Document:

Exhibit 10.3

 

 

 

AMERIPRISE
FINANCIAL

 

DEFERRED
COMPENSATION PLAN

 

 

As
Amended and Restated Effective January 1, 2007

 

 

 

 

AMERIPRISE
FINANCIAL

DEFERRED
COMPENSATION PLAN

 

As Amended and Restated Effective January 1, 2007

 

Purpose

 

The purpose of the
Plan is to provide specified benefits to a select group of management or highly
compensated Employees who contribute materially to the continued growth,
development and future business success of Ameriprise Financial, Inc. and
its subsidiaries.  This Plan shall be
unfunded for tax purposes and for purposes of Title I of ERISA.

 

Article 1

Definitions

 

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

 

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

 

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

 

1.03                           “Annual Deferral Account” shall
mean a Participant’s Annual Participant Deferral for a Plan Year, as adjusted
to reflect all applicable Investment Adjustments and all prior withdrawals and
distributions in accordance with Article 3 and the provisions of the
applicable Annual Enrollment Materials.

 

1.04                           “Annual Discretionary Allocation”
shall mean the aggregate amount credited by a Participant’s Employer to a
Participant in respect of a particular Plan Year under Section 3.03.

 

1.05                           “Annual Discretionary Allocation
Account” shall mean a Participant’s Annual Discretionary Allocation for a
Plan Year, as adjusted to reflect all applicable Investment Adjustments and all
prior withdrawals and distributions in accordance with Article 3 and the
provisions of the applicable Annual Enrollment Materials.

 

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

 

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1.07                           “Annual Enrollment Materials”
shall mean, for any Plan Year, the Annual Election Form, the Distribution
Election Form and any other forms, documents or materials concerning the
terms of any Annual Participant Deferral, Annual Match or Annual Discretionary
Allocation for such Plan Year.

 

1.08                           “Annual Match” shall mean the
aggregate amount credited by a Participant’s Employer to a Participant in
respect of a particular Plan Year under Section 3.02.

 

1.09                           “Annual Match Account” shall mean
a Participant’s Annual Match for a Plan Year, as adjusted to reflect all
applicable Investment Adjustments and all prior withdrawals and distributions
in accordance with Article 3 and the provisions of the applicable Annual
Enrollment Materials.

 

1.10                           “Annual Participant Deferral”
shall mean the aggregate amount deferred by a Participant in respect of a
particular Plan Year under Section 3.01.

 

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

 

1.12                           “Change in Control” shall mean any
transaction or series of transactions that constitutes a change in the
ownership or effective control of the Company or a change in the ownership of a
substantial portion of the assets of the Company, in each case within the
meaning of Section 409A of the Code.

 

1.13                           “Claimant” shall have the meaning
set forth in Section 9.01.

 

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

 

1.15                           “Committee” shall mean the
Compensation and Benefits Committee of the Company or such other committee
designated by the Board to administer the Plan.  Any reference herein to the
Committee shall be deemed to include any  person to
whom any duty of the Committee has been delegated pursuant to Section 8.02.

 

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

 

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

 

1.18                           “Company Stock Fund” shall mean
the Investment Option that relates to the performance of Company Stock.

 

1.19                           “Designation Date” means the date
or dates as of which a designation of investment directions by a Participant
pursuant to Section 3.04, or any change in a prior designation of
investment directions by a Participant pursuant to Section 3.04, shall
become effective.  The Designation Date
in any Plan Year 

 

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shall be determined by
the Committee; provided, however, that each trading day of the New York Stock
Exchange shall be available as a Designation Date unless the Committee selects
different Designation Dates.

 

1.20                           “Disability” shall mean, with
respect to a Participant, the Participant (a) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or (b) is,
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering
employees of the Participant’s employer. 
In making its determination, the Committee shall be guided by the
prevailing authorities applicable under Section 409A of the Code.

 

1.21                           “Distribution Election” shall mean
an election made in accordance with Section 5.01.

 

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

 

1.23                           “Election Form” shall mean, with
respect to any Plan Account, the Annual Election Form and the Distribution
Election Form or the Amended Distribution Election Form last signed
and submitted by the Participant with respect to that Plan Account.

 

1.24                           “Elective Deductions” shall mean
the deductions made from a Participant’s Eligible Compensation for amounts
voluntarily deferred or contributed by the Participant pursuant to all
qualified and non-qualified compensation deferral plans, including, without
limitation, amounts not included in the Participant’s gross income under
Sections 125, 132(f)(4), 402(e)(3) or 402(h) of the Code, provided,
however, that all such amounts would have been payable in cash to the
Employee had there been no such plan.

 

1.25                           “Eligible Compensation” shall
mean, for any Plan Year, the base salary, bonus or other items of compensation,
including any Elective Deductions, designated by the Committee in the
applicable Annual Enrollment Materials as eligible for deferral under the Plan
for such Plan Year.

 

1.26                           “Employee” shall mean a person who
is an employee of any Employer, as determined by the Committee in its sole
discretion.

 

1.27                           “Employer” shall mean, as
applicable, the Company or any of its subsidiaries listed on Schedule A
attached hereto, as such Schedule A may be amended by the Committee, in its
sole discretion, from time to time.

 

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1.28                           “ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as it may be amended from time to time.

 

1.29                           “Investment Adjustment” shall mean
an adjustment made to the balance of any Plan Account in accordance with Section 3.05
to reflect the performance of an Investment Option pursuant to which the value
of the Plan Account or portion thereof is measured.

 

1.30                           “Investment Agent” shall mean the
person appointed by the Committee or the Trustee to invest the Plan Accounts of
Participants, or if no person is so designated, the Committee

 

1.31                           “Investment Option” shall mean a
hypothetical investment made available under the Plan from time to time by the
Committee for purposes of valuing Plan Accounts.  In the event that an Investment Option ceases
to exist or is no longer to be an Investment Option, the Committee may
designate a substitute Investment Option for the discontinued hypothetical
investment.

 

1.32                           “Newly Eligible Employee” shall
mean an Employee who becomes eligible to participate in the Plan during a Plan
Year and who has not previously participated in the Plan or an account-balance
deferred compensation arrangement (as defined for purposes of Section 409A)
of the Company or an Employer, as determined by the Committee and to the extent
permissible under Section 409A of the Code.

 

1.33                           “Participant” shall mean any
eligible Employee (a) who is in a classification of Employees designated
by the Committee to participate in the Plan or who is otherwise selected by the
Committee to participate in the Plan, (b) who elects to participate in the
Plan, (c) who signs the applicable Election Forms, (d) who commences
participation in the Plan, and (e) whose participation in the Plan has not
terminated.  A spouse or former spouse of
a Participant shall not be treated as a Participant in the Plan or have an
account balance under the Plan, even if he or she has an interest in the
Participant’s benefits under the Plan as a result of applicable law or property
settlements resulting from legal separation or divorce.

 

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

 

1.35                           “Plan Accounts” shall mean the
Annual Deferral Accounts, Annual Match Accounts and Annual Discretionary
Allocation Accounts established under the Plan.

 

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

 

1.37                           “Reporting Person” shall mean an
Employee who is subject to the reporting requirements of Section 16(a) of
the Securities Exchange Act of 1934, as amended.

 

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1.38                           “Retirement” shall mean, with
respect to a Participant, the Participant’s Termination of Employment on or
after the date that such Participant becomes Retirement Eligible.

 

1.39                           “Retirement Eligible” shall mean,
with respect to a Participant, that the Participant has attained age 55 and has
completed ten or more Years of Service with the Company or its affiliates.

 

1.40                           “Termination of Employment” shall
mean a “separation from service” as defined under Section 409A of the
Code.

 

1.41                           “Trust” shall mean the trust
established in accordance with Article 10.

 

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

 

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

 

1.44                           “Years of Service” shall mean the
total number of actual or deemed full Plan Years during which a Participant has
been continuously employed by one or more Employers.  For purposes of determining a Participant’s
Years of Service, such Participant’s service with American Express Company will
be taken into account if and to the extent, and in accordance with, the
provisions of the Employee Benefits Agreement by and between American Express
Company and the Company, dated as of September 30, 2005.  Any partial Plan Year during which a
Participant has been employed by an Employer shall not be counted.

 

Article 2

Eligibility,
Selection, Enrollment

 

                2.01         Selection by Committee.  Participation in the Plan shall be limited to
a select group of management or highly compensated Employees of the Employers
who are in a classification of Employees designated by the Committee in its
sole discretion.  For each Plan Year, the
Committee may select from that group, in its sole discretion, the Employees who
shall be eligible to make an Annual Participant Deferral in respect of that
Plan Year.  The Committee’s selection of
an Employee to make an Annual Participant Deferral in respect of a particular
Plan Year will not entitle that Employee to make an Annual Participant Deferral
for any subsequent Plan Year, unless the Employee is again selected by the
Committee to make an Annual Participant Deferral for such subsequent Plan Year.

 

                2.02         Enrollment Requirements.  As a condition to being eligible to make an
Annual Participant Deferral for any Plan Year, each selected Employee shall
complete, execute and 

 

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return to the Committee or its designated
agent an Annual Election Form, a Distribution Election Form and any other
form required by the Committee at the time, and in accordance with the terms
and conditions, as the Committee may establish from time to time, and in
accordance with the requirements of Section 409A of the Code.  The Committee may in its discretion permit a
Newly Eligible Employee to complete, execute and return to the Committee of its
designated agent an Annual Election Form, a Distribution Election Form and
any other form required by the Committee no later than 30 days following the
date on which such Employee first becomes eligible to participate in the Plan
(or such earlier date as the Committee may establish from time to time.

 

                2.03         Commencement of Participation.  Provided an Employee selected to make an
Annual Participant Deferral in respect of a particular Plan Year has met all
enrollment requirements set forth in the Plan and any other requirements
imposed by the Committee, including signing and submitting an Annual Election
Form, a Distribution Election Form and any other form required by the
Committee within the specified time period, the Employee’s designated deferrals
shall commence as of the first day of the particular Plan Year (or in the case
of a Newly Eligible Employee, as of the date such Employee’s Enrollment Forms
are received by the Committee or its designated agent, but no later than 30
days following the date on which such Employee first became eligible to
participate in the Plan, provided that such Annual Participant Deferral shall
apply only with respect to compensation earned for services performed
subsequent to the time such enrollment forms are received by the Committee or
its designated agent).  If an Employee
fails to meet all such requirements within the specified time period with
respect to any Plan Year, the Employee shall not be eligible to make any
deferrals for that Plan Year.

 

                2.04         Subsequent Elections.  The Annual Election Form and the
Distribution Election Form submitted by a Participant in respect of a
particular Plan Year will not be effective with respect to any subsequent Plan
Year.  If an Employee is selected to
participate in the Plan for a subsequent Plan Year and the required enrollment
forms are not timely delivered for the subsequent Plan Year, the Participant
shall not be eligible to make any deferrals with respect to such subsequent
Plan Year.

