Document:

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                                                                    EXHIBIT 4.25

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                           REVOLVING CREDIT AGREEMENT
                                    (2001-2C)

                          Dated as of October 26, 2001

                                     between

               STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
                              NATIONAL ASSOCIATION,
                             as Subordination Agent,
                     as agent and trustee for the trustee of
                  American Airlines Pass Through Trust 2001-2C

                                   as Borrower

                                       and

                      WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                                NEW YORK BRANCH,

                              as Liquidity Provider

                  American Airlines Pass Through Trust 2001-2C
                            7.800% American Airlines
                           Pass Through Certificates,
                                 Series 2001-2C

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                           REVOLVING CREDIT AGREEMENT

         This REVOLVING CREDIT AGREEMENT, dated as of October 26, 2001, is made
by and between STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT, NATIONAL
ASSOCIATION, a national banking association, not in its individual capacity but
solely as Subordination Agent (such term and other capitalized terms used herein
without definition being defined as provided in Article I) under the
Intercreditor Agreement (as defined below), as agent and trustee for the Class C
Trustee (in such capacity, together with its successors in such capacity, the
"Borrower"), and WESTDEUTSCHE LANDESBANK GIROZENTRALE, a German banking
institution organized under the laws of the State of North Rhine-Westphalia,
acting through its New York branch (the "Liquidity Provider").

                                   WITNESSETH:

         WHEREAS, pursuant to the Class C Trust Agreement, the New Class C Trust
is issuing the Class C Certificates; and

         WHEREAS, the Borrower, in order to support the timely payment of a
portion of the interest on the Class C Certificates in accordance with their
terms, has requested the Liquidity Provider to enter into this Agreement,
providing in part for the Borrower to request in specified circumstances that
Advances be made hereunder;

         NOW, THEREFORE, in consideration of the mutual agreements herein
contained, and of other good and valuable consideration the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.01 Definitions.

         (a) The definitions stated herein apply equally to both the singular
and the plural forms of the terms defined.

         (b) All references in this Agreement to designated "Articles",
"Sections", "Annexes" and other subdivisions are to the designated Article,
Section, Annex or other subdivision of this Agreement, unless otherwise
specifically stated.

         (c) The words "herein", "hereof" and "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
Article, Section, Annex or other subdivision.

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         (d) Unless the context otherwise requires, whenever the words
"including", "include" or "includes" are used herein, it shall be deemed to be
followed by the phrase "without limitation".

         (e) For the purposes of this Agreement, unless the context otherwise
requires, the following capitalized terms shall have the following meanings:

         "Advance" means an Interest Advance, a Final Advance, a Provider
Advance or an Applied Provider Advance, as the case may be.

         "Agreement" means this Agreement, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

         "Applicable Liquidity Rate" has the meaning specified in Section
3.07(g).

         "Applicable Margin" means with respect to any Unpaid Advance or Applied
Provider Advance, 1.75%.

         "Applied Downgrade Advance" has the meaning specified in Section
2.06(a).

         "Applied Non-Extension Advance" has the meaning specified in Section
2.06(a).

         "Applied Provider Advance" means an Applied Downgrade Advance or an
Applied Non- Extension Advance.

         "Base Rate" means a fluctuating interest rate per annum in effect from
time to time, which rate per annum shall at all times be equal to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published for each
day in the period for which the Base Rate is to be determined (or, if such day
is not a Business Day, for the preceding Business Day) by the Federal Reserve
Bank of New York, or if such rate is not so published for any day that is a
Business Day, the average of the quotations for such day for such transactions
received by the Liquidity Provider from three Federal funds brokers of
recognized standing selected by it (and reasonably satisfactory to American)
plus one- quarter of one percent (0.25%).

         "Base Rate Advance" means an Advance that bears interest at a rate
based upon the Base Rate.

         "Borrower" has the meaning specified in the introductory paragraph to
this Agreement.

         "Borrowing" means the making of Advances requested by delivery of a
Notice of Borrowing.

         "Business Day" means any day other than a Saturday, a Sunday or a day
on which commercial banks are required or authorized to close in New York, New
York, Dallas, Texas, or, so long as any Class C Certificate is outstanding, the
city and state in which the Class C Trustee, the Borrower or any related Loan
Trustee maintains its Corporate Trust Office or receives or disburses funds,
and, if the applicable Business Day relates to any Advance or other amount
bearing interest based on the LIBOR Rate, on which dealings are carried on in
the London interbank market.

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         "Class C Fee Letter" means the Fee Letter among WestLB, the
Subordination Agent and American with respect to the Liquidity Facility for the
New Class C Trust and any letter entered into among the Subordination Agent,
American and any Replacement Liquidity Provider.

         "Class C Placement Agreement" means the Placement Agreement, dated
October 17, 2001, among the Class C Placement Agents and American, relating to
the purchase of the Class C Certificates by the Class C Placement Agents, as the
same may be amended, supplemented or otherwise modified from time to time.

         "Covered Taxes" means any Taxes imposed by the United States or any
political subdivision or taxing authority thereof or therein required by law to
be deducted or withheld from any amounts payable to the Liquidity Provider under
this Agreement other than (i) any Tax on, based on or measured by net income,
franchises or conduct of business, (ii) any Tax imposed, levied, withheld or
assessed as a result of any connection between the Liquidity Provider and the
United States or such political subdivision or taxing authority, other than a
connection arising solely from the Liquidity Provider's having executed,
delivered, performed its obligations or received a payment under, or enforced,
any Operative Agreement, (iii) any Tax attributable to the inaccuracy in or
breach by the Liquidity Provider of any of its representations, warranties or
covenants contained in any Operative Agreement to which it is a party or the
inaccuracy of any form or document furnished by the Liquidity Provider pursuant
thereto, (iv) any withholding Taxes imposed by the United States except to the
extent such withholding Taxes would not have been required to be deducted or
withheld from payments hereunder but for a change after the date hereof in the
income tax treaty between the United States and a Relevant Country in which the
Liquidity Provider is organized and resident for tax purposes or a change in the
Code that overrides the provisions of such treaty or (v) any Taxes caused by any
change in the Lending Office without the prior written consent of American (such
consent not to be unreasonably withheld). "Relevant Country" means any of
Germany, France, the United Kingdom, Switzerland, The Netherlands and Ireland.

         "Downgrade Advance" means an Advance made pursuant to Section 2.02(c).

         "Effective Date" has the meaning specified in Section 4.01. The
delivery of the certificate of the Liquidity Provider contemplated by Section
4.01(e) shall be conclusive evidence that the Effective Date has occurred.

         "Expenses" means liabilities, losses, damages, costs and expenses
(including, without limitation, reasonable fees and disbursements of legal
counsel), provided that Expenses shall not include any Taxes other than sales,
use and V.A.T. taxes imposed on fees and expenses payable pursuant to Section
7.07.

         "Expiry Date" means October 2, 2002, initially, or any date to which
the Expiry Date is extended pursuant to Section 2.10.

         "Final Advance" means an Advance made pursuant to Section 2.02(d).

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         "Increased Cost" has the meaning specified in Section 3.01.

         "Intercreditor Agreement" means the Intercreditor Agreement, dated as
of October 4, 2001, among the Trustees, the Liquidity Provider, the liquidity
provider under each Liquidity Facility (other than this Agreement) and the
Subordination Agent, as amended by the Refunding Amendment and as the same may
be further amended, supplemented or otherwise modified from time to time in
accordance with its terms.

         "Interest Advance" means an Advance made pursuant to Section 2.02(a).

         "Interest Period" means, with respect to any LIBOR Advance, each of the
following periods:

                  (i) the period beginning on the third Business Day following
         either (A) the Liquidity Provider's receipt of the Notice of Borrowing
         for such LIBOR Advance or (B) the date of the withdrawal of funds from
         the Class C Cash Collateral Account for the purpose of paying interest
         on the Class C Certificates as contemplated by Section 2.06(a) hereof
         and, in each case, ending on the next Regular Distribution Date; and

                  (ii) each subsequent period commencing on the last day of the
         immediately preceding Interest Period and ending on the next Regular
         Distribution Date;

provided, however, that if (x) the Final Advance shall have been made pursuant
to Section 2.02(d) or (y) other outstanding Advances shall have been converted
into the Final Advance pursuant to Section 6.01, then the Interest Periods shall
be successive periods of one month beginning on the third Business Day following
the Liquidity Provider's receipt of the Notice of Borrowing for such Final
Advance (in the case of clause (x) above) or the Regular Distribution Date
following such conversion (in the case of clause (y) above).

         "Lending Office" means the lending office of the Liquidity Provider
presently located at New York, New York, or such other lending office as the
Liquidity Provider from time to time shall notify the Borrower as its lending
office hereunder; provided that the Liquidity Provider shall not change its
Lending Office to a lending office outside of the United States without the
prior written consent of American (such consent not to be unreasonably
withheld).

         "LIBOR Advance" means an Advance bearing interest at a rate based upon
the LIBOR Rate.

         "LIBOR Rate" means, with respect to any Interest Period, (a) the rate
per annum appearing on display page 3750 (British Bankers Association - LIBOR)
of the Dow Jones Markets Service (or any successor or substitute therefor) at
approximately 11:00 a.m. (London time) on the day that is two Business Days
prior to the first day of such Interest Period as the rate for dollars deposits
with a maturity comparable to such Interest Period, or (b) if the rate specified
in clause (a) above is not available, the average (rounded up, if necessary, to
the nearest 1/100th of 1%) of the rates per annum at which deposits in Dollars
are offered by the Reference Banks (or, if fewer than all of the Reference Banks
are quoting a rate for deposits

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in Dollars for the applicable period and amount, such fewer number of Reference
Banks) at approximately 11:00 a.m. (London time) on the day that is two Business
Days prior to the first day of such Interest Period to prime banks in the London
interbank market for a period comparable to such Interest Period and in an
amount approximately equal to the principal amount of the LIBOR Advance to be
outstanding during such Interest Period, or (c) if none of the Reference Banks
is quoting a rate for deposits in Dollars in the London interbank market for
such a period and amount, the interest rate per annum equal to the average
(rounded up, if necessary, to the nearest 1/100th of 1%) of the rates at which
deposits in Dollars are offered by the principal New York offices of the
Reference Banks (or, if fewer than all of the Reference Banks are quoting a rate
for deposits in Dollars in the New York interbank market for the applicable
period and amount, such fewer number of Reference Banks) at approximately 11:00
a.m. (New York time) on the day that is two Business Days prior to the first day
of such Interest Period to prime banks in the New York interbank market for a
period comparable to such Interest Period and in an amount approximately equal
to the principal amount of the LIBOR Advance to be outstanding during such
Interest Period, or (d) if none of the principal New York offices of the
Reference Banks is quoting a rate for deposits in Dollars in the New York
interbank market for the applicable period and amount, the Base Rate.

         "Liquidity Event of Default" means the occurrence of either (a) the
Acceleration of all of the Equipment Notes or (b) an American Bankruptcy Event.

         "Liquidity Indemnitee" means the Liquidity Provider, its directors,
officers, employees and agents, and its successors and permitted assigns.

         "Liquidity Provider" has the meaning specified in the introductory
paragraph to this Agreement.

         "Maximum Available Commitment" means, subject to the proviso contained
in the third sentence of Section 2.02(a), at any time of determination, (a) the
Maximum Commitment at such time less (b) the aggregate amount of each Interest
Advance outstanding at such time; provided that following a Provider Advance or
a Final Advance, the Maximum Available Commitment shall be zero.

         "Maximum Commitment" means (a) initially $34,989,231, as the same may
be reduced from time to time in accordance with Section 2.04(a) and, (b) at all
times after the date after which there can be no increase in the interest rate
of Equipment Notes held in the New Class C Trust pursuant to the terms of the
Registration Rights Agreement (the "Step-Up Termination Date"), means
$32,881,446, as the same may be reduced from time to time in accordance with
Section 2.04(a), provided, however, that clause (b) shall not apply during any
period in which the interest rate of the Equipment Notes held in the New Class C
Trust has increased pursuant to the terms of the Registration Rights Agreement.

         "Non-Extension Advance" means an Advance made pursuant to Section
2.02(b).

         "Notice of Borrowing" has the meaning specified in Section 2.02(e).

         "Notice of Replacement Subordination Agent" has the meaning specified
in Section 3.08.

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         "Offering Memorandum" means the Offering Memorandum dated October 17,
2001, relating to the Class C Certificates, as such Offering Memorandum may be
amended or supplemented.

         "Participation" has the meaning specified in Section 7.08(b).

         "Performing Note Deficiency" means any time that less than 65% of the
then aggregate outstanding principal amount of all Equipment Notes are
Performing Equipment Notes.

         "Permitted Transferee" means any Person that:

         (a)      is not a commercial air carrier, American or any affiliate of
                  American; and

         (b)      is any one of:

                  (1) a commercial banking institution organized under the laws
         of the United States or any state thereof or the District of Columbia;

                  (2) a commercial banking institution that (x) is organized
         under the laws of France, Germany, The Netherlands, Switzerland, the
         United Kingdom or Ireland, (y) is entitled on the date it acquires any
         Participation to a complete exemption from United States federal income
         taxes for all income derived by it from the transactions contemplated
         by the Operative Agreements under an income tax treaty, as in effect on
         such date, between the United States and such jurisdiction of its
         organization and (z) is engaged in the active conduct of a banking
         business in such jurisdiction of its organization, holds its
         Participation in connection with such banking business in such
         jurisdiction and is regulated as a commercial banking institution by
         the appropriate regulatory authorities in such jurisdiction; or

                  (3) a commercial banking institution that (x) is organized
         under the laws of Canada, France, Germany, Ireland, Japan, Luxembourg,
         The Netherlands, Sweden, Switzerland or the United Kingdom and (y) is
         entitled on the date it acquires any Participation to a complete
         exemption from withholding of United States federal income taxes for
         all income derived by it from the transactions contemplated by the
         Operative Agreements under laws as in effect on such date by reason of
         such income being effectively connected with the conduct of a trade or
         business within the United States.

         "Provider Advance" means a Downgrade Advance or a Non-Extension
Advance.

         "Reference Banks" means the principal London offices of: The Royal Bank
of Scotland; JP Morgan Chase; Citibank, N.A.; and such other or additional
banking institutions as may be designated from time to time by mutual agreement
of American and the Liquidity Provider.

         "Refunding Amendment" means the Refunding Amendment to the
Intercreditor Agreement, dated as of the date hereof, among the Trustees, the
Liquidity Provider and the Subordination Agent.

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         "Regulatory Change" means the enactment, adoption or promulgation,
after the date of this Agreement, of any law or regulation by a United States
federal or state government or by the government of the Liquidity Provider's
jurisdiction of organization, or any change, after the date of this Agreement,
in any such law or regulation, or in the interpretation thereof by any
governmental authority, central bank or comparable agency of the United States
or the Liquidity Provider's jurisdiction of organization charged with
responsibility for the administration or application thereof, that shall impose,
modify or deem applicable (a) any reserve, special deposit or similar
requirement against extensions of credit or other assets of, or deposits with or
other liabilities of, the Liquidity Provider including, or by reason of, the
Advances or (b) any capital adequacy requirement requiring the maintenance by
the Liquidity Provider of additional capital in respect of any Advances or the
Liquidity Provider's obligation to make any such Advances.

         "Replenishment Amount" has the meaning specified in Section 2.06(b).

         "Required Amount" means, for any day, the sum of the aggregate amount
of interest, calculated at the rate per annum equal to the Stated Interest Rate
for the Class C Certificates on the basis of a 360-day year comprised of twelve
30-day months, that would be payable on the Class C Certificates on each of the
three successive semiannual Regular Distribution Dates immediately following
such day or, if such day is a Regular Distribution Date, on such day and the
succeeding two semiannual Regular Distribution Dates, in each case calculated on
the basis of the Pool Balance of the Class C Certificates on such day and
without regard to expected future distributions of principal on the Class C
Certificates.

         "Step-Up Termination Date" has the meaning specified in the definition
of Maximum Commitment.

         "Termination Date" means the earliest to occur of the following: (i)
the Expiry Date; (ii) the date on which the Borrower delivers to the Liquidity
Provider a certificate, signed by a Responsible Officer of the Borrower,
certifying that all of the Class C Certificates have been paid in full (or
provision has been made for such payment in accordance with the Intercreditor
Agreement and the Class C Trust Agreement) or are otherwise no longer entitled
to the benefits of this Agreement; (iii) the date on which the Borrower delivers
to the Liquidity Provider a certificate, signed by a Responsible Officer of the
Borrower, certifying that a Replacement Liquidity Facility has been substituted
for this Agreement in full pursuant to Section 3.06(e) of the Intercreditor
Agreement; (iv) the fifth Business Day following the receipt by the Borrower of
a Termination Notice from the Liquidity Provider pursuant to Section 6.01; and
(v) the date on which no Advance is or may (including by reason of reinstatement
as herein provided) become available for a Borrowing hereunder.

