Document:

amendment1tomanufacturin

Exhibit 10.1  Certain information contained in this document, marked by [***], has been omitted  because it is both (i) not material and (ii) the type of information that Tricida, Inc. treats  as private or confidential.      AMENDMENT NO. 1 TO MANUFACTURING AND COMMERCIAL SUPPLY AGREEMENT    This Amendment No. 1 to Manufacturing and Commercial Supply Agreement (“Amendment  No. 1”) is dated as of March 30, 2021 (the “Amendment No. 1 Effective Date”) and is entered  into between Patheon Austria GmbH & Co KG, with its principal offices located at St. Peter  Strasse 25, A-4020 Linz, Austria (“Patheon”), and Tricida, Inc., a Delaware corporation, with its  principal offices located at 7000 Shoreline Court, Suite 201, South San Francisco, CA 94080  (“Tricida”), in order to amend that certain Manufacturing and Commercial Supply Agreement  between the parties dated as of October 4, 2019 (the “Agreement”). Each of Patheon and Tricida  are sometimes referred to herein as “Party” or “Parties”.    WHEREAS, following Tricida’s receipt of a Complete Response Letter and an Appeal Denied  Letter from the U.S. FDA, and the Parties desire to clarify each Party’s respective obligations  under the Agreement with respect to the [***], [***], [***] and [***], the Parties entered into that  certain Binding Term Sheet for Amendment 1 to Manufacturing and Commercial Supply  Agreement, dated February 26, 2021 (the “Binding Term Sheet”), to set forth certain agreed  upon terms for an amendment to the Agreement; and    WHEREAS, the Binding Term Sheet requires the Parties to enter into a definitive written  amendment to the Agreement that contains the terms in the Binding Term Sheet and other  mutually agreeable terms and conditions regarding the subject matter of the Binding Term Sheet.    NOW, THEREFORE, the Parties hereby agree as follows:    1. Amendment to Supply Year Definition. Section 1.70 is hereby deleted and replaced with the  following new Section 1.70:  “1.70 “Supply Year” shall mean a twelve-month period starting on [***] of a calendar  year and ending on [***] of the subsequent calendar year. Supply Years shall  be [***] as Supply Year [***], Supply Year [***], Supply Year [***], etc. Supply  Year [***] will commence on [***] and end on [***].  2. Amendments to Supply Year References within the Agreement. In order to avoid confusion,  all references within the Agreement to Supply Years that are also [***] will be replaced with  the sole reference to the [***], as delineated below:  a. Supply Year [***] will commence on [***] and end on [***]. All references throughout the  Agreement to “[***] Supply Year”, “Supply Year [***]”, “Supply Year [***]” and “Supply Year  [***]” are hereby replaced with “Supply Year [***]”.  b. Supply Year [***] will commence on [***] and end on [***]. All references throughout the  Agreement to “[***] Supply Year”, “Supply Year [***]” and “Supply Year [***]”, are hereby  replaced with “Supply Year [***]”.  

 

  Page 2 of 12  c. Supply Year [***] will commence on [***] and end on [***]. All references throughout the  Agreement to “Supply Year [***]” and “Supply Years [***]” are hereby replaced with “Supply  Year [***]”.  d. Supply Year [***] will commence on [***] and end on [***]. All references throughout the  Agreement to “[***] Supply Year” are hereby replaced with “Supply Year [***]”.  3. Amendment to Term of Agreement. The “[***]”, as defined in Section 11.2, is hereby amended  to [***]. For clarity, Supply Year [***] will be the [***], and the mutual supply and purchase  obligations under the Agreement are also extended through Supply Year [***].  4. Amendments to Various Dates in the Agreement. The dates in the Sections referenced below  are hereby amended as stated:  a. In Section 5.1, last paragraph, “Supply Year [***]” is changed to “Supply Year [***]”.  b. In Section 5.4(b), “[***]” is changed to “[***]” in both places and “Supply Year [***]” is  changed to “Supply Year [***]” in both places.  c. In Section 5.4(c), “[***]” is changed to “[***]” in both places and “Supply Year [***]” is  changed to “Supply Year [***]” in both places.  d. In Section 5.4(d), “[***]” is changed to “[***]” in both places and “Supply Year [***]” is  changed to “Supply Year [***]” in both places.   e. In Section 5.5(a), “Supply Year [***]” is changed to “Supply Year [***]” in both places.  f. In Section 5.5(b), “Supply Year [***]” is changed to “Supply Year [***]” in both places.  g. In Section 5.10, “Supply Year [***]” is changed to “Supply Year [***]” and “[***]” is changed  to “Supply Year [***]”.  h. In Section 5.11(a), the phrase “[***]; and” is changed to “[***]; and”.  i. In Section 5.11(c)3, “Supply Year [***]” is changed to “Supply Year [***]” in all three places.  j. In Section 5.11(c)4, “Supply Year [***]” is changed to “Supply Year [***]”.  k. In Section 5.11(d), “Supply Year [***]” is changed to “Supply Year [***]” and “Supply Year  [***]” is changed to “Supply Year [***]”.  l. In Section 5.13, “Supply Year [***]” is changed to “Supply Year [***]”.  m. In Section 5.14(a), “Supply Year [***]” is changed to “Supply Year [***]”.  n. In Section 5.14(b), “Supply Year [***]” is changed to “Supply Year [***]”.  o. In Section 5.15, first paragraph, “[***]” is changed to “Supply Year [***]”. The second  paragraph is deleted in its entirety and replaced with the following:   “For purposes of illustration, if Tricida’s good faith estimate of the cumulative quantity of  Product sold by Tricida in [***] is [***], the cumulative quantity of Product specified in Firm  

 

  Page 3 of 12  Orders for those same [***] is [***], and the [***] for the Supply Year [***] is [***],  notwithstanding anything to the contrary in Section 5.4 (i), on [***] Tricida may provide  Patheon with a Reduced [***] for any amount that is [***] for the Supply Year [***] (i.e., [***]  in this illustration) and in this example we will use [***], (ii) the Price for the [***] for the  Supply Year [***] would be [***] if the [***] for the Supply Year [***] had been [***], and (iii)  [***] would be obligated to [***] for Supply Year [***].”  p. In Section 5.16, second paragraph, “[***]” is changed to “[***]”, “[***]” is changed to “[***]”,  and “[***] Supply Year” is changed to “Supply Year [***]” in all four places.   5. Changes to Manufacturing Schedule, [***].   a. Exhibit C. Exhibit C is hereby deleted and replaced with new Exhibit C attached as  Appendix 1 to this Amendment No. 1. The new Exhibit C reflects changes to the [***].  b. [***]. Starting [***], Patheon will conduct a [***] (the “[***]”) in which Patheon will  Manufacture and deliver to Tricida [***] of Product. The pricing for the Product [***] from  the [***] is [***]/kg ([***] for [***]). Tricida will pay Patheon upon [***] of Product that meets  the Product Warranty. For the avoidance of doubt, Tricida will [***] Patheon for [***] for the  [***] in accordance with the Agreement. Patheon shall [***] all Product Manufactured in the  [***].  c. [***]. As shown on Exhibit C, the Parties agree that the [***]. The [***] of the [***] is [***] of  Product, and the [***] is [***]/kg ([***] for [***]). Tricida will pay Patheon upon [***] of [***] of  Product that meets the Product Warranty. Patheon shall [***] all Product Manufactured in  the [***].  d. [***]. As shown on Exhibit C, the [***] will be the [***] (Supply Year [***]), or up to [***] at  [***] (such [***] to be [***]). In the event [***] its [***], Supply Year [***] shall be [***] with the  [***]. Patheon shall produce [***] of Product during the [***] and [***] specified in Section  5.11(c)3 [***].  e. [***]. [***] with Supply Year [***] and all subsequent [***] will follow the remaining Supply  Years as reflected in New Exhibit C (e.g., [***], etc.).  6. New Exhibit D.  Exhibit D is hereby deleted and replaced with new Exhibit D attached as Appendix 2 to  this Amendment No. 1.    7. New Exhibit E.  Exhibit E is hereby deleted and replaced with new Exhibit E attached as Appendix 3 to  this Amendment No. 1.    8. Payment for [***]; Supply of [***].  a. [***] Costs for [***]. [***] agrees to pay [***] for the [***] used in the [***]. [***] shall invoice  the [***] for such [***] after execution of this Amendment No. 1 by both Parties, and [***]  shall pay this invoice within [***] from [***]. All applicable [***] that [***] has made to [***]  for such [***] will be reflected as a [***] against the invoice.  

