AMERICAN INTERNATIONAL GROUP, INC. 2005/2006 DEFERRED COMPENSATION PROFIT PARTICIPATION PLAN RSU AWARD AGREEMENT
Exhibit 10(52)
AMERICAN INTERNATIONAL GROUP, INC.
2005/2006 DEFERRED COMPENSATION PROFIT PARTICIPATION PLAN
RSU AWARD AGREEMENT
2005/2006 DEFERRED COMPENSATION PROFIT PARTICIPATION PLAN
RSU AWARD AGREEMENT
This award agreement (this “Award Agreement”) sets forth the terms and conditions of an award
(this “Award”) of restricted stock units (“RSUs”) awarded to you pursuant to the American
International Group, Inc. 2005/2006 Deferred Compensation Profit Participation Plan (the “DCPPP”)
and issued to you under the American International Group, Inc. Amended and Restated 2002 Stock
Incentive Plan (the “SIP”).
1. The SIP. This Award is made pursuant to the SIP, the terms of which are incorporated in
this Award Agreement. Capitalized terms used in this Award Agreement that are not defined in this
Award Agreement, or in the attached Glossary of Terms, have the meanings as used or defined in the
SIP.
2. Award. The number of RSUs subject to this Award is set forth at the end of this Award
Agreement. Each RSU 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 (the
“Share” or the “Shares” as the context requires) (or cash equal to the Fair Market Value thereof)
on the Scheduled Vesting 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. THIS AWARD IS SUBJECT TO ALL
TERMS, CONDITIONS AND PROVISIONS OF THE DCPPP, THE SIP AND THIS AWARD AGREEMENT, INCLUDING, WITHOUT
LIMITATION, THE ARBITRATION AND CHOICE OF FORUM PROVISIONS SET FORTH IN PARAGRAPH 15.
3. Vesting and Payout.
(a) Vesting. Except as provided in this Paragraph 3 and in Paragraphs 4 and 6, you shall
become vested in the RSUs on [May 1, 2009 / May 1, 2010 / March 1, 2012] (the “Scheduled Vesting
Date”). Unless the Committee determines otherwise, and except as provided in Paragraph 6, if your
employment terminates for any reason prior to the Scheduled Vesting Date, your rights in respect of
all of your unvested RSUs shall be forfeited and terminate, and no Shares (or cash) shall be paid
in respect of such RSUs.
(b) Payout. Except as provided in this Paragraph 3 and in Paragraphs 4, 6, 8 and 9, the
Shares underlying the vested RSUs shall be paid promptly after the Scheduled Vesting Date, but no
later than the end of the calendar year in which such Scheduled Vesting Date falls. The Company
may, at its option and subject to the DCPPP and the SIP, deliver cash in lieu of all or any portion
of the Shares otherwise payable on the Scheduled Vesting Date. Such cash payment shall equal the
product of the number of Shares to be delivered on the Scheduled Vesting Date and the Fair Market
Value of one Share of Common Stock on the Scheduled Vesting Date. You shall be deemed the
beneficial owner of the Shares at the close of business on the Scheduled Vesting 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 after the close of business on the
Scheduled Vesting Date. Notwithstanding the foregoing, if the Scheduled Vesting Date occurs at
a time you are considered by AIG to be one of its “covered employees” within the meaning of Section
162(m) of the Code, then, unless the Committee determines otherwise, payout of the Shares (or cash)
may be deferred by the Company under the circumstances described in Section 409A until the earliest
date that the Company reasonably anticipates that the deduction or payment will not be limited or
eliminated.
(c) Death. Notwithstanding any other provision of this Award Agreement, if you die prior to
the Scheduled Vesting Date, and provided your rights in respect of your RSUs have not yet
terminated, the Shares (or cash in lieu of all or any part thereof) corresponding to your
outstanding RSUs shall be paid to the representative of your estate promptly after your death (but
no later than 90 days after your death).
(d) Delay of Payment. The Committee may, in its sole discretion, determine to defer payment
of the RSUs or permit you to elect to defer payment of the RSUs, in each case in a manner that
conforms to the requirements of Section 409A(a)(4) of the Code.
4. Termination of RSUs; Non-Payment of Shares.
(a) Termination on Separation from Service. Unless the Committee determines otherwise, and
except as provided in Paragraphs 3(c) and 6, your rights in respect of your outstanding RSUs shall
immediately terminate, and no Shares (or cash) shall be paid in respect of such unvested RSUs, if
at any time prior to the Scheduled Vesting Date your employment with the Company terminates for any
reason, or you are otherwise no longer actively employed by the Company.
