AMERICAN INTERNATIONAL GROUP INC
EX-10.49: 2005 SENIORS PARTNERS PLAN
<DOCUMENT>
<TYPE>EX-10.49
<SEQUENCE>4
<FILENAME>y74794exv10w49.htm
<DESCRIPTION>EX-10.49: 2005 SENIORS PARTNERS PLAN
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    <TD align="right" valign="top">Exhibit&nbsp;10(49)</TD>
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>American International Group, Inc.</B></FONT>
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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><U><B>2005 Senior Partners Plan</B></U></FONT><BR>
<FONT style="font-variant: SMALL-CAPS"><U><B>(Amended and Restated Effective December&nbsp;31, 2008)</B></U></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. </B><FONT style="font-variant: SMALL-CAPS"><B>Purpose</B></FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation and Management Resources Committee of the Board of Directors (the
"<I>Committee</I>&#148;) of American International Group, Inc. (&#147;<I>AIG</I>&#148;) has determined that certain key
employees of AIG and its subsidiaries (together, the &#147;<I>Employer</I>&#148;) contribute substantially to the
long-term growth and profitability of AIG. AIG has created this AIG 2005 Senior Partners Plan
(this &#147;<I>Plan</I>&#148;) to reward these individuals and to provide incentives for their continued
contribution to the long-term performance of AIG.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. </B><FONT style="font-variant: SMALL-CAPS"><B>SPUs and Participants</B></FONT>
</DIV>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>2005 Senior Partner Units</B>. Senior Partner Units (&#147;<I>SPUs</I>&#148;) issued under this
Plan will entitle holders to receive cash distributions from AIG, subject to the terms
and conditions of this Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>B.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Participants. </B>The Committee will determine (1)&nbsp;the key employees of the
Employer who will be awarded SPUs under this Plan (the &#147;<I>Participants</I>&#148;) and (2)&nbsp;the
number of SPUs held by each Participant. It is expected that no SPUs will be awarded
under this Plan after December&nbsp;31, 2005.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>C.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Maximum Number of SPUs</B>. A maximum of 30,000 SPUs may be awarded.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. </B><FONT style="font-variant: SMALL-CAPS"><B>Value Amount per SPU</B></FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each SPU will entitle a Participant to receive a cash distribution of $2,200 (the &#147;<I>2005 SPU
Value Amount</I>&#148;) from AIG, subject to the terms and conditions of this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. </B><FONT style="font-variant: SMALL-CAPS"><B>Vesting and Payouts of 2005 SPU Value Amount</B></FONT>
</DIV>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>General</B>. The 2005 SPU Value Amount of each SPU will be paid out to
Participants in cash promptly after January&nbsp;1, 2011 (the &#147;<I>Scheduled Payment Date</I>&#148;),
but no later than the end of 2011. Except as provided in Sections&nbsp;4B and 6A, if a
Participant&#146;s employment with the Employer is terminated for any reason, the
Participant&#146;s rights in respect of any 2005 SPU Value Amount that would be payable on
the Scheduled Payment Date will be forfeited and terminate. Notwithstanding the
foregoing, if a Scheduled Payment Date occurs at a time when a Participant is
considered by AIG to be one of its &#147;covered employees&#148; within the meaning of Section
162(m) of the U.S. Internal Revenue Code of 1986, as amended (the &#147;<I>Code</I>&#148;), then,
unless the Committee determines</TD>
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<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>otherwise, payout of the Weighted-Average SPU Value in respect of such Scheduled
Payment Date may be deferred by the Employer under the circumstances described in
Section&nbsp;409A until the earliest date that the Employer reasonably anticipates that
the deduction or payment will not be limited or eliminated.</TD>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>B.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Death, Disability or Retirement after Age 65</B>. If a Participant dies, becomes
subject to Disability or terminates employment by means of retirement at or after age
65 (&#147;<I>Retires</I>&#148;), in each case while actively employed by the Employer, any remaining
unpaid 2005 SPU Value Amount will be paid to the Participant or his/her estate or
guardian, as the case may be, promptly after the date of such event, but no later than
90&nbsp;days after such event (in the case of death or Disability) or the end of the
calendar year in which such event falls (in the case of Retirement), as applicable.
