any of its obligations under this
Agreement, including the Indemnifying Party's obligation to pay directly or reimburse the Indemnified Party for costs and expenses actually incurred by the Indemnified Party. 

        (b)   The
amount of any Loss subject to indemnification or contribution pursuant to this Agreement will be reduced by any amounts actually recovered (including insurance
proceeds or other amounts actually recovered under insurance policies, net of any out-of-pocket costs or expenses incurred in the collection thereof), whether retroactively or
prospectively, by the Indemnified Party from any third Person with respect to such Loss. If any Indemnified Party recovers an amount from a third Person in respect of any Loss for which
indemnification is provided in this Agreement after the full amount of such indemnifiable Loss has been paid by an Indemnifying Party or after an Indemnifying Party has made a payment of such
indemnifiable Loss and the amount received from the third Person exceeds the remaining unpaid balance of such indemnifiable Loss, then the Indemnified Party will promptly remit to the Indemnifying
Party the excess (if any) of (i) the sum of the amount previously paid by such Indemnifying Party in respect of such indemnifiable Loss plus the amount received by such Indemnified Party from
such third Person in respect of such indemnifiable Loss (after deducting any costs and expenses that have not yet been paid or reimbursed by the Indemnifying Party), minus (ii) the full amount
of such indemnifiable Loss. An insurer or other third Person who would otherwise be obligated to pay any Loss shall not be relieved of the responsibility with respect thereto or, solely by virtue of
the indemnification and contribution provisions hereof, have any subrogation rights with respect thereto, it being understood and agreed that no insurer or any third Person shall be entitled to a
"windfall" (i.e., a benefit it would not be entitled to receive in the absence of the indemnification and contribution provisions) by virtue of the indemnification and contribution provisions hereof. 

        SECTION
4.05.    Procedures for Indemnification of Third-Party Claims.    (a) If
an Indemnified Party shall receive notice or otherwise learn of the assertion by any Person who is not a member of the AXP Group or the Ameriprise Group of any claim, or of the commencement by any
such Person of any Action, with respect to which an Indemnifying Party may be obligated to provide indemnification to such Indemnified Party pursuant to Section 4.02 or Section 4.03, or
any other Section of this Agreement or any Ancillary Agreement (collectively, a "Third-Party Claim"), such Indemnified Party 

16

 

shall
give such Indemnifying Party written notice thereof within 30 days after such Indemnified Party received notice of such Third-Party Claim. Any such notice shall describe the Third-Party
Claim in reasonable detail, including, if known, the amount of the Liability for which indemnification may be available. Notwithstanding the foregoing, the failure of any Indemnified Party or other
Person to give notice as provided in this Section 4.05(a) shall not relieve the related Indemnifying Party of its obligations under this Article IV, except to the extent that such
Indemnifying Party is actually prejudiced by such failure to give notice. 

        (b)   An
Indemnifying Party may elect (but is not required) to assume the defense of and defend, at such Indemnifying Party's own expense and by such Indemnifying Party's own
counsel, any Third-Party Claim. Within 30 days after the receipt of notice from an Indemnified Party in accordance with Section 4.05(a) (or sooner, if the nature of such Third-Party
Claim so requires), the Indemnifying Party shall notify the Indemnified Party of its election whether the Indemnifying Party will assume responsibility for defending such Third-Party Claim, which
election shall specify any reservations or exceptions. If, in such notice, the Indemnifying Party elects to assume the defense of a Third-Party Claim, the Indemnified Party shall have the right to
employ separate counsel and to participate in (but not control) the defense, compromise, or settlement thereof, but the fees and expenses of such counsel shall be the expense solely of such
Indemnified Party. 

        (c)   If,
in such notice, an Indemnifying Party elects not to assume responsibility for defending a Third-Party Claim, or fails to notify an Indemnified Party of its election
as provided in Section 4.05(b), such Indemnified Party may defend such Third-Party Claim at the cost and expense of the Indemnifying Party; provided, that in the
event of any such failure to notify, the Indemnifying Party may thereafter assume the defense of such Third-Party Claim upon notice to the Indemnified Party (but the cost and expense of such
Indemnified Party in defending such Third-Party Claim incurred from the last day of the notice period under Section 4.05(b) until such date as the Indemnifying Party shall assume the defense of
such Third-Party Claim shall be paid by the Indemnifying Party). 

        (d)   Unless
the Indemnifying Party has failed to assume the defense of the Third-Party Claim in accordance with the terms of this Agreement, no Indemnified Party may settle
or compromise any Third-Party Claim without the consent of the Indemnifying Party. 

        (e)   The
Indemnifying Party shall have the right to compromise or settle a Third-Party Claim the defense of which it shall have assumed pursuant to Section 4.05(b) or
Section 4.05(c) and any such settlement or compromise made or caused to be made of a Third-Party Claim in accordance with this Article IV shall be binding on the Indemnified Party, in
the same manner as if a final judgment or decree had been entered by a court of competent jurisdiction in the amount of such settlement or compromise. Notwithstanding the foregoing sentence, the
Indemnifying Party shall not have the right to admit culpability on behalf of the Indemnified Party and shall not compromise or settle a Third-Party Claim unless the compromise or settlement includes,
as a part thereof, an unconditional release of the Indemnified Party from Liability with respect to such Third-Party Claim and does not require the Indemnified Party to make any payment that is not
fully indemnified under this Agreement or to be subject to any non-monetary remedy, in each case without the express prior consent of the Indemnified Party (not to be unreasonably withheld
or delayed). 

        (f)    The
provisions of Section 4.02 through Section 4.07 shall not apply to matters that are governed by the Tax Allocation Agreement. 