         "Termination Notice" means the Notice of Termination substantially in
the form of Annex V to this Agreement.

         "Unapplied Provider Advance" means any Provider Advance other than an
Applied Provider Advance.

         "Unpaid Advance" has the meaning specified in Section 2.05.

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         (f) For the purposes of this Agreement, the following terms shall have
the respective meanings specified in the Intercreditor Agreement:

         "Acceleration", "American", "American Bankruptcy Event", "Certificate",
"Class A-1 Certificates", "Class A-2 Certificates", "Class B Certificates",
"Class C Cash Collateral Account", "Class C Certificates", "Class C
Certificateholders", "New Class C Trust", "Class C Trust Agreement", "Class C
Trustee", "Class C Certificates", "Class C Refunding Agreement", "Class C
Refunding Date", "Collection Account", "Controlling Party", "Corporate Trust
Office", "Deposits", "Distribution Date", "Dollars", "Downgraded Facility",
"Equipment Notes", "Final Legal Distribution Date", "Indenture", "Interest
Payment Date", "Investment Earnings", "Liquidity Facility", "Liquidity
Obligations", "Loan Trustee", "Moody's", "Non-Extended Facility", "Operative
Agreements", "Participation Agreements", "Performing Equipment Note", "Person",
"Placement Agents", "Pool Balance", "Rating Agencies", "Ratings Confirmation",
"Registration Rights Agreement", "Regular Distribution Date", "Replacement
Liquidity Facility", "Responsible Officer", "Scheduled Payment", "Special
Payment", "S&P", "Stated Interest Rate", "Subordination Agent", "Taxes",
"Threshold Rating", "Trust Agreement", "Trustee", "United States" and "Written
Notice".

                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENT

         Section 2.01 The Advances. The Liquidity Provider hereby irrevocably
agrees, on the terms and conditions hereinafter set forth, to make Advances to
the Borrower from time to time on any Business Day during the period from the
Effective Date until 12:00 noon (New York City time) on the Expiry Date (unless
the obligations of the Liquidity Provider shall be earlier terminated in
accordance with the terms of Section 2.04(b)) in an aggregate amount at any time
outstanding not to exceed the Maximum Commitment.

         Section 2.02 Making of Advances.

         (a) Each Interest Advance shall be made by the Liquidity Provider upon
delivery to the Liquidity Provider of a written and completed Notice of
Borrowing in substantially the form of Annex I, signed by a Responsible Officer
of the Borrower, such Interest Advance to be in an amount not exceeding the
Maximum Available Commitment at such time and used solely for the payment when
due of interest with respect to the Class C Certificates at the Stated Interest
Rate therefor in accordance with Section 3.06(a) and 3.06(b) of the
Intercreditor Agreement. Each Interest Advance made hereunder shall
automatically reduce the Maximum Available Commitment and the amount available
to be borrowed hereunder by subsequent Advances by the amount of such Interest
Advance (subject to reinstatement as provided in the next sentence). Upon
repayment to the Liquidity Provider in full or in part of the amount of any
Interest Advance made pursuant to this Section 2.02(a), together with accrued
interest thereon (as provided herein), the Maximum Available Commitment shall be
reinstated by an amount equal to the amount of such Interest Advance so repaid,
but not to exceed the Maximum Commitment; provided, however, that the Maximum
Available Commitment shall not be so reinstated at any time if (x) both a

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Performing Note Deficiency exists and a Liquidity Event of Default shall have
occurred and be continuing or (y) a Final Drawing shall have occurred.

         (b) Subject to Section 2.10, a Non-Extension Advance shall be made by
the Liquidity Provider if this Agreement is not extended in accordance with
Section 3.06(d) of the Intercreditor Agreement (unless a Replacement Liquidity
Facility to replace this Agreement shall have been delivered to the Borrower as
contemplated by said Section 3.06(d) within the time period specified in such
Section 3.06(d)) upon delivery to the Liquidity Provider of a written and
completed Notice of Borrowing in substantially the form of Annex II, signed by a
Responsible Officer of the Borrower, in an amount equal to the Maximum Available
Commitment at such time, and shall be used to fund the Class C Cash Collateral
Account in accordance with Sections 3.06(d) and 3.06(f) of the Intercreditor
Agreement.

         (c) A Downgrade Advance shall be made by the Liquidity Provider if at
any time the short-term unsecured debt rating of the Liquidity Provider issued
by either Rating Agency (or if the Liquidity Provider does not have a short-term
unsecured debt rating issued by a given Rating Agency, the long-term unsecured
debt rating of the Liquidity Provider issued by such Rating Agency) is lower
than the applicable Threshold Rating (as provided for in Section 3.06(c) of the
Intercreditor Agreement) unless a Replacement Liquidity Facility to replace this
Agreement shall have been previously delivered to the Borrower in accordance
with said Section 3.06(c), upon delivery to the Liquidity Provider of a written
and completed Notice of Borrowing in substantially the form of Annex III, signed
by a Responsible Officer of the Borrower, in an amount equal to the Maximum
Available Commitment at such time, and shall be used to fund the Class C Cash
Collateral Account in accordance with Sections 3.06(c) and 3.06(f) of the
Intercreditor Agreement.

         (d) A Final Advance shall be made by the Liquidity Provider following
the receipt by the Borrower of a Termination Notice from the Liquidity Provider
pursuant to Section 6.01 upon delivery to the Liquidity Provider of a written
and completed Notice of Borrowing in substantially the form of Annex IV, signed
by a Responsible Officer of the Borrower, in an amount equal to the Maximum
Available Commitment at such time, and shall be used to fund the Class C Cash
Collateral Account in accordance with Sections 3.06(f) and 3.06(i) of the
Intercreditor Agreement.

         (e) Each Borrowing shall be made on notice in writing (a "Notice of
Borrowing") in substantially the form required by Section 2.02(a), 2.02(b),
2.02(c) or 2.02(d), as the case may be, given by the Borrower to the Liquidity
Provider. Each Notice of Borrowing shall be effective upon delivery of a copy
thereof to the Liquidity Provider's office at the address specified in Section
7.02 hereof. If a Notice of Borrowing is delivered by the Borrower in respect of
any Borrowing no later than 1:00 p.m. (New York City time) on a Business Day,
upon satisfaction of the conditions precedent set forth in Section 4.02 with
respect to a requested Borrowing, the Liquidity Provider shall make available to
the Borrower, in accordance with its payment instructions, the amount of such
Borrowing in Dollars and immediately available funds, before 4:00 p.m. (New York
City time) on such Business Day or before 1:00 p.m. (New York City time) on such
later Business Day specified in such Notice of Borrowing. If a Notice of
Borrowing is delivered by the Borrower in respect of any Borrowing after 1:00
p.m. (New York City time) on a Business Day, upon satisfaction of the conditions
precedent set forth in Section 4.02 with respect to a requested Borrowing, the
Liquidity Provider shall make available to the Borrower, in accordance with its
payment instructions, the amount of such Borrowing in Dollars and immediately
available funds, before 1:00 p.m. (New York City time)

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on the first Business Day next following the day of receipt of such Notice of
Borrowing or on such later Business Day specified by the Borrower in such Notice
of Borrowing. Payments of proceeds of a Borrowing shall be made by wire transfer
of immediately available funds to the Borrower in accordance with such wire
transfer instructions as the Borrower shall furnish from time to time to the
Liquidity Provider for such purpose. Each Notice of Borrowing shall be
irrevocable and binding on the Borrower.

         (f) Upon the making of any Advance requested pursuant to a Notice of
Borrowing in accordance with the Borrower's payment instructions, the Liquidity
Provider shall be fully discharged of its obligation hereunder with respect to
such Notice of Borrowing, and the Liquidity Provider shall not thereafter be
obligated to make any further Advances hereunder in respect of such Notice of
Borrowing to the Borrower or to any other Person (including the Trustee or any
Class C Certificateholder). If the Liquidity Provider makes an Advance requested
pursuant to a Notice of Borrowing before 12:00 noon (New York City time) on the
second Business Day after the date of payment specified in Section 2.02(e), the
Liquidity Provider shall have fully discharged its obligations hereunder with
respect to such Advance and an event of default shall not have occurred
hereunder. Following the making of any Advance pursuant to Section 2.02(b),
2.02(c) or 2.02(d) to fund the Class C Cash Collateral Account, the Liquidity
Provider shall have no interest in or rights to the Class C Cash Collateral
Account, such Advance or any other amounts from time to time on deposit in the
Class C Cash Collateral Account; provided that the foregoing shall not affect or
impair the obligations of the Subordination Agent to make the distributions
contemplated by Section 3.06(e) or 3.06(f) of the Intercreditor Agreement and
provided further, that the foregoing shall not affect or impair the rights of
the Liquidity Provider to provide written instructions with respect to the
investment and reinvestment of amounts in the Class C Cash Collateral Account to
the extent provided in Section 2.02(b) of the Intercreditor Agreement. By paying
to the Borrower proceeds of Advances requested by the Borrower in accordance
with the provisions of this Agreement, the Liquidity Provider makes no
representation as to, and assumes no responsibility for, the correctness or
sufficiency for any purpose of the amount of the Advances so made and requested.

         Section 2.03 Fees. The Borrower agrees to pay to the Liquidity Provider
the fees set forth in the Class C Fee Letter.

         Section 2.04 Reduction or Termination of the Maximum Commitment.

         (a) Automatic Reduction. Promptly following each date on which the
Required Amount is reduced as a result of a reduction in the Pool Balance of the
Class C Certificates or otherwise, the Maximum Commitment shall automatically be
reduced to an amount equal to such reduced Required Amount (as calculated by the
Borrower); provided that, at any time prior to the Step-Up Termination Date, the
Required Amount shall be calculated for purposes of this Section 2.04(a)
assuming the application of the additional margin of 0.50% for the corresponding
Equipment Notes under the definition of Stated

                                       10
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Interest Rate (whether or not such additional margin shall otherwise apply). The
Borrower shall give notice of any such automatic reduction of the Maximum
Commitment to the Liquidity Provider and American within two Business Days
thereof. The failure by the Borrower to furnish any such notice shall not affect
any such automatic reduction of the Maximum Commitment.

         (b) Termination. Upon the making of any Provider Advance or Final
Advance hereunder or the occurrence of the Termination Date, the obligation of
the Liquidity Provider to make further Advances hereunder shall automatically
and irrevocably terminate, and the Borrower shall not be entitled to request any
further Borrowing hereunder.

         Section 2.05 Repayments of Interest Advances or the Final Advance.
Subject to Sections 2.06, 2.07 and 2.09 hereof, the Borrower hereby agrees,
without notice of an Advance or demand for repayment from the Liquidity Provider
(which notice and demand are hereby waived by the Borrower), to pay, or to cause
to be paid, to the Liquidity Provider (a) on each date on which the Liquidity
Provider shall make an Interest Advance or the Final Advance, an amount equal to
the amount of such Advance (any such Advance, until repaid, is referred to
herein as an "Unpaid Advance"), plus (b) interest on the amount of each such
Unpaid Advance in the amounts and on the dates determined as provided in Section
3.07; provided that if (i) the Liquidity Provider shall make a Provider Advance
at any time after making one or more Interest Advances which shall not have been
repaid in accordance with this Section 2.05 or (ii) this Liquidity Facility
shall become a Downgraded Facility or Non-Extended Facility at any time when
unreimbursed Interest Advances have reduced the Maximum Available Commitment to
zero, then such Interest Advances shall cease to constitute Unpaid Advances and
shall be deemed to have been changed into an Applied Downgrade Advance or an
Applied Non-Extension Advance, as the case may be, for all purposes of this
Agreement (including, without limitation, for the purpose of determining when
such Interest Advance is required to be repaid to the Liquidity Provider in
accordance with Section 2.06 and for the purposes of Section 2.06(b)). The
Borrower and the Liquidity Provider agree that the repayment in full of each
Interest Advance and Final Advance on the date such Advance is made is intended
to be a contemporaneous exchange for new value given to the Borrower by the
Liquidity Provider. For the avoidance of doubt, interest payable on an Interest
Advance or the Final Advance shall not be regarded as overdue unless such
interest is not paid when due under Section 3.07.

         Section 2.06 Repayments of Provider Advances.

         (a) Amounts advanced hereunder in respect of a Provider Advance shall
be deposited in the Class C Cash Collateral Account and invested and withdrawn
from the Class C Cash Collateral Account as set forth in Sections 3.06(c),
3.06(d), 3.06(e) and 3.06(f) of the Intercreditor Agreement. Subject to Sections
2.07 and 2.09, the Borrower agrees to pay to the Liquidity Provider, on each
Regular Distribution Date, commencing on the first Regular Distribution Date
after the making of a Provider Advance, interest on the principal amount of any
such Provider Advance, in the amounts determined as provided in Section 3.07;
provided, however, that amounts in respect of a Provider Advance withdrawn from
the Class C Cash Collateral Account for the purpose of paying interest on the
Class C Certificates in accordance with Section 3.06(f) of the Intercreditor
Agreement (the amount of any such withdrawal being (y) in the case

                                       11
<PAGE>

of a Downgrade Advance, an "Applied Downgrade Advance" and (z) in the case of a
Non-Extension Advance, an "Applied Non-Extension Advance" and, together with an
Applied Downgrade Advance, an "Applied Provider Advance") shall thereafter
(subject to Section 2.06(b)) be treated as an Interest Advance under this
Agreement for all purposes hereunder, including for purposes of determining the
Applicable Liquidity Rate for interest payable thereon and the dates on which
such interest is payable; provided further, however, that if, following the
making of a Provider Advance, the Liquidity Provider delivers a Termination
Notice to the Borrower pursuant to Section 6.01, such Provider Advance shall
thereafter be treated as a Final Advance under this Agreement for purposes of
determining the Applicable Liquidity Rate for interest payable thereon and the
dates on which such interest is payable. Subject to Sections 2.07 and 2.09
hereof, immediately upon the withdrawal of any amounts from the Class C Cash
Collateral Account on account of a reduction in the Required Amount, the
Borrower shall repay to the Liquidity Provider a portion of the Provider
Advances in a principal amount equal to such reduction, plus interest on the
principal amount prepaid as provided in Section 3.07.

         (b) At any time when an Applied Provider Advance (or any portion
thereof) is outstanding, upon the deposit in the Class C Cash Collateral Account
of any amount pursuant to clause "third" of Section 2.04(b) of the Intercreditor
Agreement, clause "third" of Section 3.02 of the Intercreditor Agreement or
clause "fourth" of Section 3.03 of the Intercreditor Agreement (any such amount
being a "Replenishment Amount") for the purpose of replenishing or increasing
the balance thereof up to the Required Amount at such time, (i) the aggregate
outstanding principal amount of all Applied Provider Advances (and of Provider
Advances treated as an Interest Advance for purposes of determining the
Applicable Liquidity Rate for interest payable thereon) shall be automatically
reduced by the amount of such Replenishment Amount and (ii) the aggregate
outstanding principal amount of all Unapplied Provider Advances shall be
automatically increased by the amount of such Replenishment Amount.

         (c) Upon the provision of a Replacement Liquidity Facility in
replacement of this Agreement in accordance with Section 3.06(e) of the
Intercreditor Agreement, as provided in Section 3.06(f) of the Intercreditor
Agreement, amounts remaining on deposit in the Class C Cash Collateral Account
after giving effect to any Applied Provider Advance on the date of such
replacement shall be reimbursed to the Liquidity Provider, but only to the
extent such amounts are necessary to repay in full to the Liquidity Provider all
amounts owing to it hereunder.

         Section 2.07 Payments to the Liquidity Provider Under the Intercreditor
Agreement. In order to provide for payment or repayment to the Liquidity
Provider of any amounts hereunder, the Intercreditor Agreement provides that
amounts available and referred to in Articles II and III of the Intercreditor
Agreement, to the extent payable to the Liquidity Provider pursuant to the terms
of the Intercreditor Agreement (including, without limitation, Section 3.06(f)
of the Intercreditor Agreement), shall be paid to the Liquidity Provider in
accordance with the terms thereof (but, for the avoidance of doubt, without
duplication of or increase in any amounts payable hereunder). Amounts so paid to
the Liquidity Provider shall be applied by the Liquidity Provider in the order
of priority required by the applicable provisions of Articles II and III of the
Intercreditor Agreement and shall discharge in full the corresponding
obligations of the Borrower hereunder.