For this purpose, &#147;<I>Disability</I>&#148; means a period of medically determined physical or
mental impairment that is expected to result in death or last for a period of not less
than 36&nbsp;months during which a Participant qualifies for income replacement benefits
under the Employer&#146;s long-term disability plan for at least six months, or, if a
Participant does not participate in such a plan, a period of disability during which
the Participant is unable to engage in any substantial gainful activity by reason of
any medically determined 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 36
months.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>C.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Election to Delay Payment</B>. The Committee may, in its sole discretion,
determine to defer payment of the 2005 SPU Value Amount or permit a Participant to
elect to defer payment of the 2005 SPU Value Amount, in each case in a manner that
conforms to the requirements of Section&nbsp;409A(a)(4) of the Code.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. </B><FONT style="font-variant: SMALL-CAPS"><B>Dividend-Related Payments</B></FONT>
</DIV>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>General</B>. Beginning in 2006, each Participant will be paid a cash
dividend-related amount on March&nbsp;31, June&nbsp;30, September&nbsp;30 and December&nbsp;31 based upon
their unpaid 2005 SPU Value Amount. The quarterly dividend-related payment for each
Participant will equal (1)&nbsp;his or her aggregate unpaid 2005 SPU Value Amount at the
beginning of the quarter <I>multiplied by </I>(2)&nbsp;the total cash dividends AIG pays on its
common stock during the quarter <I>divided by </I>(3)&nbsp;the Adjusted Book Value at the
beginning of the quarter.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>B.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Definitions</B>. &#147;<I>Adjusted Book Value</I>&#148; means, for any date, the total AIG
shareholders&#146; equity as of the date <I>minus </I>Accumulated Other Comprehensive Income (or
<I>plus </I>Accumulated Other Comprehensive Loss) as of such date (as reported in AIG&#146;s
Consolidated Statement of Shareholders&#146; Equity) with such adjustments as the Committee
may make in its sole discretion.</TD>
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    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>C.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Termination of Employment</B>. If a Participant&#146;s employment with the Employer
is terminated for any reason, the Participant&#146;s rights to receive any further
dividend-related payment will terminate.</TD>
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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. </B><FONT style="font-variant: SMALL-CAPS"><B>Administration of this Plan</B></FONT>
</DIV>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>General</B>. This Plan will be administered by the Committee. Actions of the
Committee may be taken by the vote of a majority of its members. The Committee may
allocate among its members and delegate to any person who is not a member of the
Committee any of its administrative responsibilities. The Committee will have power
to interpret this Plan, to make regulations for carrying out its purpose and to make
all other determinations in connection with its administration (including, without
limitation, whether a Participant has become subject to Disability), all of which
will, unless otherwise determined by the Committee, be final, binding and conclusive.
In addition, the Committee may, in its sole discretion, reinstate any SPUs, 2005 SPU
Value Amounts or dividend-related payments that would otherwise have been terminated
and forfeited because of a Participant&#146;s termination of employment, if the Participant
complies with any covenants, agreements or conditions that the Committee may impose;
<I>provided, however</I>, that any such payments will not be paid until the scheduled times
set forth in this Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>B.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Non-Uniform Determinations</B>. The Committee&#146;s determinations under this Plan
need not be uniform and may be made by it selectively among persons who receive, or
are eligible to receive, SPUs under this Plan (whether or not such persons are
similarly situated). Without limiting the generality of the foregoing, the Committee
will be entitled, among other things, to make non-uniform and selective determinations
as to the persons to become Participants.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>C.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Determination of Employment</B>. The Committee will have the right to determine
itself with respect to any Participant the commencement date of the Participant&#146;s
employment with the Employer solely for purposes of this Plan, separate and apart from
any determination as may be made by AIG or its subsidiaries with respect to the
individual&#146;s employment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>D.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Amendments. </B>The Committee will have the power to amend this Plan in any
manner and at any time, including in a manner adverse to the rights of the
Participants; <I>provided </I>that, notwithstanding the foregoing, the Committee may not
accelerate or postpone any payment to a Participant to occur at a time other than the
time provided for in this Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>E.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Liability</B>. No member of the Board of Directors of AIG or the Committee or
any employee of the Employer (each, a &#147;<I>Covered Person</I>&#148;) will have any liability to any
person (including any Participant) for any action taken or omitted to be taken or any
determination made in good faith with respect to this Plan or any Participant&#146;s
participation in it. Each Covered Person will be</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indemnified and held harmless by AIG against and from any loss, cost, liability, or
expense (including attorneys&#146; fees) that may be imposed upon or incurred by such
Covered Person in connection with or resulting from any action, suit or proceeding
to which such Covered Person may be a party or in which such Covered Person may be