 

  Page 4 of 12  b. [***]. [***] paid [***] for [***] of [***] consumed during the [***] resulting in [***]. [***] will [***]  for this expense [***] after execution of this Amendment No. 1 by both Parties.   c. [***]. Patheon will use up the [***] it [***] for the [***]. [***] will [***] of further [***] that may  be required by Patheon ([***]).  d. Patheon Qualification Suppliers of [***] Pursuant to Section 7.1. Section 7.1 provides for  Patheon to qualify [***] suppliers to become Preferred Suppliers. Pursuant to Section 7.1,  Patheon will proceed with qualification of [***] suppliers [***] during the [***]. Any of the  above suppliers that pass the qualification criteria for new [***] suppliers will be considered  Preferred Suppliers under the Agreement. [***] agrees to pay [***]/kg for the [***].  e. [***] of [***]. Subject to [***] being qualified as a [***] Supplier of [***] pursuant to the  requirements of the Agreement and the Quality Agreement, Tricida grants [***] the option  to supply [***] required to Manufacture up to [***] of Product and to have Patheon convert  such quantities for [***] of Product during the [***], [***] of Product during the [***] and [***]  of Product during the [***]. Patheon shall notify Tricida [***] as to whether [***] for the  respective [***]. As required by Section 7.1, [***] shall supply [***] at [***].  f. [***] Consumption Factor. Once the Facility Investment is complete (i.e., [***]), the Parties  will define the [***] Consumption Factor as required under Section 5.11(f).  g. [***] costs for [***] Product and [***]. [***] will fund [***] costs in case [***] Product, any [***],  or for [***]. Notwithstanding the foregoing, in the [***] and in each following [***] for the [***]  costs of [***] at the [***].   9. [***]. The technical teams of both Parties, acting reasonably and in good faith, will jointly agree  on a [***] and appropriately document as set forth in the Quality Agreement prior to the start  of Manufacture of the [***].  10. Costs Associated with [***]. The Parties, acting reasonably and in good faith, shall discuss the  [***] and document the agreement to such [***] in writing, prior to implementation. [***]  obligation to pay for [***] an appropriate Purchase Order being issued for the agreed upon  amount prior to implementation.  11. Payment for [***] and [***] incurred during [***]. [***] shall pay to [***] a [***] that are known or  should be known as of the date of signature of this Amendment No. 1 that are [***]. [***] shall  invoice the [***] after execution of this Amendment No. 1 by both Parties, and [***] this invoice  within [***] from [***]. Such payment by [***] will not establish any precedent for [***]. As  specified in Section 9 of this Amendment No. 1, [***] will only pay for [***] for which there is an  [***] of the [***].  12. Miscellaneous. All capitalized terms used herein that are not otherwise defined shall have the  meaning given to them in the Agreement. All references to Sections and Exhibits shall refer  to Sections and Exhibit to the Agreement unless otherwise specifically stated. Except as  expressly amended above, all of the terms and conditions of the Agreement remain  unchanged and in full force and effect. The Agreement, as amended by this Amendment  No. 1, contains the entire understanding of the Parties with respect to the subject matter  hereof, and as of Amendment No. 1 Effective Date, the Binding Term Sheet shall have no  further force or effect. This Amendment No. 1 may be executed in counterparts, each of which  shall be deemed an original, and all of which, taken together, shall constitute one and the  

 

  Page 5 of 12  same agreement. No modification, amendment, or waiver of this Amendment No. 1 will be  effective unless in writing and executed and delivered by the Parties.  [Signature Page Follows]     

 

  Page 6 of 12  IN WITNESS THEREOF, the Parties have entered into this Amendment No. 1 as of the  Amendment No. 1 Effective Date.    PATHEON AUSTRIA GMBH & CO KG  TRICIDA, INC.  By: /s/ Michael Stanek    By: /s/ Gerrit Klaerner  Name: Michael Stanek    Name: Gerrit Klaerner  Title: VP Commercial Operations   Title: CEO & President    [***] [***]     [***] [***]    [***] [***]     [***] [***]    [***] [***]     

 

  Page 7 of 12  APPENDIX 1  NEW EXHIBIT C  [***]    [***]  [***]       

 

  Page 8 of 12  APPENDIX 2  NEW EXHIBIT D  MINIMUM COMMITMENT OF TRICIDA     • [***], [***] and [***] under the [***] SOWs and [***] Product volumes as per Section 5.1  Initial Commitment  • [***] and any subsequent Supply Year during the Term: [***] of Product     

 

  Page 9 of 12  APPENDIX 3  NEW EXHIBIT E  PRICING  1. Price Determination  The Prices for the [***], [***] and [***] are set forth in the corresponding SOW for the [***], [***] and  [***].  Unless otherwise set forth in this Exhibit E or the CSA the [***], excluding [***] costs  (“Pricing”), for Firm Order quantities up to [***] is as follows in Table A:    TABLE A    [***] [***] [***] excluding   [[***]/[***]]  ([***])     [***] [***]  [***] [***]  [***] [***]  [***] [***]    *Quantities and Prices above [***] may require additional Major Improvements beyond the [***]  and [***] included in this CSA.    For Supply Years beginning with Supply Year [***], the Price for Product shall be the [***] set forth  below in Table 1 below, subject to [***] following the [***] and [***] relative to the [***] as further  described in this Exhibit E.   For the sake of clarity, the [***] for the [***] and [***] does not include the [***] for the execution of  [***] associated with the [***] and [***]. The Parties, acting reasonably and in accordance with  Section 4.4 of the Agreement, will agree on a [***] for such [***] and the [***] will be set forth in a  separate SOW.    For [***], Patheon will [***] the [***] which has been [***] in connection with the [***] and the Parties  will decide on the [***] no later than [***]. Patheon will invoice Tricida for the agreed [***] costs at  the [***]. For [***], Patheon will [***] outlined in Section 5.11(c)(3) of the Agreement ([***]) and the  Parties will decide on the [***]. Patheon will invoice Tricida for the agreed [***] costs at the [***] of  the [***] in Supply Year [***].    For Supply Year [***], the [***] will be calculated based upon the [***] of the [***] that utilize the  [***] contemplated in the [***] and the [***] as specified in Exhibit F.  For [***] and thereafter, the Price will be the [***] as reflected in Table 1, the Manufacturing Costs  will be [***] following the [***] described below, and [***].  In the event the [***] has not been [***]  to the [***], the [***] component of the [***] will be [***] relative to the [***] component of the [***]  reflected in Table 1 for the corresponding quantity until the [***] is implemented.  The [***] is composed of three components: (i) [***] associated with [***] portion of the [***] (i.e.  [***] which are currently [***]), (ii) [***] (which are treated as [***] costs for the purposes of price  calculation) and (iii) [***] component as mentioned in Table 1.  As further described in this Exhibit  

 