 

Article 3

Participant Deferrals, Annual
Matches, Annual Discretionary Allocations, Investment

Options, Investment Adjustments,
Taxes and Vesting

 

                3.01         Participant Deferrals.

 

(a)           Deferral Election.  The Committee shall have sole discretion to
determine in respect of each Plan Year:  (i) whether
a Participant shall be eligible to make an Annual Participant Deferral; (ii) the
items of Eligible Compensation which may be the subject of any Annual
Participant Deferral for that Plan Year; (iii) the terms of any Annual
Match for that Plan Year; (iv) the terms of any Annual Discretionary
Allocation for that Plan Year; and (v) any other terms and conditions
applicable to the Annual Participant Deferral. 
The Participant’s election shall be evidenced by an Annual Election Form completed
and submitted to the Committee in accordance with the procedures and time
frames as may be established by the Committee in its sole discretion.  The amounts deferred by a Participant in
respect of services rendered during a 

 

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Plan Year shall be
referred to collectively as an Annual Participant Deferral and shall be
credited to an Annual Deferral Account established in the name of the
Participant.  A separate Annual Deferral
Account shall be established and maintained for each Annual Participant
Deferral.

 

(b)           Minimum and Maximum Deferrals.  The Committee may from time to time designate
a minimum or maximum deferral amount or percentage applicable to Participants
with respect to a given Plan Year.

 

(c)           Deferral
Designations.  A
Participant may designate the amount of the Annual Participant Deferral to be
deducted from his or her Eligible Compensation as specified in the applicable
Annual Enrollment Materials for a given Plan Year, which may provide for
deferrals to be expressed as either a percentage or a fixed dollar amount of a
specified item of Eligible Compensation expected by the Participant, as
determined by the Committee.  If a
Participant designates the Annual Participant Deferral to be deducted from any
item of Eligible Compensation as a fixed dollar amount and such fixed dollar amount
exceeds the amount of such item of Eligible Compensation actually payable to
the Participant, the entire amount of such item of Eligible Compensation shall
be withheld.

 

                3.02         Annual Match.  A Participant may be credited with a
discretionary matching allocation in respect of any Plan Year, pursuant to and
as described in the Annual Enrollment Materials for such Plan Year.  Such discretionary matching allocation
credited to a Participant in respect of a Plan Year shall be referred to as the
Annual Match for that Plan Year and shall be credited to an Annual Match
Account in the name of the Participant. 
A separate Annual Match Account shall be established and maintained for
each Annual Match.  The Committee shall
have sole discretion to determine in respect of each Plan Year and each
Participant:  (a) whether any Annual
Match shall be made; (b) the Participant(s) who shall be entitled to
such Annual Match; (c) the amount of such Annual Match; (d) the date(s) on
which any portion of such Annual Match shall be credited to each Participant’s
Annual Match Account; (e) the vesting terms applicable to such Annual
Match; (f) the Investment Option(s) that shall apply to such Annual
Match; and (g) any other terms and conditions applicable to such Annual
Match.

 

                3.03         Annual
Discretionary Allocation.  A Participant
may be credited with one or more other discretionary allocations in respect of
any Plan Year, expressed as either a flat dollar amount or as a percentage of
one or more items of the Participant’s Eligible Compensation for the Plan Year,
or any combination of the foregoing. 
Such discretionary allocations credited to a Participant in respect of a
Plan Year shall be referred to collectively as the Annual Discretionary
Allocation for that Plan Year and shall be credited to an Annual Discretionary
Allocation Account in the name of the Participant.  A separate Annual Discretionary Allocation
Account shall be established and maintained for each Annual Discretionary
Allocation.  The Committee shall have
sole discretion to determine in respect of each Plan Year and each
Participant:  (a) whether any Annual
Discretionary Allocation shall be made; (b) the Participant(s) who
shall be entitled to such Annual Discretionary Allocation; (c) the amount
of such Annual Discretionary Allocation; (d) the date(s) on which any
portion of such Annual Discretionary Allocation shall be credited to each
Participant’s Annual Discretionary Allocation Account; (e) the Investment
Option(s) that shall apply to such Annual Discretionary Allocation; and (f) any
other terms and conditions applicable to such Annual Discretionary Allocation.

 

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                3.04         Investment Options.

 

(a)           The
Committee shall establish from time to time the Investment Option(s) that
will be available under the Plan.  At any
time, the Committee may, in its discretion, add one or more additional
Investment Options under the Plan, and in connection with any such addition,
may permit Participants to select from among the then-available Investment
Options under the Plan to measure the value of such Participants’ Plan
Accounts.  In addition, the Committee, in
its sole discretion, may discontinue any Investment Option at any time, and
provide for the portions of Participants’ Plan Accounts and future deferrals
designated to the discontinued Investment Option to be reallocated to another
Investment Option(s).

 

(b)           Subject
to such limitations, operating rules and procedures as may from time to
time be required by law; imposed by the Committee, the Trustee or their
designated agents; contained elsewhere in the Plan; or set forth in any Annual
Enrollment Materials, each Participant may communicate to the Investment Agent
a direction (in accordance with this Section 3.04) as to how his or her
Plan Accounts should be deemed to be invested among the Investment Options made
available by the Committee; provided, however, that a Participant’s
ability to select Investment Options with respect to his or her Annual Match
Account and Annual Discretionary Allocation Account is subject to, and may be
limited by, the Committee’s discretion under Sections 3.02 and 3.03 to
designate the Investment Options that shall apply to all or a portion of such
Annual Match Account or Annual Discretionary Allocation Account.  The Participant’s investment directions shall
designate the percentage (in any whole percent multiples, which must total
100%) of the portion of the subsequent contributions to the Participant’s Plan
Accounts which is requested to be deemed to be invested in such Investment
Options, and shall be subject to the rules set forth below.  The Investment Agent shall invest the assets
of the Participant’s Plan Accounts in accordance with the directions of the
Participant except to the extent that the Committee directs it to the
contrary.  The Committee has the
authority, but not the requirement, in its sole and absolute discretion, to
direct that a Participant’s Plan Accounts be invested among such investments as
it deems appropriate and advisable, which investments need not be the same for
each Participant.

 

(c)           Any initial or subsequent investment
direction shall be in writing to the Investment Agent on a form supplied by the
Company, or, as permitted by the Investment Agent, may be by oral designation
or electronic transmission designation to the Investment Agent.  A designation shall be effective as of the
Designation Date next following the date the direction is received and accepted
by the Investment Agent or as soon thereafter as administratively practicable,
subject to the Committee’s right to override such direction.  The Participant may, if permitted by the
Committee, make an investment direction to the Investment Agent for his or her
existing Plan Accounts as of a Designation Date and a separate investment
direction to the Investment Agent for contribution credits to his or her Plan
Accounts occurring after the Designation Date.

 

(d)           All amounts credited to a Participant’s
Plan Accounts shall be invested in accordance with the then effective
investment direction, unless the Committee directs otherwise.  Unless otherwise changed by the Committee, an
investment direction shall remain in effect until the Participant’s Plans
Accounts are distributed or forfeited in their entirety, or until a subsequent
investment direction is received and accepted by the Investment Agent.

 

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(e)           If a Participant files an investment
direction with the Investment Agent for his or her existing Plan Accounts as of
a Designation Date which is received and accepted by the Investment Agent and
not overridden by the Committee, then the Participant’s existing Plan Accounts
shall be deemed to be reallocated as of the next Designation Date (or as soon
thereafter as administratively practicable) among the designated investment
funds according to the percentages specified in such investment direction; provided,
however, that a Participant’s ability to change the Investment Options
applicable to his or her Annual Match Account and Annual Discretionary
Allocation Account are subject to, and may be limited by, the Committee’s
discretion under Sections 3.02 and 3.03 to designate the Investment Options
that shall apply to all or a portion of such Annual Match Account or Annual
Discretionary Allocation Account.  Unless
otherwise changed by the Committee, an investment direction shall remain in
effect until the Participant’s Plan Accounts are distributed or forfeited in
their entirety, or until a subsequent investment direction is received and
accepted by the Investment Agent.

 

(f)            The Committee, in its sole
discretion, may place limits on a Participant’s ability to make changes with
respect to any Investment Options.  In
addition, in no event shall a Participant who is a Reporting Person be
permitted to allocate any portion of his or her Plan Accounts to the Company
Stock Fund more frequently than quarterly.

 

(g)           If the Investment Agent receives an
initial or subsequent investment direction with respect to Plan Accounts which
it deems to be incomplete, unclear or improper, or which is unacceptable for
some other reason (determined in the sole and absolute discretion of the
Investment Agent), the Participant’s investment direction for such Plan
Accounts then in effect shall remain in effect (or, in the case of a deficiency
in an initial investment direction, the Participant shall be deemed to have
filed no investment direction) until the Participant files an investment
direction for such Plan Accounts acceptable to the Investment Agent.

 

(h)           If the Investment Agent does not
possess valid investment directions covering the full balance of a Participant’s
Plan Accounts or subsequent contributions thereto (including, without
limitation, situations in which no investment direction has been filed,
situations in which the investment direction is not acceptable to the
Investment Agent under Section 3.04(g), or situations in which some or all
of the Participant’s designated investments are no longer permissible
Investment Options), the Participant shall be deemed to have directed that the
undesignated portion of the Plan Accounts be invested in a money-market fund or
similar short-term investment fund; provided, however, the
Committee may provide for the undesignated portion to be allocated to or among
the Investment Option(s) that the Participant did designate in the same
proportion as the designated portion, or may provide for any other allocation
method it deems appropriate, in its discretion.

 

(i)            None of the Company, its directors
and employees (including, without limitation, each member of the Committee),
and the Trustee, and their designated agents and representatives, shall have
any liability whatsoever for the investment of a Participant’s Plan Accounts,
or for the investment performance of a Participant’s Plan Accounts.  Each Participant hereunder, as a condition to
his or her participation hereunder, agrees to indemnify and hold harmless the
Company, its directors and employees (including, without limitation, each
member of the Committee), and the Trustee, and their designated agents and
representatives, from any losses or damages of any kind (including, without
limitation, lost opportunity costs) relating to 

 

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the investment of a
Participant’s Plan Accounts.  The
Investment Agent shall have no liability whatsoever for the investment of a
Participant’s Plan Accounts, or for the investment performance of a Participant’s
Plan Accounts, other than as a result of the failure to follow a valid and
effective investment direction.  Each
Participant hereunder, as a condition to his or her participation hereunder,
agrees to indemnify and hold harmless the Investment Agent, and its agents and
representatives, from any losses or damages of any kind (including, without
limitation, lost opportunity costs) relating to the investment of a Participant’s
Plan Accounts, other than as a result of the failure to follow a valid and
effective investment direction.

 

(j)            The Participant’s Annual Match
Accounts and Annual Discretionary Allocation Accounts for each Plan Year shall
be treated for purposes of this Section 3.04 as separate from the Annual
Deferral Accounts for that Plan Year. 
Unless otherwise provided in the applicable Annual Enrollment Materials,
a Participant may only provide investment directions with respect to all of his
or her Annual Deferral Accounts.

 

                3.05         Adjustment of Plan Accounts.  While a Participant’s Plan Accounts do not
represent the Participant’s ownership of, or any ownership interest in, any
particular assets, the Participant’s Plan Accounts shall be adjusted in
accordance with the Investment Option(s), subject to the conditions and
procedures set forth herein or established by the Committee from time to
time.  Any notional cash earnings
generated under an Investment Option (such as interest and cash dividends and
distributions) shall, at the Committee’s sole discretion, either be deemed to
be reinvested in that Investment Option or reinvested in one or more other
Investment Option(s) designated by the Committee.  All notional acquisitions and dispositions of
Investment Options under a Participant’s Plan Accounts shall be deemed to occur
at such times as the Committee shall determine to be administratively feasible
in its sole discretion and the Participant’s Plan Accounts shall be adjusted
accordingly.  In addition, a Participant’s
Plan Accounts may be adjusted from time to time, in accordance with procedures
and practices established by the Committee, in its sole discretion, to reflect
any notional transactional costs and other fees and expenses relating to the
deemed investment, disposition or carrying of any Investment Option for the
Participant’s Plan Accounts.  Adjustments
made in accordance herewith shall be referred to as Investment Adjustments.