involved by reason of any action taken or omitted to be taken under this Plan and
against and from any and all amounts paid by such Covered Person, with AIG&#146;s
approval, in settlement thereof, or paid by such Covered Person in satisfaction of
any judgment in any such action, suit or proceeding against such Covered Person,
<I>provided </I>that AIG will have the right, at its own expense, to assume and defend any
such action, suit or proceeding and, once AIG gives notice of its intent to assume
the defense, AIG will have sole control over such defense with counsel of AIG&#146;s
choice. To the extent any taxable expense reimbursement under this paragraph is
subject to Section&nbsp;409A, (x)&nbsp;the amount thereof eligible in one taxable year shall
not affect the amount eligible in any other taxable year; (y)&nbsp;in no event shall any
expenses be reimbursed after the last day of the taxable year following the taxable
year in which the Covered Person incurred such expenses; and (z)&nbsp;in no event shall
any right to reimbursement be subject to liquidation or exchange for another
benefit. The foregoing right of indemnification will not be available to a Covered
Person to the extent that a court of competent jurisdiction in a final judgment or
other final adjudication, in either case, not subject to further appeal, determines
that the acts or omissions of such Covered Person giving rise to the
indemnification claim resulted from such Covered Person&#146;s bad faith, fraud or
willful misconduct. The foregoing right of indemnification will not be exclusive
of any other rights of indemnification to which Covered Persons may be entitled
under AIG&#146;s Restated Certificate of Incorporation or Bylaws, as a matter of law, or
otherwise, or any other power that AIG may have to indemnify such persons or hold
them harmless.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>F.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Other</B>. In furtherance of AIG&#146;s policies, notwithstanding Section&nbsp;2, if any
Participant is a shareholder in C.V. Starr &#038; Co., Inc. on March&nbsp;31, 2006, such person
will cease to be a Participant, his or her SPUs will be forfeited and terminate and he
or she will have no rights under this Plan (in each case, unless the Committee
determines otherwise).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. </B><FONT style="font-variant: SMALL-CAPS"><B>General Rules</B></FONT>
</DIV>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Funding</B>. AIG will be under no obligation to fund or set aside amounts to
pay obligations under this Plan. Participants will have no rights to the 2005 SPU
Value Amount other than as a general unsecured creditor of AIG.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>B.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Tax Withholding</B>. As a condition to the payment of any amount under this Plan
or in connection with any other event that gives rise to a federal or other
governmental tax withholding obligation (1)&nbsp;AIG may deduct or withhold (or cause to be
deducted or withheld) from any payment to a Participant whether or not pursuant to
this Plan or (2)&nbsp;the Committee will be entitled to require that the Participant remit</TD>
</TR>

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<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cash to AIG (through payroll deduction or otherwise), in each case, in an amount
sufficient in the opinion of AIG to satisfy such withholding obligation.</TD>
</TR>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>C.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Rights to Other Payments</B>. The provisions of this Plan provide no right or
eligibility to a Participant to any other payouts from AIG or its subsidiaries under
any other alternative plans, schemes, arrangements or contracts AIG may have with any
employees or group of employees of AIG or its subsidiaries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>D.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Effect on Benefits</B>. Grants and payments under this Plan will constitute a
special discretionary incentive payment to the Participants and will not be required
to be taken into account in computing the amount of salary or compensation of the
Participants for the purpose of determining any contributions to or any benefits under
any pension, retirement, profit-sharing, bonus, life insurance, severance or other
benefit plan of the Employer or under any agreement with the Participant, unless the
Employer specifically provides otherwise.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>E.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Section&nbsp;409A</B>.</TD>
</TR>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SPUs are intended to provide payments that are &#147;deferred
compensation&#148; subject to Section&nbsp;409A, and this Plan is intended to, and will
be interpreted, administered and construed to, comply with Section&nbsp;409A with
respect to the SPUs. For this purpose, &#147;<I>Section&nbsp;409A</I>&#148; means Section&nbsp;409A of
the Code, including any amendments or successor provisions to that section,
and any regulations and other administrative guidance thereunder, in each case
as they may be from time to time amended or interpreted through further
administrative guidance. The Committee will have full authority to give
effect to the intent of this Section&nbsp;7E.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without limiting the generality of Section&nbsp;7E(1), (a)
references to the termination of a Participant&#146;s employment with respect to
SPUs will mean the Participant&#146;s separation from service with the Employer
within the meaning of Section&nbsp;409A, and (b)&nbsp;the right to dividend-related
payments pursuant to Section&nbsp;5 will be treated separately from the right to
payment of the 2005 SPU Value Amount for all purposes of Section&nbsp;409A.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any payment to be made under the SPUs in connection with
termination of a Participant&#146;s employment (and any other payment under this
Plan) that would be subject to the limitations in Section&nbsp;409A(a)(2)(b) of the
Code will be delayed until six months after termination of the Participant&#146;s
employment (or earlier death) in accordance with the requirements of Section
409A.