        SECTION
4.06.    Additional Matters.    (a) Any claim with respect to a Liability
that does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnified Party to the related Indemnifying Party. Such Indemnifying Party shall have a period of
30 days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond in writing within such 30-day period, such Indemnifying Party
shall be deemed to have agreed to accept responsibility to make payment. If such Indemnifying Party does not respond within such 30-day period 

17

 

or
rejects such claim in whole or in part, such Indemnified Party shall be free to pursue such remedies as may be available to such Party as contemplated by this Agreement. 

        (b)   In
the event of payment by or on behalf of any Indemnifying Party to any Indemnified Party in connection with any Third-Party Claim, such Indemnifying Party shall be
subrogated to and shall stand in the place of such Indemnified Party as to any events or circumstances in respect of which such Indemnified Party may have any right, defense or claim relating to such
Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim or against any other Person. Such Indemnified Party shall cooperate with such Indemnifying Party in a reasonable
manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right, defense or claim. 

        (c)   In
the event of an Action in which the Indemnifying Party is not a named defendant, if either the Indemnified Party or Indemnifying Party shall so request, the Parties
shall endeavor to substitute the Indemnifying Party for the named defendant, if at all practicable. If such substitution or addition cannot be achieved for any reason or is not requested, the named
defendant shall allow the Indemnifying Party to manage the Action as set forth in this Article IV. 

        SECTION
4.07.    Contribution.    In the event that the foregoing indemnity is
unavailable to either Party for any reason, the Party from whom such indemnity is sought agrees to contribute, in accordance with this Section 4.07, to any Losses incurred in connection with
the transaction or transactions for which such indemnity is sought. For such Losses referred to in Section 4.02 or Section 4.03, as the case may be, the Party from which indemnity is
sought shall contribute in such proportion as is appropriate to reflect the relative benefits received (or anticipated to be received) by the respective Parties. For any other Losses, and if the
allocation provided by the immediately preceding sentence is unavailable for any reason, the Party from which indemnity is sought shall contribute in such proportion as is appropriate to reflect not
only such relative benefit but also the relative fault of the Party from which indemnity is sought in connection with the statements, omissions or other conduct which resulted in such Losses, as well
as any other relevant equitable considerations. The Parties agree that it would not be just and equitable if contribution were determined by pro rata
allocation or by any other method of allocation which does not take account of the equitable considerations referred to above. 

        SECTION
4.08.    Survival of Indemnities.    The rights and obligations of each of AXP
and Ameriprise and their respective Indemnified Parties under this Article IV shall survive the sale or other transfer by any Party of any of its Assets or Businesses or the assignment by it of
any Liabilities. 

        SECTION
4.09.    Remedies Cumulative.    The remedies provided in this Article IV
shall be cumulative and shall not preclude assertion by any Indemnified Party of any other rights or the seeking of any and all other remedies against any Indemnifying Party;
provided, that the procedures set forth in this Article IV shall be the exclusive procedures governing any indemnity action brought under this Agreement. 

        SECTION
4.10.    Ancillary Agreements.    Notwithstanding anything in this Agreement to
the contrary, to the extent any Ancillary Agreement contains any indemnification obligation or contribution obligation relating to any AXP Liability, AXP Asset, Ameriprise Liability or Ameriprise
Asset contributed, assumed, retained, transferred, delivered or conveyed pursuant to such Ancillary Agreement, the indemnification obligations and contribution obligations contained herein shall not
apply to such AXP Liability, AXP Asset, Ameriprise Liability or Ameriprise Asset and instead the indemnification obligations and/or contribution obligations set forth in such Ancillary Agreement shall
govern with regard to such AXP Asset, AXP Liability, Ameriprise Asset or Ameriprise Liability. 

 
 

ARTICLE V
  
    CERTAIN ADDITIONAL COVENANTS    

        Section 5.01.    Consents for Business.    After the Effective Time, each Party
shall cause the appropriate members of its respective Group to prepare and file with the appropriate Governmental 

18

 

Authorities
applications for the transfer or issuance, as each of the Parties determines is necessary or advisable, to its Group of all material Consents required for the members of its Group to
operate its Business. The members of the Ameriprise Group and the members of the AXP Group shall cooperate and use all reasonable efforts to secure the transfer or issuance of such Consents. 

        SECTION
5.02.    Additional Consents.    In addition to the actions described in
Section 5.01, the members of the AXP Group and the members of the Ameriprise Group shall cooperate to make all other filings and to give notice to and obtain any Consent required or advisable
to consummate the transactions that are contemplated to occur from and after the Effective Time by this Agreement and the Ancillary Agreements. 

        SECTION
5.03.    Further Assurances.    (a) Each of the Parties shall use its
reasonable best efforts, on and after the Distribution Date, to take, or cause to be taken, all actions, and to do, or cause to be done, all things, reasonably necessary, proper or advisable under
applicable Laws, regulations and agreements to consummate and make effective the transactions contemplated by this Agreement and the Ancillary Agreements. 

        (b)   Without
limiting the foregoing, on and after the Distribution Date, each Party shall cooperate with the other Party, and without any further consideration, but at the
expense of the requesting Party, to cause to be executed and delivered, all instruments, including instruments of conveyance, assignment and transfer, and to make all filings with, and to obtain all
Consents, under any permit, license, agreement, indenture or other instrument, and to take all such other actions as either Party may request to take by any other Party from time to time, consistent
with the terms of this Agreement and the Ancillary Agreements, in order to effectuate the provisions and purposes of this Agreement and the Ancillary Agreements and, to the extent necessary,
(i) the transfer of any Ameriprise Asset from any member of the AXP Group to any member of the Ameriprise Group and the assignment and assumption of any Ameriprise Liability by any member of
the Ameriprise Group and (ii) the transfer of any AXP Asset from any member of the Ameriprise Group to any member of the AXP Group and the assignment and assumption of any AXP Liability by any
member of the AXP Group, and the other transactions contemplated hereby and thereby; provided that neither Party shall be obligated to make any payment, incur any
obligation or grant any concession, other than the payment of ordinary and customary fees to Governmental Authorities. 

