Document:

EX-10.5

 

Exhibit 10.5

AMERICAN INTERNATIONAL GROUP, INC.

2007 STOCK INCENTIVE PLAN

NON-EMPLOYEE DIRECTOR DEFERRED STOCK UNITS AWARD AGREEMENT

     This award agreement (this “Award Agreement”) sets forth the terms and conditions of an award
(this “Award”) of $___in deferred stock units (“DSUs”) granted to you under the American
International Group, Inc. 2007 Stock Incentive Plan (as amended and restated from time to time, the
“Plan”).

     1. The Plan. This Award is made pursuant to the Plan, the terms of which are
incorporated in this Award Agreement. Capitalized terms used in this Award Agreement which are not
defined in this Award Agreement have the meanings as used or defined in the Plan.

     2. Award. The number of DSUs set forth on the signature page of this Award Agreement
are subject to this Award. Each DSU constitutes an unfunded and unsecured promise of AIG to
deliver (or cause to be delivered) to you, subject to the terms of this Award Agreement, one share
of Common Stock (a “Share” or “Shares” as the context requires) (or securities or other property
equal to the Fair Market Value thereof) on the Delivery Date as provided herein. Until such
delivery, you have only the rights of a general unsecured creditor and no rights as a shareholder
of AIG. In the event the calculation of the number of DSUs subject to this Award Agreement results
in fractional shares, the number of Shares shall be rounded down to the next whole Share. THIS
AWARD IS SUBJECT TO ALL TERMS, CONDITIONS AND PROVISIONS OF THE PLAN AND THIS AWARD AGREEMENT.

     3. Delivery.

          (a) In General. Except as provided below in this Paragraph 3 and Paragraph 8, the
Delivery Date shall be on the last Trading Day of the month in which you cease to be a director of
the Board. AIG may deliver securities or other property based on the Fair Market Value in lieu of
all or any portion of the Shares otherwise deliverable on the Delivery Date. You shall be the
beneficial owner of any Shares at the close of business on the Delivery Date and shall be entitled
to any dividend or distribution that has not already been made with respect to such Shares if the
record date for such dividend or distribution is on or after the close of business on the Delivery
Date. “Trading Day” means a day on which the Common Stock trades regular way on the New York Stock
Exchange or, if the Common Stock is not then listed on the New York Stock Exchange, on the
principal national or regional securities exchange on which the Common Stock is then listed or, if
the Common Stock is not then listed on a national or regional securities exchange, on the principal
other market on which the Common Stock is then traded.

          (b) Death. Notwithstanding any other term or provision of this Award Agreement, if
you die prior to the Delivery Date, the Shares (or securities or other property in lieu of all or
any portion thereof) corresponding to your outstanding DSUs shall be delivered to the
representative of your estate as soon as practicable after the date of death and after such
documentation as may be requested by the Board is provided to the Board.

 

 

     4. Dividend Equivalent Rights. On the last day of each quarter before the delivery of
Shares (or securities or other property in lieu thereof) pursuant to this Award Agreement, you
shall be entitled to receive an amount in cash equal to any regular cash dividend payment that
would have been distributed during such quarter in respect of the Shares not yet delivered.

     5. Non-transferability. Except as may otherwise be provided in this Paragraph or as
otherwise may be provided by the Board, the limitations set forth in Section 3.5 of the Plan shall
apply. Any assignment in violation of the provisions of this Paragraph 5 shall be void. The Board
may adopt procedures pursuant to which you may transfer some or all of your DSUs through a gift for
no consideration to any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law
or sister-in-law, including adoptive relationships, any person sharing the recipient’s household
(other than a tenant or employee), a trust in which these persons have more than 50% of the
beneficial interest, and any other entity in which these persons (or the recipient) own more than
50% of the voting interests.

     6. Withholding, Consents and Legends.

          (a) The delivery of Shares is conditioned on your satisfaction of any applicable withholding
taxes in accordance with Section 3.2 of the Plan.

          (b) Your rights in respect of the DSUs are conditioned on the receipt to the full satisfaction
of the Board of any required consents (as defined in Section 3.3 of the Plan) that the Board may
determine to be necessary or advisable.

          (c) AIG may affix to Certificates representing Shares issued pursuant to this Award Agreement
any legend that the Board determines to be necessary or advisable. AIG may advise the transfer
agent to place a stop order against any legended Shares.