 

3.06         FICA and Other
Taxes.

 

(a)           Annual Deferral Amounts.  For each Plan Year in which an Annual
Participant Deferral is being withheld from a Participant or in which an Annual
Match or Annual Discretionary Allocation credited on behalf of a Participant
vests, the Participant’s Employer(s) shall withhold from the Participant’s
other compensation payable by the Employer(s) to the Participant, in a
manner determined by the Employer(s), the Participant’s share of FICA and other
employment taxes.  If the Committee
determines that such portion may not be sufficient to cover the amount of the
applicable withholding, then the Committee may reduce the Annual Participant
Deferral to the extent necessary, as determined by the Committee in its sole
discretion, for the Participant’s Employer to comply with applicable
withholding requirements.

 

(b)           Distributions.  The Participant’s Employer(s), or the trustee
of the Trust, shall withhold from any payments made to a Participant under the
Plan all federal, state and local income, employment and other taxes required
to be withheld by the Employer(s), or the trustee 

 

10

 

of the Trust, in
connection with such payments, in amounts and in a manner to be determined in
the sole discretion of the Employer(s) and the trustee of the Trust.

 

3.07         Vesting.

 

(a)           Forfeiture of Unvested
Amounts.  As of the date of a
Participant’s Termination of Employment (other than a Retirement), the amounts
credited to each of the Participant’s Plan Accounts shall be reduced by the
amount which has not become vested in accordance with the vesting provisions
set forth below and in the Annual Enrollment Materials applicable to such Plan
Account, and such unvested amounts shall be forfeited by the Participant.

 

(b)           Vesting of Amounts.  A Participant shall be vested in all amounts
credited to his or her Annual Deferral Account as of the date such amounts are
credited to such Participant’s Annual Deferral Account.  The Participant shall be vested in his or her
Annual Match Account and Annual Discretionary Allocation Account in respect of
each given Plan Year as set forth in the Annual Enrollment Materials for such
Plan Year.  The vesting terms of Annual
Match Accounts and Annual Discretionary Allocation Accounts set forth in the
Annual Enrollment Materials shall be established by the Committee in its sole
discretion and may vary for each Participant and each Plan Year.

 

(c)           Vesting upon Death,
Disability or Retirement Eligibility.  In the event of the death or Disability of a
Participant, or upon a Participant becoming Retirement Eligible, all amounts
credited to any and all Plan Accounts of such Participant as of the effective
date of such death, Disability or Retirement Eligibility shall become
immediately 100% vested.

 

(d)           Vesting upon Change in
Control.  Upon the occurrence
of a Change in Control of the Company, all amounts credited to any and all Plan
Accounts of each Participant as of the effective date of such Change in Control
shall become immediately 100% vested

 

(e)           Vesting upon Plan
Termination.  In the event of
a termination of the Plan as it relates to any Participant, all amounts
credited to any and all Plan Accounts of such Participant as of the effective
date of such termination shall be 100% vested.

 

(f)            Acceleration of Vesting by
Committee.  Notwithstanding
anything to the contrary contained in the Plan, any Annual Election Form or
any Annual Enrollment Materials, the Committee shall have the authority,
exercisable in its sole discretion, to accelerate the vesting of any amounts
credited to any Plan Account of any Participant.

 

Article 4

Suspension of Deferrals

 

                4.01         Unforeseeable Emergencies.  If a Participant experiences an Unforeseeable
Emergency, the Participant may petition the Committee to suspend any deferrals
required to be made by the Participant. 
A petition shall be made on the form required by the Committee to be
used for such request and shall include all financial information requested by
the Committee in order to make a determination on such petition, as determined
by the Committee in its sole discretion. 
The Committee shall determine, in its sole discretion, whether to
approve the Participant’s petition.  If
the petition for a suspension is approved, suspension shall take effect 

 

11

 

upon the date of approval.  Notwithstanding the foregoing, the Committee shall
not have any right to approve a request for suspension of deferrals if such
approval (or right to approve) would cause the Plan to fail to comply with, or
cause a Participant to be subject to a tax under the provisions of Section 409A
of the Code.

 

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

 

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

 

Article 5

Distribution of Plan Accounts

 

                5.01         Distribution Elections.

 

(a)           Initial Elections.  The Participant shall make a Distribution
Election at the time he or she makes an Annual Participant Deferral with
respect to a given Plan Year to have the Participant’s respective Plan Accounts
for that Plan Year distributed in either a lump sum, or two to ten
substantially equivalent annual installments, in each case commencing, in
accordance with administrative guidelines determined by the Committee, on June 30th
of (i) a specified year following the year that the compensation deferred would
otherwise have been paid; or (ii) the year following the year of the
Participant’s termination.

 

(b)           Subsequent Elections.  Subject to any restrictions that may be
imposed by the Committee, a Participant may amend his or her Distribution
Election with respect to any Plan Account by completing and submitting to the
Committee or its designated agent within such time frame as the Committee may
designate, an Amended Distribution Election Form; provided, however,
except as otherwise provided by Section 5.01(c), that such Amended
Distribution Election Form (i) is submitted no later than a date specified
by the Committee in accordance with the requirements of Section 409A of
the Code, (ii) shall not take effect until 12 months after the date on which
such Amended Distribution Election Form becomes effective, and (iii) specifies
a new distribution date (or a new initial distribution date in the case of
installment distributions) that is no sooner than five years after the original
distribution date (or the original initial distribution date in the case of
installment distributions), or such later date specified by the Committee.  To the extent permitted by the Committee and
subject to any restrictions that may be imposed by the Committee, a Participant
may amend his or her Distribution Election to change the distribution method
from a lump sum to installments or from installments to a lump sum.

 

(c)           Special 2007
Amended Distribution Election. 
To the extent permitted by the Committee and subject to any restrictions
that may be imposed by the Committee, a 

 

12

 

Participant
may amend his or her Distribution Election with respect to any Plan Account
without having to comply with the requirements of Section 5.01(b) by
completing and submitting to the Committee within such time frame as the
Committee may designate, an Amended Distribution Election Form; provided,
however, that such Amended Distribution Election Form (i) is submitted no
later than December 31, 2007, (ii) shall not take effect until January 1,
2008, and (iii) specifies a new distribution date (or a new initial
distribution date in the case of installment distributions) that is no sooner
than January 1, 2008.  This Section 5.01(c) is intended to comply with the transition guidance
issued under Section 409A of the Code and shall be administered and
interpreted consistent with such intention.

 

5.02         Payment upon Retirement of
Participant.  Notwithstanding anything
to the contrary in a Participant’s Distribution Election or otherwise, in the
event of a Participant’s Retirement, the balance of the Participant’s Plan
Accounts will be paid out in either a lump sum, or two to ten substantially
equivalent annual installments, as specified by the Participant in his or her
Distribution Election, in each case commencing, in accordance with
administrative guidelines determined by the Committee, on June 30th of the
year following the year of the Participant’s Retirement.

 

5.03         Payment upon Disability of
Participant.  Notwithstanding
anything to the contrary in a Participant’s Distribution Election or otherwise,
a Participant suffering a Disability shall receive the balance of his or her
Plan Accounts, which shall be paid in a lump sum within 90 days of the
Committee’s determination that the Participant has a Disability.

 

5.04         Payment
upon Death of Participant. 
Notwithstanding anything to the contrary in a Participant’s Distribution
Election or otherwise, if a Participant dies before he or she has received a
complete distribution of his or her Aggregate Vested Balance, the Participant’s
estate shall receive the Participant’s Aggregate Vested Balance, which shall be
payable to the Participant’s estate in a lump sum to be made within 90 days of
the date on which the Committee is notified in writing of the Participant’s
death.

 

5.05         Other Termination of Employment.  Notwithstanding anything to the contrary in a
Participant’s Distribution Election or otherwise, in the event of a Participant’s
Termination of Employment for any reason other than Retirement, Disability or
death, the portion of the Participant’s Aggregate Vested Balance will be paid
out in either a lump sum, or two to five substantially equivalent annual
installments, as specified by the Participant in his or her Distribution
Election, in each case commencing, in accordance with administrative guidelines
determined by the Committee, on June 30th of the year following the year
of the Participant’s Termination of Employment. 
Notwithstanding anything to the contrary in a Participant’s Distribution
Election or otherwise, in the event that the Participant specified in his or
her Distribution Election for a Plan Account to be paid out in more than five
installments, such Participant’s Distribution Election for such Plan Account
shall be deemed to specify five annual installments for purposes of this Section 5.05.

 

5.06         Payment
on a Change in Control. 
Notwithstanding anything to the contrary set forth in a Participant’s
Annual Distribution Election Form or the Plan, upon the occurrence of a
Change in Control, the Company will distribute all previously undistributed
Plan Accounts to 

 

13

 

Participants as soon as administratively
practicable following the effective date of such Change in Control.

 

5.07         Withdrawal
in the Event of an Unforeseeable Emergency. 
In the event that a Participant experiences an Unforeseeable Emergency,
the Participant may petition the Committee to receive a partial or full payout
of amounts credited to one or more of the Participant’s Plan Accounts.  The Committee shall determine, in its sole
discretion, whether the requested payout shall be made, the amount of the
payout and the Plan Accounts from which the payout will be made; provided,
however, that the payout shall not exceed the lesser of the Participant’s
Aggregate Vested Balance or the amount reasonably needed to satisfy the
Unforeseeable Emergency plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution. 
In making its determination under this Section 5.07, the Committee
shall be guided by the requirements of Section 409A of the Code and any
other related prevailing legal authorities and the Committee shall take into
account the extent to which a Participant’s Unforeseeable Emergency is or may
be relieved through reimbursement or compensation by insurance or otherwise or
by the liquidation by the Participant of his or her assets (to the extent the
liquidation of such assets would not itself cause severe financial
hardship).  If, subject to the sole
discretion of the Committee, the petition for a payout is approved, the payout
shall be made within 90 days of the date of approval.

 

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

 

5.09         Valuation
of Plan Accounts Pending Distribution. 
To the extent that the distribution of any portion of any Plan Account
is deferred, whether pursuant to the limitations imposed under this Article 5
or for any other reason, any amounts remaining to the credit of the Plan
Account shall continue to be adjusted by the applicable Investment Adjustments
in accordance with Article 3.

 

5.10         Form of
Payment.  Distributions under the
Plan shall be paid in cash; provided, however, that the Committee
may provide, in its discretion, that any distribution attributable to the
portion of a Plan Account that is deemed invested in the Company Stock Fund
shall be paid in shares of Company Stock; provided, further, that
any shares of Company Stock paid out under the Plan will be deemed to have been
distributed under the Ameriprise Financial 2005 Incentive Compensation Plan or
any successor thereto and will count against the limit on the number of shares
of Company Stock available for distribution thereunder.

 

14

 

Article 6

Leave of Absence

 

6.01         Paid
Leave of Absence.  If a Participant
is authorized by the Participant’s Employer for any reason to take a paid leave
of absence from the employment of the Employer, the Participant shall continue
to be considered employed by the Employer and the appropriate amounts shall
continue to be withheld from the Participant’s compensation pursuant to the
Participant’s then current Annual Election Form.

