Document:

Exhibit 10.38

 

 

February 11, 2021

Peter Zaffino

Address on file with the Company

 

	Re: 	Offer Letter –
	 	President & Chief Executive
Officer

 

Dear Peter:

 

We are pleased to confirm the
terms of your role and compensation as President and Chief Executive Officer of American International Group, Inc. (the “Company”
and, together with its subsidiaries and controlled affiliates, “AIG”).

 

		·	Effective Date. March 1, 2021.

 

		·	Position. On the Effective Date, you will begin to serve as
President and Chief Executive Officer of the Company and you will continue to serve as a member of the Company’s Board of
Directors (the “Board”). In that capacity, you will report directly (and only) to the Board and have all of the customary
authorities, duties and responsibilities that accompany these positions.

 

		·	Total Direct Compensation. Your initial annual target direct
compensation will be $17,000,000, as follows:

 

		·	Base Salary. Your base cash salary will be at a rate of $1,500,000
per year, beginning on the Effective Date.

 

		·	Short-term Incentive. Your annual incentive target award amount
for 2021 will be $4,000,000.

 

Annual incentives are currently determined and
paid in accordance with the AIG Short-Term Incentive Plan (“STIP”). Your actual award, if any, will be determined based
on the Board’s assessment of your performance and will be paid in cash in March 2022. There will be no proration of your
annual incentive target amount for 2021 based on the Effective Date.

 

		·	Long-term Incentive. Your annual
long-term incentive target award amount for 2021 will be $11,500,000.

 

Long-term incentives are currently granted in accordance
with the AIG Long Term Incentive Plan (“LTIP”). Subject to the terms set out below (Termination Protection),
your awards will be subject to the terms and conditions of the relevant LTIP and the award agreement governing the grant (including,
without limitation, the six-month notice requirement) applicable to other senior management grantees. The long-term award mix and
structure for 2021 is pending. (For reference, the 2020 long-term incentive awards comprised 50% performance share units, 25% restricted
stock units and 25% stock options.)

 

    1 

     

    

 

		·	Clawback Policy. As an executive officer, any bonus, equity
or equity-based award or other incentive compensation granted to you will be subject to the AIG Clawback Policy (and any other
AIG clawback policies as may be in effect for senior management from time to time).

 

		·	Benefits. You will be entitled to benefits consistent with
senior executives of the Company and reimbursement of reasonable business expenses, in each case in accordance with applicable
AIG policies as in effect from time to time. To facilitate the performance of your management responsibilities, the Company will
provide you with use of Company aircraft, use of Company pool cars and drivers, and an annual cash perquisite allowance of $35,000.
You will be permitted to use Company aircraft for personal purposes and will reimburse to the Company for incremental costs to
the Company associated with such personal usage in excess of $195,000 per year. 

 

In connection with commencement of your service as
President and Chief Executive Officer, the Company will pay your expenses of advisors in connection with negotiating and documenting
these arrangements.

 

		·	Termination
Protection. As President and Chief Executive Officer, you will continue to participate in AIG’s Executive Severance Plan.
All equity awards granted to you before, on or after the date of this letter (1) will fully vest upon a Covered Termination (as
defined in the Executive Severance Plan as in effect on the date hereof, with the addition that Good Reason shall include any material
adverse change in your duties or responsibilities), death, Disability or Retirement (as such terms are defined in the LTIP as in
effect on the date hereof), (2) to the extent such equity awards are earned based on performance measures, performance shall be
determined based on actual performance for the whole performance period (provided that, in the event of your death, any
performance measures will be deemed to have been earned at target and your equity awards will become promptly deliverable), and
(3) to the extent such equity awards are options, they will be exercisable (or become exercisable based on performance) for the
remainder of the 10-year term following such termination of employment.

 

		·	Indemnification and Cooperation. During and after your employment,
the Company will indemnify you in your capacity as an officer and a member of the Board of the Company to the fullest extent permitted
by applicable law and the Company’s charter and by-laws, and will provide you with director and officer liability insurance
coverage (including post-termination/post-director service tail coverage) on the same basis as the Company’s other executive
officers or directors. The Company agrees to cause any successor to all or substantially all of the business or assets (or both)
of the Company to assume expressly in writing and to agree to perform all of the obligations of the Company in this paragraph.