        (c)   AXP
and Ameriprise, in their respective capacities as direct and indirect stockholders of their respective Subsidiaries, shall each properly ratify any actions that are
reasonably necessary or desirable to be taken by AXP and Ameriprise, or any of their respective Subsidiaries, as the case may be, to effectuate the transactions contemplated by this Agreement and any
Ancillary Agreements. 

        (d)   Each
of the Parties shall, and shall cause each of the members of their respective Groups, at the request of the other, to use its reasonable best efforts to obtain, or
cause to be obtained, any Consent, substitution or amendment required to novate (including with respect to any federal government contract) or assign all obligations under agreements, leases, licenses
and other obligations or Liabilities of any nature whatsoever that constitute Ameriprise Liabilities or AXP Liabilities, as the case may be, or to obtain in writing the unconditional release of all
parties to such arrangements other than any member of either the Ameriprise Group or the AXP Group, as the case may be, so that, in any such case, such Group will be solely responsible for all such
Liabilities. 

        (e)   In
the event that at any time and from time to time (whether prior to, at or after the Effective Time), any member of the AXP Group shall receive or otherwise possess
any Ameriprise Asset, AXP shall or shall cause such member of the AXP Group to promptly transfer such Ameriprise Asset to Ameriprise or its Affiliate or designee. 

        (f)    In
the event that at any time and from time to time (whether prior to, at or after the Effective Time), any member of the Ameriprise Group shall receive or otherwise
possess any AXP Asset, Ameriprise shall or shall cause such member of the Ameriprise Group to promptly transfer such AXP Asset to AXP or its Affiliate or designee. 

19

 

        SECTION
5.04.    Certain Business Matters.    (a) Following the Effective Time and
except as set forth in any Ancillary Agreement, no member of either Group shall have any duty to refrain from (i) engaging in the same or similar activities or lines of business as any member
of the other Group, (ii) conducting its business with any potential or actual supplier or customer of any member of the other Group or (iii) engaging in, or refraining from, any other
activities whatsoever relating to any of the potential or actual suppliers or customers of any member of the Group. 

        (b)   Each
of AXP and Ameriprise is aware that from time to time certain business opportunities may arise that more than one Group may be financially able to undertake, and
that are, from their nature, in the line of more than one Group's Business and are of practical advantage to more than one Group. In connection therewith, the Parties agree that, following the
Effective Time, if either AXP or Ameriprise acquires knowledge of an opportunity that meets the foregoing standard with respect to more than one Group, neither AXP nor Ameriprise shall have any duty
to communicate or offer such opportunity to the other and each may pursue or acquire such opportunity for itself, or direct such opportunity to any other Person. 

        (c)   For
a period of two (2) years following the Distribution Date, neither Party shall, nor shall they permit any of their respective Affiliates to, solicit to employ
or employ any of the employees of the other Party so long as those employees remain employed by the other Party, without obtaining the prior written consent of the other Party. The Parties agree that
the restrictions set forth in the immediately preceding sentence shall not apply to any solicitation of any employee or employment of any employee of one Party who (i) initially contacted the
other Party, its Affiliates or their representatives on his or her own initiative without any solicitation by such Party, its Affiliates or their representatives, (ii) responded to a
solicitation directed at the public in general through advertisement or similar means not targeted specifically at such employee or the Business or (iii) was referred to such Party, its
Affiliates or their representatives, as applicable, by search firms, employment agencies or other similar entities provided that such entities have not been specifically instructed by such Party, its
Affiliates or their representatives to solicit the employee of the company. 

        SECTION
5.05.    Settlement of Certain Insurance Claims; Business Interruption
Release.    

        (a)   The
Parties acknowledge and agree that following the Distribution Date, Ameriprise may make claims arising out of occurrences or events that occurred prior to the
Distribution Date against "occurrence-based" insurance policies of AXP, in accordance with the terms and subject to the conditions of such policies. AXP shall not be responsible to negotiate,
investigate, defend, settle or otherwise handle such claims on behalf of Ameriprise. In connection with any such claim made by Ameriprise under an AXP "occurrence-based" insurance policy after the
Distribution Date, AXP shall instruct the applicable insurance carrier to negotiate with and accept proof of Loss directly from Ameriprise, and to pay such claim directly to Ameriprise. AXP and
Ameriprise each agree to provide necessary releases to resolve claim settlements. 

        (b)   To
the extent that the limits of any AXP "occurrence-based" insurance policy preclude payment in full of Unrelated Claims filed by AXP and Ameriprise, the insurance
proceeds available under such policies shall be paid to AXP and/or Ameriprise on a FIFO Basis. 

        (c)   In
the event that AXP and Ameriprise file Related Claims under any AXP "occurrence-based" insurance policy, each of Ameriprise and AXP shall receive a  pro rata amount of the available insurance proceeds,
based on the relationship the Loss incurred by each such Party bears to the total Loss to both such
Parties from the occurrence or event underlying the Related Claims. 