                                       12
<PAGE>

         Section 2.08 Book Entries. The Liquidity Provider shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower resulting from Advances made from time to time and
the amounts of principal and interest payable hereunder and paid from time to
time in respect thereof; provided, however, that the failure by the Liquidity
Provider to maintain such account or accounts shall not affect the obligations
of the Borrower in respect of Advances.

         Section 2.09 Payments from Available Funds Only. All payments to be
made by the Borrower under this Agreement shall be made only from the amounts
that constitute Scheduled Payments, Special Payments and other payments under
the Operative Agreements, including payment under Section 4.02 of the
Participation Agreements and payments under Section 2.14 of the Indentures, and
only to the extent that the Borrower shall have sufficient income or proceeds
therefrom to enable the Borrower to make payments in accordance with the terms
hereof after giving effect to the priority of payments provisions set forth in
the Intercreditor Agreement. The Liquidity Provider agrees that it will look
solely to such amounts to the extent available for distribution to it as
provided in the Intercreditor Agreement and this Agreement and that the
Borrower, in its individual capacity, is not personally liable to it for any
amounts payable or liability under this Agreement except as expressly provided
in this Agreement, the Intercreditor Agreement or any Participation Agreement.
Amounts on deposit in the Class C Cash Collateral Account shall be available to
the Borrower to make payments under this Agreement only to the extent and for
the purposes expressly contemplated in Section 3.06(f) of the Intercreditor
Agreement.

         Section 2.10 Extension of the Expiry Date; Non-Extension Advance. At
any time during the period no later than the 25th day and no earlier than the
60th day prior to the then-effective Expiry Date, the Borrower may provide
notice to the Liquidity Provider and the Liquidity Provider may provide notice
to the Borrower of the then-effective Expiry Date. If the Expiry Date is prior
to the date that is 15 days after the Final Legal Distribution Date for the
Class C Certificates, by written agreement between the Borrower and the
Liquidity Provider, entered into at any time prior to the 25th day prior to the
then-effective Expiry Date, the then-effective Expiry Date may be extended,
effective on such 25th day, to the earlier of (i) the date that is 15 days after
the Final Legal Distribution Date for the Class C Certificates and (ii) the date
that is the last day of the 364 day period immediately following such
then-effective Expiry Date (unless in either case the obligations of the
Liquidity Provider are earlier terminated in accordance with the terms hereof).
If the Borrower and the Liquidity Provider do not so agree to extend the
then-effective Expiry Date prior to such 25th day (and if the Liquidity Provider
shall not have been replaced in accordance with Section 3.06(e) of the
Intercreditor Agreement), the Borrower shall be entitled on and after such 25th
day (but prior to such Expiry Date) to request a Non-Extension Advance in
accordance with Section 2.02(b) hereof and Section 3.06(d) of the Intercreditor
Agreement.

                                   ARTICLE III

                           OBLIGATIONS OF THE BORROWER

         Section 3.01 Increased Costs. If as a result of any Regulatory Change
or any compliance by the Liquidity Provider or its head office with any official
request or directive regarding the same (whether

                                       13
<PAGE>

or not having the force of law) there shall be (x) any increase in the actual
cost to the Liquidity Provider of making, funding or maintaining any Advances or
its obligation to make any such Advances, (y) any reduction in the amount
receivable by the Liquidity Provider under this Agreement or the Intercreditor
Agreement in respect thereof, or (z) any reduction in the rate of return on the
Liquidity Provider's capital as a consequence of its commitment hereunder, its
funding Advances or maintaining Unpaid Advances or its funding or maintaining
the Downgrade Advance or the Non-Extension Advance to a level below that which
the Liquidity Provider could have achieved but for such adoption, change or
compliance (taking into consideration the Liquidity Provider's policies with
respect to capital adequacy), and in case of any such an increase or reduction,
such event does not arise from the gross negligence or willful misconduct of the
Liquidity Provider, from its breach of any of its representations, warranties,
covenants or agreements contained herein or in the Intercreditor Agreement or
from its failure to comply with any such Regulatory Change (any such increase or
reduction being referred to herein as an "Increased Cost"), then the Borrower
shall from time to time pay to the Liquidity Provider an amount equal to such
Increased Cost within 15 Business Days after delivery to the Borrower and
American of a certificate of an officer of the Liquidity Provider describing in
reasonable detail the event by reason of which it claims such Increased Cost and
the basis for the determination of the amount of such Increased Cost; provided
that, the Borrower shall be obligated to pay amounts only with respect to any
Increased Costs accruing from the date 120 days prior to the date of delivery of
such certificate. Such certificate, in the absence of manifest error, shall be
considered prima facie evidence of the amount for purposes of this Agreement;
provided that any determinations and allocations by the Liquidity Provider of
the effect of any Regulatory Change on the costs of maintaining the Advances are
made on a reasonable basis. The Liquidity Provider shall not be entitled to
assert any claim under this Section 3.01 in respect of or attributable to Taxes.
The Liquidity Provider will notify the Borrower and American as promptly as
practicable after obtaining actual knowledge of any event occurring after the
date of this Agreement that will entitle the Liquidity Provider to compensation
under this Section 3.01. The Liquidity Provider agrees to investigate all
commercially reasonable alternatives (consistent with its internal lending
policies and legal and regulatory restrictions) for reducing any Increased Costs
and to use all commercially reasonable efforts (consistent with its internal
lending policies and legal and regulatory restrictions) to avoid or reduce, to
the extent possible, any claim in respect of Increased Costs, including, without
limitation, by designating a different Lending Office, if such designation or
other action would avoid the need for, or reduce the amount of, any such claim;
provided that the foregoing shall not obligate the Liquidity Provider to take
any action that would, in its reasonable judgment, cause the Liquidity Provider
to incur any loss or cost, unless the Borrower or American agrees to reimburse
the Liquidity Provider therefor. If no such designation or other action is
effected, or, if effected, fails to avoid the need for any claim in respect of
Increased Costs, American may arrange for a Replacement Liquidity Facility in
accordance with Section 3.06(e) of the Intercreditor Agreement.

         Notwithstanding the foregoing provisions, in no event shall the
Borrower be required to make payments under this Section 3.01: (a) in respect of
any Regulatory Change known to the officers of the Liquidity Provider proposed
by any applicable governmental authority (including any branch of a
legislature), central bank or comparable agency of the United States or the
Liquidity Provider's jurisdiction of organization and pending as of the date of
this Agreement (it being agreed that the consultative document

                                       14
<PAGE>

issued by the Basel Committee on Banking Supervision entitled "The New Basel
Capital Accord" shall not be considered a Regulatory Change proposed as of the
date of this Agreement); (b) if a claim hereunder in respect of an Increased
Cost arises through circumstances peculiar to the Liquidity Provider and that do
not affect similar banking institutions organized in the same jurisdiction
generally that are in compliance with the law, rule, regulation or
interpretation giving rise to the Regulatory Change relating to such Increased
Cost; (c) to the extent that amounts claimed hereunder result from a failure by
the Liquidity Provider to comply with its obligations under this Section 3.01;
or (d) to the extent the Liquidity Provider is not also seeking payment for
similar increased costs in other similarly situated transactions.

         Section 3.02 [Intentionally omitted.]

         Section 3.03 Withholding Taxes.

         (a) All payments made by the Borrower under this Agreement shall be
made without deduction or withholding for or on account of any Taxes, unless
such deduction or withholding is required by law. If any Taxes are so required
to be withheld or deducted from any amounts payable to the Liquidity Provider
under this Agreement, the Borrower shall pay to the relevant authorities the
full amount so required to be deducted or withheld and, if such Taxes are
Covered Taxes, pay to the Liquidity Provider such additional amounts as shall be
necessary to ensure that the net amount actually received by the Liquidity
Provider (after deduction or withholding of all Covered Taxes) shall be equal to
the full amount that would have been received by the Liquidity Provider had no
withholding or deduction of Covered Taxes been required. The Liquidity Provider
agrees to use reasonable efforts (consistent with applicable legal and
regulatory restrictions) to change the jurisdiction of its Lending Office if
making such change would avoid the need for, or reduce the amount of, any such
additional amounts that may thereafter accrue and would not, in the reasonable
judgment of the Liquidity Provider, be otherwise materially disadvantageous to
the Liquidity Provider. If the Liquidity Provider receives a refund of, or
realizes a net Tax benefit not otherwise available to it as a result of, any
Taxes for which additional amounts were paid by the Borrower pursuant to this
Section 3.03, the Liquidity Provider shall pay to the Borrower (for deposit into
the Collection Account) the amount of such refund (and any interest thereon) or
net benefit utilized.

         The Liquidity Provider will (i) provide (on its behalf and on behalf of
any participant holding a Participation pursuant to Section 7.08) to the
Borrower (x) on or prior to the Effective Date two valid completed and executed
copies of Internal Revenue Service Form W8-BEN or Form W-8ECI, as applicable,
including thereon a valid U.S. taxpayer identification number (or, with respect
to any such participant, such form or documentation as may be applicable)
covering all amounts receivable by it in connection with the transactions
contemplated by the Operative Agreements and (y) thereafter from time to time
such additional forms or documentation as may be necessary to establish an
available exemption from withholding of United States Tax on payments hereunder
so that such forms or documentation are effective for all periods during which
it is the Liquidity Provider and (ii) provide timely notice to the Borrower if
any such form or documentation is or becomes inaccurate. The Liquidity Provider
shall deliver to the Borrower such other forms or documents as may be reasonably
requested by the Borrower or required by applicable law to establish that
payments hereunder are exempt from or entitled to a reduced rate of Covered
Taxes.

                                       15
<PAGE>

         (b) All payments (including, without limitation, Advances) made by the
Liquidity Provider under this Agreement shall be made free and clear of, and
without reduction for or on account of, any Taxes. If any Taxes are required to
be withheld or deducted from any amounts payable to the Borrower under this
Agreement, the Liquidity Provider shall (i) within the time prescribed therefor
by applicable law pay to the appropriate governmental or taxing authority the
full amount of any such Taxes (and any additional Taxes in respect of the
additional amounts payable under clause (ii) hereof) and make such reports or
returns in connection therewith at the time or times and in the manner
prescribed by applicable law, and (ii) pay to the Borrower an additional amount
which (after deduction of all such Taxes) will be sufficient to yield to the
Borrower the full amount which would have been received by it had no such
withholding or deduction been made. Whenever any Tax is payable with respect to
a payment hereunder, as promptly as possible thereafter, the Liquidity Provider
shall furnish to the Borrower the original or a certified copy of (or other
documentary evidence of) the payment of the Taxes applicable to such payment.

         If any exemption from, or reduction in the rate of, any Taxes required
to be borne by the Liquidity Provider under this Section 3.03(b) is reasonably
available to the Borrower without providing any information regarding the
holders or beneficial owners of the Certificates, the Borrower shall deliver the
Liquidity Provider such form or forms and such other evidence of the eligibility
of the Borrower for such exemption or reductions (but without any requirement to
provide any information regarding the holders or beneficial owners of the
Certificates) as the Liquidity Provider may reasonably identify to the Borrower
as being required as a condition to exemption from, or reduction in the rate of,
such Taxes. The Borrower shall, for federal income tax purposes, treat any
Advances as a loan to the Subordination Agent on behalf of the New Class C
Trust, unless otherwise required by law.

         Section 3.04 Payments. The Borrower shall make or cause to be made each
payment to the Liquidity Provider under this Agreement so as to cause the same
to be received by the Liquidity Provider not later than 1:00 P.M. (New York City
time) on the day when due. The Borrower shall make all such payments in Dollars,
to the Liquidity Provider in immediately available funds, by wire transfer to:
The Chase Manhattan Bank, ABA #021-000-021, for the account of Westdeutsche
Landesbank Girozentrale, New York Branch, Account Number: 920-1-060663,
Reference: American Airlines, Inc. EETC 2001-2; or to such other account as the
Liquidity Provider may from time to time direct the Subordination Agent.

         Section 3.05 Computations. All computations of interest based on the
Base Rate shall be made on the basis of a year of 365 or 366 days, as the case
may be, and all computations of interest based on the LIBOR Rate shall be made
on the basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period for
which such interest is payable.

         Section 3.06 Payment on Non-Business Days. Whenever any payment to be
made hereunder shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day and no additional
interest shall be due as a result (and if so made, shall be deemed

                                       16
<PAGE>

to have been made when due). If any payment in respect of interest on an Advance
is so deferred to the next succeeding Business Day, such deferral shall not
delay the commencement of the next Interest Period for such Advance (if such
Advance is a LIBOR Advance) or reduce the number of days for which interest will
be payable on such Advance on the next interest payment date for such Advance.

         Section 3.07 Interest.

         (a) Subject to Sections 2.07 and 2.09, the Borrower shall pay, or shall
cause to be paid, without duplication, interest on (i) the unpaid principal
amount of each Advance from and including the date of such Advance (or, in the
case of an Applied Provider Advance, from and including the date on which the
amount thereof was withdrawn from the Class C Cash Collateral Account to pay
interest on the Class C Certificates) to but excluding the date such principal
amount shall be paid in full (or, in the case of an Applied Provider Advance,
the date on which the Class C Cash Collateral Account is fully replenished in
respect of such Advance) and (ii) any other amount due hereunder (whether fees,
commissions, expenses or other amounts or, to the extent permitted by law,
installments of interest on Advances or any such other amount) that is not paid
when due (whether at stated maturity, by acceleration or otherwise) from and
including the due date thereof to but excluding the date such amount is paid in
full, in each such case, at the interest rate per annum for each day equal to
the Applicable Liquidity Rate (as defined below) for such Advance or such other
amount, as the case may be, as in effect for such day, but in no event at a rate
per annum greater than the maximum rate permitted by applicable law, provided,
however, that, if at any time the otherwise applicable interest rate as set
forth in this Section 3.07 shall exceed the maximum rate permitted by applicable
law, then to the maximum extent permitted by applicable law any subsequent
reduction in such interest rate will not reduce the rate of interest payable
pursuant to this Section 3.07 below the maximum rate permitted by applicable law
until the total amount of interest accrued equals the absolute amount of
interest that would have accrued (without additional interest thereon) if such
otherwise applicable interest rate as set forth in this Section 3.07 had at all
relevant times been in effect.

         (b) Except as provided in Section 3.07(e), each Advance will be either
a Base Rate Advance or a LIBOR Advance as provided in this Section 3.07. Each
such Advance will be a Base Rate Advance for the period from the date of its
borrowing to (but excluding) the third Business Day following the Liquidity
Provider's receipt of the Notice of Borrowing for such Advance. Thereafter, such
Advance shall be a LIBOR Advance; provided that the Borrower (at the direction
of the Controlling Party, so long as the Liquidity Provider is not the
Controlling Party) may (x) convert the Final Advance into a Base Rate Advance on
the last day of an Interest Period for such Advance by giving the Liquidity
Provider no less than four Business Days' prior written notice of such election
or (y) elect to maintain the Final Advance as a Base Rate Advance by not
requesting a conversion of the Final Advance to a LIBOR Advance under Clause (5)
of the applicable Notice of Borrowing (or, if, pursuant to Section 2.06, such
Final Advance is deemed to have been made without delivery of a Notice of
Borrowing, by requesting, prior to 11:00 a.m. on the first Business Day
immediately following the Borrower's receipt of the applicable Termination
Notice, that such Final Advance not be converted from a Base Rate Advance to a
LIBOR Advance).

         (c) Each LIBOR Advance shall bear interest during each Interest Period
at a rate per annum

                                       17
<PAGE>

equal to the LIBOR Rate for such Interest Period plus the Applicable Margin for
such LIBOR Advance, payable in arrears on the last day of such Interest Period
and, in the event of the payment of principal of such LIBOR Advance on a day
other than such last day, on the date of such payment (to the extent of interest
accrued on the amount of principal repaid).

         (d) Each Base Rate Advance shall bear interest at a rate per annum
equal to the Base Rate plus the Applicable Margin for such Base Rate Advance,
payable in arrears on each Regular Distribution Date and, in the event of the
payment of principal of such Base Rate Advance on a day other than a Regular
Distribution Date, on the date of such payment (to the extent of interest
accrued on the amount of principal repaid).