 

		·	You agree (whether during or after your
employment with the Company) to reasonably cooperate with AIG in connection with any litigation or regulatory matter or with any
government authority on any matter, in each case, pertaining to AIG and with respect to which you may have relevant knowledge,
provided that, in connection with such cooperation, AIG will reimburse your reasonable expenses and you shall not be required
to act against your own legal interests.

 

    2 

     

    

 

		·	Notice Period. You agree that
if you voluntarily resign, you will give six months’ written notice to the Company of your resignation, which may be working
notice or non-working notice at the Company’s sole discretion and which notice period is waivable by the Company at the Company’s
sole discretion, provided that any notice period that is waived shall constitute service for purposes of determining whether
you have vested in any equity awards or have satisfied the requirements for Retirement.

 

		·	Tax Matters. Tax will be withheld
by AIG as appropriate under applicable tax requirements for any payments or deliveries under this letter. To the extent any taxable
expense reimbursement or in-kind benefits under this letter is subject to Section 409A of the U.S. Internal Revenue Code of 1986
(“Section 409A”), the amount thereof eligible in one taxable year shall not affect the amount eligible for any other
taxable year, in no event shall any expenses be reimbursed after the last day of the taxable year following the taxable year in
which you incurred such expenses and in no event shall any right to reimbursement or receipt of in-kind benefits be subject to
liquidation or exchange for another benefit. Each payment under this letter will be treated as a separate payment for purposes
of Section 409A.

 

		·	No Guarantee of Employment or Target
Direct Compensation. This letter is not a guarantee of employment for any fixed period or a guarantee of target direct compensation
for any period beyond 2021.

 

		·	Non-Solicitation and Non-Disclosure
Agreement. The Non-Solicitation and Non-Disclosure Agreement you executed on July 3, 2017 (the “Non-Solicitation Agreement”)
shall remain in full force and effect.

 

		·	Employment Dispute
Resolution. You continue to be a participant in the Company’s Employment Dispute Resolution (“EDR”) program,
which provides for various ways to address work-related disputes, including mediation and arbitration, through the American Arbitration
Association (“AAA”).

 

		·	Entire Agreement. This letter
constitutes AIG’s only statement relating to your employment as President and Chief Executive Officer and, other than with
respect to the Non-Solicitation Agreement, supersedes any previous communications or representations, oral or written, from or
on behalf of AIG. In the event of any inconsistency between this letter and any other plan, program, practice or agreement in which
you are a participant or a party, the terms described in this letter will control.

 

    3 

     

    

 

		·	Miscellaneous Representations.
You confirm and represent to AIG, by signing this letter, that: (a) you are under no obligation or arrangement (including any restrictive
covenants with any prior employer or any other entity) that would adversely impact your ability to perform the expected services
on behalf of AIG other than as previously disclosed in writing to AIG and (b) you understand and accept all of the terms and conditions
of this offer.

 

We look forward to your leadership.

 

	 	Sincerely,

                     

	 	AMERICAN INTERNATIONAL GROUP, INC.

                     

	 	By:	 /s/W. Don Cornwell 
	 	 	W. Don Cornwell
	 	 	Chair, Compensation and Management
	 	 	Resources Committee

 

	I agree with and accept the foregoing terms.	 
	 	 
	/s/Peter Zaffino	 
	Peter Zaffino	 

 

    4Exhibit
10.39

 

 

February 11, 2021

 

Brian Duperreault

Address on file with the Company

 

		Re:	Transition to

Executive Chairman

 

Dear Brian:

 

On behalf of the Board of Directors (the “Board”)
of American International Group, Inc. (“AIG” or the “Company”), I express deep appreciation
for your many contributions to AIG and your continued service as Executive Chairman of the Board during 2021 as set forth in this
letter agreement.

 

		·	Service as Executive Chairman. Effective March 1, 2021 (the
“Effective Date”), you will become Executive Chairman of AIG. In that capacity, you will report directly (and
only) to the Board and have all of the customary authorities, duties and responsibilities that accompany these positions as contemplated
by AIG’s by-laws and corporate governance guidelines.

 

		·	Compensation as Executive Chairman. Your annual target direct
compensation as Executive Chairman will be $12,750,000, as follows:

 

		·	Base Salary. Your base cash salary will be at a rate of $1,000,000
per year, beginning on the Effective Date.