        (d)   AXP
has submitted various claims for coverage under its property damage insurance policies in effect and covering the period of April 15, 2001 through
April 15, 2002 (the "Policies"), including claims for coverage of business interruption and expense to reduce loss, arising out of the September 11, 2001
terrorist attacks. AXP has settled these claims with the insurers under the Policies, Allianz Global Risks US Insurance Company and Factory Mutual Insurance Company (the
"Insurers"), and has paid a portion of such settlement to Ameriprise in connection with claims relating to the 

20

 

business
and operations of Ameriprise, and Ameriprise hereby acknowledges receipt of such payment. In connection with such settlement with the Insurers, AXP acting on its own behalf and on behalf of
its Subsidiaries, including Ameriprise and its Subsidiaries, released and agreed to indemnify the Insurers and certain related individuals and entities from any and all Actions of any kind relating to
claims that were made, or could have been made, under the Policies arising out of the events of September 11, 2001 (such release and agreement to indemnify herein, the
"Release"). Ameriprise has received a copy of the Release and hereby acknowledges that the Release was validly entered into by AXP on behalf of Ameriprise and its
Subsidiaries and binds Ameriprise and its Subsidiaries. In addition, Ameriprise releases AXP and its directors, officers, employees and agents from any and all Liabilities in connection with their
negotiation and settlement of these claims. 

        (e)   AXP
has submitted various claims ("D&O/Fid. Claims") for coverage under its current and prior directors and officers liability insurance
policies and fiduciary liability policies ("D&O/Fid. Policies") issued by certain insurers (the "D&O/Fid. Insurers") arising out of Ameriprise
Liabilities. Subject to AXP's prior consent, which consent shall not be unreasonably withheld or delayed, Ameriprise shall have the right to pursue insurance recoveries for the D&O/Fid. Claims under
the D&O/Fid. Policies, including negotiating with the D&O/Fid. Insurers with respect to coverage for such claims under such policies; provided that Ameriprise shall
(i) keep AXP fully apprised of Ameriprise's pursuit of such insurance recoveries, (ii) permit AXP, in AXP's sole and absolute discretion, to participate in Ameriprise's pursuit of such
insurance recoveries and (iii) obtain AXP's prior consent to any settlement, which consent shall not be unreasonably withheld or delayed. Any such pursuit of insurance recoveries shall take
into consideration the effect of the insurance strategy being pursued on AXP's ability to obtain, and the terms upon which it could obtain, renewal D&O/Fid. Policies from D&O/Fid. Insurers. In the
event that Ameriprise does not pursue insurance recoveries for the D&O/Fid. Claims under AXP D&O/Fid. Policies, AXP shall have the right to pursue insurance recovery under such policies, and
Ameriprise shall assist AXP in connection therewith as reasonably requested by AXP, to the extent that such insurance recovery may reduce any losses, costs and expenses, including indemnification
payments, that AXP may suffer in connection with such claims or potential claims. 

 
 

ARTICLE VI
  
    ACCESS TO INFORMATION    

        Section 6.01.    Agreement for Exchange of Information.    (a) Each of AXP
and Ameriprise, on behalf of its respective Group, agrees to provide, or cause to be provided, to the other Party and its auditors, at any
time before, on or after the Distribution Date, as soon as reasonably practicable after written request therefor from such other Party, any Information in the possession or under the control of such
respective Group (including access to such Group's accountants, personnel and facilities) that the requesting Party reasonably needs (i) to comply with reporting, disclosure, filing or other
requirements imposed on the requesting Party (including under applicable securities laws) by a Governmental Authority having jurisdiction over the requesting Party (including pursuant to
Section 6.01(d)), (ii) for use in any other judicial, regulatory, administrative or other proceeding or in order to satisfy audit, accounting, claims, regulatory, litigation or other
similar requirements, or (iii) to comply with its obligations under this Agreement or any Ancillary Agreement; provided, however, that
in the event that any Party reasonably determines that any such provision of Information could be commercially detrimental to such Party or any member of its Group, violate any Law or agreement to
which such Party or member of its Group is a party, or waive any attorney-client privilege applicable to such Party or member of its Group, the Parties shall provide any such Information and the
Parties shall take all reasonable measures to comply with the obligations pursuant to this Section 6.01(a) in a manner that mitigates any such harm or consequence to the extent practicable. AXP
and Ameriprise intend that any transfer of Information that would otherwise be within the attorney-client privilege shall not operate as a waiver of any potentially applicable privilege. 

21

 

        (b)   Following
the Effective Time each Party shall make its employees and facilities available and accessible during normal business hours and on reasonable prior notice to
provide an explanation of any Information provided hereunder. 

        (c)   Until
the end of the first full AXP fiscal year occurring after the Distribution Date (and for a reasonable period of time afterwards as required for each Party to
prepare consolidated financial statements or complete a financial statement audit for the fiscal year during which the Distribution Date occurs), each Party shall use its reasonable best efforts,
consistent with past practice, to enable the other Party to meet its timetable for dissemination of its financial statements and enable such other Party's auditors to timely complete their annual
audit and quarterly financial statements. 

        (d)   In
order to enable the principal executive officer or officers, principal financial officer or officers and controller or controllers of the other Party to make the
certifications required of them under SOX §302, within 30 days following the end of any fiscal quarter during which Ameriprise is a Subsidiary of AXP, each Party shall cause its
officers or employees to provide the other Party with the certification statements with respect to such quarter or portion thereof of such officers and employees to those officers and employees of the
other Party, in substantially the same form and manner as such officers or employees provided such certification statements prior to the Distribution Date, or as otherwise agreed upon between the
Parties. Such certification statements shall also reflect any changes in certification statements necessitated by the Separation, Distribution and any other transactions related thereto. 

        SECTION
6.02.    Ownership of Information.    Any Information owned by one Group that is
provided to a requesting Party pursuant to Section 6.01 shall be deemed to remain the property of the providing Party. Unless specifically set forth herein or in any Ancillary Agreement,
nothing contained in this Agreement shall be construed as granting or conferring rights of license or otherwise in any such Information. 