         (e) Each outstanding Unapplied Provider Advance shall bear interest in
an amount equal to the Investment Earnings on amounts on deposit in the Class C
Cash Collateral Account for such Unapplied Provider Advance on the amount of
such Unapplied Provider Advance from time to time, payable in arrears on each
Regular Distribution Date.

         (f) Each amount not paid when due hereunder (whether fees, commissions,
expenses or other amounts or, to the extent permitted by applicable law,
installments of interest on Advances but excluding Advances) shall bear interest
at a rate per annum equal to the Base Rate plus 2.00% per annum until paid, but
in no event at a rate per annum greater than the maximum rate permitted by
applicable law, provided, however, that, if at any time the otherwise applicable
interest rate as set forth in this Section 3.07(f) shall exceed the maximum rate
permitted by applicable law, then to the maximum extent permitted by applicable
law any subsequent reduction in such interest rate will not reduce the rate of
interest payable pursuant to this Section 3.07(f) below the maximum rate
permitted by law until the amount of interest accrued equals the absolute amount
of interest that would have accrued (without additional interest thereon) if
such otherwise applicable interest rate as set forth in this Section 3.07(f) had
at all relevant times been in effect.

         (g) Each change in the Base Rate shall become effective immediately.
The rates of interest specified in this Section 3.07 with respect to any Advance
or other amount shall be referred to as the "Applicable Liquidity Rate".

         Section 3.08 Replacement of Borrower. Subject to Section 5.02, from
time to time and subject to the successor Borrower's meeting the eligibility
requirements set forth in Section 6.09 of the Intercreditor Agreement applicable
to the Subordination Agent, upon the effective date and time specified in a
written and completed Notice of Replacement Subordination Agent in substantially
the form of Annex VI (a "Notice of Replacement Subordination Agent") delivered
to the Liquidity Provider by the then Borrower, the successor Borrower
designated therein shall become the Borrower for all purposes hereunder.

         Section 3.09 Funding Loss Indemnification. The Borrower shall pay to
the Liquidity Provider, upon the request of the Liquidity Provider, such amount
or amounts as shall be sufficient (in the reasonable opinion of the Liquidity
Provider) to compensate it for any loss, cost or expense incurred by reason of
the liquidation or redeployment of deposits or other funds acquired by the
Liquidity Provider to fund or

                                       18
<PAGE>

maintain any LIBOR Advance (but excluding loss of the Applicable Margin or
anticipated profits) incurred as a result of:

         (1) Any repayment of a LIBOR Advance on a date other than the last day
of the Interest Period for such Advance; or

         (2) Any failure by the Borrower to borrow a LIBOR Advance on the date
for borrowing specified in the relevant notice under Section 2.02.

         Section 3.10 Illegality. Notwithstanding any other provision in this
Agreement, if any change in any law, rule or regulation applicable to or binding
on the Liquidity Provider, or any change in the interpretation or administration
thereof by any governmental authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by the
Liquidity Provider with any request or directive (whether or not having the
force of law) of any such authority, central bank or comparable agency shall
make it unlawful or impossible for the Liquidity Provider to maintain or fund
its LIBOR Advances, then upon notice to the Borrower and American by the
Liquidity Provider, the outstanding principal amount of the LIBOR Advances shall
be converted to Base Rate Advances (a) immediately upon demand of the Liquidity
Provider, if such change or compliance with such request, in the reasonable
judgment of the Liquidity Provider, requires immediate conversion; or (b) at the
expiration of the last Interest Period to expire before the effective date of
any such change or request. The Liquidity Provider will notify the Borrower and
American as promptly as practicable of any event that will lead to the
conversion of LIBOR Advances to Base Rate Advances under this Section 3.10. The
Liquidity Provider agrees to investigate all commercially reasonable
alternatives (consistent with its internal lending policies and legal and
regulatory restrictions) to avoid the need for such conversion, including,
without limitation, designating a different Lending Office, if such designation
or other action would avoid the need to convert such LIBOR Advances to Base Rate
Advances; provided, that the foregoing shall not obligate the Liquidity Provider
to take any action that would, in its reasonable judgment, cause the Liquidity
Provider to incur any material loss or cost, unless the Borrower or American
agrees to reimburse the Liquidity Provider therefor. If no such designation or
other action is effected, or, if effected, fails to avoid the need for
conversion of the LIBOR Advances to Base Rate Advances, American may arrange for
a Replacement Liquidity Facility in accordance with Section 3.06(e) of the
Intercreditor Agreement.

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

         Section 4.01 Conditions Precedent to Effectiveness of Section 2.01.
Section 2.01 of this Agreement shall become effective on and as of the first
date (the "Effective Date") on which the following conditions precedent have
been satisfied (or waived by the appropriate party or parties):

                                       19
<PAGE>

         (a) The Liquidity Provider shall have received on or before the Class C
Refunding Date each of the following, and in the case of each document delivered
pursuant to paragraphs (i), (ii), (iii) and (iv), each in form and substance
satisfactory to the Liquidity Provider:

                  (i) This Agreement duly executed on behalf of the Borrower;

                  (ii) The Intercreditor Agreement, the Refunding Amendment and
         the Class C Refunding Agreement duly executed on behalf of each of the
         parties thereto (other than the Liquidity Provider);

                  (iii) Fully executed copies of each of the Operative
         Agreements executed and delivered on or before the Class C Refunding
         Date (other than this Agreement, the Intercreditor Agreement, the
         Refunding Amendment and the Class C Refunding Agreement);

                  (iv) A fully executed copy of the Class C Fee Letter;

                  (v) A copy of the Offering Memorandum and specimen copies of
         the Class C Certificates;

                  (vi) An executed copy of each document, instrument,
         certificate and opinion delivered on or before the Class C Refunding
         Date pursuant to the Class C Trust Agreement and the Class C Refunding
         Agreement (in the case of each such opinion, either addressed to the
         Liquidity Provider or accompanied by a letter from the counsel
         rendering such opinion to the effect that the Liquidity Provider is
         entitled to rely on such opinion as of its date as if it were addressed
         to the Liquidity Provider); and

                  (vii) An agreement from American pursuant to which (x)
         American agrees to provide copies of quarterly financial statements and
         audited annual financial statements to the Liquidity Provider and (y)
         American agrees to allow the Liquidity Provider to discuss the
         transactions contemplated by this Agreement and the related Operative
         Agreements with officers and employees of American.

         (b) On and as of the Effective Date no event shall have occurred and be
continuing, or would result from the entering into of this Agreement or the
making of any Advance, which constitutes a Liquidity Event of Default.

         (c) The Liquidity Provider shall have received payment in full of the
fees and other sums required to be paid to or for the account of the Liquidity
Provider on or prior to the Effective Date pursuant to the Class C Fee Letter.

         (d) All conditions precedent to the issuance of the Class C
Certificates under the Class C Trust Agreement shall have been satisfied or
waived and all conditions precedent to the purchase of the Class C Certificates
by the Class C Placement Agents under the Class C Placement Agreement shall have
been

                                       20
<PAGE>

satisfied (unless any of such conditions precedent under the Class C Placement
Agreement shall have been waived by the Class C Placement Agents).

         (e) The Borrower and American shall have received a certificate, dated
the Effective Date signed by a duly authorized representative of the Liquidity
Provider, certifying that all conditions precedent specified in this Section
4.01 have been satisfied or waived by the Liquidity Provider.

         Section 4.02 Conditions Precedent to Borrowing. The obligation of the
Liquidity Provider to make an Advance on the occasion of each Borrowing shall be
subject to the conditions precedent that the Effective Date shall have occurred
and, prior to the time of such Borrowing, the Borrower shall have delivered a
Notice of Borrowing which conforms to the terms and conditions of this
Agreement.

                                    ARTICLE V

                                    COVENANTS

         Section 5.01 Affirmative Covenants of the Borrower. So long as any
Advance shall remain unpaid or the Liquidity Provider shall have any Maximum
Commitment hereunder or the Borrower shall have any obligation to pay any amount
to the Liquidity Provider hereunder, the Borrower will, unless the Liquidity
Provider shall otherwise consent in writing:

         (a) Performance of Agreements. Punctually pay or cause to be paid all
amounts payable by it under this Agreement and the Intercreditor Agreement and
observe and perform in all material respects the conditions, covenants and
requirements applicable to it contained in this Agreement and the Intercreditor
Agreement.

         (b) Reporting Requirements. Furnish to the Liquidity Provider with
reasonable promptness, such other information and data with respect to the
transactions contemplated by the Operative Agreements as from time to time may
be reasonably requested by the Liquidity Provider; and permit the Liquidity
Provider, upon reasonable notice, to inspect the Borrower's books and records
with respect to such transactions and to meet with officers and employees of the
Borrower to discuss such transactions.

         (c) Certain Operative Agreements. Furnish to the Liquidity Provider
with reasonable promptness, such Operative Agreements entered into after the
date hereof as from time to time may be reasonably requested by the Liquidity
Provider.

         Section 5.02 Negative Covenants of the Borrower. Subject to the first
and second sentences and the fourth paragraph of Section 7.01(a) of the
Intercreditor Agreement and subject to Section 7.01(b) of the Intercreditor
Agreement, so long as any Advance shall remain unpaid or the Liquidity Provider
shall have any Maximum Commitment hereunder or the Borrower shall have any
obligation to pay any amount to the Liquidity Provider hereunder, the Borrower
will not appoint or permit or suffer to be appointed any

                                       21
<PAGE>

successor Borrower without the prior written consent of the Liquidity Provider,
which consent shall not be unreasonably withheld or delayed.

                                   ARTICLE VI

                           LIQUIDITY EVENTS OF DEFAULT

         Section 6.01 Liquidity Events of Default. If (a) any Liquidity Event of
Default has occurred and is continuing and (b) there is a Performing Note
Deficiency, the Liquidity Provider may, in its discretion, deliver to the
Borrower a Termination Notice, the effect of which shall be to cause (i) this
Agreement to expire at the close of business on the fifth Business Day after the
date on which such Termination Notice is received by the Borrower, (ii) the
Borrower to promptly request, and the Liquidity Provider to promptly make, a
Final Advance in accordance with Section 2.02(d) hereof and Section 3.06(i) of
the Intercreditor Agreement, (iii) all other outstanding Advances to be
automatically converted into Final Advances for purposes of determining the
Applicable Liquidity Rate for interest payable thereon and (iv) subject to
Sections 2.07 and 2.09, all Advances, any accrued interest thereon and any other
amounts outstanding hereunder to become

immediately due and payable to the Liquidity Provider.

                                   ARTICLE VII

                                  MISCELLANEOUS

         Section 7.01 No Oral Modifications or Continuing Waivers. No terms or
provisions of this Agreement may be changed, waived, discharged or terminated
orally, but only by an instrument in writing signed by the Borrower and the
Liquidity Provider and any other Person whose consent is required pursuant to
this Agreement; provided that no such change or other action shall affect the
payment obligations of American Airlines without American's prior written
consent; and any waiver of the terms hereof shall be effective only in the
specific instance and for the specific purpose given.

         Section 7.02 Notices. Unless otherwise expressly specified or permitted
by the terms hereof, all notices required or permitted under the terms and
provisions of this Agreement shall be in English and in writing, and any such
notice may be given by United States mail, courier service or facsimile or any
other customary means of communication, and any such notice shall be effective
when delivered (or, if mailed, three Business Days after deposit, postage
prepaid, in the first class United States mail and, if delivered by facsimile,
upon completion of transmission and confirmation by the sender (by a telephone
call to a representative of the recipient or by machine confirmation) that the
transmission was received),

                                       22
<PAGE>

If to the Borrower, to:

STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
    NATIONAL ASSOCIATION

225 Asylum, Goodwin Square
Hartford, Connecticut 06103
Attention: Corporate Trust Division

Telephone: (860) 244-1844
Telecopy: (860) 244-1881

If to the Liquidity Provider, to:

WESTDEUTSCHE LANDESBANK GIROZENTRALE, NEW YORK BRANCH

1211 Avenue of the Americas
New York, New York 10036
Attention: Transportation Finance

Telephone: (212) 852-6111
Telecopy: (212) 869-7634

         The Borrower or the Liquidity Provider, by notice to the other, may
designate additional or different addresses for subsequent notices or
communications.

         Section 7.03 No Waiver; Remedies. No failure on the part of the
Liquidity Provider to exercise, and no delay in exercising, any right under this
Agreement shall operate as a waiver thereof; nor shall any single or partial
exercise of any right under this Agreement preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

         Section 7.04 Further Assurances. The Borrower agrees to do such further
acts and things and to execute and deliver to the Liquidity Provider such
additional assignments, agreements, powers and instruments as the Liquidity
Provider may reasonably require or deem advisable to carry into effect the
purposes of this Agreement and the other Operative Agreements or to better
assure and confirm unto the Liquidity Provider its rights, powers and remedies
hereunder and under the other Operative Agreements.

         Section 7.05 Indemnification; Survival of Certain Provisions. The
Liquidity Provider shall be indemnified hereunder to the extent and in the
manner described in Section 4.02 of the Participation Agreements. In addition,
the Borrower agrees to indemnify, protect, defend and hold harmless each
Liquidity Indemnitee from and against all Expenses of any kind or nature
whatsoever (other than any Expenses of the nature described in Sections 3.01 or
7.07 or in the Class C Fee Letter (regardless of whether indemnified against
pursuant to said Sections or in such Class C Fee Letter)), that may be imposed
on or incurred by such Liquidity Indemnitee, in any way relating to, resulting
from, or arising out of or in

                                       23
<PAGE>

connection with, any action, suit or proceeding by any third party against such
Liquidity Indemnitee and relating to this Agreement, the Class C Fee Letter, the
Intercreditor Agreement or any Participation Agreement; provided, however, that
the Borrower shall not be required to indemnify, protect, defend and hold
harmless any Liquidity Indemnitee in respect of any Expense of such Liquidity
Indemnitee to the extent such Expense is (i) attributable to the negligence or
willful misconduct of such Liquidity Indemnitee or any other Liquidity
Indemnitee, (ii) an ordinary and usual operating overhead expense, (iii)
attributable to the failure by such Liquidity Indemnitee or any other Liquidity
Indemnitee to perform or observe any agreement, covenant or condition on its
part to be performed or observed in this Agreement, the Intercreditor Agreement,
the Class C Fee Letter or any other Operative Agreement to which it is a party
or (iv) otherwise excluded from the indemnification provisions contained in
Section 4.02 of the Participation Agreements. The provisions of Sections 3.01,
3.03, 3.09, 7.05 and 7.07 hereof and the indemnities contained in Section 4.02
of the Participation Agreements shall survive the termination of this Agreement.

         Section 7.06 Liability of the Liquidity Provider.

         (a) Neither the Liquidity Provider nor any of its officers, employees
or directors shall be liable or responsible for: (i) the use which may be made
of the Advances or any acts or omissions of the Borrower or any beneficiary or
transferee in connection therewith; (ii) the validity, sufficiency or
genuineness of documents, or of any endorsement thereon, even if such documents
should prove to be in any or all respects invalid, insufficient, fraudulent or
forged; or (iii) the making of Advances by the Liquidity Provider against
delivery of a Notice of Borrowing and other documents which do not comply with
the terms hereof; provided, however, that the Borrower shall have a claim
against the Liquidity Provider, and the Liquidity Provider shall be liable to
the Borrower, to the extent of any damages suffered by the Borrower that were
the result of (A) the Liquidity Provider's willful misconduct or gross
negligence in determining whether documents presented hereunder comply with the
terms hereof or (B) any breach by the Liquidity Provider of any of the terms of
this Agreement or the Intercreditor Agreement, including, but not limited to,
the Liquidity Provider's failure to make lawful payment hereunder after the
delivery to it by the Borrower of a Notice of Borrowing complying with the terms
and conditions hereof.

         (b) Neither the Liquidity Provider nor any of its officers, employees
or directors or affiliates shall be liable or responsible in any respect for (i)
any error, omission, interruption or delay in transmission, dispatch or delivery
of any message or advice, however transmitted, in connection with this Agreement
or any Notice of Borrowing delivered hereunder or (ii) any action, inaction or
omission which may be taken by it in good faith, absent willful misconduct or
negligence (in which event the extent of the Liquidity Provider's potential
liability to the Borrower shall be limited as set forth in the immediately
preceding paragraph), in connection with this Agreement or any Notice of
Borrowing.