 

		·	Short-term Incentive. Your annual incentive target award amount
will be $750,000 beginning on the Effective Date. Your actual annual incentive for 2021 will be based on the time-weighted average
of your annual incentive targets for the year (first as Chief Executive Officer and then as Executive Chairman) and will be determined
and paid in accordance with the AIG Short-Term Incentive Plan.

 

		·	Long-term Incentive. Your annual long-term incentive target
award amount for 2021 will be $11,000,000 and will be granted in accordance with the AIG Long Term Incentive Plan (“LTIP”)
and subject to the terms and conditions of the relevant LTIP and the award agreement governing the grant. Your award will be 50%
in the form of restricted stock units and 50% in stock options.

 

		·	Benefits. During your term as Executive Chairman you also will
continue to be entitled to benefits consistent with senior executives of the Company and reimbursement of reasonable business expenses,
in each case in accordance with applicable AIG policies as in effect from time to time, and including access to offices in New
York and Bermuda, aircraft usage consistent with the policy that currently applies to you (including your allowance of up to $195,000
in personal travel), use of company pool cars and drivers, and a cash perquisite allowance for 2021 of $35,000.

 

     

     

    

 

	Mr. Brian Duperreault	Page 2

 

	 	· 	 In connection with commencement of your service as Executive Chairman, the Company will pay your expenses of advisors in connection with negotiating and documenting these arrangements.

 

		·	Clawback Policy. As an executive officer, any bonus, equity
or equity-based award or other incentive compensation granted to you will be subject to the AIG Clawback Policy (and any other
AIG clawback policies as may be in effect for senior management from time to time).

 

		·	Transition at Year-End. At the close of business on December
31, 2021 (your “Transition Date”), you will become a non-officer employee of AIG providing assistance and advice
to the Chief Executive Officer as requested from time to time. In this capacity, you will report directly to AIG’s Chief
Executive Officer and have such authorities, duties and responsibilities as may be reasonably requested by the Chief Executive
Officer and mutually agreed with you, in each case in light of your seniority and experience, including assistance with the announced
intention to separate the Life & Retirement business from AIG. 

 

	 	 ·	At your Transition Date, your resignation
as Executive Chairman and member of the Board will become effective, as well as any other position you then hold as an officer
of AIG or as an officer or director of its subsidiaries, affiliates, joint ventures or other related entities. No further action
or documentation is required to give effect to your resignations, although you agree to execute any further documentation that
AIG may reasonably request to evidence them.

 

		·	Compensation for 2022. Your annual target direct compensation
for 2022 will be $7,500,000, as follows:

 

		·	Base Salary. Your base cash salary will be at a rate of $500,000
per year, beginning on January 1, 2022.

 

		·	Long-term Incentive. Your annual long-term incentive target
award amount for 2022 will be $7,000,000 and will be granted in accordance with the AIG LTIP and subject to the terms and conditions
of the relevant LTIP and the award agreement governing the grant. Your award will be 50% in the form of restricted stock units
and 50% in stock options.

 

		·	Short-term Incentive. Beginning in 2022, you will no longer
be eligible for an annual short-term incentive.

 

		·	Benefits. During your employment during 2022, you also will
continue to have access to offices in New York and Bermuda and use of company pool cars and drivers. In addition, you will be permitted
aircraft usage as available. You will reimburse to the Company all costs associated with any personal usage of the Company’s
aircraft.

 

		·	Separation from Service. Unless you and the Chief Executive
Officer otherwise agree in writing, your employment will end at the close of business on December 31, 2022, at which point you
will cease to be an employee of AIG or any of its subsidiaries, affiliates, joint ventures or other related entities. No further
action or documentation is required to give effect to your resignation, although you agree to execute any further documentation
that AIG may reasonably request to evidence it. You will not be entitled to any severance or similar compensation on your termination
on December 31, 2022, which you and we agree is your voluntary retirement (and will be treated as “Retirement” for
purposes of the LTIP).