  Page 10 of 12  E and in the CSA, the Price for Product in a given Supply Year beginning with [***] may deviate  from the [***] as a consequence of a [***].  For clarity, the costs of the DAAH Raw Material are  not included in Table A or Table 1 and will be [***] as set forth in the CSA.  [***]  For product Volumes [***] a [***] of the [***] shall be applied. [***] and [***] related to the relevant  product volumes shall be [***] in order to [***].  2. Manufacturing Cost Component Indexation:  The costs set forth in Table 1 are built based on [***]. For the calculation of the [***] applicable in  a given [***], [***] of the [***] will follow the [***] as described below:  Starting in [***], and for each calendar year thereafter, the [***] shall be [***] in the [***] of the  applicable calendar year either [***] based on [***]; provided however, no such [***] shall ever  result in [***] of more than [***] in the [***] in any [***].  The Parties shall review and confirm the  [***] by the last business day of the [***] and such [***] will be applied to the [***] for the immediately  following Supply Year.  The [***] (after applying the [***]) shall be valid for future [***] only, and not for any [***] which are  in progress upon [***] at the last business day of the [***].  For clarity, no [***] shall be applied to the prices for the [***], [***] and [***].  In Table 1, Raw Materials are assumed to be [***] and the [***] costs ([***] per kg) are assumed  to be [***] per year (divided by the applicable Firm Order quantity) and the [***] is the remainder  of [***].  3. [***] Cost Component of the [***]  The [***] set forth in Table A is based upon a [***] (i.e. [***] net of [***]) is [***], and includes a [***]  cost of [***] of the [***] applied to the Firm Order quantity for the applicable Supply Year, starting  with Supply Year [***].  In case the actual final [***] deviates from this range, then the [***] costs  as per Table 1 will have to be amended accordingly based on the final actual [***] amount divided  by the respective Firm Order quantity.  Likewise, in the event Tricida exercises its option under  the CSA to [***] of the [***], the [***] costs will also be amended accordingly.  For example, if the  [***] and the Firm Order quantity for a given Supply Year is [***], the annual [***] cost over the  [***]-year period will be [***] per year resulting in a [***] cost of [***] per kg for such Supply Year;  for clarity, after [***], the [***] cost component will be [***].  It is agreed between the Parties that a potential [***] of the [***] over [***] up to [***] will be [***].   In such a case the [***] of the [***] will not be considered, and the [***] (i.e. the [***]) will be [***] to  the [***].  Any [***] beyond the [***] will be [***] by [***] and not considered in the [***].  4. Price Effect of Changes in [***]  In order to reflect the [***] actually achieved during the [***] and each [***] thereafter, the  Manufacturing Cost component of the [***] as per Table 1 as applicable will be multiplied with the  factors set forth in Table 2 (“[***]”).  

 

  Page 11 of 12  Patheon acknowledges and agrees that in the Supply Year [***] and thereafter for purposes of  the Price calculation, the maximum [***] are set at [***] for [***] and [***] for [***], even if the [***]  actually achieved [***] shall be [***].  Table 2 - [***]:  [***]      5. Price Effect of Batch Size Increases  Table 3 (“[***]”) defines [***] in case of using a [***] of [***] for [***]. In this case, the [***] of the  [***] as per [***] is to be multiplied with the factors set forth in [***] instead of the factors set forth  in [***].   In case of using [***] for [***] between [***] (as assumed in [***]) and [***] (as assumed in [***]) a  [***] of the relevant [***] used in [***] has to be [***], and the factors so calculated shall be [***]  with the [***] of the [***].  Table 3 - [***]:  [***]       

 

  Page 12 of 12  6. Certain Calculation Examples  As an example: The [***] on   [***]Exhibit 10.6

  

 

American International Group, Inc.

Long Term Incentive Plan

(as amended and restated April 9, 2021)

 

1.           
 Purpose; Definitions

This American International Group, Inc. Long Term Incentive
Plan (this “Plan”) is designed to provide selected officers and
key employees of American International Group, Inc. (“AIG” and
together with its consolidated subsidiaries, determined in accordance with U.S.
generally accepted accounting principles, the “Company”) with
incentives to contribute to the long-term performance of AIG in a manner that
appropriately balances risk and rewards.

Awards under this Plan are issued under the American
International Group, Inc. 2013 Omnibus Incentive Plan (as amended from time to
time or any successor stock incentive plan, the “Omnibus Plan”),
the terms of which are incorporated in this Plan.  Capitalized terms used in
this Plan but not otherwise defined in this Plan or in the attached Glossary of
Terms in Annex A have the meaning ascribed to them in the Omnibus Plan.

2.           
 Performance Period

Awards (as defined below) will be earned over a three-year
performance period (a “Performance Period”), unless the
Compensation and Management Resources Committee of the Board of Directors of
AIG (including any successor, the “Committee”) determines a
different period is appropriate for some or all Participants as set forth in
the applicable award agreement. 

3.           
 Awards and Participants

A.           
 Awards.  Awards issued under this Plan (“Awards”)
may consist of performance share units (“PSUs”), restricted stock
units (“RSUs”), stock options (“Options”), or a
combination of PSUs, RSUs and Options, as the Committee may determine from time
to time.  PSUs provide holders with the opportunity to earn shares of Common
Stock (“Shares”) based on achievement of performance criteria
during the Performance Period.  RSUs provide holders with the opportunity to
earn Shares based on continued Employment throughout the Performance Period.
Options provide holders with the right to purchase Shares based on achievement
of performance criteria during, or continued Employment throughout, the
Performance Period, or a combination thereof.  PSUs, RSUs and Options will be
subject to the terms and conditions of the Omnibus Plan, this Plan and the
applicable award agreement, and will be issued only to the extent permissible
under relevant laws, regulatory restrictions and agreements applicable to the
Company.  In addition to the preceding, the Committee may establish another
form of Award to the extent it determines appropriate for some or all
Participants (as defined below).  

B.           
 Participants.  The Committee will from time to time determine (1) the
officers and key employees of the Company who will receive Awards (the “Participants”)
and (2) the number and type of Awards issued to each Participant.  No Award to
a Participant shall in any way obligate the Committee to (or imply that the
Committee will) provide a similar Award (or any Award) to the Participant in
the future.

 

 

 

 

C.           
 Status of Awards.  Each PSU and RSU constitutes an unfunded and
unsecured promise of AIG to deliver (or cause to be delivered) one (1) Share
(or, at the election of AIG, cash equal to the Fair Market Value
thereof) as provided in Section 5.B.  Until such delivery, a holder of PSUs or
RSUs will have only the rights of a general unsecured creditor and no rights as
a shareholder of AIG.  Each Option represents a right to purchase one (1)
Share, subject to the terms and conditions set forth in the applicable award
agreement.

D.           
 Award Agreements.  Each Award granted under the Plan shall be evidenced by
an award agreement that shall contain such provisions and conditions as the
Committee deems appropriate; provided that, except as otherwise
expressly provided in an award agreement, if there is any conflict between any
provision of this Plan and an award agreement, the provisions of this Plan
shall govern.  By accepting an Award pursuant to this Plan, a Participant
thereby agrees that the Award shall be subject to all of the terms and
provisions of this Plan, the Omnibus Plan and the applicable award agreement. 
Awards shall be accepted by a Participant signing the applicable award
agreement, and returning it to the Company. Failure by a Participant to do so
within ninety (90) days from the date of the award agreement shall give the
Company the right to rescind the Award.

4.           
 Performance Measures
for PSUs; Earned PSUs

A.           
 Target PSUs.  For an Award of PSUs, a Participant’s award agreement
will set forth a target number of PSUs as determined by the Committee (the “Target
PSUs”).   

B.           
 Performance Measures. The number of PSUs earned for any Performance Period will
be based on one or more performance measures established by the Committee in
its sole discretion with respect to such Performance Period (collectively, the
“Performance Measures”). For each Performance Measure with
respect to a Performance Period, the Committee will establish a Threshold,
Target and Maximum achievement level and the weighting afforded to each such
Performance Measure.  The Committee may also
establish gating metrics that must be satisfied before Performance Measures are
applied to assess the number of PSUs that are earned.

C.           
 Performance Results.  At the end of the Performance Period, the Committee will
assess performance against each Performance Measure and determine the Earned
Percentage (as detailed below) for each such Performance Measure as follows,
subject to the terms and conditions of this Plan and unless determined
otherwise by the Committee: 

	
  Performance

  	
  Earned
  Percentage

  	
   

  
	
  Performance
  less than Threshold

  	
  0%

  	
   

  
	
  Performance at
  Threshold

  	
  50%

  	
   

  
	
  Performance at
  Target

  	
  100%

  	
   

  
	
  Performance at
  or above Maximum

  	
  200%

  	
   

  

The Earned
Percentage for performance between Threshold and Target and between Target and
Maximum will be determined on a straight-line basis, unless determined
otherwise by the Committee.   