 

6.02         Unpaid
Leave of Absence.  If a Participant
is authorized by the Participant’s Employer for any reason to take an unpaid
leave of absence from the employment of the Employer, the Participant shall
continue to be considered employed by the Employer and the Participant shall be
excused from making deferrals until the earlier of the date the leave of
absence expires or the Participant returns to a paid employment status.  Upon such expiration or return, deferrals
shall resume for the remaining portion of the Plan Year in which the expiration
or return occurs, based on the deferral election, if any, made for that Plan
Year.  If no election was made for that
Plan Year, no deferral shall be withheld.

 

Article 7

Termination, Amendment or Modification

 

7.01         Termination.  Although an Employer may anticipate that it
will continue the Plan for an indefinite period of time, there is no guarantee
that any Employer will continue the Plan or will not terminate the Plan at any
time in the future.  Accordingly, each
Employer reserves the right to discontinue its sponsorship of the Plan and to
terminate the Plan, at any time, with respect to its participating Employees by
action of its board of directors.  In
addition, the Company may at any time terminate an Employer’s participation in
the Plan.  Upon the termination of the
Plan with respect to any Employer, subject to Section 5.09, all amounts
credited to each of the Plan Accounts of each affected Participant shall be
100% vested and shall be paid to the Participant or, in the case of the
Participant’s death, to the Participant’s estate, in a lump sum notwithstanding
any elections made by the Participant, and the Annual Election Forms relating
to each of the Participant’s Plan Accounts shall terminate upon full payment of
such Aggregate Vested Balance, except that neither the Company nor any  Employer shall have any right to so
accelerate the payment of any amount to the extent such right would cause the
Plan to fail to comply with, or cause a Participant to be subject to a tax
under, the provisions of Section 409A of the Code.

 

7.02         Amendment.  The Company may, at any time, amend or modify
the Plan in whole or in part with respect to any or all Employers by the
actions of the Committee; provided, however, that (a) no
amendment or modification shall be effective to decrease or restrict the value
of a Participant’s Aggregate Vested Balance in existence at the time the
amendment or modification is made, calculated as if the Participant had
experienced a Termination of Employment as of the effective date of the
amendment or modification, (b) no amendment or modification may be made if
such amendment or modification would cause the Plan to fail to comply with, or
cause a Participant to be subject to tax under the provisions of Section 409A
of the Code, and (c) except as specifically provided in Section 7.01,
no amendment or modification shall be made after a Change in Control which
adversely affects the vesting, calculation or 

 

15

 

payment of benefits hereunder or
diminishes any other rights or protections any Participant would have had but
for such amendment or modification, unless each affected Participant consents
in writing to such amendment.

 

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

 

Article 8

Administration

 

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

 

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

 

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

 

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

 

8.05         Employer
Information.  To enable the Committee
to perform its functions, each Employer shall supply full and timely
information to the Committee on all matters relating to the compensation of its
Participants, the date and circumstances of the Retirement, Disability, death
or Termination of Employment of its Participants, and such other pertinent
information as the Committee may reasonably require.

 

Article 9

Claims Procedures

 

9.01         Presentation
of Claim.  Any Participant or the
estate of a deceased Participant (such Participant or estate being referred to
below as a “Claimant”) may deliver to the Committee a written claim for a
determination with respect to the amounts distributable to such 

 

16

 

Claimant from the Plan.  If such a claim relates to the contents of a
notice received by the Claimant, the claim must be made within 60 days after
such notice was received by the Claimant. 
The claim must state with particularity the determination desired by the
Claimant.  All other claims must be made
within 180 days of the date on which the event that caused the claim to arise
occurred.  The claim must state with particularity
the determination desired by the Claimant.

 

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

 

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

 

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

 

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

 

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

 

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

 

(iv)          an explanation of the claim review
procedure set forth in Section 9.03.

 

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

 

(a)           may review pertinent documents;

 

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

 

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

 

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

 

17

 

(a)           specific reasons for the decision;

 

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

 

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

 

9.05         Arbitration.  A Claimant’s compliance with the foregoing
provisions of this Article 9 is a mandatory prerequisite to a Claimant’s
right to commence any arbitration with respect to any claim for benefits under
the Plan.  Any and all claims that are
not resolved to the satisfaction of a Claimant under the above provisions of
this Article 9 shall be subject to arbitration conducted in the State of
Minnesota, Hennepin County, and shall be administered by, and pursuant to the
Commercial Arbitration Rules and Mediation Procedures of, the American
Arbitration Association (“AAA”).  Unless
otherwise provided herein each party shall bear its own costs and expenses in
connection with such arbitration and the parties shall contribute equally the
arbitrator’s fees.  The arbitrator’s
decision in any dispute shall be final and binding and shall not be subject to
appeal or judicial review.

 

Article 10

Trust

 

10.01       Establishment
of the Trust.  The Company may
establish one or more Trusts to which the Employers may transfer such assets as
the Employers determine in their sole discretion to assist in meeting their
obligations under the Plan.

 

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

 

10.03       Distributions
from the Trust.  Each Employer’s
obligations under the Plan may be satisfied with Trust assets distributed
pursuant to the terms of the Trust, and any such distribution shall reduce the
Employer’s obligations under this Agreement.

 

Article 11

Miscellaneous

 

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

 

18

 

11.02       Section 409A
of the Code.  It is intended that the
Plan (including all amendments thereto) comply with provisions of Section 409A
of the Code, so as to prevent the inclusion in gross income of any benefits
accrued hereunder in a taxable year prior to the taxable year or years in which
such amount would otherwise be actually distributed or made available to the
Participants.  The Plan shall be
administered and interpreted to the extent possible in a manner consistent with
that intent.  Notwithstanding the terms
of Article 5, to the extent that a distribution to a Participant who is a
Specified Employee at the time of Termination Employment is required to be
delayed by six months pursuant to Section 409A of the Code, distribution
shall be made no earlier than the six-month anniversary of the Participant’s
Termination of Employment.  For purposes
of the preceding sentence, “Specified Employee” shall mean a key employee as
defined under Section 409A of the Code and Section 416(i) of the
Code (without regard to paragraph (5) thereof) of the Company (or a
controlled group member); the determination of Specified Employees will be
based upon a 12-month period ending December 31st of each year, and
Participants who are Specified Employees during such 12-month period will be
treated as Specified Employees for the 12-month period beginning the next
following April 1st.

 

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

 

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

 

11.05       Employer’s
Liability.  An Employer’s liability
for the payment of benefits shall be defined only by the Plan and the Annual
Election Form, as entered into between the Employer and a Participant.  An Employer shall have no obligation to a
Participant under the Plan except as expressly provided in the Plan and his or
her Annual Election Form.

 

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

 

11.07       Prior
Beneficiary Designations Void.  Any
beneficiary designations made under the Plan or any predecessor arrangement
thereto shall be null and void, and of no effect as of the 

 

19

 

effective date hereof.  Following the death of a Participant, any
payments to be made to the Participant shall be made to such Participant’s
estate.

 

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

 

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

 

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

 

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

 

11.12       Governing
Law.  Subject to ERISA, the provisions
of the Plan shall be construed and interpreted according to the internal laws
of the State of Delaware without regard to its conflicts of laws principles.

 

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

 

                                                Ameriprise Financial, Inc.

                                                Minneapolis,
Minnesota 55474

                                                Attn:  Vice President, Benefits

 

                                with a copy to:

 

                                                General Counsel’s
Office

 

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

 

20

 

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

 

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

 

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

 

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

 

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

 

                11.18       Insurance.  The Employers, on their own behalf or on
behalf of the trustee of the Trust, and, in their sole discretion, may apply
for and procure insurance on the life of the Participant, in such amounts and
in such forms as the Trust may choose. 
The Employers or the trustee of the Trust, as the case may be, shall be
the sole owner and beneficiary of any such insurance.  The Participant shall have no interest
whatsoever in any such policy or policies, and at the request of the Employers
shall submit to medical examinations and supply such information and execute
such documents as may be required by the insurance company or companies to whom
the Employers have applied for insurance.

 

                11.19       Legal Fees To Enforce Rights After
Change in Control.  The Company and
each Employer is aware that upon the occurrence of a Change in Control, the
Board or the board of directors of the Participant’s Employer (which might then
be composed of new members) or a stockholder of the Company or the Participant’s
Employer, or of any successor corporation might then cause or attempt to cause
the Company or the Participant’s Employer or such successor to refuse to comply
with its obligations under the Plan and might cause or attempt to cause the
Company or the Participant’s Employer to institute, or may institute,
arbitration or litigation seeking to deny Participants the benefits intended
under the Plan.  In these circumstances,
the purpose of the Plan could be frustrated. 
Accordingly, if, following a Change in Control, it should appear to any
Participant that the Company, the Participant’s Employer or any successor
corporation has failed to comply with any of its obligations under the Plan or
any 

 

21

 

agreement thereunder or, if the Company,
such Employer or any other person takes any action to declare the Plan void or
unenforceable or institutes any arbitration, litigation or other legal action
designed to deny, diminish or to recover from any Participant the benefits
intended to be provided, then the Company and the Participant’s Employer
irrevocably authorize such Participant to retain counsel of his or her choice
at the expense of the Company and the Employer (who shall be jointly and
severally liable) to represent such Participant in connection with the
initiation or defense of any arbitration, litigation or other legal action,
whether by or against the Company, the Participant’s Employer or any director,
officer, stockholder or other person affiliated with the Company, the
Participant’s Employer or any successor thereto in any jurisdiction; provided,
however, that in the event that the trier in any such legal action
determines that the Participant’s claim was not made in good faith or was
wholly without merit, the Participant shall return to the Company any amount
received pursuant to this Section 11.19.

 

*  * 
*  *  *

 

 

22

 

Ameriprise Financial

Deferred Compensation Plan

 

Schedule A

January 1, 2007

 

Employers

 

·                  Ameriprise Bank, FSB

·                  Ameriprise Enterprise Investment Services, Inc.

·                  Ameriprise Financial Services Inc.

·                  RiverSource Distributors, Inc.

·                  RiverSource Investments, LLC

·                  RiverSource Service Corporation

·                  RiverSource Life Insurance Company

·                  RiverSource Life Insurance Co. of New
York

·                  IDS Property Casualty Insurance Company

·                  Ameriprise Trust Company

 

 

23Exhibit 10.10

 

Ameriprise Financial, Inc.

2007 Long-Term Incentive Award Program Guide

 

This Guide is available
on Inside
and is for awards
granted in January 2007 and forward.

 

	
   

  
	
   

  	
  THIS
  DOCUMENT IS PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE

  
	
  What’s next

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

  
	
   

  	
   

  
	
   

  	
  May 2007

  

 

 

Table of Contents

 

Long-Term Incentive Award Program Guide

Information regarding awards granted beginning January 1, 2007.