(b) Termination on Other Events. Unless the Committee determines otherwise, and except as
provided in Paragraph 6, your rights in respect of all of your RSUs (whether or not vested) shall
immediately terminate, and no Shares (or cash) shall be paid in respect of such RSUs, if at any
time prior to the Scheduled Vesting Date:
(i) you attempt to have any dispute under this Award Agreement, the DCPPP or the SIP
resolved in any manner that is not provided for by Paragraph 15;
(ii) any event that constitutes Cause has occurred;
(iii) you in any manner, directly or indirectly, (A) Solicit any Client to transact
business with a Competitive Enterprise or to reduce or refrain from doing any business with
the Company or (B) interfere with or damage (or attempt to interfere with or damage) any
relationship between the Company and any such Client or (C) Solicit any person who is an
employee of the Company to resign from the Company or to apply for or accept employment with
any Competitive Enterprise; or
(iv) you fail to certify to AIG, in accordance with procedures established by the
Committee, with respect to the Scheduled Vesting Date that you have complied, or the Committee
determines that you have failed as of the Scheduled Vesting Date to comply, with all of the
terms and conditions of this Award Agreement. By accepting the delivery of Shares (or cash)
under this Award Agreement, you shall be deemed to have represented and certified at such time
that you have complied with all the terms and conditions of this Award Agreement.
(c) Termination on Failure to Certify. Unless the Committee determines otherwise, if the
Scheduled Vesting Date in respect of any of your outstanding RSUs occurs, and Shares (or cash) with
respect to such outstanding RSUs would be payable under the terms and conditions of this Award
Agreement, except that you have not complied with the conditions or your obligations under
Paragraph 4(b)(iv), all of your rights with respect to your outstanding RSUs shall terminate no
later than the Scheduled Vesting Date for such Shares.
5. Repayment. If, following the delivery of Shares (or cash), the Committee determines that
all terms and conditions of this Award Agreement in respect of such delivery were not satisfied,
the Company shall be entitled to receive, and you shall be obligated to pay the Company immediately
upon demand therefor, the Fair Market Value of the Shares (determined as of the Scheduled Vesting
Date) and the amount of cash (to the extent that any cash was delivered in lieu of Shares)
delivered with respect to the Scheduled Vesting Date, without reduction for any Shares (or cash)
applied to satisfy withholding tax or other obligations in respect of such Shares (or cash).
6. Disability and Retirement.
(a) Notwithstanding any other provision of this Award Agreement, but subject to Paragraph
6(b), if you become subject to Disability or terminate Employment by means of retirement at or
after age 65 (“Retire”), the condition set forth in Paragraph 4(a) shall be waived with respect to
your then outstanding unvested RSUs (as a result of which any such then unvested outstanding RSUs
shall vest and the Shares (or cash) corresponding to your outstanding RSUs shall be paid to you
promptly after the date you become subject to Disability or Retire, but no later than 90 days
thereafter (if you become subject to Disability) or the end of the calendar year in which such date
falls (if you Retire), as applicable, but all other conditions of this Award Agreement shall
continue to apply.
(b) Without limiting the application of Paragraph 4(b) or Paragraph 4(c), your rights in
respect of any outstanding RSUs that become vested solely by reason of Paragraph 6(a) immediately
shall terminate, and no Shares (or cash) shall be paid in respect of such outstanding RSUs if,
following your becoming subject to Disability or Retiring and prior to the delivery of Shares (or
cash) in respect of such outstanding RSUs, you (i) form, or acquire a 5% or greater equity
ownership, voting or profit participation interest in, any Competitive Enterprise or (ii) associate
in any capacity (including, but not limited to, association as an officer, employee, partner,
director, consultant, agent or advisor) with any Competitive Enterprise.
7. Non-transferability. Except as otherwise may be provided by the Committee, the
limitations set forth in Section 9 of the DCPPP shall apply. Any assignment in violation of the
provisions of this Paragraph 7 shall be null and void.
8. 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 SIP).
(b) Your rights in respect of your RSUs are conditioned on the receipt to the full
satisfaction of the Committee of any required consents (as defined in Section 10 of the DCPPP) that
the Committee may determine to be necessary or advisable (including, without limitation, your
consenting to deductions from your wages, or
another arrangement satisfactory to the Committee, to reimburse the Company for advances made on
your behalf to satisfy withholding and other tax obligations in connection with this Award);
provided that if such Consent has not been so effected or obtained as of the latest date provided
by this Award Agreement for the delivery of Shares (or cash) in respect of any RSUs and further
delay of delivery is not permitted in accordance with the requirements of Section 409A, such RSUs
will be forfeited and terminate notwithstanding any prior vesting.