 

2 

 

D.           
 Earned PSUs.  The number of PSUs earned for the Performance
Period (the “Earned PSUs”) will equal the sum of the PSUs earned
for each Performance Measure, calculated as follows, unless determined
otherwise by the Committee:  

	
  PSUs earned

  for a

  Performance

  Measure

  	
  =

  	
  Target

  PSUs

  	
  X

  	
  Earned

  Percentage

  	
  X

  	
  Weighting of

  Performance

  Measure

  

For
the avoidance of doubt, the Committee retains discretion to reduce any Earned
PSU Award to zero.

5.           
 and Delivery

A.           
 Vesting of Earned Awards.  Except as provided in Section 6, and subject to the other
terms and conditions of this Plan and the applicable award agreement, Earned
PSUs, RSUs and Options will vest on the date(s) and/or event(s) specified in
the applicable award agreement (each, a “Scheduled Vesting Date”). 
Unless otherwise set forth in the applicable award agreement, RSUs and Options
will be earned based solely on the Participant’s continued Employment through
the end of the Performance Period.

B.           
 Delivery of Earned PSUs and
RSUs.  Except as provided in
Section 6, AIG will deliver (or cause to be delivered) to the Participant
Shares (or, at the election of AIG, cash equal to the Fair Market Value
thereof) in respect of any Earned PSUs, RSUs, or portion thereof, as promptly
as administratively practicable following the applicable Scheduled Vesting
Date.  Subject to Section 6, a Participant must be Employed on the applicable
Scheduled Vesting Date in order to be entitled to receive a delivery of any
portion of the Earned PSUs and RSUs.

C.           
 Dividend Equivalents for PSUs
and RSUs.  In respect of Awards of PSUs or
RSUs, unless otherwise set forth in the applicable award agreement, in the
event that any cash dividend is declared on Shares with a record date that
occurs during the Dividend Equivalent Period (as defined below), the
Participant will accrue, with respect to each RSU and PSU awarded to the
Participant, a dividend equivalent in the form of cash at the time such cash dividend
is paid to AIG’s shareholders.  Each dividend equivalent will constitute an
unfunded and unsecured promise of AIG to pay cash with respect to each RSU and
Earned PSU in accordance with the Plan, and will vest and be settled or paid at
the same time, and subject to the same terms and conditions (including, for
PSUs, increase or decrease based on achievement of performance criteria in
accordance with Section 4 above), as the PSU or RSUs on which such dividend equivalent
accrued.  “Dividend Equivalent Period” means the period
commencing on the date on which PSUs or RSUs were awarded to the Participant
and ending on the last day on which Shares (or cash) are delivered to the
Participant with respect to the Earned PSUs or RSUs.    

D.           
 Exercise and Expiration of
Options.  Vested Options may be exercised
in accordance with procedures set forth in Section 2.3.5 of the Omnibus Plan,
including procedures established by the Company.  Stock Options that are not
vested may not be exercised.  Pursuant to Section 2.3.4 of the Omnibus Plan, in
no event will any Option be exercisable after the expiration of ten (10) years
from the date on which the Option is granted (but the applicable award
agreement may provide for an earlier expiration date).

 

3 

 

6.           
 Vesting and Payout Upon
Termination of Employment and Corporate Events

Except as
otherwise provided in the applicable award agreement:

A.           
 Termination Generally.  Except as otherwise provided in this Section 6, if
a Participant’s Employment is Terminated for any reason, then (i) any unvested
Awards, or parts thereof, shall immediately terminate and be forfeited, and
(ii) any vested Options will remain
exercisable as set forth in the applicable award agreement (but in no case
later than the expiration date for such Options specified in the applicable
award agreement), provided  that  in the case of a Participant’s
Termination for Cause, all Options (whether vested or unvested) will
immediately terminate and be forfeited.

B.           
 Involuntary Termination,
Retirement or Disability.  Subject to
Section 6.F, in the case of a Participant’s involuntary Termination without
Cause, Retirement or Disability:

(1)          
 the Participant’s outstanding PSUs and
RSUs will immediately vest and the Shares (or cash) corresponding to the Earned
PSUs (based on the performance for the whole Performance Period) or RSUs, as
applicable, will be delivered to the Participant on the dates that the
applicable Award would otherwise have been delivered if the Participant had continued
to remain Employed; and

(2)          
 (i) any vested Options will remain
exercisable, (ii) any unvested time-vesting Options will be deemed to have
attained their respective time-vesting requirements, and (iii) any
unvested performance-vesting Options will (a) be deemed to have attained their
respective time-vesting requirements, if any, and (b) to the extent any
performance-vesting requirements have not been achieved, continue to be
eligible to vest in accordance with their respective performance-vesting
terms.  In the event of an Involuntary Termination or Disability, the Options
that are or become vested pursuant to this paragraph (2) shall remain
exercisable as set forth in the applicable award agreement, provided,
however, in the event of a Retirement, all Options that are or become
vested pursuant to this paragraph (2) will remain exercisable for the remainder
of the term of such Options set forth in the applicable award agreement for
such Options.  No Options will remain exercisable beyond the expiration date
for such Options as specified in the applicable award agreement; 

For the avoidance of doubt, an involuntary Termination
without Cause as provided in this Section 6.B shall not include a resignation
that a Participant may assert was a constructive discharge.

C.           
 Death.  

(1)          
 PSUs.  For outstanding Awards of PSUs, (i) in the case of a
Participant’s death during a Performance Period or following a Performance
Period but prior to the Committee’s adjudication of performance under Section
4.C, the Participant’s PSU Award will immediately vest and the Shares (or cash)
corresponding to the Target PSUs will be delivered to the Participant’s estate
as soon as practicable but in no event later than the end of the calendar year
or, if later, within two (2) and one-half (1/2) months following the date of
death and (ii) in the case of a Participant’s death following the Committee’s
adjudication of performance for a Performance Period under Section 4.C, the
Participant’s PSU Award will immediately vest and the Shares (or cash)
corresponding to the Earned PSUs (based on performance for the whole
Performance Period) will be delivered to the Participant’s estate as soon as
practicable but in no event later than the end of the calendar year or, if
later, within two (2) and one-half (1/2) months following the date of death. 

 

4 

 

(2)          
 RSUs.  For outstanding Awards of RSUs, in the case of a
Participant’s death, the Participant’s outstanding unvested RSUs will
immediately vest and the Shares (or cash) corresponding to the RSUs will be
delivered to the Participant’s estate as soon as practicable but in no event
later than the end of the calendar year or, if later, within two (2) and
one-half (1/2) months following the date of death.

(3)          
 Options.  For outstanding Awards of Options, in the case of a
Participant’s death, (i) any vested Options
will remain exercisable as set forth in the applicable award agreement,
(ii) any unvested time-vesting Options will be deemed to have attained
their respective time-vesting requirements and remain exercisable as set forth
in the applicable award agreement and (iii) any unvested
performance-vesting Options will (a) be deemed to have attained their
respective time-vesting requirements, if any, (b) to the extent any
performance-vesting requirements have not been achieved, continue to be
eligible to vest in accordance with their respective performance-vesting terms
and (c) be exercisable as set forth in the applicable award agreement; provided
that no Options will remain exercisable beyond the expiration date for such
Options as specified in the applicable award agreement.

D.           
 Change in Control.  

(1)          
 PSUs.  For outstanding Awards of PSUs, in the case of a Change
in Control during a Performance Period and the Participant’s involuntary
Termination without Cause or resignation for Good Reason within twenty-four
(24) months following such Change in Control, the Participant shall receive
Shares (or cash) corresponding to the Target PSUs, unless the Committee
determines to use actual performance through the date of the Change in Control,
and such Shares (or cash) will immediately vest.  In the case of a Change in
Control following a Performance Period and the Participant’s involuntary
Termination without Cause or resignation for Good Reason within twenty-four
(24) months following such Change in Control, the Participant shall receive
Shares (or cash) corresponding to the Earned PSUs (based on performance for the
whole Performance Period), and such Shares (or cash) will immediately vest. 
Any such amounts representing vested PSUs will be delivered by the end of the
calendar year or, if later, within two (2) and one-half (1/2) months following
the Participant’s separation from service, provided that no delivery
will be delayed as a result of the Change in Control.  