 

	
  Long-Term
  Incentive Award Program

  	
  1

  
	
  LTIA Program Overview

  	
   

  
	
  Substitution Awards

  	
   

  
	
   

  	
   

  
	
  Ameriprise
  Financial 2005 Incentive Compensation Plan

  	
  2

  
	
   

  	
   

  
	
  Stock-Based
  Award Types

  	
  3

  
	
   

  	
   

  
	
  Restricted
  Stock Award (“RSA”)

  	
  4

  
	
  Valuing RSA Grants

  	
   

  
	
  Vesting

  	
   

  
	
  Quarterly Dividends

  	
   

  
	
  Treatment of RSAs Upon Certain Events

  	
   

  
	
   

  	
   

  
	
  Non-Qualified
  Stock Option (“NQSO”)

  	
  5

  
	
  Valuing NQSO Grants

  	
   

  
	
  Vesting

  	
   

  
	
  Steps for Exercising NQSOs

  	
   

  
	
  NQSO Exercise Illustration

  	
   

  
	
  Treatment of NQSOs Upon Certain Events

  	
   

  
	
   

  	
   

  
	
  Restricted
  Stock Unit (“RSU”)

  	
  8

  
	
  Treatment of RSUs Upon Certain Events

  	
   

  
	
   

  	
   

  
	
  Long-Term
  Performance Plan (“LTPP”) for Bands 50 and above

  	
  8

  
	
   

  	
   

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

  	
  9

  
	
  RSA/RSU Tax Implications

  	
   

  
	
  NQSO Tax Implications

  	
   

  
	
  Other Tax Implications for LTIAs

  	
   

  
	
   

  	
   

  
	
  Treatment
  of LTIAs Upon Certain Events

  	
  12

  
	
  Part-Time Employment Status

  	
   

  
	
  Employment Termination

  	
   

  
	
  Leave of Absence

  	
   

  
	
  Death

  	
   

  
	
  Disability Termination

  	
   

  
	
  Retirement

  	
   

  
	
  Transfer Between Business Segments

  	
   

  
	
  Transfer from Field Sales Leader to P2 Advisor

  Situations of Detrimental Conduct

  	
   

  
	
  Change in Control (“CIC”) of the Company

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

  	
   

  
	
  Resale of Shares Received Under the Plan

  	
   

  
	
   

  	
   

  
	
  Comparison
  of LTIA Major Terms and Provisions

  	
  17

  
	
  Non-Qualified Stock Options (NQSOs)

  	
   

  
	
  Restricted Stock Awards/Restricted Stock Units (RSAs and RSUs)

  	
   

  
	
   

  	
   

  
	
  Administrative
  Information about this Guide

  	
  19

  
	
  About this Guide

  	
   

  
	
  About the Illustrations

  	
   

  
	
  Award Confirmation Materials

  	
   

  
	
  Governing Award Documents

  	
   

  
	
  AMP Shares Available for Grant Under the Plan

  	
   

  
	
  Plan Administration

  	
   

  
	
  Performance-Based Compensation

  	
   

  
	
  Adjustments upon Changes in Capitalization

  	
   

  
	
  Tax Withholding

  	
   

  
	
  Assignment and Transfer

  	
   

  
	
  Amendment

  	
   

  
	
  Terms of the Plan

  	
   

  
	
   

  	
   

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

  	
  23

  
	
   

  	
   

  
	
  Resources

  	
  27

  
	
  Availability of Certain Information and Incorporation of Documents by
  Reference

  	
   

  
	
  Contact Information

  	
   

  

 

 

Long-Term
Incentive Award Program Guide

 

Long-Term
Incentive Award Program (“LTIA”)

 

The
LTIA program is designed to align participants’ interests with those of the
shareholders of Ameriprise Financial, Inc. (“Company”). By providing a
stake in the Company’s future success, LTIAs are considered essential to our
efforts to attract and retain talented employees.

 

LTIAs
are long-term incentive awards, e.g., non-qualified stock options, restricted
awards, etc., issued pursuant to the Ameriprise Financial 2005 Incentive
Compensation Plan (“Plan”), as amended and restated. Management recommends
LTIAs within the program’s guidelines. Award pools are established at the
beginning of the annual year-end performance and compensation process. (LTIA
award pools are subject to CBC discretion, cost, dilution and shareholder plan
limits.) All LTIAs are recommended for approval by the Compensation and
Benefits Committee of the Company’s Board of Directors (“CBC”). Upon approval
by the CBC, awards are then communicated to employees by their leaders.

 

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

 

Management
considers a variety of factors when determining awards under the LTIA program,
including, but not limited to:

 

·   Performance ratings,

 

·   Leadership behaviors and
skills,

 

·   Importance to the future
performance and growth of the organization, and

 

·   Ability to model behaviors
for others.

 

These
factors are particularly important when selecting award recipients in pay bands
where program participation is limited to less than 100% of employees. This
participant level is consistent with market practices and ensures recipients
receive meaningful awards.

 

LTIA Program Overview

 

The
chart on the following page summarizes key features of the LTIA program.
The Plan permits a variety of awards to be granted to Plan participants. This
Guide describes awards we expect to grant and may not cover the specific
features of every award. Certain awards may have terms that are different than
those described in this Guide, and all awards are subject to the Plan and their
own specific award agreements or certificates. However, this Guide is intended
to cover the vast majority of awards, and you may generally rely on it for the
governance of your awards unless we communicate something different to you.

 

If
the type of awards granted changes from what is described in this Guide, we
will provide you with detailed information regarding any changes. Detailed information
about various award types, tax implications and other award features is
contained in the following sections.

 

1

 

	
  Type of Award

  	
   

  	
  Key Features

  
	
   

  	
   

  	
   

  
	
  Restricted Stock

  	
   

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

  
	
  Award (“RSA”)

  	
   

  	
  ·                       Quarterly dividends will be
  paid during the vesting period.

  
	
   

  	
   

  	
   

  
	
  Non-Qualified

  	
   

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

  
	
  Stock Option

  |(“ NQSO”)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Restricted Stock Unit 

  	
   

  	
  ·                       RSUs will vest in equal
  installments over a three-year period.

  
	
  Award
  (“RSU”)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Long-Term

  Performance Plan

  (“LTPP”)

  	
   

  	
  ·                       The performance periods for
  LTPP awards, performance-based cash incentive awards, are generally
  three-years. Awards generally vest and become payable in the first
  February following the end of the third year.

  

 

*To avoid adverse tax consequences, Restricted Stock Units (“RSUs”)
may be granted in lieu of RSAs and NQSOs in certain countries.

 

Substitution Awards

 

In
addition to those LTIAs granted to eligible Participants, certain incentive
awards granted under the American Express Company 1998 Incentive Compensation
Plan in connection with the spin-off from American Express Company have been
substituted (i.e., Substitution Awards) with Ameriprise Financial LTIAs.
Substitution Awards are governed by the Plan in the Form of Ameriprise
Financial 2005 Incentive Compensation Plan Award Certificates.

 

Ameriprise
Financial 2005

Incentive
Compensation Plan

 

The
Plan is designed to promote the Company’s and our shareholders’ interests by providing
eligible participants with incentives and rewards to encourage your continued
service in the management, growth and protection of the Company’s financial
success.

 

The
Plan provides for the grant of cash awards, non-qualified and incentive stock options,
restricted stock awards, restricted stock units and other stock-based awards to
eligible employees. The CBC may grant LTIAs to other persons such as
independent contractors and non-employee directors who provide services to the
Company. LTIAs may be settled in cash and/or in shares of Company common stock
(“AMP Shares”) or other property pursuant to LTIA terms. In addition, to
provide suitable incentives to employees outside the United States, we may
issue awards similar to the types of awards listed above that also meet the
requirements of foreign jurisdictions.

 

2

 

Stock-Based
Award Types

 

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

 

	
  Award Feature

  	
   

  	
  RSA

  	
   

  	
  NQSO

  	
   

  	
  RSU

  
	
  Intent and form

  of award

  	
   

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

  	
   

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

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Size of grant

  	
   

  	
  Generally, the dollar
  value of the award is converted to a specific number of AMP Shares (at fair
  market value) on the grant date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vesting schedule

  	
   

  	
  Generally, awards vest in equal annual installments
  over a three-year period. Individual awards may vary as specified in your award
  package.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dividends/dividend

  equivalents

  	
   

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

  	
   

  	
  No

  	
   

  	
  Same as RSA,but in the
  form of dividend equivalents.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

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

  	
   

  	
  No

  	
   

  	
  Same as RSA.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Voting rights for unvested
  AMP Shares

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current value 

  	
   

  	
  Current share price multiplied
  by number of AMP Shares.

  	
   

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

  	
   

  	
  Same as RSA.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Taxation (U.S. only)

  	
   

  	
  Generally
  upon vesting.

  

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

  	
   

  	
  Upon exercise.

  

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

  	
   

  	
  Same as RSA.

  

 

3

 

Restricted
Stock Award (“RSA”)

 

An
RSA grant is a grant of AMP Shares. Your rights to the shares are restricted
until the shares vest and you remain employed with the Company. Once vested,
you receive the AMP Shares free from restrictions. Quarterly dividends, if any,
are paid during the restricted period. You have full voting rights for all of
your restricted AMP Shares.

 

Valuing RSA Grants

 

The
value of an RSA share at vesting is equal to Ameriprise Financial’s average
share price on that day. We use the fair market value as reported on the New
York Stock Exchange composite tape of Ameriprise Financial’s trading prices on
the vesting date.

 

For
example, if 150 restricted AMP Shares vest in January 2007 and the AMP
Share price at vesting is $55, the pre-tax value of these AMP Shares would be
$8,250 ($55 x 150 = $8,250). (See “About the Illustrations” for an important
disclosure.)

 

Vesting

 

RSAs
generally vest in equal installments over a three-year period, starting with
the first anniversary of the grant date and ending on the third anniversary of
the grant date.

 

The
Award Certificate you receive with an RSA grant will include a personalized
vesting schedule. Prior to the vesting date, the Ameriprise LTIA Administration
group will remind you that you must open a brokerage account with Ameriprise
Financial Brokerage Services (“AFBS”) and have the net AMP Shares transferred
to this account or hold the net AMP Shares in an account in your name with the
transfer agent.

 

The
net AMP Shares deposited into your account will be the number of AMP Shares
specified in your RSA award less the necessary number of AMP Shares needed to
satisfy any tax withholding requirements. Once deposited into your account, you
may sell your AMP Shares at any time, subject to securities laws governing
insider trading, short swing profit rules and Company black-out periods
applicable to Bands 50 and above. You are responsible for knowing the
applicable laws and Company policies regarding your stock and stock based
awards and abiding by them.

 

Quarterly Dividends

 

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

 

To
change the address where your dividend check is mailed or to request a dividend
check replacement, contact the Transfer Agent. Contact information can be found
on page 28 of this guide.

 

Treatment of RSAs Upon Certain Events

 

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

4

 

Non-Qualified Stock Option (“NQSO”)

 

An NQSO gives you the right to purchase a
specified number of AMP Shares for a 10-year period at the exercise price (the
share price at grant) on the day of the grant date, subject to continuous
employment and vesting requirements. The exercise price is equal to the closing
stock price as reported on the New York Stock Exchange composite tape on the
grant date. Once an option becomes vested, you determine when to exercise the
option and how to pay for the option exercise.

 

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

 

Valuing
NQSO Grants

 

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

 

Vesting

 

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

 

Steps for
Exercising NQSOs

 

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

 

Follow these steps to exercise an NQSO:

 

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

 

·                  Cashless: Instruct Ameriprise Financial Brokerage Services (“AFBS”), our exclusive
broker, to sell all exercised shares and pay the exercise cost and tax payment
due. There is no fee to open a brokerage account with AFBS, and you will pay a
reduced commission when AFBS sells shares on your behalf.

 

·                  Check: Made
payable to Ameriprise Financial, Inc. This check must accompany the “Request
to Exercise Form” and both (the Form and check) mailed to AFBS at the
address indicated on the Exercise Form.

 

·                  Stock-for-Stock (“Swap”): Swap AMP Shares you have owned for at least
six months that are held in either your name or a joint account with your name.
(AMP Shares within a U.S. Individual Retirement Account, the Ameriprise
Financial 401(k) 

Plan, or other similar program cannot be used for this

 

5

 

transaction.) You may pay the
exercise cost by completing an “Attestation Form” and attaching documentation
that affirms you own the required AMP Shares. To access this form, please go to
Inside and search on “Attestation Form.”