         Section 7.07 Certain Costs and Expenses. The Borrower agrees promptly
to pay, or cause to be paid, (a) the reasonable fees, expenses and disbursements
of counsel for the Liquidity Provider in connection with the preparation,
negotiation, execution, delivery, filing and recording of the Operative
Agreements, any waiver or consent thereunder or any amendment thereof and (b) if
a Liquidity Event of Default occurs, all out-of-pocket expenses incurred by the
Liquidity Provider, including reasonable fees

                                       24
<PAGE>

and disbursements of counsel, in connection with such Liquidity Event of Default
and any collection, bankruptcy, insolvency and other enforcement proceedings in
connection therewith. In addition, the Borrower shall pay any and all recording,
stamp and other similar taxes and fees payable or determined to be payable in
the United States in connection with the execution, delivery, filing and
recording of this Agreement, any other Operative Agreement and such other
documents, and agrees to save the Liquidity Provider harmless from and against
any and all liabilities with respect to or resulting from any delay in paying or
omission to pay such taxes or fees.

         Section 7.08 Binding Effect; Participations.

         (a) This Agreement shall be binding upon and inure to the benefit of
the Borrower and the Liquidity Provider and their respective successors and
permitted assigns, except that neither the Liquidity Provider (except as
otherwise provided in this Section 7.08) nor (except as contemplated by Section
3.08) the Borrower shall have the right to assign, pledge or otherwise transfer
its rights or obligations hereunder or any interest herein, subject to the
Liquidity Provider's right to grant Participations pursuant to Section 7.08(b).

         (b) The Liquidity Provider agrees that it will not grant any
participation (including, without limitation, a "risk participation") (any such
participation, a "Participation") in or to all or a portion of its rights and
obligations hereunder or under the other Operative Agreements, unless all of the
following conditions are satisfied: (i) such Participation is to a Permitted
Transferee, (ii) such Participation is made in accordance with all applicable
laws, including, without limitation, the Securities Act of 1933, as amended, the
Trust Indenture Act of 1939, as amended, and any other applicable laws relating
to the transfer of similar interests and (iii) such Participation shall not be
made under circumstances that require registration under the Securities Act of
1933, as amended, or qualification of any indenture under the Trust Indenture
Act of 1939, as amended. Notwithstanding any such Participation, the Liquidity
Provider agrees that (1) the Liquidity Provider's obligations under the
Operative Agreements shall remain unchanged, and such participant shall have no
rights or benefits as against American or the Borrower or under any Operative
Agreement, (2) the Liquidity Provider shall remain solely responsible to the
other parties to the Operative Agreements for the performance of such
obligations, (3) the Liquidity Provider shall remain the maker of any Advances,
and the other parties to the Operative Agreements shall continue to deal solely
and directly with the Liquidity Provider in connection with the Advances and the
Liquidity Provider's rights and obligations under the Operative Agreements, (4)
the Liquidity Provider shall be solely responsible for any withholding Taxes or
any filing or reporting requirements relating to such Participation and shall
hold the Borrower and American and their respective successors, permitted
assigns, affiliates, agents and servants harmless against the same and (5)
neither American nor the Borrower shall be required to pay to the Liquidity
Provider any amount under Section 3.01 or Section 3.03 greater than it would
have been required to pay had there not been any grant of a Participation by the
Liquidity Provider. The Liquidity Provider may, in connection with any
Participation or proposed Participation pursuant to this Section 7.08(b),
disclose to the participant or proposed participant any information relating to
the Operative Agreements or to the parties thereto furnished to the Liquidity
Provider thereunder or in connection therewith and permitted to be disclosed by
the Liquidity Provider; provided, however, that prior to any such disclosure,

                                       25
<PAGE>

the participant or proposed participant shall agree in writing for the express
benefit of the Borrower and American to preserve the confidentiality of any
confidential information included therein (subject to customary exceptions).

         (c) Notwithstanding the other provisions of this Section 7.08, the
Liquidity Provider may assign and pledge all or any portion of the Advances
owing to it to any Federal Reserve Bank or the United States Treasury as
collateral security pursuant to Regulation A of the Board of Governors of the
Federal Reserve System and any Operating Circular issued by such Federal Reserve
Bank, provided that any payment in respect of such assigned Advances made by the
Borrower to the Liquidity Provider in accordance with the terms of this
Agreement shall satisfy the Borrower's obligations hereunder in respect of such
assigned Advance to the extent of such payment. No such assignment shall release
the Liquidity Provider from its obligations hereunder.

         (d) Notwithstanding any other provision of this Section 7.08, the
Liquidity Provider may enter into one or more credit default swap or similar
hedging transactions with one or more counterparties, provided that such swap or
similar transactions shall not affect the rights and obligations of the parties
hereto. With respect to any such swap or similar transaction, the last sentence
of Section 7.08(b) shall apply in relation to the counterparty or proposed
counterparty.

         Section 7.09 Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         Section 7.10 Governing Law. THIS AGREEMENT HAS BEEN DELIVERED IN THE
STATE OF NEW YORK AND THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                       26
<PAGE>

         Section 7.11 Submission to Jurisdiction; Waiver of Jury Trial; Waiver
of Immunity.

         (a) Each of the parties hereto, to the extent it may do so under
applicable law, for purposes hereof hereby (i) irrevocably submits itself to the
non-exclusive jurisdiction of the courts of the State of New York sitting in the
City of New York and to the non-exclusive jurisdiction of the United States
District Court for the Southern District of New York, for the purposes of any
suit, action or other proceeding arising out of this Agreement, the subject
matter hereof or any of the transactions contemplated hereby brought by any
party or parties hereto or thereto, or their successors or permitted assigns and
(ii) waives, and agrees not to assert, by way of motion, as a defense, or
otherwise, in any such suit, action or proceeding, that the suit, action or
proceeding is brought in an inconvenient forum, that the venue of the suit,
action or proceeding is improper or that this Agreement or the subject matter
hereof or any of the transactions contemplated hereby may not be enforced in or
by such courts.

         (b) THE BORROWER AND THE LIQUIDITY PROVIDER EACH HEREBY AGREE TO WAIVE
THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO
THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING
ESTABLISHED, including, without limitation, contract claims, tort claims, breach
of duty claims and all other common law and statutory claims. The Borrower and
the Liquidity Provider each warrant and represent that it has reviewed this
waiver with its legal counsel, and that it knowingly and voluntarily waives its
jury trial rights following consultation with such legal counsel. THIS WAIVER IS
IRREVOCABLE, AND CANNOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
TO THIS AGREEMENT.

         (c) The Liquidity Provider hereby waives any immunity it may have from
the jurisdiction of the courts of the United States or of any state thereof and
waives any immunity any of its properties located in the United States may have
from attachment or execution upon a judgment entered by any such court under the
United States Foreign Sovereign Immunities Act of 1976 or any similar successor
legislation.

         Section 7.12 Counterparts. This Agreement may be executed in any number
of counterparts (and each party shall not be required to execute the same
counterpart). Each counterpart of this Agreement including a signature page or
pages executed by each of the parties hereto shall be an original counterpart of
this Agreement, but all of such counterparts together shall constitute one
instrument.

         Section 7.13 Entirety. This Agreement and the Intercreditor Agreement
constitute the entire agreement of the parties hereto with respect to the
subject matter hereof and supersede all prior understandings and agreements of
such parties.

         Section 7.14 Headings. The headings of the various Articles and
Sections herein and in the Table of Contents hereto are for convenience of
reference only and shall not define or limit any of the terms or provisions
hereof.

                                       27
<PAGE>

         Section 7.15 Liquidity Provider's Obligation to Make Advances. EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE OBLIGATIONS OF THE LIQUIDITY
PROVIDER TO MAKE ADVANCES HEREUNDER, AND THE BORROWER'S RIGHTS TO DELIVER
NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES HEREUNDER, SHALL BE
ABSOLUTE, UNCONDITIONAL AND IRREVOCABLE, AND SHALL BE PAID OR PERFORMED, IN EACH
CASE STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.

                                       28
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered by their respective officers thereunto duly authorized as
of the date first set forth above.

                                  STATE STREET BANK AND TRUST
                                  COMPANY OF CONNECTICUT,
                                  NATIONAL ASSOCIATION,

                                  not in its individual capacity but solely
                                  as Subordination Agent, as agent and trustee
                                  for the New Class C Trust, as Borrower

                                  By:
                                     -------------------------------------------
                                  Name:
                                       -----------------------------------------
                                  Title:
                                        ----------------------------------------

                                  WESTDEUTSCHE LANDESBANK
                                  GIROZENTRALE, acting through its New York
                                  Branch, as Liquidity Provider

                                  By:
                                     -------------------------------------------
                                  Name:
                                       -----------------------------------------
                                  Title:
                                        ----------------------------------------

                                  By:
                                     -------------------------------------------
                                  Name:
                                       -----------------------------------------
                                  Title:
                                        ----------------------------------------

                                       29
<PAGE>

                                                                      ANNEX I to
                                                      REVOLVING CREDIT AGREEMENT

                      INTEREST ADVANCE NOTICE OF BORROWING

         The undersigned, a duly authorized signatory of the undersigned
borrower (the "Borrower"), hereby certifies to WESTDEUTSCHE LANDESBANK
GIROZENTRALE, acting through its New York Branch (the "Liquidity Provider"),
with reference to the Revolving Credit Agreement (2001- 2C), dated as of October
26, 2001, between the Borrower and the Liquidity Provider (the "Liquidity
Agreement"; the terms defined therein and not otherwise defined herein being
used herein as therein defined or referenced), that:

         (1) The Borrower is the Subordination Agent under the Intercreditor
Agreement.

         (2) The Borrower is delivering this Notice of Borrowing for the making
of an Interest Advance by the Liquidity Provider to be used for the payment of
the interest on the Class C Certificates which is payable on ____________, ____
(the "Distribution Date") in accordance with the terms and provisions of the
Class C Trust Agreement and the Class C Certificates, which Advance is requested
to be made on ____________, ____. The Interest Advance should be remitted to
[insert wire and account details].

         (3) The amount of the Interest Advance requested hereby (i) is
$_______________.__, to be applied in respect of the payment of the interest
which is due and payable on the Class C Certificates on the Distribution Date,
(ii) does not include any amount with respect to the payment of principal of, or
premium on, the Class A-1 Certificates, the Class A-2 Certificates, the Class B
Certificates, the Class C Certificates or Class D Certificates, or interest on
the Class A-1 Certificates, the Class A-2 Certificates, the Class B Certificates
or the Class D Certificates, or interest with respect to any Deposits, (iii) was
computed in accordance with the provisions of the Class C Certificates, the
Class C Trust Agreement and the Intercreditor Agreement (a copy of which
computation is attached hereto as Schedule I), (iv) does not exceed the Maximum
Available Commitment on the date hereof and (v) has not been and is not the
subject of a prior or contemporaneous Notice of Borrowing.

         (4) Upon receipt by or on behalf of the Borrower of the amount
requested hereby, (a) the Borrower will apply the same in accordance with the
terms of Section 3.06(b) of the Intercreditor Agreement, (b) no portion of such
amount shall be applied by the Borrower for any other purpose and (c) no portion
of such amount until so applied shall be commingled with other funds held by the
Borrower.

                                      I-1
<PAGE>

         The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, the making of the Interest Advance as requested by this Notice of
Borrowing shall automatically reduce, subject to reinstatement in accordance
with the terms of the Liquidity Agreement, the Maximum Available Commitment by
an amount equal to the amount of the Interest Advance requested to be made
hereby as set forth in clause (i) of paragraph (3) of this Certificate and such
reduction shall automatically result in corresponding reductions in the amounts
available to be borrowed pursuant to a subsequent Advance.

         IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice
of Borrowing as of the ____ day of _________, ____.

                                    STATE STREET BANK AND TRUST
                                    COMPANY OF CONNECTICUT,
                                    NATIONAL ASSOCIATION,
                                    as Subordination Agent, as Borrower

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                      I-2
<PAGE>

               SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

            [Insert Copy of Computations in accordance with Interest
                          Advance Notice of Borrowing]

                                      I-3
<PAGE>

                                                                     ANNEX II to
                                                      REVOLVING CREDIT AGREEMENT

                    NON-EXTENSION ADVANCE NOTICE OF BORROWING

         The undersigned, a duly authorized signatory of the undersigned
subordination agent (the "Borrower"), hereby certifies to WESTDEUTSCHE
LANDESBANK GIROZENTRALE, acting through its New York Branch (the "Liquidity
Provider"), with reference to the Revolving Credit Agreement (2001-2C), dated as
of October 26, 2001, between the Borrower and the Liquidity Provider (the
"Liquidity Agreement"; the terms defined therein and not otherwise defined
herein being used herein as therein defined or referenced), that:

         (1) The Borrower is the Subordination Agent under the Intercreditor
Agreement.

         (2) The Borrower is delivering this Notice of Borrowing for the making
of the Non- Extension Advance by the Liquidity Provider to be used for the
funding of the Class C Cash Collateral Account in accordance with Section
3.06(d) of the Intercreditor Agreement, which Advance is requested to be made on
__________, ____. The Non-Extension Advance should be remitted to [insert wire
and account details].

         (3) The amount of the Non-Extension Advance requested hereby (i) is
$_______________.__, which equals the Maximum Available Commitment on the date
hereof and is to be applied in respect of the funding of the Class C Cash
Collateral Account in accordance with Sections 3.06(d) and 3.06(f) of the
Intercreditor Agreement, (ii) does not include any amount with respect to the
payment of the principal of, or premium on, the Class C Certificates, or
principal of, or interest or premium on, the Class A-1 Certificates, the Class
A-2 Certificates, the Class B Certificates or the Class D Certificates, or
interest with respect to any Deposits, (iii) was computed in accordance with the
provisions of the Class C Certificates, the Class C Trust Agreement and the
Intercreditor Agreement (a copy of which computation is attached hereto as
Schedule I) and (iv) has not been and is not the subject of a prior or
contemporaneous Notice of Borrowing under the Liquidity Agreement.

         (4) Upon receipt by or on behalf of the Borrower of the amount
requested hereby, (a) the Borrower will deposit such amount in the Class C Cash
Collateral Account and apply the same in accordance with the terms of Sections
3.06(d) and 3.06(f) of the Intercreditor Agreement, (b) no portion of such
amount shall be applied by the Borrower for any other purpose and (c) no portion
of such amount until so applied shall be commingled with other funds held by the
Borrower.

                                      II-1
<PAGE>

         The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Non-Extension Advance as requested by this
Notice of Borrowing shall automatically and irrevocably terminate the obligation
of the Liquidity Provider to make further Advances under the Liquidity Agreement
and (B) following the making by the Liquidity Provider of the Non-Extension
Advance requested by this Notice of Borrowing, the Borrower shall not be
entitled to request any further Advances under the Liquidity Agreement.

         IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice
of Borrowing as of the ____ day of _________, ____.

                                      STATE STREET BANK AND TRUST
                                      COMPANY OF CONNECTICUT,
                                      NATIONAL ASSOCIATION,
                                      as Subordination Agent, as Borrower

                                      By:
                                         ---------------------------------------
                                      Name:
                                         ---------------------------------------
                                      Title:
                                         ---------------------------------------

                                      II-2
<PAGE>

             SCHEDULE 1 TO NON-EXTENSION ADVANCE NOTICE OF BORROWING

          [Insert Copy of computations in accordance with Non-Extension
                          Advance Notice of Borrowing].

                                      II-3
<PAGE>

                                                                    ANNEX III to
                                                      REVOLVING CREDIT AGREEMENT

                      DOWNGRADE ADVANCE NOTICE OF BORROWING

         The undersigned, a duly authorized signatory of the undersigned
subordination agent (the "Borrower"), hereby certifies to WESTDEUTSCHE
LANDESBANK GIROZENTRALE, acting through its New York Branch (the "Liquidity
Provider"), with reference to the Revolving Credit Agreement (2001-2C), dated as
of October 26, 2001, between the Borrower and the Liquidity Provider (the
"Liquidity Agreement"; the terms defined therein and not otherwise defined
herein being used herein as therein defined or referenced), that:

         (1) The Borrower is the Subordination Agent under the Intercreditor
Agreement.

         (2) The Borrower is delivering this Notice of Borrowing for the making
of the Downgrade Advance by the Liquidity Provider to be used for the funding of
the Class C Cash Collateral Account in accordance with Section 3.06(c) of the
Intercreditor Agreement by reason of the downgrading of the short-term unsecured
debt rating or long-term unsecured debt rating of the Liquidity Provider, issued
by either Rating Agency below the Threshold Rating, which Advance is requested
to be made on __________, ____. The Downgrade Advance should be remitted to
[insert wire and account details].