(2)          
 RSUs.  For outstanding Awards of RSUs, in the case of a Change
in Control and the Participant’s involuntary Termination without Cause or
resignation for Good Reason within twenty-four (24) months following such
Change in Control, a Participant’s outstanding unvested RSUs will immediately
vest. Any such amounts representing vested RSUs will be delivered by the end of
the calendar year or, if later, within two and one-half months following the
Participant’s separation from service, provided that no delivery will be
delayed as a result of the Change in Control.

(3)          
 Options.  For outstanding Awards of performance-vesting Options,
(a) in the case of a Change in Control during the applicable Performance Period
and the Participant’s involuntary Termination without Cause or resignation for
Good Reason within twenty-four (24) months following such Change in Control, any unvested performance-vesting Options will immediately vest based on target performance, unless
the Committee determines to use actual performance through the date of the
Change in Control, and (b) in the case of a Change in Control following an
applicable Performance Period and the Participant’s involuntary Termination
without Cause or resignation for Good Reason within twenty-four (24) months
following such Change in Control, any performance-vesting Stock Options will
immediately vest based on actual performance for such period.  For outstanding
time-vesting Options, in the case of a Change in Control and the Participant’s
involuntary  Termination  without  Cause  or resignation  for Good  Reason  within
 twenty-four  (24)  months  following  such

 

5 

 

Change in Control, any unvested time-vesting Options will
immediately vest. All Options that vest
pursuant to this paragraph will remain exercisable for the remainder of the
term of such Options as set forth in the applicable award agreement for such
Options.  No Options will remain exercisable beyond the expiration date for
such Options as specified in the applicable award agreement.

E.           
 Election to Accelerate or Delay
Delivery.  The Committee may, in its sole
discretion, determine to accelerate or defer delivery of any Shares (or cash)
underlying the Awards granted under the Plan or permit a Participant to elect
to accelerate or defer delivery of any such Shares (or cash), in each case in a
manner that conforms to the requirements of Section 409A and is consistent with
the provisions of Section 8.E. 

F.           
 Release of Claims.  In the case of a
Participant’s involuntary Termination without Cause, resignation for Good
Reason or Retirement, as a condition to (i) with
respect to Options, the vesting of any Options pursuant to this Plan or the
applicable award agreement, and (ii) with respect to all other Awards,
receiving delivery of any Shares (or cash) under such Awards, following such
event, the Company will require the Participant to execute a release
substantially in the form attached as Annex B (the “Release”),
subject to any provisions that the Senior HR Attorney and the Senior
Compensation Executive or their designee(s) may amend or add to the release in
order to impose restrictive covenants requiring (x) confidentiality of
information, non-disparagement and non-solicitation of Company employees for
twelve (12) months following the Termination, and (y) in the case of an
involuntary Termination without Cause or resignation for Good Reason of any
Participant who is eligible to participate in the American International Group,
Inc. 2012 Executive Severance Plan (as may be amended from time to time, and
together with any successor plan, the “ESP”), or Retirement,
non-competition for such periods as are generally specified herein.  The
Release for any Participant who is eligible to participate in the ESP shall be
in the form of the release required by the ESP at the time of the Termination
(including any non-competition covenants), modified to cover the vesting of any
Options and payment of any Shares (or cash) under any other Awards under this
Plan as a result of the Participant’s involuntary Termination without Cause or
resignation for Good Reason.  Effective for Retirements on or after December 1,
2015, the Release will require non-competition for no less than six (6) months
following the Retirement in order for the Participant to (i) with respect to
Options, vest in any Options, and (ii), with respect to all other Awards,
receive any Shares (or cash) under such Awards.  The Release or the ESP form of
release must be executed by the Participant and become irrevocable, in the case
of a Participant’s involuntary Termination without Cause, resignation for Good
Reason or Retirement, prior to or during the calendar year of the date on which
(i) with respect to Options, such Options vest, and (ii) with respect to all
other Awards, a delivery of Shares (or cash) with respect to the Award is
scheduled to be delivered pursuant to Section 5.B; provided that if the
Release is executed after such time, (i) with respect to Options, any
Options that would have vested during such period will be forfeited, and (ii)
with respect to all other Awards, the delivery of Shares (or cash) with respect
to such calendar year will be forfeited; provided, further, that
if the local laws of a country or non-U.S. jurisdiction in which Participant
performs services render invalid or unenforceable all or a portion of the
Release (subject to additional provisions as described above), the Senior HR Attorney and the Senior Compensation Executive or
their designee(s) shall have the discretion to create a release that
incorporates as much of the Release as possible while also complying with such
local laws.

 

6 

 

7.           
 Administration of this
Plan

A.           
 General.  This Plan shall be administered by the Committee and the
person or persons designated by the Committee to administer the Plan from time
to time.  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 the power to interpret this Plan, to
make regulations for carrying out its purposes 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.  The Committee may, in its sole discretion, reinstate any Awards
made under this Plan that have been terminated and forfeited because of a
Participant’s Termination, if the Participant complies with any covenants,
agreements or conditions that the Committee may impose; provided, 
however, that any delivery of Shares (or cash) under such reinstated Awards
will not be made until the scheduled times set forth in this Plan.

B.           
 Non-Uniform Determinations.  The Committee’s determinations under this Plan need not
be uniform and may be made by it selectively with respect to persons who
receive, or are eligible to receive, Awards (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.

C.           
 Determination of Employment.  The Committee, with respect to any Participant under the
purview of the Committee, and the Senior Compensation Executive, with respect
to any other Participant, will have the right to determine the commencement or
Termination date of a Participant’s Employment with the Company solely for
purposes of this Plan, separate and apart from any determination as may be made
by the Company with respect to the Participants’ employment.

D.           
 Amendments.  The Committee will have the power to amend this Plan and
any Performance Measures established pursuant to Section 4.B in any manner and
at any time, including in a manner adverse to the rights of the Participants; provided,
however, that in the event that a Plan
amendment is adopted or effective on or within twenty-four (24) months
following a Change in Control, then such amendment shall be invalid and
ineffective with respect to each Participant, in the absence of his or her
written consent, if the amendment is adverse to the Participant. The Committee shall also have the power, in its sole
discretion, to reduce the amount of any RSUs, Target PSUs, Earned PSUs or
Options at any time including, for the avoidance of doubt, after the relevant
Performance Period has ended.  Notwithstanding the
foregoing, the Committee’s rights and powers to amend the Plan shall be
delegated to the Senior Compensation Executive who shall have the right to
amend the Plan with respect to (1) amendments required by relevant law,
regulation or ruling, (2) amendments that are not expected to have a material
financial impact on the Company, (3) amendments that can reasonably be
characterized as technical or ministerial in nature, or (4) amendments that
have previously been approved in concept by the Committee. Notwithstanding the
foregoing delegation, the Senior Compensation Executive shall not have the
power to make an amendment to the Plan that could reasonably be expected to
result in a termination of the Plan or a change in the structure or the powers,
duties or responsibilities of the Committee, unless such amendment is approved
or ratified by the Committee.

 

7 

 

E.           
 No Liability.  No member of the Board of Directors of AIG (the “Board”)
or any employee of the Company performing services with respect to the Plan
(each, a “Covered Person”) will have any liability to any person
(including any Participant) for any action taken or omitted to be taken or any
determination made, in each case, in good faith with respect to this Plan or
any Participant’s participation in it.  Each Covered Person will be indemnified
and held harmless by the Company against and from any loss, cost, liability, or
expense (including attorneys’ 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 or Shares
delivered by such Covered Person, with the Company’s approval, in settlement
thereof, or paid or delivered by such Covered Person in satisfaction of any
judgment in any such action, suit or proceeding against such Covered Person, provided 
that  the Company will have the right, at its own expense, to assume and
defend any such action, suit or proceeding and, once the Company gives notice
of its intent to assume the defense, the Company will have sole control over
such defense with counsel of the Company’s choice.  To the extent any taxable
expense reimbursement under this paragraph is subject to Section 409A, (1) the
amount thereof eligible in one taxable year shall not affect the amount
eligible in any other taxable year; (2) 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 (3) 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’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’s Amended and Restated Certificate of
Incorporation or Bylaws, as a matter of law, or otherwise, or any other power
that the Company may have to indemnify such persons or hold them harmless.

