Release and Restrictive Covenant Agreement – AIG

AMERICAN INTERNATIONAL GROUP, INC.

RELEASE AND RESTRICTIVE COVENANT AGREEMENT

This Release and Restrictive Covenant Agreement (the “Agreement”) is entered
into by and between Anastasia Kelly (the “Employee”) and American International
Group, Inc., a Delaware Corporation (the “Company”).

Each term defined in the American International Group, Inc. Amended and
Restated Executive Severance Plan (the “Plan”) has the same meaning when used in
this Agreement.

I. Termination of Employment

The Employee153s employment with the Company and each of its subsidiaries and
controlled affiliates (collectively “AIG”) shall terminate on December 30, 2009
(the “Termination Date”) and, as of that date, the Employee shall cease
performing the Employee153s employment duties and responsibilities for AIG and
shall no longer report to work for AIG. For purposes of this Agreement, the term
“controlled affiliates” means an entity of which the Company directly or
indirectly owns or controls a majority of the voting shares.

II. Severance

The Employee shall receive Severance Installments (as defined in the Plan) in
the total gross amount of $3,040,770, less applicable tax and benefit
withholdings paid out over 24 months (in substantially equal biweekly
installments) in accordance with Section IV.B of the Plan and the Company153s
normal payroll practices. The Severance Period (as defined in the Plan) shall
end on or around December 31, 2011 (the “Severance End Date”). Solely for
purposes of the American International Group, Inc. Retirement Plan and any life
insurance benefits provided pursuant to Section IV.F of the Plan, only that
portion of the Severance Installments that is equal to the Employee153s regular
salary installments at the time of the Termination Date shall be treated as
“salary” (the remainder shall be treated as non-salary). The Employee shall also
be paid accrued wages, reimbursed expenses and 11 days of accrued, unused
vacation pay as set forth in Section IV.A of the Plan.

III. Other Benefits

Nothing in this Agreement modifies or affects any of the terms of any benefit
plans or programs (including, without limitation, the Company153s right to alter
the terms of such plans or programs). No further deductions or employer matching
contributions shall be made on behalf of the Employee to the Incentive Savings
Plan (“ISP”) as of the last day of the pay period in which the Termination Date
occurs.

The Employee shall no longer participate or be eligible for coverage under
the Short-Term and Long-Term Disability programs or the ISP after the
Termination Date. After the Termination Date, the Employee may decide, under the
ISP, whether to elect a rollover or distribution of the Employee153s account
balance or to keep the account balance in the ISP. The Employee shall not accrue
vacation after the Termination Date.

As set forth in Section IV.D of the Plan, the Employee shall be entitled to
participate during the Severance Period in the applicable Company-provided
health plans for active

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employees in which the Employee participated prior to termination by paying
on an after-tax basis the applicable employee contribution charged to active
employees receiving similar coverage. If the Employee participates in such plan,
the actuarial cost of such coverage in excess of the applicable employee
contribution paid by the Employee, as determined by the Company, shall be
imputed as taxable income to the Employee.

As set forth in Section IV.F of the Plan, the Employee shall be entitled to
participate during the Severance Period in the group life insurance benefits
generally available to active employees of the Company. The Employee shall be
required to pay the costs of such coverage on the same basis as prior to the
date of termination. Any portion of the premium paid by the Company shall be
imputed as taxable income to the Employee.

The Employee will continue to participate in and accrue benefits in the AIG
Retirement Plan through the Severance End Date. The AIG Retirement Plan deems an
Employee on severance payroll continuation to be a participant in the Plan. If
the Employee is vested and has the age and service to commence a benefit,
benefits under the AIG Retirement Plan may commence after the last day on
payroll.

Except as set forth in this Agreement and Sections IV.C through F of the
Plan, there are no other payments or benefits due to the Employee from the
Company. The Employee acknowledges and agrees that the Company has made no
representations to the Employee as to the applicability of Section 409A of the
Internal Revenue Code to any of the payments or benefits provided to the
Employee pursuant to the Plan or this Agreement, except that the Company
represents that the Employee is not among the top 50 (is not a specified
employee) for purposes of Section 409A.