         (3) The amount of the Downgrade Advance requested hereby (i) is
$_______________.__, which equals the Maximum Available Commitment on the date
hereof and is to be applied in respect of the funding of the Class C Cash
Collateral Account in accordance with Sections 3.06(c) and 3.06(f) of the
Intercreditor Agreement, (ii) does not include any amount with respect to the
payment of the principal of, or premium on, the Class C Certificates, or
principal of, or interest or premium on, the Class A-1 Certificates, the Class
A-2 Certificates, the Class B Certificates or the Class D Certificates, or
interest with respect to any Deposits, (iii) was computed in accordance with the
provisions of the Class C Certificates, the Class C Trust Agreement and the
Intercreditor Agreement (a copy of which computation is attached hereto as
Schedule I) and (iv) has not been and is not the subject of a prior or
contemporaneous Notice of Borrowing under the Liquidity Agreement.

         (4) Upon receipt by or on behalf of the Borrower of the amount
requested hereby, (a) the Borrower will deposit such amount in the Class C Cash
Collateral Account and apply the same in accordance with the terms of Sections
3.06(c) and 3.06(f) of the Intercreditor Agreement, (b) no portion of such
amount shall be applied by the Borrower for any other purpose and (c) no portion
of such amount until so applied shall be commingled with other funds held by the
Borrower.

                                     III-1
<PAGE>

         The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Downgrade Advance as requested by this Notice
of Borrowing shall automatically and irrevocably terminate the obligation of the
Liquidity Provider to make further Advances under the Liquidity Agreement and
(B) following the making by the Liquidity Provider of the Downgrade Advance
requested by this Notice of Borrowing, the Borrower shall not be entitled to
request any further Advances under the Liquidity Agreement.

         IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice
of Borrowing as of the ____ day of _________, ____.

                                   STATE STREET BANK AND TRUST
                                   COMPANY OF CONNECTICUT,
                                   NATIONAL ASSOCIATION,
                                   as Subordination Agent, as Borrower

                                   By:
                                      ------------------------------------------
                                   Name:
                                        ----------------------------------------
                                   Title:
                                         ---------------------------------------

                                     III-2
<PAGE>

               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

            [Insert Copy of computations in accordance with Downgrade
                          Advance Notice of Borrowing].

                                     III-3
<PAGE>

                                                                     ANNEX IV to
                                                      REVOLVING CREDIT AGREEMENT

                        FINAL ADVANCE NOTICE OF BORROWING

         The undersigned, a duly authorized signatory of the undersigned
borrower (the "Borrower"), hereby certifies to WESTDEUTSCHE LANDESBANK
GIROZENTRALE, acting through its New York Branch (the "Liquidity Provider"),
with reference to the Revolving Credit Agreement (2001- 2C), dated as of October
26, 2001, between the Borrower and the Liquidity Provider (the "Liquidity
Agreement"; the terms defined therein and not otherwise defined herein being
used herein as therein defined or referenced), that:

         (1) The Borrower is the Subordination Agent under the Intercreditor
Agreement.

         (2) The Borrower is delivering this Notice of Borrowing for the making
of the Final Advance by the Liquidity Provider to be used for the funding of the
Class C Cash Collateral Account in accordance with Section 3.06(i) of the
Intercreditor Agreement by reason of the receipt by the Borrower of a
Termination Notice from the Liquidity Provider with respect to the Liquidity
Agreement, which Advance is requested to be made on ____________, ____. The
Final Advance should be remitted to [insert wire and account details].

         (3) The amount of the Final Advance requested hereby (i) is
$_________________.__, which equals the Maximum Available Commitment on the date
hereof and is to be applied in respect of the funding of the Class C Cash
Collateral Account in accordance with Sections 3.06(f) and 3.06(i) of the
Intercreditor Agreement, (ii) does not include any amount with respect to the
payment of principal of, or premium on, the Class C Certificates, or principal
of, or interest or premium on, the Class A-1 Certificates, the Class A-2
Certificates, the Class B Certificates or the Class D Certificates, or interest
with respect to any Deposits, (iii) was computed in accordance with the
provisions of the Class C Certificates, the Class C Trust Agreement and the
Intercreditor Agreement (a copy of which computation is attached hereto as
Schedule I) and (iv) has not been and is not the subject of a prior or
contemporaneous Notice of Borrowing.

         (4) Upon receipt by or on behalf of the Borrower of the amount
requested hereby, (a) the Borrower will deposit such amount in the Class C Cash
Collateral Account and apply the same in accordance with the terms of Sections
3.06(f) and 3.06(i) of the Intercreditor Agreement, (b) no portion of such
amount shall be applied by the Borrower for any other purpose and (c) no portion
of such amount until so applied shall be commingled with other funds held by the
Borrower.

                                      IV-1
<PAGE>

         [(5) The Borrower hereby requests that the Advance requested hereby be
a Base Rate Advance [and that such Base Rate Advance be converted into a LIBOR
Advance on the third Business Day following your receipt of this notice].

         The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Final Advance as requested by this Notice of
Borrowing shall automatically and irrevocably terminate the obligation of the
Liquidity Provider to make further Advances under the Liquidity Agreement and
(B) following the making by the Liquidity Provider of the Final Advance
requested by this Notice of Borrowing, the Borrower shall not be entitled to
request any further Advances under the Liquidity Agreement.

         IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice
of Borrowing as of the ____ day of _________, ____.

                                        STATE STREET BANK AND TRUST
                                        COMPANY OF CONNECTICUT,
                                        NATIONAL ASSOCIATION,
                                        as Subordination Agent, as Borrower

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

[* Bracketed language may be included at Borrower's option.]

                                      IV-2
<PAGE>

                 SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

              [Insert Copy of Computations in accordance with Final
                          Advance Notice of Borrowing]

                                      IV-3
<PAGE>

                                                                      ANNEX V to
                                                      REVOLVING CREDIT AGREEMENT
                                                           NOTICE OF TERMINATION

                                     [Date]

State Street Bank and Trust Company of Connecticut, National Association,
  as Subordination Agent, as Borrower

225 Asylum Street, Goodwin Square
Hartford, Connecticut 06103
Attention: Corporate Trust Division

         Re: Revolving Credit Agreement, dated as of October 26, 2001, between
         State Street Bank and Trust Company of Connecticut, National
         Association, as Subordination Agent, as agent and trustee for the
         American Airlines Pass Through Trust 2001-2C, as Borrower, and
         Westdeutsche Landesbank Girozentrale, acting through its New York
         Branch (the "Liquidity Agreement")

Ladies and Gentlemen:

         You are hereby notified that pursuant to Section 6.01 of the Liquidity
Agreement, by reason of the occurrence and continuance of a Liquidity Event of
Default and the existence of a Performing Note Deficiency (each as defined
therein), we are giving this notice to you in order to cause (i) our obligations
to make Advances (as defined therein) under such Liquidity Agreement to
terminate at the close of business on the fifth Business Day after the date on
which you receive this notice and (ii) you to request a Final Advance under the
Liquidity Agreement pursuant to Section 3.06(i) of the Intercreditor Agreement
(as defined in the Liquidity Agreement) as a consequence of your receipt of this
notice.

                                      V-1
<PAGE>

         THIS NOTICE IS THE "NOTICE OF TERMINATION" PROVIDED FOR UNDER THE
LIQUIDITY AGREEMENT. OUR OBLIGATIONS TO MAKE ADVANCES UNDER THE LIQUIDITY
AGREEMENT WILL TERMINATE AT THE CLOSE OF BUSINESS ON THE FIFTH BUSINESS DAY
AFTER THE DATE ON WHICH YOU RECEIVE THIS NOTICE.

                      Very truly yours,

                      WESTDEUTSCHE LANDESBANK GIROZENTRALE, acting through its
                      New York Branch, as Liquidity Provider

                      By:
                         -------------------------------------
                      Name:
                           -----------------------------------
                      Title:
                            ----------------------------------

cc:  State Street Bank and Trust Company of Connecticut,
     National Association, as Class C Trustee

                                      V-2
<PAGE>

                                                                     ANNEX VI to
                                                      REVOLVING CREDIT AGREEMENT

                    NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]
Attention:

   Re:   Revolving Credit Agreement, dated as of October 26, 2001, between State
         Street Bank and Trust Company of Connecticut, National Association, as
         Subordination Agent, as agent and trustee for the American Airlines
         Pass Through Trust 2001-2C, as Borrower, and Westdeutsche Landesbank
         Girozentrale, acting through its New York Branch (the "Liquidity
         Agreement")

Ladies and Gentlemen:

     For value received, the undersigned beneficiary hereby irrevocably
transfers to:

                                                ------------------------------
                                                [Name of Transferee]

                                                ------------------------------
                                                [Address of Transferee]

all rights and obligations of the undersigned as Borrower under the Liquidity
Agreement referred to above. The transferee has succeeded the undersigned as
Subordination Agent under the Intercreditor Agreement referred to in the first
paragraph of the Liquidity Agreement, pursuant to the terms of Section 7.01 of
the Intercreditor Agreement.

         By this transfer, all rights of the undersigned as Borrower under the
Liquidity Agreement are transferred to the transferee and the transferee shall
hereafter have the sole rights and obligations as Borrower thereunder. The
undersigned shall pay any costs and expenses of such transfer, including, but
not limited to, transfer taxes or governmental charges.

                                      VI-1
<PAGE>

         This transfer shall be effective as of [specify time and date].

                                           STATE STREET BANK AND TRUST
                                           COMPANY OF CONNECTICUT,
                                           NATIONAL ASSOCIATION,
                                           as Subordination Agent, as Borrower

                                           By:
                                              ----------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

                                      VI-2
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS
<Table>
<S>                                                                                                         <C>
Section 1.01     Definitions.................................................................................1

                                               ARTICLE II

                                   AMOUNT AND TERMS OF THE COMMITMENT

Section 2.01     The Advances................................................................................8
Section 2.02     Making of Advances..........................................................................8
Section 2.03     Fees.......................................................................................10
Section 2.04     Reduction or Termination of the Maximum Commitment.........................................10
Section 2.05     Repayments of Interest Advances or the Final Advance.......................................11
Section 2.06     Repayments of Provider Advances............................................................11
Section 2.07     Payments to the Liquidity Provider Under the Intercreditor Agreement.......................12
Section 2.08     Book Entries...............................................................................12
Section 2.09     Payments from Available Funds Only.........................................................12
Section 2.10     Extension of the Expiry Date; Non-Extension Advance........................................13

                                               ARTICLE III

                                       OBLIGATIONS OF THE BORROWER

Section 3.01     Increased Costs............................................................................13
Section 3.02     [Intentionally omitted.]...................................................................15
Section 3.03     Withholding Taxes..........................................................................15
Section 3.04     Payments...................................................................................16
Section 3.05     Computations...............................................................................16
Section 3.06     Payment on Non-Business Days...............................................................16
Section 3.07     Interest...................................................................................16
Section 3.08     Replacement of Borrower....................................................................18
Section 3.09     Funding Loss Indemnification...............................................................18
Section 3.10     Illegality.................................................................................19
</Table>

                                       i
<PAGE>

                                               ARTICLE IV

                                          CONDITIONS PRECEDENT
<Table>
<S>                                                                                                         <C>
Section 4.01     Conditions Precedent to Effectiveness of Section 2.01......................................19
Section 4.02     Conditions Precedent to Borrowing..........................................................20

                                                 ARTICLE V

                                                 COVENANTS

Section 5.01     Affirmative Covenants of the Borrower......................................................21
Section 5.02     Negative Covenants of the Borrower.........................................................21

                                               ARTICLE VI

                                       LIQUIDITY EVENTS OF DEFAULT

Section 6.01     Liquidity Events of Default................................................................21

                                               ARTICLE VII

                                              MISCELLANEOUS

Section 7.01     No Oral Modifications or Continuing Waivers................................................22
Section 7.02     Notices....................................................................................22
Section 7.03     No Waiver; Remedies........................................................................23
Section 7.04     Further Assurances.........................................................................23
Section 7.05     Indemnification; Survival of Certain Provisions............................................23
Section 7.06     Liability of the Liquidity Provider........................................................24
Section 7.07     Certain Costs and Expenses.................................................................24
Section 7.08     Binding Effect; Participations.............................................................25
Section 7.09     Severability...............................................................................26
Section 7.10     Governing Law..............................................................................26
Section 7.11     Submission to Jurisdiction; Waiver of Jury Trial; Waiver of Immunity.......................26
Section 7.12     Counterparts...............................................................................27
Section 7.13     Entirety...................................................................................27
Section 7.14     Headings...................................................................................27
Section 7.15     Liquidity Provider's Obligation to Make Advances...........................................27
</Table>

Annex I - Interest Advance Notice of Borrowing
Annex II - Non-Extension Advance Notice of Borrowing
Annex IV - Final Advance Notice of Borrowing
Annex V - Notice of Termination
Annex VI - Notice of Replacement Subordination Agent

                                       ii<PAGE>
                                                                    EXHIBIT 4.26

                                                                  EXECUTION COPY

                          REGISTRATION RIGHTS AGREEMENT

            THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and
entered into October 4, 2001, among AMERICAN AIRLINES, INC., a Delaware
corporation (the "Company"), STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
NATIONAL ASSOCIATION, as trustee under each of the Trusts (as defined below)
(the "Trustee") and MORGAN STANLEY & CO. INCORPORATED ("Morgan Stanley"),Credit
Suisse First Boston Corporation, Merrill Lynch Pierce Fenner & Smith
Incorporated, J.P. Morgan Securities Inc. and Salomon Smith Barney Inc.
(collectively the "Placement Agents").

            This Agreement is made pursuant to the Placement Agreement dated as
of September 25, 2001, among the Company and the Placement Agents (the
"Placement Agreement"), which provides for the sale to the Placement Agents of
(i) $322,404,000 aggregate principal amount of 6.978% 2001-2A-1 Pass Through
Certificates (the "Class A-1 Certificates"), (ii) $828,761,000 aggregate
principal amount of 7.858% 2001-2A-2 Pass Through Certificates (the "Class A-2
Certificates") and (iii) $180,087,000 aggregate principal amount of 8.608%
2001-2B Pass Through Certificates (the "Class B Certificates"; and together with
the Class A-1 Certificates and the Class A-2 Certificates the "Offered
Certificates.) In order to induce the Placement Agents to enter into the
Placement Agreement, the Company has agreed to provide to the Placement Agents
and their direct and indirect transferees the registration rights set forth in
this Agreement. The execution of this Agreement is a condition to the closing
under the Placement Agreement.

            The Offered Certificates will be issued pursuant to the Pass Through
Trust Agreement, dated as of October 4, 2001, between the Company and the
Trustee (the "Basic Agreement"), as supplemented with respect to each series of
Certificates by a separate Pass Through Trust Supplement between the Company and
the Trustee to be dated as of the date on which the Closing Time (as defined in
the Placement Agreement) will occur (individually, a "Trust Supplement") (the
Basic Agreement, as supplemented by each such Trust Supplement, being referred
to herein as the "Pass Through Trust Agreement"). The Pass Through Trust
Agreements are related to the creation and administration of American Airlines,
Inc., Pass Through Trust Series 2001-2A-1 (the "Class A-1 Trust"), American
Airlines, Inc., Pass Through Trust Series 2001-2A-2 (the "Class A-2 Trust") and
American Airlines, Inc., Pass Through Trust Series 2001-2B (the "Class B Trust";
and together with the Class A-1 Trust and the Class A-2 Trust, the "Trusts").
<PAGE>
            In consideration of the foregoing, the parties hereto agree as
follows:

            1. Definitions. As used in this Agreement, the following capitalized
defined terms shall have the following meanings:

            "1933 Act" shall mean the Securities Act of 1933, as amended from
      time to time.

            "1934 Act" shall mean the Securities Exchange Act of 1934, as
      amended from time to time.

            "Agreement" shall have the meaning set forth in the preamble.

            "Applicable Trust Agreement" shall mean, (i) with respect to the
      Class A-1 Certificates, the Class A-1 Holders or the Class A-1 Trustee,
      the Class A-1 Trust Agreement, (ii) with respect to the Class A-2
      Certificates, the Class A-2 Holders or the Class A-2 Trustee, the Class
      A-2 Trust Agreement and (iii) with respect to the Class B Certificates,
      the Class B Holders or the Class B Trustee, the Class B Trust Agreement.

            "Class A-1 Certificates" shall have the meaning set forth in the
      second paragraph of this Agreement.