F.           
 Clawback/Repayment. Notwithstanding anything to the contrary herein, Awards
and any payments or deliveries under this Plan will be subject to forfeiture
and/or repayment to the extent provided in (1) the AIG Clawback Policy, as in
effect from time to time and (2) other agreements executed by a Participant.

8.           
 General Rules

A.           
 No Funding.  The Company will be under no obligation to fund or set
aside amounts to pay obligations under this Plan.  A Participant will have no
rights to any Awards or other amounts under this Plan other than as a general
unsecured creditor of the Company. 

B.           
 Tax Withholding.  The delivery of Shares (or cash) or exercise of any
Awards under this Plan is conditioned on a Participant’s satisfaction of any
applicable withholding taxes in accordance with Section 4.2 of the Omnibus
Plan, as amended from time to time, or such similar provision of any successor
stock incentive plan.

C.           
 No Rights to Other Payments.  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 employee or group of employees of AIG or its subsidiaries.

 

8 

 

D.           
 No Effect on Benefits.  Grants or the exercise of any Awards and the delivery of
Shares (or cash) 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 AIG or any of its subsidiaries or under any agreement with the
Participant, unless AIG or the subsidiary with which the Participant is
Employed specifically provides otherwise.

E.           
 Section 409A.  

(1)          
 Awards made under the Plan are intended
to be “deferred compensation” subject to Section 409A, and this Plan is
intended to, and shall be interpreted, administered and construed to, comply
with Section 409A.  The Committee will have full authority to give effect
to the intent of this Section 8.E.  

(2)          
 If any payment or delivery to be made
under any Award (or any other payment or delivery under this Plan) would be
subject to the limitations in Section 409A(a)(2)(b) of the Code, the payment or
delivery will be delayed until six (6) months after the Participant’s
separation from service (or earlier death) in accordance with the requirements
of Section 409A.  

(3)          
 Each payment or delivery in respect of
any Award will be treated as a separate payment or delivery for purposes of
Section 409A.

F.   
 Severability.  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; provided  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. 

G.    Entire Agreement. 
This Plan contains the entire agreement of the parties with respect to the
subject matter hereof and supersedes all prior agreements, promises, covenants,
arrangements, communications, representations and warranties between them,
whether written or oral with respect to the subject matter hereof.  

H.   
 Waiver of Claims.  Each Participant recognizes and agrees that prior to
being selected by the Committee to receive an Award he or she has no right to
any benefits under this Plan.  Accordingly, in consideration of the
Participant’s receipt of any Award hereunder, he or she expressly waives any
right to contest the amount of any Award, the terms of this Plan, any
determination, action or omission hereunder by the Committee or the Company or
any amendment to this Plan.

I.     
 No Third Party Beneficiaries.  Except as expressly provided herein, this Plan will not
confer on any person other than the Company and the Participant any rights or
remedies hereunder. The exculpation and indemnification provisions of Section
7.E will inure to the benefit of a Covered Person’s estate and beneficiaries
and legatees.

9 

 

J.   
 Successor Entity; AIG’s Assigns. 
Unless otherwise provided in the applicable award agreement and except as
otherwise determined by the Committee, in the event of a merger, consolidation,
mandatory share exchange or other similar business combination of AIG with or
into any other entity (“Successor Entity”) or any transaction in
which another person or entity acquires all of the issued and outstanding
Common Stock of AIG, or all or substantially all of the assets of AIG,
outstanding Awards may be assumed or a substantially equivalent award may be
substituted by such Successor Entity or a parent or subsidiary of such
Successor Entity.  The terms of this Plan will be binding and inure to the
benefit of AIG and its successors and assigns.

K.   
 Nonassignability. No Award (or any rights and obligations thereunder)
granted to any person under the Plan may be sold, exchanged, transferred,
assigned, pledged, hypothecated or otherwise disposed of or hedged, in any
manner (including through the use of any cash-settled instrument), whether
voluntarily or involuntarily and whether by operation of law or otherwise,
other than by will or by the laws of descent and distribution, except as may be
otherwise provided in the award agreement.  Any sale, exchange, transfer,
assignment, pledge, hypothecation, or other disposition in violation of the
provisions of this Section 8.K will be null and void and any Award which
is hedged in any manner will immediately be forfeited.  All of the terms and
conditions of this Plan and the award agreements will be binding upon any
permitted successors and assigns.

L.   
 Right to Discharge.  Nothing contained in this Plan or in any Award will
confer on any Participant any right to be continued in the employ of AIG or any
of its subsidiaries or to participate in any future plans.

M.    Consent.  If the
Committee at any time determines that any consent (as
hereinafter defined) is necessary or desirable as a condition of, or in
connection with, the granting of any Award or the delivery of any Shares under
this Plan, or the taking of any other action thereunder (each such action, a “plan
action”), 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; provided  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 or delivery and further delay is not
permitted in accordance with the requirements of Section 409A, such amount
will be forfeited and terminate notwithstanding any prior earning or vesting.  

The term “consent” as used in this paragraph
with respect to any plan action includes (1) 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) 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) 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) any and all consents required by the
Committee.

N.    Awards Subject to an AIG Section 162(m) Plan.  With respect to any awards hereunder that were granted
pursuant to written binding agreements in effect on November 2, 2017 and that
were granted during a period when this Plan functioned as a subplan of a
Section 162(m) compliant performance incentive award plan adopted by AIG (the “AIG Section 162(m)
Plan”) that was proposed and approved by AIG stockholders in accordance
with Section 162(m)(4)(C) of the Code and related Treasury Regulations as they
existed prior to the adoption of the Tax Cuts and Jobs Act of 2017 (Public  Law 115-97)  (the  “Prior  Rules”),   this  Plan  will operate  whereby the designated
performance-based compensation  

10 

 

amounts  (as defined under the
Prior Rules)  payable under such awards can be paid and deducted in full
or in part in accordance with the Prior Rules. 

  

O.    No Liability With Respect to Tax Qualification or Adverse
Tax Treatment.  Notwithstanding anything
to the contrary contained herein, in no event shall the Company be liable to a
Participant on account of the failure of any Award or amount payable under this
Plan to (1) qualify for favorable United States or foreign tax treatment
or (2) avoid adverse tax treatment under United States or foreign law,
including, without limitation, Section 409A.

9.           
 Disputes

A.   
 Governing Law.  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.  The Plan shall also be subject to all applicable non-U.S.
laws as to Participants located outside of the United States.  In the event
that any provision of this Plan is not permitted by the local laws of a country
or jurisdiction in which a Participant performs services, such local law shall
supersede that provision of this Plan with respect to that Participant.   The
benefits to which a Participant would otherwise be entitled under this Plan may
be adjusted or limited to the extent that the Senior
HR Attorney and the Senior Compensation Executive or their designee(s)
determine is necessary or appropriate in light of applicable law or local
practice.

B.  Arbitration.  Subject to the provisions of this Section 9, any dispute,
controversy or claim between the Company and a Participant, arising out of or
relating to or concerning this Plan or any Award, will be finally settled by
arbitration. Participants who are subject to an Employment Dispute Resolution
Program (“EDR Program”) maintained by AIG or any affiliated company of AIG,
will resolve such dispute, controversy or claim in accordance with the
operative terms and conditions of such EDR Program, and to the extent
applicable, the employment arbitration rules of the American Arbitration
Association (“AAA”). Participants who are not subject to an EDR Program shall
arbitrate their dispute, controversy or claim in New York City before, and in
accordance with the employment arbitration rules of the AAA, without reference
to the operative terms and conditions of any EDR Program.  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.
Either the Company or a Participant may seek injunctive relief from the
arbitrator.  Notwithstanding any other provision in this Plan, the Company
or a Participant may apply to a court with jurisdiction over them for temporary,
preliminary or emergency injunctive relief that, under the legal and equitable
standards applicable to the granting of such relief, is necessary to preserve
the rights of that party pending the arbitrator’s modification of any such
injunction or determination of the merits of the dispute, controversy or claim.