(c) AIG may affix to Certificates representing Shares issued pursuant to this Award Agreement
any legend that the Committee determines to be necessary or advisable (including to reflect any
restrictions to which you may be subject under a separate agreement with AIG). AIG may advise the
transfer agent to place a stop transfer order against any legended Shares.
9. Section 409A.
(a) RSUs awarded under this Award Agreement are intended to be “deferred compensation”
subject to Section 409A, this Award Agreement is intended to, and shall be interpreted,
administered and construed to, comply with Section 409A with respect to the RSUs. The Committee
shall have full authority to give effect to the intent of this Paragraph 9(a). To the extent
necessary to give effect to this intent, in the case of any conflict or potential inconsistency
between the provisions of this Award Agreement and the provisions of the DCPPP or the SIP, the
DCPPP or the SIP, as applicable, shall govern.
(b) Without limiting the generality of Paragraph 9(a), references to the termination of your
Employment with respect to the RSUs shall mean your separation from service with the Company within
the meaning of Section 409A.
(c) Any payment to be made under the RSUs in connection with termination of your Employment
(and any other payment under the Plan) that would be subject to the limitations in Section
409A(a)(2)(b) of the Code shall be delayed until six months after termination of your Employment
(or earlier death) in accordance with the requirements of Section 409A.
(d) Each payment under the RSUs shall be treated as a separate payment for purposes of
Section 409A.
10. No Rights to Continued Employment. Nothing in this Award Agreement, the DCPPP or the SIP
shall be construed as giving you any right to continued employment by the Company or affect any
right that the Company may have to terminate or alter the terms and conditions of your employment.
11. 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 successor entities (as defined in
Section 3.6 of the SIP.)
12. Committee Discretion. Subject to paragraph 13, the Committee shall have full discretion
with respect to any actions to be taken or determinations to be made in connection with this Award
Agreement (including, without limitation, whether you have become subject to Disability), and its
determinations shall be final, binding and conclusive.
13. Amendment. The Committee reserves the right at any time and in any manner to amend the
terms and conditions set forth in this Award Agreement and the DCPPP, including in a manner adverse
to your rights; provided that, notwithstanding the foregoing, the Committee may not accelerate or
postpone the payout of Shares (or cash in lieu of all or any part thereof) pursuant to this Award
Agreement to occur at a time other than the time otherwise provided for in this Award Agreement.
14. Adjustment. Subject to Paragraph 9(a), in the event of a recapitalization, stock split,
stock dividend, combination or exchange of shares, merger, consolidation, rights offering,
separation, reorganization or liquidation, or any other change in the corporate structure or the
Shares, subsequent to the date of the Date of Grant, the Committee or the Board shall make such
equitable adjustments, designed to protect dilution or enlargement of rights, as it may deem
appropriate, in the number and kind of Shares covered by the RSUs subject to this Award Agreement.
In addition, the Committee shall have the authority (but will not be required) to adjust
outstanding RSUs for any restatements of the Company’s financial statements.
15. Arbitration; Choice of Forum.
(a) Any dispute, controversy or claim between the Company and you, arising out of or relating
to or concerning the SIP or this Award Agreement, shall be finally settled by arbitration in New
York City before, and in accordance with the rules then obtaining of, the New York Stock Exchange,
Inc. (the “NYSE”) or, if the NYSE declines to arbitrate the matter (or if the matter otherwise is
not arbitrable by it), the American Arbitration Association (the “AAA”) in accordance with the
commercial arbitration rules of the AAA. Prior to arbitration, all claims maintained by you must
first be submitted to the Committee in accordance with claims procedures determined by the
Committee. This Paragraph is subject to the provisions of Paragraphs 15(b) and (c) below.
(b) THE COMPANY AND YOU HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE
OR FEDERAL COURT LOCATED IN THE CITY OF NEW YORK OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO OR CONCERNING THE SIP OR THIS AWARD AGREEMENT THAT IS NOT OTHERWISE ARBITRATED OR
RESOLVED ACCORDING TO PARAGRAPH 15(a) OF THIS AWARD AGREEMENT. This includes any suit, action or
proceeding to compel arbitration or to enforce an arbitration award. The Company and you
acknowledge that the forum designated by this Paragraph 15(b) has a reasonable relation to the SIP,
this Award Agreement, and to your relationship with the Company. Notwithstanding the foregoing,
nothing herein shall preclude the Company from bringing any action or proceeding in any other court
for the purpose of enforcing the provisions of this Paragraph 15.