        SECTION
6.03.    Compensation for Providing Information.    The Party requesting such
Information agrees to reimburse the other Party for the reasonable out-of-pocket costs, if any, of creating, gathering and copying such Information or for providing
explanations of Information provided, to the extent that such costs are incurred for the benefit of the requesting Party by or on behalf of such other Party's Group. Except as may be specifically
provided elsewhere in this Agreement or in any other Ancillary Agreement, such costs shall be computed in accordance with the providing Party's reasonable standard methodology and procedures. 

        SECTION
6.04.    Record Retention.    Except as otherwise required or agreed in writing,
or as otherwise provided in the Tax Allocation Agreement, each Party shall use its reasonable best efforts to retain, in accordance with such Party's record retention policies in effect from time to
time, applicable to such Information, all significant Information in such Party's possession or under its control relating to the Business, Assets or Liabilities of the other Party, and, for a period
of seven years following the Distribution Date, prior to destroying or disposing of any such Information, (a) the Party proposing to dispose of or destroy any such Information shall use its
reasonable best efforts to provide no less than 30 days' prior written notice to the other Party, specifying the Information proposed to be destroyed or disposed of and (b) if, prior to
the scheduled date for such destruction or disposal, the other Party requests in writing that any of the Information proposed to be destroyed or disposed of be delivered to such other Party, the Party
proposing to dispose of or destroy such Information shall promptly arrange for the delivery of the requested Information to a location specified by, and at the expense of, the requesting Party;
provided, however, that in the event that any Party reasonably determines that any such provision of Information could be commercially
detrimental to such Party or any member of its Group, violate any Law or agreement to which such Party or member of its Group is a party, or waive any attorney-client privilege applicable to such
Party or member of its Group, the Parties shall take all reasonable measures to permit the compliance with the obligations pursuant to this Section 6.04 in a manner that avoids any such harm or
consequence. AXP and Ameriprise intend that any transfer of Information that would otherwise be within the attorney-client privilege shall not operate as a waiver of any potentially applicable
privilege. 

22

  

        SECTION 6.05.    Limitation of Liability.    Notwithstanding Article IV, no Party
shall have any Liability to the other Party in the event that any Information exchanged or provided pursuant to this Agreement that is an estimate or forecast, or which is based on an estimate or
forecast, is found to be inaccurate, in the absence of willful misconduct or fraud by the Party providing such Information. No Party shall have any Liability to the other Party if any Information is
disposed of or destroyed after using its reasonable best efforts in accordance with the provisions of Section 6.04. 

        SECTION
6.06.    Other Agreements Providing for Exchange of Information.    The rights
and obligations granted under this Article VI are subject to any specific limitations, qualifications or additional provisions on the sharing, exchange or confidential treatment of Information
set forth in any Ancillary Agreement. The provisions of Section 6.01 through Section 6.07 shall not apply to matters governed by the Tax Allocation Agreement. 

        SECTION
6.07.    Production of Witnesses; Records; Cooperation.    (a) Except in
the case of an Action by one Party against another Party (which shall be governed by such discovery rules as may be applicable thereto), each Party shall use its reasonable best efforts to make
available to the other Party, upon written request, the former, current and future directors, officers, employees, other personnel and agents of the members of its respective Group as witnesses and
any books, records or other documents within its control or which it otherwise has the ability to make available, to the extent that any such Person (giving consideration to business demands of such
directors, officers, employees, other personnel and agents) or books, records or other documents may reasonably be required in connection with any Action in which the requesting Party may from time to
time be involved, regardless of whether such Action is a matter with respect to which indemnification may be sought hereunder. The requesting Party shall bear all reasonable
out-of-pocket costs and expenses in connection therewith. 

        (b)   If
an Indemnifying Party chooses to defend or to seek to compromise or settle any Third-Party Claim, the Indemnified Party shall use its reasonable best efforts to make
available to the Indemnifying Party, upon written request, the former, current and future directors, officers, employees, other personnel and agents of the members of its respective Group as witnesses
and any books, records or other documents within its control or which it otherwise has the ability to make available, to the extent that any such Person (giving consideration to business demands of
such directors, officers, employees, other personnel and agents) or books, records or other documents may reasonably be required in connection with such defense, settlement or compromise, or such
prosecution, evaluation or pursuit, as the case may be, and shall otherwise cooperate in such defense, settlement or compromise, or such prosecution, evaluation or pursuit, as the case may be. 

        (c)   Without
limiting the foregoing, the Parties shall cooperate and consult, and shall cause each member of its respective Group to cooperate and consult, to the extent
reasonably necessary with respect to any Actions and any Related Claims with respect thereto. 

        (d)   Without
limiting any provision of this Section 6.07, each of the Parties agrees to cooperate, and to cause each member of its respective Group to cooperate, at
the other Party's sole cost and expense, with the other Party and each member of its respective Group in the defense of any claim that the Business of the other Party or its Group members infringes
upon or misappropriates third Person Intellectual Property and shall not acknowledge or concede, or permit any member of its respective Group to acknowledge or concede (i) that the Business of
the other Party or its Group members infringes upon such third Person Intellectual Property (ii) or that such third Person Intellectual Property is valid or enforceable, in a manner that would
hamper or undermine the defense of such infringement or misappropriation claim. 

        (e)   The
obligation of the Parties to provide witnesses pursuant to this Section 6.07 is intended to be interpreted in a manner so as to facilitate cooperation and
shall include the obligation to provide as witnesses, directors, officers, employees, other personnel and agents (subject to the exception set forth in the first sentence of Section 6.07(a)). 

23

 

        (f)    In
connection with any matter contemplated by this Section 6.07, the Parties will enter into a mutually acceptable joint defense agreement so as to maintain to
the extent practicable any applicable attorney-client privilege or work product immunity of any member of any Group. 