     7. Successors and Assigns of AIG. The terms and conditions of this Award Agreement
shall be binding upon and shall inure to the benefit of AIG and its successors and assigns.

     8. Amendment. The Board reserves the right at any time to amend the terms and
conditions set forth in this Award Agreement in any respect in accordance with Section 1.3 of the
Plan, and the Board may amend the Plan in any respect in accordance with Section 3.1 of the Plan.
Notwithstanding the foregoing and Sections 1.3.1 and 3.1 of the Plan, no such amendment shall
materially adversely affect your rights and obligations under this Award Agreement without your
consent (or the consent of your estate, if such consent is obtained after your death), and the
Board may not accelerate the delivery of the Shares (or securities or other property in lieu of any
or all of the Shares). Any amendment of this Award Agreement shall be in writing signed by an
authorized member of the Board or any other person or persons authorized by the Board.

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     9. Governing Law. THIS AWARD SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

     10. Headings. The headings in this Award Agreement are for the purpose of convenience
only and are not intended to define or limit the construction of the provisions hereof.

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     IN WITNESS WHEREOF, AIG and you have caused this Award Agreement to be duly executed
and delivered.

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Recipient:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Number of DSUs:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Accepted and Agreed:	 	 

	 	 	 	 	 
	By:EX-10.6

 

Exhibit 10.6

American International Group, Inc.

2007 Non-Employee Director Compensation

     The following non-employee director compensation arrangements will take effect as of the close
of business on May 16, 2007:

	1.	 	Annual cash retainer for all non-employee directors of $75,000, payable in four equal
installments on the first business day of each quarter in advance of service. No attendance
fees will be paid for Board meetings, including executive sessions. Beginning for 2008,
directors may elect to defer the amount of any retainer into deferred stock units (“DSUs”)
under the AIG 2007 Stock Incentive Plan (the “Plan”).

	2.	 	Additional cash retainer and cash meeting fees for non-employee members of standing
committees as follows:

	 	 	– Annual retainer for Chairman of the Audit Committee: $25,000
	 
	 	 	– Annual retainer for other committee Chairmen: $15,000
	 
	 	 	– Annual retainer for non-Chairmen committee members: $5,000 per committee
	 
	 	 	– Meeting fees: $1,500 per meeting.1
	 
	 	 	Retainers will be paid in four equal installments on the first business day of each quarter
in advance of service and meeting fees will be paid on the first business day of each
quarter for prior service. Beginning for 2008, directors may elect to defer the amount of
these retainers and committee fees into DSUs under the Plan.
	 
	3.	 	Additional cash retainer for the Chairman of the Board of $200,000, payable in four equal
installments on the first business day of each quarter in advance of service and an additional
annual retainer of $150,000 for Mr. Frank Zarb, former Interim Chairman of the Board, which
will be paid in the same manner. Neither the Chairman, as an ex officio member of all standing
committees, nor Mr. Zarb, as a non-voting member of all standing committees, receives
committee annual retainers or committee meeting attendance fees. Beginning for 2008, the
Chairman and Mr. Zarb may elect to defer the amount of these additional retainers into DSUs
under the Plan.
	 
	4.	 	Annual grant of $125,000 in DSUs under the Plan. Annual grants will be made on the date of
the Annual Meeting.
	 
	5.	 	The value of the DSUs received as part of the annual grant described above will be
determined based upon the closing sale price of AIG common stock on the date of the Annual
Meeting. The value of the DSUs received in connection with the deferral of any retainer or
fees described above will be determined based upon the closing sale price of AIG common stock
on the date the retainer or fees would otherwise be due. DSUs include dividend equivalent
rights that entitle the director to a quarterly payment, in the form of DSUs, equal to the
amount of any regular quarterly dividend that

 

			
	1	 	Meeting fees will also be paid to any
non-employee director who attends a meeting of a committee of which he or she
is not a member so long as attendance is at the invitation of the chairman of
that committee and also to any non-employee director who attends
a meeting of AIG’s International Advisory Board.

 

 

	 	 	would have been paid by AIG if shares of Common Stock that underlie the DSUs had been
outstanding.
	 
	6.	 	In the event any director retires or otherwise ceases to be a director before the
completion of his or her full annual term of office, the delivery of all shares of Common
Stock underlying DSUs, including with respect to all accrued amounts for any committee fees,
will be paid and/or delivered on the last trading day of the month in which the director
ceases to be a director.

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