C.     Jurisdiction . The
Company 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 Award
that is not otherwise arbitrated or resolved according to Section 9.B.  The
Company and each Participant acknowledge that the forum designated by this
section has a reasonable relation to this Plan and to such Participant’s
relationship with the Company, that the agreement as to forum is independent of
the law that may be applied in the action, suit or proceeding and that such
forum shall apply even if the forum may under applicable law choose to apply
non-forum law.

11 

 

D.   Change in Control. On or following a Change in
Control, any arbitration referred to in
Section 9.B or any court action referred to in Section 9.C by a Participant to
enforce the Participant’s rights under the Plan shall be subject to a de novo
standard of review, and the Participant shall be reimbursed
for reasonable attorneys’ fees and costs incurred in seeking to enforce his or
her rights under the Plan to the extent he or she prevails as to the material
issues in such dispute.  The reimbursement of attorneys’ fees shall be made
promptly following delivery of an invoice therefor.

E.    Waiver.  The
Company and each Participant waive, to the fullest extent permitted by
applicable law, any objection which the Company 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 9.C.  The
Company and each Participant undertake not to commence any action, suit or
proceeding arising out of or relating to or concerning this Plan or any Award
in any forum other than a forum described in Section 9.C.  Notwithstanding the
foregoing, nothing herein shall preclude the Company from bringing any action,
suit or proceeding in any other court for the purpose of enforcing the
provisions of this Section 9.  The Company and each Participant agree
that, to the fullest extent permitted by applicable law, a final and
non-appealable judgment in any such suit, action or proceeding in any such
court shall be conclusive and binding upon the Participant and the Company. 

F.   
 Service of Process.  Each Participant irrevocably appoints the Secretary of
AIG at 80 Pine Street, New York, New York 10005, U.S.A., or effective as of May 1, 2021, 1271 Avenue of the
Americas, 11th Floor, New York, NY 10020, 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 Award that is not otherwise arbitrated or resolved
according to Section 9.B.  The Secretary will promptly advise the
Participant of any such service of process.

G.    Confidentiality.  Each
Participant must keep confidential any information concerning any grant or
Award made under this Plan and any dispute, controversy or claim relating to
this Plan, except that (i) a Participant may disclose information concerning a
dispute or claim to the court that is considering such dispute or to such
Participant’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) or (ii) a Participant may disclose information
regarding an Award to the Participant’s personal lawyer or tax accountant, provided 
that  such individuals agree to keep the information confidential.  Nothing
herein shall prevent the Participant from making or publishing any truthful
statement (1) when required by law, subpoena,  court order, or at the request of an administrative or regulatory agency
or legislature, (2) in the course of any legal, arbitral, administrative,
legislative or or regulatory proceeding, (3) to any governmental authority,
administrative or regulatory agency, legislative body, or self-regulatory
organization, (4) in connection with any investigation by the Company, or (5)
where a prohibition or limitation on such communication is unlawful; provided,
however, that with respect to the subject matter of this Section 9(G), the
terms of a Participant’s award agreement shall govern.    

10.        
 Term of Plan

The Plan was first effective as of January 1, 2017 and will
continue until suspended or terminated by the Committee in its sole discretion;
provided, however, that the existence of the Plan at any time or from
time to time does not guarantee or imply the payment of any Awards hereunder,
or the establishment of any future plans or the continuation of this Plan. Any
termination of this Plan will be done in a manner that the Committee determines
complies with Section 409A. 

 

12 

 

Annex A

Glossary of
Terms

            “Cause” means (1) a
Participant’s conviction, whether following trial or by plea of guilty or nolo 
contendere  (or similar plea), in a criminal proceeding (A) on a
misdemeanor charge involving fraud, false statements or misleading omissions,
wrongful taking, embezzlement, bribery, forgery, counterfeiting or extortion,
or (B) on a felony charge or (C) on an equivalent charge to those in
clauses (A) and (B) in jurisdictions which do not use those designations;
(2) a Participant’s engagement in any conduct which constitutes an
employment disqualification under applicable law (including statutory
disqualification as defined under the Securities Exchange Act of 1934);
(3) a Participant’s violation of any securities or commodities laws, any
rules or regulations issued pursuant to such laws, or the rules and regulations
of any securities or commodities exchange or association of which the Company
or any of its subsidiaries or affiliates is a member; or (4) a Participant’s
material violation of the Company’s codes or conduct or any other AIG policy as
in effect from time to time.  The determination as to whether “Cause”
has occurred shall be made by the Committee, with respect to any Participant
under the purview of the Committee, or the Senior Compensation Executive, with
respect to any other Participant, in each case, in its or his or her sole
discretion.  The Committee or Senior Compensation Executive, as applicable,
shall also have the authority in its sole discretion to waive the consequences
of the existence or occurrence of any of the events, acts or omissions
constituting “Cause.” 

            “Change in Control” means the
occurrence of any of the following events:

(1) 
individuals who, on February 16, 2021, constitute the Board (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of
the Board, provided that any person becoming a director subsequent to
February 16, 2021, whose election or nomination for election was
approved by a vote of at least two-thirds of the Incumbent Directors then on
the Board (either by a specific vote or by approval of AIG’s proxy statement in
which such person is named as a nominee for director, without written objection
to such nomination) shall be an Incumbent Director; provided, however, that no
individual initially elected or nominated as a director of AIG as a result of
an actual or threatened election contest with respect to directors or as a result
of any other actual or threatened solicitation of proxies or consents by or on
behalf of any person other than the Board shall be deemed to be an Incumbent
Director; 

(2)  Any “person”
(as such term is defined in Section 3(a)(9) of the Exchange Act and as
used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), is or becomes
a “beneficial owner” (as defined in Rule 13d‐3 under the Exchange
Act), directly or indirectly, of securities of AIG representing fifty percent (50%)
or more of the combined voting power of AIG’s then outstanding securities
eligible to vote for the election of the Board (“AIG Voting Securities”);
provided, however, that the event described in this paragraph (2) shall
not be deemed to be a Change in Control by virtue of an acquisition of AIG
Voting Securities:  (A) by AIG or any subsidiary of AIG (B) by
any employee benefit plan (or related trust) sponsored or maintained by AIG or
any subsidiary of AIG or (C) by any underwriter temporarily holding securities
pursuant to an offering of such securities;

A-1 

 

(3)  The consummation of a
merger, consolidation, statutory share exchange or similar form of corporate
transaction involving AIG (a “Business Combination”) that results
in any person (other than the United States Department of Treasury) becoming
the beneficial owner, directly or indirectly, of fifty percent (50%) or more of
the total voting power of the outstanding voting securities eligible to elect
directors of the entity resulting from such Business Combination; 

(4)  The
consummation of a sale or all or substantially all of AIG’s assets (other than
to an affiliate of AIG); or

(5)  AIG’s
stockholders approve a plan of complete liquidation or dissolution of AIG.

Notwithstanding the foregoing, a Change in Control shall
not be deemed to occur solely because (A) any person holds or acquires beneficial
ownership of more than fifty percent (50%) of the AIG Voting Securities as a
result of an “AIG share repurchase program” or other acquisition of AIG Voting
Securities by AIG which reduces the total number of AIG Voting Securities
outstanding; provided that if after such acquisition by AIG such person
becomes the beneficial owner of additional AIG Voting Securities that increases
the percentage of outstanding AIG Voting Securities beneficially owned by such
person, a Change in Control shall then occur or (B) the consummation of a sale of all or substantially all (or a subset)
of the assets and/or operations of the Life and Retirement business (or any
similar transaction).

