After nearly four years of legal wrangling, former American International Group chief executive officer Maurice “Hank” Greenberg and his ex-employer have agreed to resolve their differences.

Maurice "Hank" Greenberg

AIG announced Nov. 25 that it signed a memorandum of understanding with Greenberg; its former chief financial officer, Howard I. Smith; and the pair’s companies, C.V. Starr & Company and Starr International Co., to settle all disputes. Under the agreement, all parties agreed to release one another from all claims, including any claims by Greenberg and Smith against AIG for indemnification of future legal fees and expenses or settlement costs.

The parties also agreed to submit claims by Greenberg and Smith to former U.S. attorney and federal judge Layn R. Phillips to determine the amount of past legal fees and expenses for a determination of how much the insurer should pay, according to a filing with the U.S. Securities and Exchange Commission. AIG said in the document it will pay up to $150 million to the pair, pending Phillips’ determination of an appropriate amount.

The SEC document details six specific filings the parties have against one another in local and federal courts, including AIG’s derivative suit against its former executives, which combined various shareholder suits against the pair, as well as a dispute over C.V. Starr & Co, where Greenberg serves as chairman and CEO.

The suits began in 2005, when Greenberg left the company he led for nearly 40 years, amid a probe by then-New York Attorney General Eliot Spitzer into the company’s reinsurance transactions.

In addition to millions in reimbursements for fees, Greenberg will also be allowed “reasonable access” to archival materials in AIG’s possession to use in writing his memoirs, including trip reports, photographs and other corporate records during his tenure as CEO of the insurer. An addendum to the memorandum also states Greenberg will receive photographs of himself with Chinese leaders and Cornelius Vander Starr, also known as C.V. Starr, AIG’s founder.

Greenberg also will receive a Persian rug that used to be located in AIG’s boardroom on the 18th floor of 70 Pine Street in New York City.

In a statement, AIG’s current CEO, Robert Benmosche, said the insurer is “pleased that we have resolved our differences.

“The resolution of these long-running disputes will remove a significant distraction and expense and allow AIG to better focus its efforts on paying back taxpayers and restoring the value of our franchise for the benefit of all our stakeholders,” he said.

Since Benmosche took the helm of the troubled insurer in August, media reports claim he and Greenberg have been in contact about the past and future of the company, working to repay more than $180 billion in taxpayer bailout funds.

“I too am pleased that these long-running disputes are now over, and I want to express my appreciation for Bob Benmosche’s help, and the help of the AIG Board, in resolving them,” Greenberg said in a statement. “I look forward to assisting AIG in trying to preserve and restore as much value as possible for all of AIG’s stakeholders.”