 

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

 

·         Request AFBS to take funds from your brokerage
cash account to cover tax withholdings; or

 

·         Instruct AFBS to withhold and sell the
appropriate number of shares (otherwise available from the exercise) to pay the
required minimum tax withholding. Note: Shares cannot be sold until after tax
withholding liability has been determined. Due to price fluctuation (between
exercise and disposition of shares), the exact number of shares needed to cover
taxes will not be known immediately upon exercise.

 

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

 

·         Obtain required approval. All Section 16 reporting officers must
pre-clear their intent to exercise through the Company’s Corporate Secretary’s
Office. Additional approvals may be required for all Bands 50 and above
participants if the exercise request exceeds certain hurdles, e.g., the request
that would result in the exercise of more than 40% of your available AMP Shares
(25% for Executive Team members) within any 90-day period. The Corporate
Secretary’s Office will provide instruction on necessary approvals required.

 

·         Black-out period. There is a quarterly black-out period when the
trading window closes and remains closed for approximately six weeks until the Company’s
earnings for the preceding quarter are made public. Other black-out periods may
apply as determined by the Corporate Secretary’s Office. All affected participants
will receive an email from the Corporate Secretary’s Office quarterly stating
the blackout dates including a copy of the Ameriprise Securities Trading
Policy.

 

·         (For Bands 70 and above
only) Affirm
stock ownership requirements are met or requirements understood if not yet met.
The Company has implemented
stock ownership guidelines for executives. These guidelines have been
communicated to affected executives. All Bands 70+ will receive a stock
ownership summary statement annually.

 

·         (For executive officers
only) Participants who are
executive officers of the Company also need to be aware that their sales of AMP
Shares in all Company plans, including the Ameriprise 2005 Incentive
Compensation Plan, Ameriprise Deferred Compensation Plan, Ameriprise Financial
401(k) Plan and all other stock-based plans in which they participate, are
subject to the reporting requirements and short-swing trading restrictions of Section 16
of the Securities Exchange Act of 1934. You should consult with your personal
financial or legal advisor prior to selling and/or buying AMP Shares in these
plans.

 

3.
Submit your “Notice of Exercise of Employee
Stock Option Form.” If you plan to sell all or a portion of your AMP
Shares, fax the form directly to AFBS at 612.671.6023. If you are paying for
the exercise by check or with AMP Shares you already own, mail the form to AFBS
at the address indicated on the form, along with the check or instructions on
where AMP Shares are currently held. AFBS will confirm either the amount or
shares needed to cover the exercise cost and the required minimum tax
withholding. (Electronic submission of forms is not currently available.)

 

6

 

4.
To place a stop order on your account,
contact AFBS directly at 612.671.5355 or 800.555.9826.

You will also need to
complete and submit the “Notice of Exercise Form” and “Attestation Form,” if
swapping shares.

 

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

 

NQSO
Exercise Illustration

 

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

 

NQSO
Exercise Alternatives

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Cash (Using Check

  	
   

  	
  Stock-for-Stock

  
	
   

  	
   

  	
  Exercise Step

  	
   

  	
  Cashless Via Broker

  	
   

  	
  or Money Order)

  	
   

  	
  (Swap)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Market
  value of exercised

  AMP Shares at $50

  ($50/share x 1,000 shares)

  	
   

  	
  $50,000

  	
   

  	
  $50,000

  	
   

  	
  $50,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  Exercise
  price paid

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ($30/share
  x 1,000 shares)

  	
   

  	
  $30,000

  (use sale proceeds)

  	
   

  	
  $30,000

  	
   

  	
  $30,000

  (swap 600 AMP Shares)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  Pre-Tax
  Gain (Step A – Step B)

  	
   

  	
  $20,000

  	
   

  	
  $20,000

  	
   

  	
  $20,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D

  	
   

  	
  Minimum
  U.S. tax withholding

  paid (Step C x 40% assumed tax)

  	
   

  	
  $8,000

  	
   

  	
  $8,000

  (withhold 160 AMP Shares from exercise)

  	
   

  	
  $8,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E

  	
   

  	
  Incremental
  value after exercise

  and tax withholding

  (Step A – Step B – Step D)

  	
   

  	
  $12,000

  (broker commission applies)

  	
   

  	
  $12,000

  	
   

  	
  $12,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F

  	
   

  	
  Incremental
  share ownership

  (or net proceeds) from exercise

  	
   

  	
  $12,000

  	
   

  	
  840
  AMP Shares

  (1,000 – 160 AMP)

  Shares withheld

  for taxes)

  	
   

  	
  240
  AMP Shares

  (1,000 – 160 AMP

  Shares withheld

  for taxes; 600 AMP Shares swapped)

  

 

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

 

Treatment
of NQSOs Upon Certain Events

 

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

 

7

 

Restricted Stock Unit (“RSU”)

 

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

 

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

 

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

 

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

 

Treatment
of RSUs Upon Certain Events

 

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

 

Long-Term Performance Plan (“LTPP”)
for Bands 50 and above

 

Please refer to the separate Long-Term
Performance Plan guide on Inside for details and provisions pertaining
to this plan.

 

8

 

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

 

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

 

NO ADVICE ON
TAX TREATMENT OF ANY LTIA, INCLUDING THE EXERCISE OF ANY NQSOS, HAS BEEN GIVEN
TO YOU. YOU ARE URGED TO CONSULT YOUR OWN PERSONAL COUNSEL, ACCOUNTANT, OR
OTHER TAX ADVISOR REGARDING THE TAX CONSEQUENCES OF LTIAS GRANTED TO YOU BASED
ON YOUR PARTICULAR TAX SITUATION.

 

RSA/RSU:
U.S. Tax Implications

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

NQSO: U.S.
Tax Implications

 

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

 

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

 

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

 

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

 

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

 

10

 

Other Tax Implications for LTIAs

 

Performance-based LTIAs

 

Tax regulations limit the Company’s ability to deduct compensation paid
during a fiscal year to a Covered Employee in excess of one million dollars,
unless such compensation qualifies as “performance-based compensation” or meets
another exception. Generally, LTIAs granted under the Plan may be deductible by
the Company, without regard to the limit set by the regulations; however, the
Plan does permit awards to be granted that would be subject to such limit and
that would not qualify as “performance-based compensation” or meet another
exception in the Code. In such case, the Company’s deductions with respect to
such awards would be subject to the limitations imposed by the Code.

 

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

 

Code Section 83(b) Election

 

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

 

Parachute Payments

 

In certain circumstances, a Plan Participant might be deemed to have
received “parachute payments” under the Code to the extent that a Change of
Control results in the grant of, or increase in the amount of, any LTIA or
accelerates a Participant’s rights under any LTIA. In general, if the present
value of all payments to a Participant constituting parachute payments equals
or exceeds three times the Participant’s “base amount” (the Participant’s
average annual compensation, determined over the five-year period preceding the
year the payment is made), the Participant will be subject to a 20% excise tax
(in addition to regular tax) on the excess of the parachute payments over the
Participant’s base amount. Also, the Company will be denied any tax deduction
for the amount of the excess parachute payments. See “Payments to U.S.
Taxpayers Upon a Change in Control of the Company” for more information.

 

Code Section 409A

 

Congress passed tax legislation geared toward certain deferred
compensation programs. This statute, Section 409A of the Internal Revenue
Code of 1986, as amended (“Code Section 409A”), was generally effective January 1,
2005. LTIAs earned and vested prior to the end of 2004 are generally exempt from the
new law, provided they are not materially modified after October 3,
2004. All LTIAs subject to the new law will be administered in compliance with
the new law, even if it conflicts with the information in this Guide, the Plan
or the governing award documents described above. In order to comply with Code Section 409A,
the CBC may, in its sole discretion in any manner and at any time without your
prior consent or notice, subject to Plan provisions, decide to administer,
operate, or amend the Plan in conformity with Code Section 409A in an
effort to maintain the tax effectiveness of service recipient stock. The
information in this Guide, as well as the Plan and the governing award documents, will be amended in accordance with IRS
deadlines to comply with Code Section 409A.

 

11

 

Treatment
of LTIAs Upon Certain Events

 

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

 

·                  Part-time employment status,

 

·                  Employment termination,

 

·                  Leave of absence,

 

·                  Death,

 

·                  Disability termination,

 

·                  Retirement,

 

·                  Transfer between business segments,

 

·                  Transfer from field sales leader to P2
advisor,

 

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

 

·                  Change in Control of the Company.

 

Part-Time Employment Status

 

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

 

Employment Termination

 

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

 

·                  Voluntary Termination: If you terminate your employment with the
Company, your unvested LTIAs will be forfeited. There are no exceptions
to this rule. Any vested/exercisable NQSOs you do not exercise within 90 days
after your last day of employment will be canceled.

 

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

 

·                  Termination Eligible for
Severance Under Company Plan: If your employment is terminated and
you receive benefits under a Company severance plan (as defined by the Company)
in the form of payments over a specified severance period, your unvested LTIAs,
will be canceled on the earlier of the award expiration date or the end of your
severance payments. You will have 90 days from your last day to exercise any
vested/exercisable options (NQSOs). All non-vested NQSOs and RSAs are canceled
on the last day of the severance period. However, if you begin a new full-time
position outside the Company (other than self-employment) during the severance
period, your outstanding LTIAs will be canceled upon such employment,
regardless of the continuation of severance payments. If your employment is
terminated and you receive benefits under a Company severance plan (as defined
by the Company) in the form of a lump-sum payment, your outstanding non-vested
LTIAs will be canceled as of your last day of employment. You will have 90 days
from your last day to exercise any vested/exercisable options (NQSOs).

 

Leave of Absence

 

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

 

12

 

Death

 

The
following chart shows how RSAs/RSUs and NQSOs are treated if your employment
with the Company terminates due to your death.

 

	
  Award

  Type

  	
   

  	
  Provisions

  
	
  RSA/RSU

  	
   

  	
  Outstanding RSAs/RSUs become 100% vested.

  
	
   

  	
   

  	
   

  
	
  NQSO

  	
   

  	
  Outstanding NQSOs at death become 100% exercisable. NQSOs are
  exercisable by the estate for up to 12 months after death or the remaining
  term of your grant — whichever is less.

  

 

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

 

Disability Termination

 

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

 

	
  Award

  Type

  	
   

  	
  Provisions

  
	
  RSA/RSU

  	
   

  	
  Outstanding RSAs/RSUs become 100% vested.

  
	
   

  	
   

  	
   

  
	
  NQSO

  	
   

  	
  Outstanding NQSOs at employment termination become 100% exercisable.
  NQSOs are exercisable for up to 12 months after disability or the remaining
  term of your grant — whichever is less.

  

 

13

 

Retirement

 

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

 

	
  Award

  Type

  	
   

  	
  Provisions

  
	
  RSA/RSU

  	
   

  	
  Grants awarded in the calendar year you retire are forfeited. All
  other awards remain outstanding and continue to vest.

  
	
   

  	
   

  	
   

  
	
  NQSOs

  	
   

  	
  Grants awarded in the calendar year you retire are forfeited. All
  other awards remain outstanding and continue to vest. NQSOs are exercisable
  for up to five years or the remaining term of your grant — whichever is less.