             “Disability”
means that a Participant, who after receiving short term disability income
replacement payments for six (6) months, (i) is determined to be disabled in
accordance with the Company’s long term disability plan in which employees of
the Company are generally able to participate, if one is in effect at such
time, to the extent such disability complies with 26 C.F.R. §
1.409A-3(i)4(i)(B), or (ii) to the extent such Participant is not participating
in the Company’s long term disability plan, or no such long term disability
plan exists, is determined to have medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months as determined by, as
applicable, the Company’s long term disability insurer or the department or
vendor directed by the Company to determine eligibility for unpaid medical
leave.

            “Employed” and “Employment”
mean (a) actively performing services for the Company, (b) being on a
Company-approved leave of absence, whether paid or unpaid, or (c) receiving
long term disability benefits, in each case while in good standing with the
Company.

            “Retirement” for a Participant
means voluntary Termination initiated by the Participant (while such
Participant is in good standing with the Company) (i) on or after age sixty (60)
with five (5) years of service or (ii) on or after age fifty-five (55) with ten
(10) years of service. 

A-2 

 

“Good
Reason” means, following a Change in
Control, without a Participant’s written consent, (i) a reduction of more than
twenty percent (20%) in a Participant’s annual target
direct compensation (including annual base salary, short-term incentive
opportunity and long-term incentive opportunity); provided that  such
reduction will not constitute Good Reason if it results from a Board-approved
program generally applicable to similarly-situated employees; (ii) a material
diminution in the Participant’s authority, duties or responsibilities;
provided that  a change in the Participant’s reporting relationship
will not constitute Good Reason unless it affects a Participant who the Company
has classified as an executive vice president or above; or (ii) a relocation of
the office at which the Participant performs his or her services to a location
that increases his or her one-way commute by more than fifty (50) miles. 
Notwithstanding the foregoing, a termination for Good Reason shall not have
occurred unless (a) the Participant gives written notice to the Company of
termination of employment within thirty (30) days after the Participant first
becomes aware of the occurrence of the circumstances constituting Good Reason,
specifying in detail the circumstances constituting Good Reason, (b) the
Company has failed within thirty (30) days after receipt of such notice to cure
the circumstances constituting Good Reason, and (c) (A) in the case of any Participant who not is eligible to
participate in the ESP, the Participant’s
“separation from service” (within the meaning of Code section 409A) occurs no later than thirty (30) days after the end of the Company’s cure period, and (B)
in the case of any Participant who
is eligible to participate in the ESP, the
Participant’s “separation from service” (within the meaning of Code section
409A) occurs no later than two (2) years following the initial existence of the
circumstances giving rise to Good Reason or such other period specified in the
ESP for this purpose.

“Senior Compensation
Executive” means the Company’s most senior executive whose responsibility
it is to oversee the Corporate Compensation Department.  In the event that no
individual holds such position, “Senior Compensation Executive” will instead
refer to the Company’s most senior executive whose responsibility it is to
oversee the global Human Resources Department.

“Senior HR Attorney”
means the Company’s most senior attorney whose responsibility it is to oversee
Human Resource/employment matters.

“Termination” or “Terminate,”
with respect to a Participant, means the termination of the Participant’s
Employment.

 

A-3 

 

Attachment I

Annex
B

Form
of Release Referred to in Section 6.F of the Plan.

NOT
personalized to each Participant.

(1)          
 [Employee Name] (“Employee”),
for good and sufficient consideration, the receipt of which is hereby
acknowledged, hereby waives and forever releases and discharges any and all
claims of any kind Employee may have against American International Group,
Inc., its affiliate or subsidiary companies (“AIG”), or any
officer, director or employee of, or any benefit plan sponsored by, any such
company (collectively, the “Released Parties”) which arise from
Employee’s employment with any of the Released Parties or the termination of
Employee’s employment with any of the Released Parties. [Specifically, but
without limiting that release, Employee hereby waives any rights or claims
Employee might have pursuant to the Age Discrimination in Employment Act of
1967, as amended (the “Act”) and under the laws of any and all jurisdictions,
including, without limitation, the United States. Employee recognizes that
Employee is not waiving any rights or claims under the Act that may arise after
the date that Employee executes this Release.] Nothing herein modifies or
affects any vested rights that Employee may have under the [American
International Group, Inc. Retirement Plan, or the American International Group,
Inc. Incentive Savings Plan] [and other plans applicable to Employee];
nor does this Release confer any such rights, which are governed by the terms
of the respective plans (and any agreements under such plans).

(2)          
 Employee acknowledges and
agrees that Employee has complied with and will continue to comply with the
non-disparagement, non-solicitation and confidentiality provisions set forth in
the Employee’s award agreement pursuant to Section 3.D of the Plan, [a copy
of which is attached hereto as Exhibit A], [for Retirements; and
further agrees that during the period commencing on the date of the Employee’s
[Retirement] and ending on the [for Retirements, 6-month] anniversary of
such date, the Employee shall not, directly or indirectly:

(a)          
 Engage in any “Competitive
Business” (defined below) for the Employee’s own account;

(b)          
 Enter the employ
of, or render any services to, any person engaged in any Competitive Business;

(c)          
 Acquire a financial
interest in, or otherwise become actively involved with, any person engaged in
any Competitive Business, directly or indirectly, as an individual, partner,
shareholder, officer, director, principal, agent, trustee or consultant; or

(d)          
 Interfere with
business relationships between AIG and customers or suppliers of, or
consultants to AIG.

(e)          
 For purposes of
this Section 2, a “Competitive Business” means, as of any date, including
during the Restricted Period, any person or entity (including any joint
venture, partnership, firm, corporation or limited liability company) that
engages in or proposes to engage in the following activities in any
geographical area in which AIG does such business:

(i)           
 The property and
casualty insurance business, including commercial insurance, business
insurance, personal insurance and specialty insurance;

B-1 

 

(ii)          
 The life and
accident and health insurance business;

(iii)         
 The underwriting,
reinsurance, marketing or sale of (y) any form of insurance of any kind that
AIG as of such date does, or proposes to, underwrite, reinsure, market or sell
(any such form of insurance, an “AIG Insurance Product”), or (z) any other form
of insurance that is marketed or sold in competition with any AIG Insurance
Product;

(iv)         
 The investment and
financial services business, including retirement services and mutual fund or
brokerage services; or

(v)          
 Any other business
that as of such date is a direct and material competitor of one of AIG’s
businesses.

(3)          
 Employee further
agrees that AIG’s remedies at law for a breach or threatened breach of any of
the non-disparagement, non-solicitation and confidentiality provisions in the
Employee’s award agreement [and for the non-competition covenant set forth
above] would be inadequate. In recognition of this fact, the Employee agrees
that, in the event of such a breach or threatened breach, in addition to any
remedies at law, AIG, without posting any bond, shall be entitled to obtain
equitable relief from a court of competent jurisdiction in the form of specific
performance, temporary restraining order, temporary or permanent injunction or
any other equitable remedy which may then be available;

(4)          
 [Employee
acknowledges and understands that Employee is hereby being advised to consult
with an attorney prior to executing this Release. Employee also acknowledges
and understands that Employee has [twenty-one (21)] days to consider the terms
of this Release before signing it. However, in no event may Employee sign this
Release before Employee’s termination date.]

(5)          
 [Upon the signing
of this Release by Employee, Employee understands that Employee shall have a
period of seven (7) days following Employee’s signing of this Release in which
Employee may revoke this Release. Employee understands that this Release shall
not become effective or enforceable until this seven (7) day revocation period
has expired, and that neither the Released Parties nor any other person has any
obligation [pursuant to the American International Group, Inc. 2013 Long Term
Incentive Plan] until eight (8) days have passed since Employee’s signing of
this Release without Employee having revoked this Release. If Employee revokes
this Release, Employee will be deemed not to have accepted the terms of this
Release.]

(6)          
 Any dispute arising
under this Release shall be governed by the law of the State of New York,
without reference to the choice of law rules that would cause the application
of the law of any other jurisdiction.

                                                                                                                                                   

DATE                                                                           [Employee]

B-2

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