            "Class A-1 Exchange Certificates" shall mean securities issued under
      the Class A-1 Trust Agreement of equal outstanding principal amount as and
      containing terms identical to the Class A-1 Certificates (except that (i)
      interest thereon shall accrue from the last date on which interest was
      paid on the Class A-1 Certificates or, if no such interest has been paid,
      from the Closing Time, (ii) the transfer restrictions thereon shall be
      modified or eliminated, as appropriate and (iii) provisions relating to an
      increase in the stated rate of interest thereon shall be eliminated), to
      be offered to Holders of the Class A-1 Certificates in exchange for such
      Class A-1 Certificates pursuant to the Exchange Offer.

            "Class A-1 Holder" shall mean each Placement Agent, for so long as
      it owns any Class A-1 Registrable Certificates, and each of its
      successors, assigns and direct and indirect transferees who become
      registered owners of Class A-1 Registrable Certificates under the Class
      A-1 Trust Agreement; provided that for purposes of Sections 4 and 5 of
      this Agreement, the term "Class A-1 Holder" shall include Participating
      Broker-Dealers (as defined in Section 4(a)).

            "Class A-1 Registrable Certificates" shall mean the Class A-1
      Certificates; provided, however, that the Class A-1 Certificates shall
      cease to be Class A-1 Registrable Certificates upon the earliest to occur
      of (i) the consummation of the Exchange Offer, (ii) a Registration
      Statement with respect to such Class A-1 Certificates having been declared
      effective under the 1933 Act and such Class A-1 Certificates having been
      disposed of pursuant to such Registration Statement, (iii) such Class A-1
      Certificates having been sold to the public pursuant to Rule 144(k) (or
      any similar provision then in

                                       2
<PAGE>
      force, but not Rule 144A) under the 1933 Act or (iv) such Class A-1
      Certificates having ceased to be outstanding.

            "Class A-1 Trust Agreement" shall mean the Pass Through Trust
      Agreement relating to the Class A-1 Certificates, as may be amended from
      time to time in accordance with the terms thereof.

            "Class A-1 Trustee" shall mean State Street Bank and Trust Company
      of Connecticut, National Association, not in its individual capacity
      except as expressly set forth in the Class A-1 Trust Agreement, but solely
      as Trustee under the Class A-1 Trust Agreement, together with any
      successor Trustee under the terms of the Class A-1 Trust Agreement.

            "Class A-2 Certificates" shall have the meaning set forth in the
      second paragraph of this Agreement.

            "Class A-2 Exchange Certificates" shall mean securities issued under
      the Class A-2 Trust Agreement of equal outstanding principal amount as and
      containing terms identical to the Class A-2 Certificates (except that (i)
      interest thereon shall accrue from the last date on which interest was
      paid on the Class A-2 Certificates or, if no such interest has been paid,
      from the Closing Time, (ii) the transfer restrictions thereon shall be
      modified or eliminated, as appropriate and (iii) provisions relating to an
      increase in the stated rate of interest thereon shall be eliminated), to
      be offered to Holders of the Class A-2 Certificates in exchange for such
      Class A-2 Certificates pursuant to the Exchange Offer.

            "Class A-2 Holder" shall mean each Placement Agent, for so long as
      it owns any Class A-2 Registrable Certificates, and each of its
      successors, assigns and direct and indirect transferees who become
      registered owners of Class A-2 Registrable Certificates under the Class
      A-2 Trust Agreement; provided that for purposes of Sections 4 and 5 of
      this Agreement, the term "Class A-2 Holder" shall include Participating
      Broker-Dealers (as defined in Section 4(a)).

            "Class A-2 Registrable Certificates" shall mean the Class A-2
      Certificates; provided, however, that the Class A-2 Certificates shall
      cease to be Class A-2 Registrable Certificates upon the earliest to occur
      of (i) the consummation of the Exchange Offer, (ii) a Registration
      Statement with respect to such Class A-2 Certificates having been declared
      effective under the 1933 Act and such Class A-2 Certificates having been
      disposed of pursuant to such Registration Statement, (iii) such Class A-2
      Certificates having been sold to the public pursuant to Rule 144(k) (or
      any similar provision then in force, but not Rule 144A) under the 1933 Act
      or (iv) such Class A-2 Certificates having ceased to be outstanding.

                                       3
<PAGE>
            "Class A-2 Trust Agreement" shall mean the Pass Through Trust
      Agreement relating to the Class A-2 Certificates, as may be amended from
      time to time in accordance with the terms thereof.

            "Class A-2 Trustee" shall mean State Street Bank and Trust Company
      of Connecticut, National Association, not in its individual capacity
      except as expressly set forth in the Class A-2 Trust Agreement, but solely
      as Trustee under the Class A-2 Trust Agreement, together with any
      successor Trustee under the terms of the Class A-2 Trust Agreement.

            "Class B Certificates" shall have the meaning set forth in the
      second paragraph of this Agreement.

            "Class B Exchange Certificates" shall mean securities issued under
      the Class B Trust Agreement of equal outstanding principal amount as and
      containing terms identical to the Class B Certificates (except that (i)
      interest thereon shall accrue from the last date on which interest was
      paid on the Class B Certificates or, if no such interest has been paid,
      from the Closing Time, (ii) the transfer restrictions thereon shall be
      modified or eliminated, as appropriate and (iii) provisions relating to an
      increase in the stated rate of interest thereon shall be eliminated), to
      be offered to Holders of the Class B Certificates in exchange for such
      Class B Certificates pursuant to the Exchange Offer.

            "Class B Holder" shall mean each Placement Agent, for so long as it
      owns any Class B Registrable Certificates, and each of its successors,
      assigns and direct and indirect transferees who become registered owners
      of Class B Registrable Certificates under the Class B Trust Agreement;
      provided that for purposes of Sections 4 and 5 of this Agreement, the term
      "Class B Holder" shall include Participating Broker-Dealers (as defined in
      Section 4(a)).

            "Class B Registrable Certificates" shall mean the Class B
      Certificates; provided, however, that the Class B Certificates shall cease
      to be Class B Registrable Certificates upon the earliest to occur of (i)
      the consummation of the Exchange Offer, (ii) a Registration Statement with
      respect to such Class B Certificates having been declared effective under
      the 1933 Act and such Class B Certificates having been disposed of
      pursuant to such Registration Statement, (iii) such Class B Certificates
      having been sold to the public pursuant to Rule 144(k) (or any similar
      provision then in force, but not Rule 144A) under the 1933 Act or (iv)
      such Class B Certificates having ceased to be outstanding.

            "Class B Trust Agreement" shall mean the Pass Through Trust
      Agreement relating to the Class B Certificates, as may be amended from
      time to time in accordance with the terms thereof.

            "Class B Trustee" shall mean State Street Bank and Trust Company of
      Connecticut, National Association, not in its individual capacity except
      as expressly set

                                       4
<PAGE>
      forth in the Class B Trust Agreement, but solely as Trustee under the
      Class B Trust Agreement, together with any successor Trustee under the
      terms of the Class B Trust Agreement.

            "Closing Time" shall mean the Closing Time as defined in the
      Placement Agreement.

            "Company" shall have the meaning set forth in the preamble and shall
      also include the Company's successors.

            "Exchange Certificates" shall mean, together, the Class A-1 Exchange
      Certificates, the Class A-2 Exchange Certificates and the Class B Exchange
      Certificates.

            "Exchange Dates" shall have the meaning set forth in Section
      2(a)(ii) of this Agreement.

            "Exchange Offer" shall mean the exchange offer by the Company of
      Exchange Certificates for Registrable Certificates pursuant to Section
      2(a) hereof.

            "Exchange Offer Registration" shall mean a registration under the
      1933 Act effected pursuant to Section 2(a) hereof.

            "Exchange Offer Registration Statement" shall mean an exchange offer
      registration statement on Form S-4 (or, if applicable, on another
      appropriate form) and all amendments and supplements to such registration
      statement, in each case including the Prospectus contained therein, all
      exhibits thereto and all material incorporated by reference therein.

            "Holder" shall mean a Class A-1 Holder, a Class A-2 Holder or a
      Class B Holder

            "Majority Holders" shall mean, together, the Holders of a majority
      in aggregate principal amount of the Registrable Certificates then
      outstanding; provided that whenever the consent or approval of Holders of
      a specified percentage of Registrable Certificates is required hereunder,
      Registrable Certificates held by the Company or any of its affiliates (as
      such term is defined in Rule 405 under the 1933 Act) (other than the
      Placement Agents or subsequent holders of Registrable Certificates if such
      subsequent holders are deemed to be such affiliates solely by reason of
      their holding of such Registrable Certificates) shall not be counted in
      determining whether such consent or approval was given by the Holders of
      such required percentage or amount.

            "Morgan Stanley" shall have the meaning set forth in the preamble.

            "Offered Certificates" shall have the meaning set forth in the
      second paragraph of this Agreement.

                                       5
<PAGE>
            "Pass Through Trust Agreements" shall have the meaning set forth in
      the third paragraph of this Agreement.

            "Person" shall mean an individual, partnership, limited liability
      company, corporation, trust or unincorporated organization, or a
      government or agency or political subdivision thereof.

            "Placement Agents" shall have the meaning set forth in the preamble.

            "Placement Agreement" shall have the meaning set forth in the second
      paragraph of this Agreement.

            "Prospectus" shall mean the prospectus included in a Registration
      Statement, including any preliminary prospectus, and any such prospectus
      as amended or supplemented by any prospectus supplement, including a
      prospectus supplement with respect to the terms of the offering of any
      portion of the Registrable Certificates covered by a Shelf Registration
      Statement, and by all other amendments and supplements to such prospectus,
      and in each case including all material incorporated by reference therein.

            "Registrable Certificates" shall mean, together, the Class A-1
      Registrable Certificates, the Class A-2 Registrable Certificates and the
      Class B Registrable Certificates.

            "Registration Expenses" shall mean any and all expenses incident to
      performance of or compliance by the Company with this Agreement, including
      without limitation: (i) all SEC, stock exchange or National Association of
      Securities Dealers, Inc. registration and filing fees, (ii) all fees and
      expenses incurred in connection with compliance with state securities or
      blue sky laws (including reasonable fees and disbursements of counsel in
      connection with blue sky qualification of any of the Exchange Certificates
      or Registrable Certificates), (iii) all reasonable expenses of any Persons
      in preparing or assisting in preparing word processing, printing and
      distributing of any Registration Statement, any Prospectus, any amendments
      or supplements thereto and other documents relating to the performance of
      and compliance with this Agreement, (iv) all rating agency fees (it being
      understood that no rating agency shall be engaged by a Placement Agent),
      (v) all fees and disbursements relating to the qualification of the Trust
      Agreements under applicable securities laws, (vi) the fees and
      disbursements of the Trustees and their counsel, (vii) the fees and
      disbursements of counsel for the Company and, in the case of a Shelf
      Registration Statement, the fees and disbursements of one counsel for the
      Holders (which counsel shall be selected by the Majority Holders and which
      counsel may also be counsel for the Placement Agents) and (viii) the fees
      and disbursements of the independent public accountants of the Company,
      including the expenses of any special audits or "cold comfort" letters
      required by or incident to such performance and compliance, but excluding
      fees and expenses of counsel to the underwriters (other than reasonable
      fees and expenses set forth in clause (ii) above) or the

                                       6
<PAGE>
      Holders and underwriting discounts and commissions and transfer taxes, if
      any, relating to the sale or disposition of Registrable Certificates by a
      Holder.

            "Registration Statement" shall mean any registration statement of
      the Company that covers any of the Exchange Certificates or Registrable
      Certificates pursuant to the provisions of this Agreement and all
      amendments and supplements to any such Registration Statement, including
      post-effective amendments, in each case including the Prospectus contained
      therein, all exhibits thereto and all material incorporated by reference
      therein.

            "SEC" shall mean the Securities and Exchange Commission.

            "Shelf Registration" shall mean a registration effected pursuant to
      Section 2(b) hereof.

            "Shelf Registration Statement" shall mean a "shelf" registration
      statement of the Company pursuant to the provisions of Section 2(b) of
      this Agreement that covers all of the Registrable Certificates (but no
      other securities unless approved by the Holders whose Registrable
      Certificates are covered by such Shelf Registration Statement) on an
      appropriate form under Rule 415 under the 1933 Act, or any similar rule
      that may be adopted by the SEC, and all amendments and supplements to such
      registration statement, including post-effective amendments, in each case
      including the Prospectus contained therein, all exhibits thereto and all
      material incorporated by reference therein.

            "TIA" shall have the meaning set forth in Section 3(l) of this
      Agreement.

            "Trustee" shall have the meaning set forth in the first paragraph of
      this Agreement and shall also include the Trustee's successors.

            "Underwriters" shall have the meaning set forth in Section 3 of this
      Agreement.

            "Underwritten Registration" or "Underwritten Offering" shall mean a
      registration in which Registrable Certificates are sold to an Underwriter
      for reoffering to the public.

      2. Registration Under the 1933 Act. (a) To the extent not prohibited by
any applicable law or applicable interpretation of the Staff of the SEC, the
Company shall use its reasonable best efforts (i) to cause to be filed with the
SEC an Exchange Offer Registration Statement covering the offer to the Holders
to exchange (A) all of the Class A-1 Registrable Certificates for Class A-1
Exchange Certificates, (B) all of the Class A-2 Registrable Certificates for
Class A-2 Exchange Certificates and (C) all of the Class B Registrable
Certificates for Class B Exchange Certificates, (ii) to have the Exchange Offer
Registration Statement declared effective and (iii) to have such Registration
Statement remain effective until the closing of the Exchange Offer. The Company
shall commence the Exchange Offer promptly after the Exchange Offer Registration
Statement has been declared effective by the SEC and use its reasonable best
efforts to have the Exchange Offer consummated not later than the date that is

                                       7
<PAGE>
270 days (or, if such date is not a business day, the first business day
thereafter) after the Closing Time. The Company shall, or shall cause the
Trustees to, commence the Exchange Offer by mailing the related exchange offer
Prospectus and accompanying documents to each Holder stating, in addition to
such other disclosures as are required by applicable law:

            (i) that the Exchange Offer is being made pursuant to this
      Registration Rights Agreement and that all Registrable Certificates
      validly tendered will be accepted for exchange;

            (ii) the dates of acceptance for exchange (which shall be a period
      of at least 30 days (or such shorter period as allowed by applicable law
      or SEC rules and interpretations) from the date such notice is mailed)
      (the "Exchange Dates");

            (iii) that any Registrable Certificate not tendered will remain
      outstanding and continue to accrue interest, but will not retain any
      rights under this Registration Rights Agreement;

            (iv) that Holders electing to have a Registrable Certificate
      exchanged pursuant to the Exchange Offer will be required to surrender
      such Registrable Certificate, together with the enclosed letters of
      transmittal, to the institution and at the address specified in the notice
      prior to the close of business on the last Exchange Date; and

            (v) that Holders will be entitled to withdraw their election, not
      later than the close of business on the last Exchange Date, by sending to
      the institution and at the address specified in the notice, a telegram,
      telex, facsimile transmission or letter setting forth the name of such
      Holder, the principal amount and class of Registrable Certificates
      delivered for exchange, and a statement that such Holder is withdrawing
      his election to have such Certificates exchanged.

            As soon as practicable after the last Exchange Date, the Company
shall or shall cause the Trustees to:

            (i) accept for exchange Registrable Certificates or portions thereof
      tendered and not validly withdrawn pursuant to the Exchange Offer;

            (ii) deliver, or cause to be delivered, to the Class A-1 Trustee for
      cancellation all Class A-1 Registrable Certificates or portions thereof so
      accepted for exchange by the Company, and issue, and cause the Class A-1
      Trustee to promptly authenticate and mail to each Class A-1 Holder, Class
      A-1 Exchange Certificates equal in principal amount to the principal
      amount of the Class A-1 Registrable Certificates surrendered by such Class
      A-1 Holder;

            (iii) deliver, or cause to be delivered, to the Class A-2 Trustee
      for cancellation all Class A-2 Registrable Certificates or portions
      thereof so accepted for exchange by the Company, and issue, and cause the
      Class A-2 Trustee to promptly authenticate and mail

                                       8
<PAGE>
      to each Class A-2 Holder, Class A-2 Exchange Certificates equal in
      principal amount to the principal amount of the Class A-2 Registrable
      Certificates surrendered by such Class A-2 Holder; and

            (iv) deliver, or cause to be delivered, to the Class B Trustee for
      cancellation all Class B Registrable Certificates or portions thereof so
      accepted for exchange by the Company, and issue, and cause the Class B
      Trustee to promptly authenticate and mail to each Class B Holder, Class B
      Exchange Certificates equal in principal amount to the principal amount of
      the Class B Registrable Certificates surrendered by such Class B Holder.