  

 

Transfer Between Business Segments

 

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

 

Transfer from Field Sales Leader to P2 Advisor

 

Certain
provisions for LTIA continuation apply to awards held by employees (limited to
those employees in eligible field sales leadership roles) who transition to P2
advisor without a break in service. The applicable provisions are available on Inside.

 

Situations of Detrimental Conduct

 

(Bands 50 and above)

 

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

 

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

 

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

 

14

 

·      For Bands 70 and above Participants,
Detrimental Conduct during
employment and up to one year after employment termination would result in the
repayment of NQSOs gains realized and the vested value of your RSAs for two
years prior to employment termination.

 

For the full Detrimental Conduct Provisions, see Appendix in
this Guide.

 

Change in Control (“CIC”) of the Company

 

We
designed the CIC provisions to preserve earned or anticipated compensation and
benefits if a CIC were to occur. Our goal is to help you focus on your job during
the uncertainty that accompanies a potential CIC.

 

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

 

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

 

2.          A
majority of the Ameriprise Financial Board of Directors is replaced.

 

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

 

4.          The
consummation of a complete liquidation or dissolution of Ameriprise Financial.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Most
employees are not covered employees, so there is no limit on the total value of
their vesting/payment actions upon a CIC. If you are considered a covered employee
in the event of a CIC, we will do the calculation to determine whether you will
be better off exceeding the limit and paying the excise tax or having your
vesting/payment actions limited to avoid the excise tax.

 

15

 

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

 

Definition of Covered Employee 

 

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

 

Resale of Shares Received Under the Plan

 

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

 

16

 

Comparison
of LTIA Major Terms and Provisions

 

There
are a number of changes to the terms and provisions for LTIAs granted in 2007.
The past provisions will continue to apply for all awards granted prior to
2007.

 

Non-Qualified Stock Options (NQSOs)

 

The
following table summarizes what has changed for the new non-qualified stock
option (NQSO) awards. Keep in mind this is only a summary, and the actual Plan
document, Program Guide and Award Certificates will govern.

 

	
   

  	
   

  	
  Current Outstanding Awards

  	
   

  	
  New Awards

  
	
   

  	
   

  	
  (awarded prior to 2007)

  	
   

  	
  (awarded starting in 2007)

  
	
  Voluntary and Involuntary

  Termination (not for cause)

  ·   Unvested

  ·   Exercise
  Period

  	
   

  	
   

   

  Forfeited

  0 days after termination

  	
   

  	
   

   

  No change

  90 days after termination

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Involuntary Termination (for
  cause)

  ·   Unvested

  ·   Exercise
  Period

  	
   

  	
   

  Forfeited

  0 days after termination

  	
   

  	
   

  No change

  No change

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Death & Disability

  ·   Unvested

  ·   Exercise
  Period

  	
   

  	
   

  Vesting accelerated

  Up to five years after
  death or disability or remaining term of grant, whichever is less

  	
   

  	
   

  No change

  Up to 12 months after
  death or disability or remaining term of grant, whichever is less

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vesting

  	
   

  	
  Four-year vesting
  schedule: vest at 25% per year for the four years following the date of grant

  	
   

  	
  Three-year vesting
  schedule: vest at 33 1/3% per year for three years following the date of
  grant.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Non-Compete (Detrimental
  Conduct

  Agreement) - Bands 50+ only

  ·   Clawback
  Provision

  	
   

  	
   

   

  A clawback provision
  applies to both RSAs and NQSOs for all Band 50 and above employees.

   

  See Detrimental Conduct
  Agreement in the appendix in this guide for details

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Transfer to P2 (field leaders
  only)

  	
   

  	
  Please refer to the P2
  Transfer Guide found on Inside for most recent information.

  

 

	
   

  	
   

  	
  Awards Granted

  	
   

  	
  Awards Granted 1/1/2005

  	
   

  	
  Awards Granted

  
	
   

  	
   

  	
  Prior to 2005*

  	
   

  	
  Thru 12/31/2006*

  	
   

  	
  1/1/2007 and after

  
	
  Retirement

  

  ·   Unvested

  	
   

  	
   

   

  (Age 55-59/10
  yrs) 100% of all grants outstanding are forfeited.

   

  (Age 60-61/10
  yrs) 50% of grants outstanding continue to vest. The remaining unvested
  grants are forfeited. 

   

  (Age 62+/10 yrs)
  100% of all grants outstanding continue to vest.

  	
   

  	
   

   

  (Age 55-59/10
  yrs) 50% of grants outstanding > one year continue to vest. All remaining
  unvested grants are forfeited.

   

  (Age 60-61/10
  yrs) 100% of grants outstanding > one year continue to vest. Grants
  outstanding < one year are forfeited.

   

  (Age 62+/10 yrs)
  100% of all grants outstanding continue to vest.

  	
   

  	
   

   

  (Age 55+/10 yrs)
  Grants awarded in calendar year of retirement are forfeited.

   

  All other grants
  remain outstanding and continue to vest.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·   Exercise Period

  	
   

  	
  Remainder of
  term

  	
   

  	
  Remainder of
  term

  	
   

  	
  Up to five years
  or remaining term of grant, whichever is less.

  

 

*  For
awards granted under the American Express program which were substituted with
Ameriprise Financial awards dated 9/30/2005, provisions apply based on the
original grant date of the award.

 

17

 

Restricted Stock Awards/Restricted Stock Units (RSAs and
RSUs)

 

The
following table summarizes what has changed for the new restricted stock awards
(RSAs). Keep in mind this is only a summary, and the actual Plan documents and
Award Certificates will govern.

 

	
   

  	
   

  	
  Current Outstanding
  Awards

  	
   

  	
  New Awards

  
	
   

  	
   

  	
  (awarded prior to 2007)

  	
   

  	
  (awarded starting in
  2007)

  
	
  Voluntary
  and Involuntary

  	
   

  	
   

  	
   

  	
   

  
	
  Termination
  (not for cause)

  	
   

  	
   

  	
   

  	
   

  
	
  · 
  Unvested

  	
   

  	
  Forfeited

  	
   

  	
  No change

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Involuntary
  Termination (for cause)

  	
   

  	
   

  	
   

  	
   

  
	
  ·  Unvested

  	
   

  	
  Forfeited

  	
   

  	
  No change

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Death
  & Disability

  	
   

  	
   

  	
   

  	
   

  
	
  ·  Unvested

  	
   

  	
  Vesting
  accelerated

  	
   

  	
  No change

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Retirement

  	
   

  	
   

  	
   

  	
   

  
	
  ·  Unvested

  	
   

  	
  (Age 55-59/10
  yrs) RSAs outstanding > two years from grant shares vest
  immediately; remaining shares are forfeited

  	
   

  	
  (Age 55+/10 yrs)
  RSAs awarded in calendar year of retirement are forfeited

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Age 60-61/10
  yrs) In addition to provision above, half of RSAs < two years from grant
  date vest immediately 

   

  (Age 62+/10 yrs)
  All RSAs vest immediately

  	
   

  	
  All other RSAs
  remain outstanding and continue to vest

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vesting

  	
   

  	
  Four-year
  vesting schedule: vest at 25% per year for the four years following the date
  of grant

  	
   

  	
  Three-year
  vesting schedule: vest at 33 1/3 % per year for three years following the
  date of grant

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Non-Compete
  (Detrimental Conduct

  	
   

  	
   

  	
   

  	
   

  
	
  Agreement) - Bands 50+ only

  	
   

  	
   

  	
   

  	
   

  
	
  ·  Clawback
  Provision

  	
   

  	
  A clawback
  provision applies to both RSAs and NQSOs for all Band 50 and above employees

   

  See Detrimental
  Conduct Agreement in the appendix in this guide for details

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Transfer
  to P2 (field leaders only)

  	
   

  	
  Please refer to
  the P2 Transfer Guide found on Inside for most recent information

  

 

18

 

Administrative
Information about this Guide

 

About this Guide

 

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

 

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

 

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

 

The
Board may, from time to time, alter, amend, interpret, suspend or terminate the
Ameriprise Financial 2005 Incentive Compensation Plan (Plan) and applicable
Plan documents as it shall deem advisable, without your prior consent or notice
(including, but not limited to, alignment with legislative or regulatory
developments) subject to the terms of the Plan document and any requirement for
stockholder approval imposed by applicable law, including the rules and
regulations of the principal securities market on which AMP Shares are traded.
The information in this Guide does not create an employment contract and does
not imply there will be an LTIA program in the  future, nor what the
participation, selection and award guidelines would be.

 

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

 

About the Illustrations

 

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

 

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

 

Award Confirmation Materials

 

Generally,
all employee recipients of LTIAs will have online access to their individual
LTIA information through the Company’s HR self-service. In addition, Restricted
Stock Award (“RSA”), Restricted Stock Unit (“RSU”) and/or Non- Qualified Stock
Option (“NQSO”) Award Certificates will be distributed to employees via regular
mail. In the future, RSA, RSU and NQSO Award Certificates may be distributed
via electronic means (either inter-Company electronic mail or to the employees’
desktop computers). Those LTIA recipients who do not have access to online

 

19

 

HR
tools will have confirmation materials mailed to their home address as soon as
practicable following approval of the award.

 

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

 

Governing Award Documents

 

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

 

AMP Shares Available for Grant Under the Plan

 

37,900,000
AMP Shares are authorized for issuance under the LTIA. Of such total, no more
than 4,400,000 shares may be issued in the future for what are referred to as “full
value” awards which are Plan awards other than stock options or stock
appreciation rights. AMP Shares issued under the Plan may be either newly
issued shares or treasury shares.

 

Excluding
AMP Shares that may be issued with respect to Substitution Awards, the maximum
number of AMP Shares that may be covered by LTIAs granted to any single Plan
participant in any calendar year cannot exceed 3,000,000 AMP Shares. Further,
the amount  payable in cash to any covered employee for any calendar year for all
performance-based compensation under the plan will not exceed $25,000,000.

 

If
any shares subject to an award are forfeited, expire or otherwise terminate
without issuance of such shares, or any award is settled for cash or otherwise
does not result in the issuance of all or a portion of the shares subject to
such award (including on payment in shares on exercise of a stock appreciation
right), such shares shall, to the extent of such forfeiture, expiration,
termination, cash settlement or non-issuance, again be available for issuance
under the Plan.

 

For
the avoidance of doubt, in the event that (i) any stock option or other
award granted under the Plan is exercised through the tendering of shares
(either actually or by attestation) or by the withholding of shares by the
Company, or (ii) withholding tax liabilities arising from such stock
option or other award are satisfied by the tendering of shares (either actually
or by attestation) or by the withholding of shares by the Company, the shares
so tendered or withheld shall not become available for issuance under the Plan.

 

Plan Administration

 

The
CBC may from time to time designate: people who should be granted LTIAs, the
amount, type and other terms and conditions. Subject to the terms and  limitations of
the Plan, the CBC will have full discretion and authority to administer the
Plan, including authority to interpret and construe provisions and terms for
LTIAs issued and to adopt rules and regulations.

 

Notwithstanding
the Committee’s broad authority under the Plan, the Committee generally may not
reprice, adjust or amend the exercise price of outstanding stock options or the
strike price of outstanding stock appreciation rights, whether through
amendment, cancellation and replacement grant, or any other means, nor permit
the exchange of an outstanding option for cash or another award, unless such
action is approved by the Company’s shareholders. In addition, certain
amendments to the Plan require shareholder approval.

 

20

 

The
Company will pay any LTIA amount payable following the award terms; however,
the CBC may defer the payment amounts within the terms of the Company’s
deferred compensation plan.