IV. Release of Claims

In partial consideration of the payments and benefits described in Sections
II and III of this Agreement and Section IV of the Plan, to which the Employee
agrees the Employee is not entitled until and unless she executes this
Agreement, the Employee, for and on behalf of the Employee and the Employee153s
heirs and assigns, subject to the following two sentences hereof, hereby waives
and releases any common law, statutory or other complaints, claims, charges or
causes of action of any kind whatsoever, both known and unknown, in law or in
equity, which the Employee ever had, now has or may have against AIG and its
shareholders (other than C.V. Starr & Co., Inc. and Starr International
Company, Inc.), successors, assigns, directors, officers, partners, members,
employees or agents (collectively, the “Releasees”), including, without
limitation, any complaint, charge or cause of action arising under federal,
state or local laws pertaining to employment, including the Age Discrimination
in Employment Act of 1967 (“ADEA,” a law which prohibits discrimination on the
basis of age), the National Labor Relations Act, the Civil Rights Act of 1991,
the Americans With Disabilities Act of 1990, Title VII of the Civil Rights Act
of 1964, all as amended; and all other federal, state, local and foreign laws
and regulations. By signing this Agreement, the Employee acknowledges that the
Employee intends to waive and release any rights known or unknown that the
Employee may have against the Releasees under these and any other laws;
provided, that the Employee does not waive or release claims with
respect to the right to enforce the Employee153s rights under this Agreement or
with respect to any rights to indemnification under the Company153s Charter and
by-laws (the “Unreleased Claims”). In addition, the Employee waives any claim to
reinstatement or re-employment with AIG, the Employee shall not seek or accept
employment with AIG after the Termination Date and the Employee agrees not to
bring any claim based upon the failure or refusal of AIG to employ the Employee
hereafter.

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V. Proceedings

The Employee acknowledges that the Employee has not filed any complaint,
charge, claim or proceeding, except with respect to an Unreleased Claim, if any,
against any of the Releasees before any local, state or federal agency, court or
other body (each individually a “Proceeding”). The Employee represents that the
Employee is not aware of any basis on which such a Proceeding could reasonably
be instituted. By signing this Agreement the Employee:

(a) Acknowledges that the Employee shall not initiate or cause to be
initiated on her behalf any Proceeding and shall not participate in any
Proceeding, in each case, except as required by law;

(b) Waives any right she may have to benefit in any manner from any relief
(whether monetary or otherwise) arising out of any Proceeding, including any
Proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”);
and

(c) Acknowledges that the Employee shall be limiting the availability of
certain remedies that the Employee may have against AIG and limiting also the
Employee153s ability to pursue certain claims against the Releasees.

Notwithstanding the above, nothing in Section V of this Agreement shall
prevent the Employee from:

(x) Initiating or causing to be initiated on her behalf any complaint,
charge, claim or proceeding against the Company before any local, state or
federal agency, court or other body challenging the validity of the waiver of
her claims under the ADEA contained in Section IV of this Agreement (but no
other portion of such waiver), or

(y) Initiating or participating in an investigation or proceeding conducted
by the EEOC.

VI. Time to Consider

The payments and benefits payable to the Employee under this Agreement
include consideration provided to Employee over and above anything of value to
which the Employee already is entitled. The Employee acknowledges that the
Employee has been advised that the Employee has 21 days from the date of the
Employee153s receipt of this Agreement to consider all the provisions of this
Agreement.

THE EMPLOYEE FURTHER ACKNOWLEDGES THAT THE EMPLOYEE HAS READ THIS AGREEMENT
CAREFULLY, HAS BEEN ADVISED BY THE COMPANY TO CONSULT AN ATTORNEY, AND FULLY
UNDERSTANDS THAT BY SIGNING BELOW THE EMPLOYEE IS GIVING UP CERTAIN RIGHTS WHICH
THE EMPLOYEE MAY HAVE TO SUE OR ASSERT A CLAIM AGAINST ANY OF THE RELEASEES, AS
DESCRIBED IN SECTION IV OF THIS AGREEMENT AND THE OTHER PROVISIONS HEREOF. THE
EMPLOYEE ACKNOWLEDGES THAT THE EMPLOYEE HAS NOT BEEN FORCED OR PRESSURED IN ANY
MANNER WHATSOEVER TO SIGN THIS AGREEMENT, AND THE EMPLOYEE AGREES TO ALL OF ITS
TERMS VOLUNTARILY.

