AMERICAN GENERAL CORPORATION
For the Quarter Ended March 31, 1996
SUPPLEMENTAL RETIREMENT BENEFIT FOR JON P. NEWTON
Following his completion of three full years of employment, American
General Corporation has agreed to provide an additional retirement benefit to
Mr. Newton, provided he remains with the company for a minimum of five years.
This supplemental retirement benefit is to be paid outside of the qualified
American General Retirement Plan and is in addition to his accrued benefit
under that Plan. This supplemental benefit will vest after five continuous
years of employment and is calculated as an additional year of benefit service
for every year of continuous service with the company after completion of this
third year, up to a maximum of six additional years.