        SECTION
6.08.    Confidentiality.    (a) General. Each
Party acknowledges (i) that such Party has in its possession and in connection with this Agreement and the Ancillary Agreements, such Party will receive Information of the other Party that is
not available to the general public, and (ii) that such Information may constitute, contain or include material non-public Information of the other Party. Subject to
Section 6.08(c), as of the Distribution Date, AXP, on behalf of itself and each of its Affiliates, and Ameriprise, on behalf of itself and each of its Affiliates, agrees to hold, and to cause
its respective directors, officers, employees, agents, third-party contractors, vendors, accountants, counsel and other advisors and representatives to hold, in strict confidence, with at least the
same degree of care that such Party applies to its own confidential and proprietary Information pursuant to its applicable policies and procedures in effect as of the Distribution Date, all
Information (including Information received and/or obtained pursuant to Section 6.01) concerning the other Party (or its Business) and such other Party's Affiliates (or their respective
Business) that is either in its possession (including Information in its possession prior to the Distribution Date) or furnished by the other Party or the other Party's Affiliates or their respective
directors, officers, employees, agents, third-party contractors, vendors, accountants, counsel and other advisors and representatives at any time pursuant to this Agreement and the Ancillary
Agreements, and will not use such Information other than for such purposes as may be expressly permitted hereunder, except, in each case, to the extent that such
Information: (i) is or becomes available to the general public, other than as a result of a disclosure by such Party or its Affiliates or any of their respective directors, officers, employees,
agents, third-party contractors, vendors, accountants, counsel and other advisors and representatives in breach of this Agreement; (ii) was available to such Party or its Affiliates or becomes
available to such Party or its Affiliates, on a non-confidential basis from a source other than the other Party hereto, provided,
that, the source of such Information was not bound by a confidentiality obligation with respect to such Information, or otherwise prohibited from transmitting the
Information to such Party or its Affiliates by a contractual, legal or fiduciary obligation; or (iii) is independently generated by such Party without use of or reference to any proprietary or
confidential Information of the other Party. 

        (b)   No Release, Compliance with Law, Return or Destruction.    Following the Effective Time, each Party agrees not
to release or disclose, or permit to be released or disclosed, any such Information to any other Person, except its directors, officers, employees, agents, third-party contractors, vendors,
accountants, counsel, lenders, investors and other advisors and representatives who need to know such Information pursuant to this Agreement or the Ancillary Agreements, and except in compliance with
Section 6.08(c). Each Party shall advise its directors, officers, employees, agents, third-party contractors, vendors, accountants, counsel, lenders, investors and other advisors and
representatives who have been provided with such Information of such Party's confidentiality obligations hereunder and that such Information may constitute, contain or include material
non-public Information of the other Party. Following the Effective Time, each Party shall, and shall cause, its directors, officers, employees, agents, third-party contractors, vendors,
accountants, counsel, lenders, investors and other advisors and representatives who have been provided with such Information to use such Information only in accordance with (i) the terms of
this Agreement or the Ancillary Agreements and (ii) applicable Law (including federal and state securities Laws). Following the Effective Time, each Party shall promptly, after receiving a
written request of the other Party, return to the other Party all such Information in a tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or certify to
the other Party that it has destroyed such Information (and such copies thereof and such notes, extracts or summaries based thereon), as directed by the other Party. 

        (c)   Protective Arrangements.    Notwithstanding anything herein to the contrary, in the event that, following the
Effective Time, either Party or any of its directors, officers, employees, agents, third-party 

24

 

contractors,
vendors, accountants, counsel, lenders, investors and other advisors and representatives either determines on the advice of its counsel that it is required to disclose any Information
pursuant to applicable Law or the rules or regulations of a Governmental Authority or receives any demand under lawful process or from any Governmental Authority to disclose or provide Information of
the other Party that is subject to the confidentiality provisions hereof, such Party shall, if possible, notify the other Party prior to disclosing or providing such Information and shall cooperate at
the expense of the requesting Party in seeking any reasonable protective arrangements requested by such other Party. In the event that a protective arrangement is not obtained, the Person that
received such request (i) may thereafter disclose or provide such Information to the extent required by such Law (as so advised by counsel) or by lawful process or such Governmental Authority,
without liability therefor and (ii) shall exercise its reasonable best efforts to have confidential treatment accorded any such Information so furnished. 

 
 

ARTICLE VII
  
    NO REPRESENTATION OR WARRANTY    

        Section 7.01.    NO REPRESENTATIONS OR WARRANTIES.    EACH PARTY, ON BEHALF OF
ITSELF AND ALL MEMBERS OF ITS GROUP, UNDERSTANDS AND AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN ANY OTHER ANCILLARY AGREEMENT, (A) NO MEMBER OF THE AXP GROUP, THE AMERIPRISE GROUP
OR ANY OTHER PERSON IS, IN THIS AGREEMENT, ANY ANCILLARY AGREEMENT OR IN ANY OTHER AGREEMENT OR DOCUMENT, MAKING ANY REPRESENTATION OR WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, TO ANY PARTY
OR ANY MEMBER OF ANY GROUP IN ANY WAY WITH RESPECT TO ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THE BUSINESS, ASSETS, CONDITION OR PROSPECTS (FINANCIAL OR OTHERWISE) OF, OR ANY OTHER MATTER
INVOLVING, ANY AXP ASSETS, ANY AXP LIABILITIES, THE AXP BUSINESS, ANY AMERIPRISE ASSETS, ANY AMERIPRISE LIABILITIES OR THE AMERIPRISE BUSINESS, (B) EACH PARTY AND EACH MEMBER OF EACH GROUP
SHALL TAKE ALL OF THE ASSETS, THE BUSINESS AND LIABILITIES TRANSFERRED TO OR ASSUMED BY IT PURSUANT TO THIS AGREEMENT OR ANY ANCILLARY AGREEMENT ON AN "AS IS, WHERE IS" BASIS, AND ALL IMPLIED
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A SPECIFIC PURPOSE OR OTHERWISE ARE HEREBY EXPRESSLY DISCLAIMED, AND (C) EXCEPT AS SET FORTH IN SECTION 9.01 AND IN ANY APPLICABLE ANCILLARY
AGREEMENT, NONE OF AXP, AMERIPRISE OR ANY MEMBERS OF THE AXP GROUP OR AMERIPRISE GROUP OR ANY OTHER PERSON MAKES ANY REPRESENTATION OR WARRANTY WITH RESPECT TO THE SEPARATION, THE CONTRIBUTION, THE
DISTRIBUTION OR THE ENTERING INTO OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN ANY OTHER ANCILLARY AGREEMENT, EACH PARTY AND EACH
MEMBER OF EACH GROUP SHALL BEAR THE ECONOMIC AND LEGAL RISK THAT ANY CONVEYANCES OF ASSETS SHALL PROVE TO BE INSUFFICIENT OR THAT THE TITLE OF ANY MEMBER OF ANY GROUP TO ANY ASSETS SHALL BE OTHER THAN
GOOD AND MARKETABLE AND FREE FROM ENCUMBRANCES. 