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VII. Revocation

The Employee hereby acknowledges and understands that the Employee shall have
seven days from the date of the Employee153s execution of this Agreement to revoke
this Agreement (including, without limitation, any and all claims arising under
the ADEA) by providing written notice of revocation delivered to the Chief
Executive Officer of the Company no later than 5:00 p.m. on the seventh day
after the Employee has signed the Agreement. Neither the Company nor any other
person is obligated to provide any benefits to the Employee pursuant to Section
IV of the Plan until eight days have passed since the Employee153s signing of this
Agreement without the Employee having revoked this Agreement. If the Employee
revokes this Agreement pursuant to this Section, the Employee shall be deemed
not to have accepted the terms of this Agreement, and no action shall be
required of AIG under any section of this Agreement.

VIII. No Admission

This Agreement does not constitute an admission of liability or wrongdoing of
any kind by the Employee or AIG.

IX. Restrictive Covenants

A. Non-Competition/Non-Solicitation

The Employee acknowledges and recognizes the highly competitive nature of the
businesses of AIG and accordingly agrees as follows:

1. During the period commencing on the Employee153s Termination Date and ending
on the earlier of the (i) the one-year anniversary of such date and (ii) the
Severance End Date (the “Restricted Period“), the Employee shall not,
directly or indirectly:

(a) Engage in any “Competitive Business” (defined below) for the Employee153s
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.

2. For purposes of this Section IX, 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 business:

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

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

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(c) 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;

(d) The investment and financial services business, including retirement
services and mutual funds services; or

(e) Any other business that as of such date is a direct and material
competitor of one of AIG153s businesses.

3. Notwithstanding anything to the contrary in this Agreement, the Employee
may directly or indirectly, own, solely as an investment, securities of any
person engaged in the business of AIG which are publicly traded on a national or
regional stock exchange or on the over-the-counter market if the Employee (a) is
not a controlling person of, or a member of a group which controls, such person
and (b) does not, directly or indirectly, own one percent or more of any class
of securities of such person.

4. During the Restricted Period, the Employee shall not, directly or
indirectly, without AIG153s written consent, hire, solicit or encourage to cease
to work with AIG any employee, consultant or agent of AIG.

5. The Employee understands that the provisions of this Section IX.A may
limit the Employee153s ability to earn a livelihood in a business similar to the
business of AIG but the Employee nevertheless agrees and hereby acknowledges
that:

(a) Such provisions do not impose a greater restraint than is necessary to
protect the goodwill or other business interests of AIG;

(b) Such provisions contain reasonable limitations as to time and scope of
activity to be restrained;

(c) Such provisions are not harmful to the general public; and

(d) Such provisions are not unduly burdensome to the Employee. In
consideration of the foregoing and in light of the Employee153s education, skills
and abilities, the Employee agrees that she shall not assert that, and it should
not be considered that, any provisions of Section IX.A otherwise are void,
voidable or unenforceable or should be voided or held unenforceable.

6. It is expressly understood and agreed that, although the Employee and the
Company consider the restrictions contained in this Section IX.A to be
reasonable, if a judicial determination is made by a court of competent
jurisdiction that the time or territory or any other restriction contained in
this Section IX.A or elsewhere in this Agreement is an unenforceable restriction
against the Employee, the provisions of the Agreement shall not be rendered void
but shall be deemed amended to apply as to such maximum time and territory and
to such maximum extent as such court may judicially determine or indicate to be
enforceable. Alternatively, if any court of competent jurisdiction finds that
any restriction contained in this Agreement is unenforceable, and such
restriction cannot be amended so as to make it enforceable, such finding shall
not affect the enforceability of any of the other restrictions contained herein.

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B. Nondisparagement

The Employee agrees (whether during or after the Employee153s employment with
AIG) not to issue, circulate, publish or utter any false or disparaging
statements, remarks or rumors about AIG or the officers, directors or managers
of AIG other than to the extent reasonably necessary in order to (a) assert a
bona fide claim against AIG arising out of the Employee153s employment with AIG,
or (b) respond in a truthful and appropriate manner to any legal process or give
truthful and appropriate testimony in a legal or regulatory proceeding.

C. Code of Conduct

The Employee agrees to abide by all of the terms of the Company153s Code of
Conduct or the Director, Executive Officer and Senior Financial Officer Code of
Business Conduct and Ethics that continue to apply after termination of
employment.