 

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

 

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

 

Performance-Based Compensation

 

The
CBC may grant LTIAs to one or more of the following performance measures:

 

	
   

  	
  ·

  	
  Net income or operating net income (before or after taxes, interest,
  depreciation, amortization, and/or nonrecurring/unusual items),

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Return on assets, return on capital, return on equity, return on
  economic capital, return on other measures of capital, return on sales or
  other financial criteria,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Revenue
  or net sales,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Gross
  profit or operating gross profit,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Cash
  flow,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Productivity
  or efficiency ratios,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Share
  price or total shareholder return,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Earnings
  per share,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Budget
  and expense management,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Customer and product measures, including market share, high value
  client growth, and customer growth,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Working capital turnover and targets,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Margins,
  and

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Economic value added or other value added measurements (in any such
  case [x] considered absolutely or relative to historic performance or
  relative to one or more other businesses and [y] determined for the Company
  or a business unit or division).

  
	
   

  	
   

  	
   

  
	
  Within 90 days after the beginning of a performance period, and in any
  case before 25% of the performance period has elapsed, it is expected that
  the CBC will establish:

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Performance goals and objectives for such performance period,

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Target awards for each Participant, and

  
	
   

  	
   

  	
   

  
	
   

  	
  ·

  	
  Performance schedules or other objective methods for determining a
  performance percentage to be applied to each target award.

  

 

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

 

21

 

Adjustments upon Changes in Capitalization

 

If
the outstanding shares of Common Stock are changed by reason of any stock
split, stock dividend, combination, subdivision or exchange of shares,
recapitalization, merger, consolidation, reorganization or other extraordinary
or unusual event, the Committee will direct that appropriate changes be made in
the maximum number or kind of securities that may be issued under the Plan and
in the terms of certain outstanding awards, including the number of shares or
securities subject to awards and the exercise price or other stock price or
share-related provisions of awards.

 

Tax Withholding

 

The
Plan provides that Participants may elect to satisfy certain federal, state and
local withholding tax requirements with cash or AMP Shares. If a Participant
remits AMP Shares or instructs the Company to withhold AMP Shares, only the
number of AMP Shares sufficient to satisfy the minimum withholding tax
requirements will be withheld.

 

Assignment and Transfer

 

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

 

Amendment

 

Our
Board of Directors may at any time suspend or discontinue the Plan or revise or
amend it in any way; however, the Board generally may not reprice, adjust or
amend the exercise price of outstanding stock options or the strike price of
outstanding stock appreciation rights, whether through amendment, cancellation
and replacement grant, or any other means, nor permit the exchange of an
outstanding option for cash or another award, unless such action is approved by
the Company’s shareholders. In addition, certain amendments to the Plan require
shareholder approval.

 

Term of the Plan

 

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

 

22

 

Appendix
A

DETRIMENTAL
CONDUCT PROVISIONS TO LONG-TERM INCENTIVE AWARDS

 

CONSENT TO THE APPLICATION OF FORFEITURE AND DETRIMENTAL
CONDUCT PROVISIONS TO LONG-TERM INCENTIVE AWARDS

(Revised February 2007)

 

1.     Introduction.

 

Stock
Options, Restricted Stock Awards, Restricted Stock Unit Awards, other
stock-based awards, Portfolio Grants, Long Term Performance Plan awards and any
other incentive awards (the entirety of the foregoing collectively referred to
herein as “Awards”) are issued to employees pursuant to the Ameriprise
Financial 2005 Incentive Compensation Plan, as amended from time to time (the “Ameriprise
2005 ICP”), at the discretion and subject to the administration of the
Compensation and Benefits Committee of the Board of Directors of Ameriprise Financial, Inc.
(the “Ameriprise CBC”). This agreement (the “Agreement”) between Ameriprise
Financial, Inc. (“Ameriprise”) and you supplements the terms of the
Ameriprise 2005 ICP, the Ameriprise Financial LTIA Guide, any Award
certificates and any other agreement for the grant of any Awards under the
Ameriprise 2005 ICP, and applies to all Awards that have been issued to you
under the Ameriprise 2005 ICP.

 

In
consideration of the issuance of Awards to you under the Ameriprise 2005 ICP, to
the extent consistent with the terms of the Ameriprise 2005 ICP, you agree to
the incorporation of the terms of this Agreement to all Awards issued to you in
the future under the Ameriprise 2005 ICP or any successor plan(s), as well as
any Awards that may have been issued to you in the past under the Ameriprise
2005 ICP, including any awards that may have been issued to you in substitution
of Awards originally issued under the American Express Company 1998 Incentive
Compensation Plan. The terms of this Agreement shall be effective upon signing
or the issuance of awards to you under the Ameriprise 2005 ICP, whichever
occurs first. Although the Company (as defined in Paragraph 2 of the Agreement)
reserves the right to determine whether you are recommended for an Award and
the amount and type of Awards you receive, if you sign this Agreement you will
be eligible for at least one type of Award.

 

2.     Detrimental Conduct.

 

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

 

(a)   Noncompete.

 

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

 

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

 

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

 

23

 

plus the
Entities (as that term is defined in Paragraph 12 of this Agreement) listed on
the Competitor List under the column titled Business Unit Wide Competitors for
the business units that you provided services to or managed during the two-year
period preceding the date your employment with the Company terminates. If any
line(s) of business you provided services to or managed during the two-year
period preceding the date your employment with the Company terminates is not
listed on the Competitor List, then, with respect to such line(s) of
business, you shall not be employed by, provide advice to or act as a
consultant for (i) an Entity’s line of business that competes with those
line(s) of business and (ii) the Entities listed on the Competitor
List under the column titled Business Unit Wide Competitors for the business
units you provided services to or managed during the two-year period preceding
the date your employment with the Company terminates. Except for Business Unit
Wide Competitors, the prohibition against being employed by, providing advice
to or acting as a consultant for a Competitor is limited to the line(s) of
business of the Competitor that compete with the line(s) of business of
the Company that you provided services to or managed. With respect to Business
Unit Wide Competitors, you agree not to be employed by, provide advice to or
act as a consultant for such Entities in any line of business because these
Entities compete with several of the Company’s lines of business. The Company
can revise the Competitor List at its discretion at any time and from time to
time and as revised will become part of this Agreement. A copy of the current
Competitor List will be available through the Corporate Secretary’s Office.
Notwithstanding anything in this Agreement to the contrary, the Company shall
not make any additions to the Competitor List for a period of two years
following the date of a Change in Control (as defined in the Ameriprise 2005
ICP).

 

This
subparagraph 2.a will not apply to employees who are primarily employed in a
state or other jurisdiction where such noncompete agreements are specifically
prohibited by law.

 

(b)   Nondenigration.

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

 

(c)   Nonsolicitation of Employees.

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

 

(d)   Nonsolicitation of Customers.

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

 

(e)   Misconduct. 

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

 

(f)    Confidential Information. 

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

 

24

 

(g)   Other Detrimental Conduct.

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

 

3.     Detrimental Conduct Remedies.

(a)   Repayment of Financial Gain.

 

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

 

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

 

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

 

25

 

4.     Approval to Exercise Options.

 

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

 

5.     Compensation Band Changes.

 

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

 

6.     Involuntary Terminations.

 

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

 

7.     Choice of Law.

 

This
Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of New York without reference to principles of conflicts
of laws.

 

8.     Choice of Forum.

 

Any
arbitration, litigation or other proceeding commenced by you or the Company for
the purpose, in whole or in part, of enforcing the Agreement or the respective
rights or obligations of you or the Company hereunder shall be commenced in
accordance with the applicable arbitration policy, in the Federal or State
courts of New York or in such other jurisdiction as the Company may reasonably
select.

 

9.     Electing Not to Sign.

 

If
you elect not to sign this Agreement, you will not be issued any new Awards
under the Ameriprise 2005 ICP or any successor plan(s). In addition, if you
elect not to sign this Agreement, awards issued to you under the Ameriprise
2005 ICP continue to be subject to any prior Agreements you may have signed.
Nothing in this Agreement should be construed as a limitation on the Company’s
right to change, at its discretion, the terms and conditions it deems
appropriate with respect to Awards issued to you in the future.

 

10.  Employment.

 

This
Agreement does not confer upon you any right of continued employment for any
period of time and is not an employment contract.

 

11.  Modification.

 

You
agree that if any provision in this Agreement is determined by a court or
arbitrator of competent jurisdiction not to be enforceable in the manner set
forth in this Agreement, such provision shall be enforceable to the maximum
extent permissible under applicable law and such court or arbitrator shall
reform such provision to make it enforceable.

 

12.  Definition of Entity.

 

As
used in this Agreement, the word Entity or Entities shall mean any corporation,
partnership, association, joint venture, trust, government, governmental agency
or authority, person or other organization or entity.

 

13.  Waivers.

 

The
failure of the Company to enforce at any time any provision of this Agreement
shall not be construed to be a waiver of such provision or of any other
provision. Any waiver or modification of the terms of this Agreement will only
be effective if reduced to writing and signed by both you and the President or
Chief Executive Officer of Ameriprise.

 

14.  Entire Agreement.

 

This
Agreement constitutes the entire understanding between you and the Company with
respect to the subject matter of this Agreement and, unless otherwise specified
in this Agreement, supersedes all prior agreements, understandings and
arrangements, oral or written, between you and the Company with respect to the
subject matter of this Agreement.

 

26

 

Resources

 

Availability of Certain Information and Incorporation of
Documents by Reference

 

Pursuant
to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the
Company will provide, without charge, upon the written or oral request of any
person to whom this Guide is delivered by the Company or one of its affiliated
entities to the Corporate Secretary’s Office, Ameriprise Financial, Inc.,
55 Ameriprise Financial Center, Minneapolis, MN 55474, 612.671.3131, a copy of
any of the following documents, all of which are incorporated by reference in
this Guide:

 

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

 

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

 

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

 

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

 

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

 

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

 

27

 

Contact Information

 

	
  Type of Question or

   Information Needed

  	
   

  
	
  All
  stock option exercises (cashless, swap or  personal check)

  	
   

  
	
   

  	
   

  
	
  Notice
  of Exercise of Employee Stock 

  	
   

  
	
  Option
  and Attestation Form

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Ameriprise
  Brokerage Account (to 

  	
   

  
	
  access
  brokerage account information)

  	
   

  
	
   

  	
   

  
	
  RSA
  and NQSO grant information

  	
   

  
	
  (grants,
  vesting detail, tax information,

  	
   

  
	
  brokerage
  account number on file with Stock Administration)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Detrimental
  Conduct Provisions

  	
   

  
	
  for
  Bands 50 and above

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Other
  information requests (e.g., LTIA

  	
   

  
	
  policy
  questions for HR, general 

  	
   

  
	
  LTIA
  questions)

  	
   

  
	
   

  	
   

  
	
  Senior
  Management Stock

  	
   

  
	
  Ownership
  Program (Bands 70 and 

  	
   

  
	
  above)

  	
   

  
	
   

  	
   

  
	
  Pre-clearance,
  Ameriprise Securities 

  	
   

  
	
  Trading
  Policy including information 

  	
   

  
	
  about
  Blackout Periods

  	
   

  
	
   

  	
   

  
	
  Stock
  Transfer Agent:

  	
   

  
	
  · Shareholder inquiries

  	
   

  
	
  · Address changes

  	
   

  
	
  · Dividend check replacement

  	
   

  
	
   

  	
   

  
	
  American
  Express LTIA

  	
   

  
	
  information

  	
   

  

 

28

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