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each payment under the SPUs will be treated as a separate
payment for purposes of Section&nbsp;409A.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>F.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Severability</B>. If any of the provisions of this Plan is finally held to be
invalid, illegal or unenforceable (whether in whole or in part), such provision will
be deemed modified to the extent, but only to the extent, of such invalidity,
illegality or unenforceability and the remaining provisions will not be affected
thereby; <I>provided </I>that if any of such provisions is finally held to be invalid,
illegal, or unenforceable because it exceeds the maximum scope determined to be
acceptable to permit such provision to be enforceable, such provision will be deemed
to be modified to the minimum extent necessary to modify such scope in order to make
such provision enforceable hereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>G.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Entire Agreement</B>. This Plan contains the entire agreement of the parties
with respect to the subject matter thereof and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations and warranties
between them, whether written or oral with respect to the subject matter thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>H.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Waiver of Claims</B>. Each Participant recognizes and agrees that prior to being
selected by the Committee to receive a SPU he or she has no right to any benefits
under this Plan. Accordingly, in consideration of the Participant&#146;s receipt of any SPU
hereunder, he or she expressly waives any right to contest the amount of any SPU, the
terms of this Plan, any determination, action or omission hereunder by the Committee
or AIG or any amendment to this Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>I.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Third Party Beneficiaries</B>. Except as expressly provided therein, this
Plan will not confer on any person other than AIG and the Participant any rights or
remedies thereunder. The exculpation and indemnification provisions of Section&nbsp;6E will
inure to the benefit of a Covered Person&#146;s estate and beneficiaries and legatees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>J.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>AIG&#146;s Successors and Assigns</B>. The terms of this Plan will be binding upon
and inure to the benefit of AIG and its successors and assigns.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>K.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Nonassignability</B>. The SPUs, 2005 SPU Value Amounts and dividend-related
payments will not be assignable, transferable, pledged, hedged or in any manner
alienated, whether by operation of law or otherwise, except as a result of death or
incapacity where such rights are passed pursuant to a will or by operation of law.
The Committee may in its sole discretion acknowledge the written direction by a
Participant to transfer his/her SPUs under this Plan to a revocable grantor trust in
such form and on such conditions as the Committee may require in its sole discretion.