(c) The agreement by you and the Company as to forum is independent of the law that may be
applied in the action, and you and the Company agree to such forum even if the forum may under
applicable law choose to apply non-forum law. You and the Company hereby waive, to the fullest
extent permitted by applicable law, any objection which you or the Company 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 Paragraph 15(b). You and the Company undertake not to commence any
action, suit or proceeding arising out of or relating to or concerning
this Award Agreement in any forum other than a forum described in this Paragraph 15. You and
(subject to the last sentence of Paragraph 15(a)) the Company 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 you and the Company.
(d) You irrevocably appoint the Secretary of AIG as your agent for service of process in
connection with any action, suit or proceeding arising out of or relating to or concerning the
DCPPP or this Award Agreement which is not arbitrated pursuant to the provisions of Paragraph
15(a), who shall promptly advise you of any such service of process.
(e) You hereby agree to keep confidential the existence of, and any information concerning
any grant made under the DCPPP and any dispute, controversy or claim relating to the DCPPP or this
Award Agreement, except that you may disclose information concerning such dispute or claim to the
arbitrator or court that is considering such dispute or to your 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).
(f) You recognize and agree that prior to the grant of this Award you have no right to any
benefits hereunder. Accordingly, in consideration of the receipt of this Award, you expressly
waive any right to contest the amount of this Award, terms of this Award Agreement and the DCPPP,
any determination, action or omission hereunder or under the SIP by the Committee, AIG or the
Board, or any amendment to the DCPPP or this Award Agreement and you expressly waive any claim
related in any way to the Award including any claim based on any promissory estoppel or other
theory in connection with this Award and your employment with the Company.
16. 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 CONFLICTS OF LAWS.
17. 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.
IN WITNESS WHEREOF, AMERICAN INTERNATIONAL GROUP, INC. has caused this Award Agreement to be
duly executed and delivered as of the Date of Grant.
| AMERICAN INTERNATIONAL GROUP, INC. | ||||||
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Recipient:
Number of RSUs:
Date of Grant:
Scheduled Vesting Date:
Glossary of Terms
Solely for purposes of this award of RSUs, the following terms shall have the meanings set forth
below. Capitalized terms not defined in this Glossary of Terms shall have the meanings as used or
defined in the applicable Award Agreement or the SIP.
“Cause” means (i) your 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; (ii) your engaging in any
conduct which constitutes an employment disqualification under applicable law (including statutory
disqualification as defined under the Exchange Act); (iii) your failure to perform your duties to
the Company; (iv) your 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 AIG or any of its subsidiaries or affiliates is a member; (v) your
violation of any Company policy concerning hedging or confidential or proprietary information, or
your material violation of any other Company policy as in effect from time to time; (vi) your
engaging in any act or making any statement which impairs, impugns, denigrates, disparages or
negatively reflects upon the name, reputation or business interests of the Company; or (vii) your
engaging in any conduct detrimental to the Company. The determination as to whether “Cause” has
occurred shall be made by the Committee in its sole discretion. The Committee shall also have the
authority in its sole discretion to waive the consequences under the DCPPP, the SIP or any Award
Agreement of the existence or occurrence of any of the events, acts or omissions constituting
“Cause.”
“Client” means any client or prospective client of the Company to whom you provided services,
or for whom you transacted business, or whose identity became known to you in connection with your
relationship with or employment by the Company.
“Competitive Enterprise” means a business enterprise that (i) engages in any activity, or (ii)
owns or controls a significant interest in any entity that engages in any activity, that, in either
case, competes anywhere with any activity in which the Company is engaged. The activities covered
by the previous sentence include, without limitation, all insurance and re-insurance and insurance
and re-insurance-related activities, asset management, financial product activities (including,
without limitation, derivative activities) and financial services in the United States and abroad.
“Disability” means a period of medically determined physical or mental impairment that is
expected to result in death or last for a period of not less than 36 months during which you
qualify for income replacement benefits under the Company’s long-term disability plan for at least
six months, or, if you do not participate in such a plan, a period of disability during which you
are unable to engage in any substantial gainful activity by reason of any medically determined
physical or mental impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 36 months.
“Section 409A” means Section 409A of the Internal Revenue Code, including any amendments or
successor provisions to that section, and any regulations and other administrative guidance
thereunder, in each case as they may be from time to time amended or interpreted through further
administrative guidance.
“Solicit” means any direct or indirect communication of any kind whatsoever, regardless of by
whom initiated, inviting, advising, encouraging or requesting any person or entity, in any manner,
to take or refrain from taking any action.