D. Confidentiality/Company Property

The Employee acknowledges that the disclosure of this Agreement or any of the
terms hereof could prejudice AIG and would be detrimental to AIG153s continuing
relationship with its employees. Accordingly, the Employee agrees not to discuss
or divulge either the existence or contents of this Agreement to anyone other
than the Employee153s immediate family, attorneys or tax advisors, and further
agrees to use the Employee153s best efforts to ensure that none of those
individuals will reveal its existence or contents to anyone else. The Employee
shall not, without the prior written consent of AIG, use, divulge, disclose or
make accessible to any other person, firm, partnership, corporation or other
entity, any “Confidential Information” (as defined below), or any “Personal
Information” (as defined below); provided that the Employee may
disclose Confidential Information, Personal Information or information about the
existence or content of this Agreement when required to do so by a court of
competent jurisdiction, by any governmental agency having supervisory authority
over the business of AIG, as the case may be, or by any administrative body or
legislative body (including a committee thereof) with jurisdiction to order the
Employee to divulge, disclose or make accessible such information;
provided, further, that in the event that the Employee is ordered by a
court or other government agency to disclose any Confidential Information or
Personal Information, the Employee shall:

(a) Promptly notify AIG of such order;

(b) At the written request of AIG, diligently contest such order at the sole
expense of AIG; and

(c) At the written request of AIG, seek to obtain, at the sole expense of
AIG, such confidential treatment as may be available under applicable laws for
any information disclosed under such order.

Upon the Termination Date the Employee shall return AIG property, including,
without limitation, files, records, disks and any media containing Confidential
Information or Personal Information. For purposes of this Section IX.D:

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“Confidential Information” shall mean information concerning the
financial data, strategic business plans, product development (or other
proprietary product data), customer lists, marketing plans and other,
proprietary and confidential information relating to the business of AIG or
customers, that, in any case, is not otherwise available to the public (other
than by the Employee153s breach of the terms hereof).

“Personal Information” shall mean any information concerning the
personal, social or business activities of the officers or directors of the
Company.

E. Developments

Developments shall be the sole and exclusive property of AIG. The Employee
agrees to, and hereby does, assign to AIG, without any further consideration,
all of the Employee153s right, title and interest throughout the world in and to
all Developments. The Employee agrees that all such Developments that are
copyrightable may constitute works made for hire under the copyright laws of the
United States and, as such, acknowledges that AIG is the author of such
Developments and owns all of the rights comprised in the copyright of such
Developments. The Employee hereby assigns to AIG without any further
consideration all of the rights comprised in the copyright and other proprietary
rights the Employee may have in any such Development to the extent that it might
not be considered a work made for hire. The Employee shall make and maintain
adequate and current written records of all Developments and shall disclose all
Developments promptly, fully and in writing to the Company promptly after
development of the same, and at any time upon request.

“Developments” shall mean all discoveries, inventions, ideas,
technology, formulas, designs, software, programs, algorithms, products,
systems, applications, processes, procedures, methods and improvements and
enhancements conceived, developed or otherwise made or created or produced by
the Employee alone or with others, and in any way relating to the business or
any proposed business of AIG of which the Employee has been made aware, or the
products or services of AIG of which the Employee has been made aware, whether
or not subject to patent, copyright or other protection and whether or not
reduced to tangible form, at any time during the Employee153s employment with AIG.

F. Cooperation

The Employee agrees (whether during employment or after the Termination Date)
to cooperate:

(a) With AIG in connection with any litigation or regulatory matters in which
the Employee may have relevant knowledge or information, and

(b) With all government authorities on matters pertaining to any
investigation, litigation or administrative proceeding pertaining to AIG.

This cooperation shall include, without limitation, the following:

(x) To meet and confer, at a time mutually convenient to the Employee and
AIG, with AIG153s designated in-house or outside attorneys to answer questions,
explain factual situations, prepare to testify, or appear for deposition;

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(y) To appear for trial and give truthful trial testimony without the need to
serve a subpoena for such appearance and testimony; and

(z) To give truthful sworn statements to AIG153s attorneys upon their request
and, for purposes of any deposition or trial testimony, to adopt AIG153s attorneys
as the Employee153s own (provided that there is no conflict of interest
that would disqualify the attorneys from representing the Employee), and to
accept their record instructions at deposition.

The Company agrees to reimburse the Employee for reasonable out-of-pocket
expenses necessarily incurred by the Employee in connection with the cooperation
set forth in this Section IX.F.