 
 

ARTICLE VIII
  
    TERMINATION    

        Section 8.01.    Termination.    This Agreement may be terminated by AXP in its
sole discretion at any time prior to the consummation of the Distribution. 

25

 

        SECTION
8.02.    Effect of Termination.    In the event of any termination of this
Agreement prior to consummation of the Distribution, neither Party (nor any of its directors or officers shall have any Liability or further obligation to the other Party. 

 
 

ARTICLE IX
  
    MISCELLANEOUS    

        Section 9.01.    Complete Agreement; Representations.    (a) This
Agreement, together with the exhibits and schedules hereto and the Ancillary Agreements, constitutes the entire agreement between the Parties with respect to the subject matter hereof and shall
supersede all previous negotiations, commitments and writings with respect to such subject matter. 

        (b)   AXP
represents on behalf of itself and each other member of the AXP Group and Ameriprise represents on behalf of itself and each other member of the Ameriprise Group as
follows: 

        (i)    each
such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform
each of this Agreement and each other Ancillary Agreement to which it is a party and to consummate the transactions contemplated by such agreements; and 

        (ii)   this
Agreement has been duly executed and delivered by such Person (if such Person is a Party) and constitutes a valid and binding agreement of it enforceable in
accordance with the terms thereof (assuming the due execution and delivery thereof by the other Party), and each of the other Ancillary Agreements to which it is or will be a party is or will be duly
executed and delivered by it and will constitute a valid and binding agreement of it enforceable in accordance with the terms thereof (assuming the due execution and delivery thereof by the other
party or parties to such Ancillary Agreements), except as such enforceability may be limited by bankruptcy, fraudulent conveyance,
insolvency, reorganization, moratorium and other Laws relating to creditors' rights generally and by general equitable principles. 

        SECTION
9.02.    Costs and Expenses.    Except as expressly provided in this Agreement or
any Ancillary Agreement, each Party shall bear its respective direct and indirect costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this
Agreement, the Ancillary Agreements and the transactions contemplated hereby and thereby; provided, that, in the event any such expense
constitutes a Reimbursable Expense, the Party that incurred such Reimbursable Expense shall be paid by the other Party (the "Reimbursing Party") in an amount of cash equal
to the Reimbursing Party's portion of such Reimbursable Expense, as set forth on Schedule 9.02. 

        SECTION
9.03.    Governing Law.    This Agreement and any dispute arising out of, in
connection with or relating to this Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without giving effect to the conflicts of laws principles
thereof. 

        SECTION
9.04.    Notices.    All notices, requests, claims, demands and other
communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally or by facsimile transmission or mailed (first class postage prepaid) to the Parties
at the following addresses or facsimile numbers: 

If
to AXP or any member of the AXP Group, to: 

American
Express Company

200 Vesey Street

New York, New York 10285-4905

Attn: Gilbert E. Ahye 

26

 

with
a copy to: 

American
Express Company

200 Vesey Street

New York, New York 10285-4905

Attn: General Counsel 

If
to Ameriprise or any member of the Ameriprise Group, to: 

Ameriprise
Financial, Inc.

707 2nd Avenue, South

Minneapolis, Minnesota 55474

Attn: Walter Berman 

with
a copy to: 

Ameriprise
Financial, Inc.

707 2nd Avenue, South

Minneapolis, Minnesota 55474

Attn: General Counsel 

        All
such notices, requests and other communications will (i) if delivered personally to the address as provided in this section, be deemed given upon delivery, (ii) if
delivered by facsimile transmission to the facsimile number as provided in this section, be deemed given upon receipt and (iii) if delivered by mail in the manner described above to the address
as provided in this section, be deemed given upon receipt (in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice,
request or other communication is to be delivered pursuant to this section). Any party from time to time may change its address, facsimile number or other information for the purpose of notices to
that party by giving notice specifying such change to the other party. 

        SECTION
9.05.    Amendment, Modification or Waiver.    (a) Prior to the Effective
Time, this Agreement may be amended, modified, waived, supplemented or superseded, in whole or in part, by AXP in its sole discretion by execution of a written amendment delivered to Ameriprise.
Subsequent to the Effective Time, this Agreement may only by an instrument signed by duly authorized signatories of the Parties. 

        (b)   Any
term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set
forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. No waiver by any Party of any term or condition of this Agreement, in any one or more
instances, shall be deemed or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. All remedies, either under this Agreement or by Law or
otherwise afforded, will be cumulative and not alternative. 