Any assignment, transfer, pledge, or other disposition in violation of the provisions
of this Section&nbsp;7K will be null and void and any SPUs which are hedged in any manner
will immediately be forfeited.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>L.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Right to Discharge</B>. Nothing contained in this Plan or in any SPU will confer
on any Participant any right to be continued in the employ
of the Employer or to be included in any future plans of a similar nature.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>M.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Consent</B>. If the Committee will at any time determine that any consent (as
hereinafter defined) is necessary or desirable as a condition of, or in connection
with, the granting of any SPUs, determination of the 2005 SPU Value Amount or the
payment of any amount under this Plan, or the taking of any other action thereunder
(each such action, a &#147;<I>plan action</I>&#148;), then such plan action will not be taken, in whole
or in part, unless and until such consent will have been effected or obtained to the
full satisfaction of the Committee. The term &#147;<I>consent</I>&#148; as used in this Section&nbsp;7M
includes (1)&nbsp;any and all listings, registrations or qualifications in respect thereof
upon any securities exchange or under any federal, state, or local law, or law, rule
or regulation of a jurisdiction outside the United States, (2)&nbsp;any other matter, which
the Committee may deem necessary or desirable to comply with the terms of any such
listing, registration or qualification or to obtain an exemption from the requirement
that any such listing, qualification or registration be made, (3)&nbsp;any and all other
consents, clearances and approvals in respect of a plan action by any governmental or
other regulatory body or any stock exchange or self-regulatory agency and (4)&nbsp;any and
all consents required by the Committee; <I>provided </I>that if such consent has not been so
effected or obtained as of the latest date provided by this Plan for payment of such
amount and further delay is not permitted in accordance with the requirements of
Section&nbsp;409A, such amount will be forfeited and terminate notwithstanding any prior
earning or vesting.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>N.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Adoption</B>. This Plan was adopted on December&nbsp;14, 2005 by the Committee. This
Plan was amended and restated by the Committee on November&nbsp;11, 2008.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. </B><FONT style="font-variant: SMALL-CAPS"><B>Disputes</B></FONT>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Governing Law</B>. This Plan will be governed by and construed in accordance
with the laws of the State of New York, without regard to principles of conflict of
laws.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>B.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Arbitration</B>. Subject to the provisions of this Section&nbsp;8, any dispute,
controversy or claim between AIG and a Participant, arising out of or relating to or
concerning this Plan or any SPU, will be finally settled by arbitration in New York
City before, and in accordance with the rules then obtaining of, the New York Stock
Exchange, Inc. (the &#147;<I>NYSE</I>&#148;) or, if the NYSE declines to arbitrate the matter (or if
the matter otherwise is not arbitrable by it), the American Arbitration Association
(the &#147;<I>AAA</I>&#148;) in accordance with the commercial arbitration rules of the AAA. Prior to
arbitration, all claims maintained by a Participant must first be submitted to the
Committee in accordance with claims procedures determined by the Committee.
</TD>
</TR>
</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>C.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Jurisdiction</B>. AIG and each Participant hereby irrevocably submit to the
exclusive jurisdiction of a state or federal court of appropriate
jurisdiction located in the Borough of Manhattan, the City of New York over any
suit, action or proceeding arising out of or relating to or concerning this Plan or
any SPU that is not otherwise arbitrated or resolved according to Section&nbsp;8B. AIG
and each Participant acknowledge that the forum designated by this Section has a
reasonable relation to this Plan and to such Participant&#146;s relationship with AIG.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>D.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Waiver</B>. AIG and each Participant waive, to the fullest extent permitted by
applicable law, any objection which AIG and such Participant now or hereafter may have
to personal jurisdiction or to the laying of venue of any such suit, action or
proceeding in any court referred to in Section&nbsp;8C. AIG and each Participant undertake
not to commence any action, suit or proceeding arising out of or relating to or
concerning this Plan or any SPU in any forum other than a forum described in Section
8C.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>E.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Service of Process</B>. Each Participant irrevocably appoints the Secretary of
AIG at 70 Pine Street, New York, New York 10270, U.S.A. as his or her agent for
service of process in connection with any action, suit or proceeding arising out of or
relating to or concerning this Plan or any SPU that is not otherwise arbitrated or
resolved according to Section&nbsp;8A. The Secretary will promptly advise the Participant
of any such service of process.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>F.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Confidentiality</B>. Each Participant must keep confidential any information
concerning any grant made under this Plan and any dispute, controversy or claim
relating to this Plan, except that a Participant may disclose information concerning a
dispute or claim to the court that is considering such dispute or to such
Participant&#146;s legal counsel (provided that such counsel agrees not to disclose any
such information other than as necessary to the prosecution or defense of the
dispute).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. </B><FONT style="font-variant: SMALL-CAPS"><B>Term of Plan</B></FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Plan will continue until suspended or terminated by the Committee in its sole discretion.
Any termination of this Plan will be done in a manner that the Committee determines complies with
Section&nbsp;409A.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>



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