 

    -2-

     

    

 

	Mr. Brian Duperreault	Page 3

 

		·	Termination
Protection/Requirements. As Executive Chairman, you will continue to participate in AIG’s Executive Severance Plan (the
“ESP”). For purposes of the ESP, you consent to the terms of this letter and agree that they do not constitute
“Good Reason.” As of your Transition Date, you will cease to participate in the ESP, and you will not be a participant
in the AIG, Inc. Severance Plan. If during 2022 your employment is terminated by AIG without “Cause” as defined in
the ESP, you will be entitled to receive the remainder of your compensation due under this letter (in kind, with respect to your
long-term incentive target award if not previously awarded and in a lump sum, in the case of your unpaid salary, and including
any earned but unpaid short-term incentive for 2021) and any grants previously awarded under the LTIP will vest subject to the
terms and conditions of the LTIP.

 

		
	You
agree that if you voluntarily resign before the end of 2022, you will give six months’ written notice to the Company of
your resignation, which may be working notice or non-working notice at the Company’s sole discretion and which notice period
is waivable by the Company at the Company’s sole discretion.

 

		·	Indemnification and Cooperation. During and after your employment,
the Company will indemnify you in your capacity as an officer and employee and a member of the Board of the Company to the fullest
extent permitted by applicable law and the Company’s charter and by-laws, and will provide you with director and officer
liability insurance coverage (including post-termination/post-director service tail coverage) on the same basis as the Company’s
other executive officers or directors. The Company agrees to cause any successor to all or substantially all of the business or
assets (or both) of the Company to assume expressly in writing and to agree to perform all of the obligations of the Company in
this paragraph.

 

	 	You agree (whether during or after your employment
with the Company) to reasonably cooperate with AIG in connection with any litigation or regulatory matter or with any government
authority on any matter, in each case, pertaining to AIG and with respect to which you may have relevant knowledge, provided
that, in connection with such cooperation, AIG will reimburse your reasonable expenses and you shall not be required to act against
your own legal interests.

 

		·	Tax Matters. Tax will be withheld by AIG as appropriate under
applicable tax requirements for any payments or deliveries under this letter. To the extent any taxable expense reimbursement or
in-kind benefits under this letter is subject to Section 409A of the U.S. Internal Revenue Code of 1986 (“Section 409A”),
the amount thereof eligible in one taxable year shall not affect the amount eligible for any other taxable year, in no event shall
any expenses be reimbursed after the last day of the taxable year following the taxable year in which you incurred such expenses
and in no event shall any right to reimbursement or receipt of in-kind benefits be subject to liquidation or exchange for another
benefit. Each payment under this letter will be treated as a separate payment for purposes of Section 409A.

 

    -3-

     

    

 

	Mr. Brian Duperreault	Page 4

 

		·	No Guarantee of Employment or Target Direct Compensation. This
letter is not a guarantee of employment or target direct compensation for a fixed term.

 

		·	Non-Solicitation and Non-Disclosure Agreement. The Non-Solicitation
and Non-Disclosure Agreement you executed on May 14, 2017 (the “Non-Solicitation Agreement”) shall remain in
full force and effect.

 

		·	Employment Dispute Resolution. You continue to be a participant
in the Company’s Employment Dispute Resolution (“EDR”) program, which provides for various ways to address
work-related disputes, including mediation and arbitration, through the American Arbitration Association (“AAA”).

 

		·	Entire Agreement. This letter constitutes AIG’s only
statement relating to your employment as Executive Chairman and after your Transition Date and, other than with respect to the
Non-Solicitation Agreement, supersedes any previous communications or representations, oral or written, from or on behalf of AIG.
In the event of any inconsistency between this letter and any other plan, program, practice or agreement in which you are a participant
or a party, the terms described in this letter will control unless such other plan, program, practice or agreement specifically
identifies the terms in this letter, and the specific provision hereof, as not so controlling. 

 

		·	Miscellaneous Representations. You confirm and represent to
AIG, by signing this letter, that: (a) you are under no obligation or arrangement (including any restrictive covenants with any
prior employer or any other entity) that would adversely impact your ability to perform the expected services on behalf of AIG
other than as previously disclosed in writing to AIG and (b) you understand and accept all of the terms and conditions of this
offer.

 

	 	 	Sincerely,
	 	 	 
	 	 	American International Group, Inc.
	 	 	 
		By: 	/s/W.
                                         Don Cornwell

                                                                                

	 	 	W. Don Cornwell
	 	 	Chair, Compensation and Management Resources Committee

 

	I agree with and accept the
    foregoing terms.	 
	 	 
	/s/Brian Duperreault	 
	Brian Duperreault	 

 

    -4-

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