X. Enforcement

If at any time (a) the Employee breaches any of the provisions of this
Agreement or (b) the Plan Administrator of the Plan determines that grounds
existed, on or prior to the Termination Date, including prior to the Effective
Date of the Plan, for AIG to terminate the Employee153s employment for “Cause” (as
defined in the Plan), (y) no further payments or benefits shall be due to the
Employee under this Agreement and/or the Plan; and (z) the Employee shall be
obligated to repay to AIG, immediately and in a cash lump sum, the amount of any
Severance Installments and other Severance benefits (other than any amounts
received by the Employee under Section IV.D, E or F) previously received by the
Employee under this Agreement and/or the Plan (which shall, for the avoidance of
doubt, be calculated on a pre-tax basis); provided that the Employee
shall in all events be entitled to receive accrued wages and expense
reimbursement and accrued but unused vacation pay as set forth in Section IV.A
of the Plan.

The Employee acknowledges and agrees that AIG153s remedies at law for a breach
or threatened breach of any of the provisions of Sections IX.A, B, D and E of
this Agreement would be inadequate, and, 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 in the form of specific performance,
temporary restraining order, temporary or permanent injunction or any other
equitable remedy which may then be available. In addition, AIG shall be entitled
to immediately cease paying any amounts remaining due or providing any benefits
to the Employee pursuant to Section IV of the Plan upon a determination by the
“Plan Administrator” (as defined in the Plan) that the Employee has violated any
provision of Section IX of this Agreement, subject to payment of all such
amounts upon a final determination, by a court of competent jurisdiction, that
the Employee had not violated Section IX of this Agreement.

XI. General Provisions

A. No Waiver; Severability

A failure of the Company or any of the Releasees to insist on strict
compliance with any provision of this Agreement shall not be deemed a waiver of
such provision or any other provision hereof. If any provision of this Agreement
is determined to be so broad as to be unenforceable, such provision shall be
interpreted to be only so broad as is enforceable, and in the event that any
provision is determined to be entirely unenforceable, such provision shall be
deemed severable, such that all other provisions of this Agreement shall remain
valid and binding upon the Employee and the Releasees.

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B. Governing Law

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE WHOLLY
PERFORMED WITHIN THAT STATE, WITHOUT REGARD TO ITS CONFLICT OF LAWS PROVISIONS
OR THE CONFLICT OF LAWS PROVISIONS OF ANY OTHER JURISDICTION WHICH WOULD CAUSE
THE APPLICATION OF ANY LAW OTHER THAN THAT OF THE STATE OF NEW YORK. THE
EMPLOYEE CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS
IN NEW YORK.

Compensation and/or payments under this Agreement are subject to applicable
regulations issued by the U.S. Department of the Treasury and applicable
requirements of agreements between American International Group, Inc. and the
U.S. government, as the same are in effect from time to time. Employee may
receive compensation and/or payments under this Agreement only to the extent
that they are consistent with those regulations and requirements.

C. Entire Agreement/Counterparts

This Agreement constitutes the entire understanding and agreement between the
Company and the Employee with regard to all matters herein. There are no other
agreements, conditions, or representations, oral or written, express or implied,
with regard thereto. This Agreement may be amended only in writing, signed by
the parties hereto. This Agreement may be signed in counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and
hereto were upon the same instrument.

D. Notice

For the purpose of this Agreement, notices and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have
been duly given if delivered: (a) personally; (b) by overnight courier service;
(c) by facsimile transmission; or (d) by United States registered mail, return
receipt requested, postage prepaid, addressed to the respective addresses, as
set forth below, or to such other address as either party may have furnished to
the other in writing in accordance herewith; provided that notice of
change of address shall be effective only upon receipt. Notices shall be deemed
given as follows: (x) notices sent by personal delivery or overnight courier
shall be deemed given when delivered; (y) notices sent by facsimile transmission
shall be deemed given upon the sender153s receipt of confirmation of complete
transmission; and (z) notices sent by United States registered mail shall be
deemed given two days after the date of deposit in the United States mail.

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If to the Employee, to the address as shall most currently appear on the
records of the Company.

If to the Company, to:

American International Group, Inc.

70 Pine Street

New York, NY 10270

Fax: 212-770-1584

Attn: Chief Executive Officer

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement.

EMPLOYEE

By:	/s/ Anastasia D. Kelly
	Name: Anastasia D. Kelly	Date: 12/30/09
	Title: Vice Chairman
AMERICAN INTERNATIONAL GROUP, INC.
By:	/s/ Robert H. Benmosche
	Name: Robert H. Benmosche	Date: 12/30/09
	Title: Chief Executive Officer

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