        SECTION
9.06.    No Assignment; Binding Effect; No Third-Party
Beneficiaries.    (a) Neither this Agreement nor any right, interest or obligation hereunder may be assigned by either Party hereto without the prior written consent of
the other Party hereto and any attempt to do so will be void, except that each Party hereto may assign any or all of its rights, interests and obligations hereunder to an Affiliate,
provided that any such Affiliate agrees in writing to be bound by all of the terms, conditions and provisions contained herein. Subject to the preceding sentence, this
Agreement is binding upon, inures to the benefit of and is enforceable by the Parties hereto and their respective successors and assigns. 

        (b)   Except
for the provisions of Article IV relating to indemnification, the terms and provisions of this Agreement are intended solely for the benefit of each Party
hereto and their respective Affiliates, 

27

 

successors
or permitted assigns, and it is not the intention of the Parties to confer third-party beneficiary rights upon any other Person. 

        SECTION
9.07.    Counterparts.    This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        SECTION
9.08.    Negotiation.    In the event that any dispute arises between the Parties
that cannot be resolved, either Party shall have the right to refer the dispute for resolution to the chief financial officers of the Parties by delivering to the other Party a written notice of such
referral (a "Dispute Escalation Notice"). Following receipt of a Dispute Escalation Notice, the chief financial officers of the Parties shall negotiate in good faith to
resolve such dispute. In the event that the chief financial officers of the Parties are unable to resolve such dispute within 15 business days after the date of the Dispute Escalation Notice, either
Party shall have the right to refer the dispute to the chief executive officers of the Parties, who shall negotiate in good faith to resolve such dispute. In the event that the chief executive
officers of the Parties are unable to resolve such dispute within 30 business days after the date of the Dispute Escalation Notice, either Party shall have the right to commence litigation in
accordance with Section 9.10 hereof. The Parties agree that all discussions, negotiations and other Information exchanged between the Parties during the foregoing escalation proceedings shall
be without prejudice to the legal position of a Party in any subsequent Action. 

        SECTION
9.09.    Specific Performance.    From and after the Distribution, in the event
of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement or any Ancillary Agreement, the Parties agree that the Party or Parties to this
Agreement or such Ancillary Agreement who are or are to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its or their rights under this
Agreement or such Ancillary Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that, from and
after the Distribution, the remedies at law for any breach or threatened breach of this Agreement or any Ancillary Agreement, including monetary damages, are inadequate compensation for any loss, that
any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are
hereby waived. 

        SECTION
9.10.    New York Forum.    Subject to the prior exhaustion of the procedures set
forth in Section 9.08, each of the Parties agrees that, notwithstanding anything herein, all Actions arising out of or in connection with this Agreement or any Ancillary Agreement (except to
the extent any such Ancillary Agreement provides otherwise), or for recognition and enforcement of any judgment arising out of or in connection with the foregoing agreements, shall be tried and
determined exclusively in the state or federal courts in the State of New York, and each of the Parties hereby irrevocably submits with regard to any such action or proceeding for itself and in
respect to its property, generally and unconditionally, to the exclusive jurisdiction of the aforesaid courts. Each of the Parties hereby expressly waives any right it may have to assert, and agrees
not to assert, by way of motion, as a defense, counterclaim or otherwise, in any such action or proceeding: (a) any claim that it is not subject to personal jurisdiction in the aforesaid courts
for any reason; (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts; and (c) any claim that
(i) any of the aforesaid courts is an inconvenient or inappropriate forum for such action or proceeding, (ii) venue is not proper in any of the aforesaid courts and (iii) this
Agreement or any such Ancillary Agreement, or the subject matter hereof or thereof, may not be enforced in or by any of the aforesaid courts. Each of the Parties agrees that mailing of process or
other papers in connection with any such action or proceeding in the manner provided in Section 9.04 or any other manner as may be permitted by Law shall be valid and sufficient service
thereof. 

28

 

        SECTION
9.11.    Interpretation; Conflict With Ancillary Agreements.    The Article and
Section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this
Agreement. Except as specifically set forth in each Ancillary Agreement, the provisions of each Ancillary Agreement shall govern in the event of any conflict between any provision of this Agreement
and that of the relevant Ancillary Agreement. 

        SECTION
9.12.    Severability.    If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future Law, the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance herefrom. 

29

        IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first above written. 

	 	 	AMERICAN EXPRESS COMPANY
	

 	
 	

By:	
 	

/s/  KENNETH I. CHENAULT      

	 	 	 	 	Name:	 	Kenneth I. Chenault
	 	 	 	 	Title:	 	Chairman and Chief Executive Officer
	

 	
 	

AMERIPRISE FINANCIAL, INC.
	

 	
 	

By:	
 	

/s/  JOHN C. JUNEK      

	 	 	 	 	Name:	 	John C. Junek
	 	 	 	 	Title:	 	Executive Vice President and General Counsel

QuickLinks

Exhibit 10.1

FORM OF SEPARATION AND DISTRIBUTION AGREEMENT by and between AMERICAN EXPRESS COMPANY and AMERIPRISE FINANCIAL, INC. Dated as of August 24, 2005

TABLE OF CONTENTS

FORM OF SEPARATION AND DISTRIBUTION AGREEMENT

RECITALS

ARTICLE I DEFINITIONS

ARTICLE II THE RECAPITALIZATION, CONTRIBUTION AND SEPARATION

ARTICLE III THE DISTRIBUTION

ARTICLE IV SURVIVAL AND INDEMNIFICATION

ARTICLE V CERTAIN ADDITIONAL COVENANTS

ARTICLE VI ACCESS TO INFORMATION

ARTICLE VII NO REPRESENTATION OR WARRANTY

ARTICLE VIII TERMINATION

ARTICLE IX MISCELLANEOUS

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