The Company shall use its reasonable best efforts to complete the Exchange Offer
as provided above and shall comply with the applicable requirements of the 1933
Act, the 1934 Act and other applicable laws, rules and regulations in connection
with the Exchange Offer. The Exchange Offer shall not be subject to any
conditions, other than that the Exchange Offer does not violate applicable law
or any applicable interpretation of the Staff of the SEC. The Company shall
inform the Placement Agents of the names and addresses of the Holders to whom
the Exchange Offer is made, and the Placement Agents shall have the right,
subject to applicable law, to contact such Holders and otherwise facilitate the
tender of Registrable Certificates in the Exchange Offer.

            Each Holder participating in the Exchange Offer shall be required to
represent to the Company at or prior to the consummation of the Exchange Offer
that (i) any Exchange Certificates received by such Holder will be acquired in
the ordinary course of business, (ii) such Holder will have no arrangements or
understanding with any person to participate in the distribution of the Offered
Certificates or the Exchange Certificates within the meaning of the 1933 Act,
and (iii) such Holder is not an "affiliate," as defined in Rule 405 of the 1933
Act, of the Company or any Trustee, nor a broker-dealer tendering Offered
Certificates acquired directly from the Company or any Trust for its own
account. If such Holder is a broker-dealer, it will be required to represent
that the Offered Certificates were acquired as a result of market-marking
activities or other trading activities and that it will deliver a prospectus in
connection with any resale of such Exchange Certificates. Each such Holder,
whether or not it is a broker-dealer, shall also represent that it is not acting
on behalf of any person that could not truthfully make any of the foregoing
representations contained in this paragraph.

            Upon consummation of the Exchange Offer in accordance with this
Section 2(a), the provisions of this Agreement shall continue to apply (to the
extent applicable) solely with respect to Registrable Certificates held by the
Placement Agents or any Participating Broker-Dealers (as defined in Section
4(a)) as provided in (and subject to) Section 2(b)(ii), and the Company shall
have no further obligation to register Offered Certificates (other than such
Registrable Certificates of the Placement Agents and Participating
Broker-Dealers) pursuant to Section 2(b) of this Agreement.

            (b) In the event that (i) the Company determines that the Exchange
Offer Registration provided for in Section 2(a) above is not available or may
not be consummated as

                                       9
<PAGE>
soon as practicable after the last Exchange Date because it would violate
applicable law or the applicable interpretations of the Staff of the SEC, or
(ii) the Exchange Offer has been completed and in the opinion of counsel for the
Placement Agents a Registration Statement must be filed and a Prospectus must be
delivered by the Placement Agents in connection with any primary offering or
sale of Registrable Certificates, the Company shall use its reasonable best
efforts to cause to be filed as soon as practicable after such determination,
date or notice of such opinion of counsel is given to the Company, as the case
may be, a Shelf Registration Statement providing for the sale by the Holders of
all of the Registrable Certificates (in the case of clause (i) above) or by the
Placement Agents (in the case of clause (ii) above) and to have such Shelf
Registration Statement declared effective by the SEC. In the event the Company
is required to file a Shelf Registration Statement solely as a result of the
matters referred to in clause (ii) of the preceding sentence, the Company shall
use its reasonable best efforts to file and have declared effective by the SEC
both an Exchange Offer Registration Statement pursuant to Section 2(a) with
respect to all Registrable Certificates and a Shelf Registration Statement
(which may be a combined Registration Statement with the Exchange Offer
Registration Statement) with respect to offers and sales of Registrable
Certificates held by the Placement Agents after completion of the Exchange
Offer. The Company agrees to use its reasonable best efforts to keep the Shelf
Registration Statement continuously effective for a period of two years after
its effective date with respect to the Registrable Certificates or such shorter
period that will terminate when all of the Registrable Certificates covered by
the Shelf Registration Statement have been sold pursuant to the Shelf
Registration Statement or may be freely sold pursuant to Rule 144(k) under the
1933 Act. The Company further agrees to supplement or amend the Shelf
Registration Statement if required by the rules, regulations or instructions
applicable to the registration form used by the Company for such Shelf
Registration Statement or by the 1933 Act or by any other rules and regulations
thereunder for shelf registration or if reasonably requested by a Holder with
respect to information relating to such Holder, and to use its best efforts to
cause any such amendment to become effective and such Shelf Registration
Statement to become usable as soon as thereafter practicable. The Company agrees
to furnish to the Holders of Registrable Certificates copies of any such
supplement or amendment promptly after its being used or filed with the SEC.

            (c) The Company shall pay all Registration Expenses in connection
with the registration pursuant to Section 2(a) or Section 2(b). Each Holder
shall pay all underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of such Holder's Registrable Certificates
pursuant to the Shelf Registration Statement.

            (d) An Exchange Offer Registration Statement pursuant to Section
2(a) hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC; provided, however, that if, after it has been declared
effective, the offering of Registrable Certificates pursuant to a Shelf
Registration Statement is interfered with by any stop order, injunction or other
order or requirement of the SEC or any other governmental agency or court, such
Shelf Registration Statement will be deemed not to have become effective during
the period of such interference until the offering of Registrable Certificates
pursuant to such Registration Statement may legally resume. In the event that
neither the consummation of the Exchange Offer nor the declaration by

                                       10
<PAGE>
the SEC of a Shelf Registration to be effective (each a "Registration Event")
occurs on or prior to the 270th day (or, if such 270th day is not a business
day, the first business day thereafter) after the Closing Time, the interest
rate per annum borne by the Offered Certificates shall be increased by 0.50%,
effective from and including such 270th day (or, if such 270th day is not a
business day, the first business day thereafter), to but excluding the date on
which a Registration Event occurs provided that if, to permit additional Holders
of Offered Certificates (who have notified the Company in writing its intention
to participate in the Exchange Offer) to participate in the Exchange Offer, the
length of such Exchange Offer is extended beyond such 270th day (or, if such
270th day is not a business day, the first business day thereafter), the
interest rate shall not be increased if the Exchange Offer is consummated within
60 days of such extension. In the event that the Shelf Registration Statement
required to be effective pursuant to Section 2(b) hereof ceases to be effective
at any time during the period specified by Section 2(b) hereof for more than 60
days, whether or not consecutive, during any 12-month period, the interest rate
borne by the Offered Certificates shall be increased by 0.50% per annum from the
61st day of the applicable 12-month period such Shelf Registration Statement
ceases to be effective until such time as the Shelf Registration Statement again
becomes effective.

            (e) Without limiting the remedies available to the Placement Agents
and the Holders, the Company acknowledges that any failure by the Company to
comply with its obligations under Section 2(a) and Section 2(b) hereof may
result in material irreparable injury to the Placement Agents or the Holders for
which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, each Placement Agent or any Holder may obtain such relief as may be
required to specifically enforce the Company's obligations under Section 2(a)
and Section 2(b) hereof.

            3. Registration Procedures. In connection with the obligations of
the Company with respect to the Registration Statements pursuant to Section 2(a)
and Section 2(b) hereof, the Company shall as reasonably expeditiously as
possible:

            (a) prepare and file with the SEC a Registration Statement on the
      appropriate form under the 1933 Act, which form (x) shall be selected by
      the Company, (y) shall, in the case of a Shelf Registration, be available
      for the sale of the Registrable Certificates by the selling Holders
      thereof and (z) shall comply as to form in all material respects with the
      requirements of the applicable form and include all financial statements
      required by the SEC to be filed therewith, and use its best efforts to
      cause such Registration Statement to become effective and remain effective
      in accordance with Section 2 hereof;

            (b) prepare and file with the SEC such amendments and post-effective
      amendments to each Registration Statement as may be necessary to (x) keep
      such Registration Statement effective for the applicable period under this
      Agreement, (y) cause each Prospectus to be supplemented by any required
      prospectus supplement and, as so supplemented, to be filed pursuant to
      Rule 424 under the 1933 Act and (z) keep each Prospectus current during
      the period described under Section 4(3) and Rule 174 under the 1933 Act
      that is applicable to transactions by brokers or dealers with respect to
      the Registrable Certificates or Exchange Certificates;

                                       11
<PAGE>
            (c) in the case of a Shelf Registration, furnish to each Holder of
      Registrable Certificates, to counsel for the Placement Agents, to counsel
      for the Holders and to each Underwriter of an Underwritten Offering of
      Registrable Certificates, if any, and each such Underwriter's Counsel,
      without charge, as many copies of each Prospectus, including each
      preliminary Prospectus, and any amendment or supplement thereto and such
      other documents as such Holder or Underwriter may reasonably request, in
      order to facilitate the public sale or other disposition of the
      Registrable Certificates; and the Company consents to the use of such
      Prospectus and any amendment or supplement thereto in accordance with
      applicable law by each of the selling Holders of Registrable Certificates
      and any such Underwriters in connection with the offering and sale of the
      Registrable Certificates covered by and in the manner described in such
      Prospectus or any amendment or supplement thereto in accordance with
      applicable law;

            (d) use its reasonable best efforts to register or qualify the
      Registrable Certificates under all applicable state securities or "blue
      sky" laws of such jurisdictions as any Holder of Registrable Certificates
      covered by a Registration Statement shall reasonably request in writing by
      the time the applicable Registration Statement is declared effective by
      the SEC, to cooperate with such Holders in connection with any filings
      required to be made with the National Association of Securities Dealers,
      Inc. and do any and all other acts and things which may be reasonably
      necessary or advisable to enable such Holder to consummate the disposition
      in each such jurisdiction of such Registrable Certificates owned by such
      Holder; provided, however, that the Company shall not be required to (i)
      qualify as a foreign corporation or as a dealer in securities in any
      jurisdiction where it would not otherwise be required to qualify but for
      this Section 3(d), (ii) file any general consent to service of process or
      (iii) subject itself to taxation in any such jurisdiction if it is not so
      subject;

            (e) in the case of a Shelf Registration, notify each Holder of
      Registrable Certificates, counsel for the Holders and counsel for the
      Placement Agents promptly and, if requested by any such Holder or counsel,
      confirm such advice in writing, (i) when a Registration Statement has
      become effective and when any post-effective amendment thereto has been
      filed and becomes effective, (ii) of any request by the SEC or any state
      securities authority for amendments and supplements to a Registration
      Statement and Prospectus or for material additional information after the
      Registration Statement has become effective, (iii) of the issuance by the
      SEC or any state securities authority of any stop order suspending the
      effectiveness of a Registration Statement or the initiation of any
      proceedings for that purpose, (iv) if, between the effective date of a
      Registration Statement and the closing of any sale of Registrable
      Certificates covered thereby, the representations and warranties of the
      Company contained in any underwriting agreement, securities sales
      agreement or other similar agreement, if any, relating to the offering
      cease to be true and correct in all material respects or if the Company
      receives any notification with respect to the suspension of the
      qualification of the Registrable Certificates for sale in any jurisdiction
      or the initiation of any proceeding for such purpose, (v) of the happening
      of any event during the period a Shelf Registration Statement is effective

                                       12
<PAGE>
      which makes any statement made in such Registration Statement or the
      related Prospectus untrue in any material respect or which requires the
      making of any changes in such Registration Statement or Prospectus in
      order to make the statements therein (in the case of the Prospectus, in
      light of the circumstances under which they were made) not misleading and
      (vi) of any determination by the Company that a post-effective amendment
      to a Registration Statement would be appropriate;

            (f) make every reasonable effort to obtain the withdrawal of any
      order suspending the effectiveness of a Registration Statement at the
      earliest possible moment and provide immediate notice to each Holder of
      the withdrawal of any such order;

            (g) in the case of a Shelf Registration, furnish to each Holder of
      Registrable Certificates, without charge, at least one conformed copy of
      each Registration Statement and any post-effective amendment thereto
      (without documents incorporated therein by reference or exhibits thereto,
      unless requested);

            (h) in the case of a Shelf Registration, cooperate with the selling
      Holders of Registrable Certificates to facilitate the timely preparation
      and delivery of certificates representing Registrable Certificates to be
      sold and not bearing any restrictive legends and enable such Registrable
      Certificates to be in such denominations (consistent with the provisions
      of the Applicable Trust Agreement) and registered in such names as the
      selling Holders may reasonably request at least two business days prior to
      the closing of any sale of Registrable Certificates;

            (i) in the case of a Shelf Registration, upon the occurrence of any
      event contemplated by Section 3(e)(v) hereof, use its best efforts to
      prepare and file with the SEC a supplement or post-effective amendment to
      a Registration Statement or the related Prospectus or any document
      incorporated therein by reference or file any other required document so
      that, as thereafter delivered to the purchasers of the Registrable
      Certificates, such Prospectus will not contain any untrue statement of a
      material fact or omit to state a material fact necessary to make the
      statements therein, in light of the circumstances under which they were
      made, not misleading. The Company agrees to notify the Holders to suspend
      use of the Prospectus as promptly as practicable after the occurrence of
      such an event, and the Holders hereby agree to suspend use of the
      Prospectus until the Company has amended or supplemented the Prospectus to
      correct such misstatement or omission;

            (j) a reasonable time prior to the filing of any Registration
      Statement, any Prospectus, any amendment to a Registration Statement or
      amendment or supplement to a Prospectus or any document which is to be
      incorporated by reference into a Registration Statement or a Prospectus
      after initial filing of a Registration Statement, provide copies of such
      document to the Placement Agents and their counsel (and, in the case of a
      Shelf Registration Statement, the Holders and their counsel) and make such
      of the representatives of the Company as shall be reasonably requested by
      the Placement Agents or their counsel (and, in the case of a Shelf
      Registration Statement, the Holders or their counsel) available for
      discussion of such document, and shall not at any time file or make

                                       13
<PAGE>
      any amendment to the Registration Statement, any Prospectus or any
      amendment of or supplement to a Registration Statement or a Prospectus or
      any document which is to be incorporated by reference into a Registration
      Statement or a Prospectus, of which the Placement Agents and their counsel
      (and, in the case of a Shelf Registration Statement, the Holders and their
      counsel) shall not have previously been advised and furnished a copy or to
      which the Placement Agents or their counsel (and, in the case of a
      Registration Statement, the Holders or their counsel) shall object;

            (k) obtain a CUSIP number for all Exchange Certificates or
      Registrable Certificates, as the case may be, not later than the effective
      date of a Registration Statement;

            (l) cause the Trust Agreements to be qualified under the Trust
      Indenture Act of 1939, as amended (the "TIA") in connection with the
      registration of the Exchange Certificates or Registrable Certificates, as
      the case may be, cooperate with the Trustees and the Holders to effect
      such changes to the Trust Agreements as may be required for the Trust
      Agreements to be so qualified in accordance with the terms of the TIA and
      execute, and use its best efforts to cause the Trustees to execute, all
      documents as may be required to effect such changes, and all other forms
      and documents required to be filed with the SEC to enable the Trust
      Agreements to be so qualified in a timely manner;

            (m) in the case of a Shelf Registration, upon execution of customary
      confidentiality agreements reasonably satisfactory to the Company and its
      counsel, (other than a Placement Agent) make available for inspection by a
      representative of the Holders of the Registrable Certificates, any
      Underwriter participating in any disposition pursuant to such Shelf
      Registration Statement, and attorneys and accountants designated by the
      Holders, at reasonable times and in a reasonable manner, all financial and
      other records, pertinent documents and properties of the Company, and
      cause the respective officers, directors and employees of the Company to
      supply all information reasonably requested by any such representative,
      Underwriter, attorney or accountant in connection with a Shelf
      Registration Statement as shall be necessary to enable such persons to
      conduct a reasonable investigation within the meaning of Section 11 of the
      1933 Act;

            (n) use its reasonable best efforts to cause the Exchange
      Certificates or Registrable Certificates, as the case may be, to be rated
      by two nationally recognized statistical rating organizations (as such
      term is defined in Rule 436(g)(2) under the 1933 Act);

            (o) if reasonably requested by any Holder of Registrable
      Certificates covered by a Registration Statement, (i) promptly incorporate
      in a Prospectus supplement or post-effective amendment such information
      with respect to such Holder as such Holder reasonably requests to be
      included therein and (ii) make all required filings of such Prospectus
      supplement or such post-effective amendment as soon as the Company has
      received notification of the matters to be incorporated in such filing;
      and

                                       14
<PAGE>
            (p) in the case of a Shelf Registration, enter into such customary
      agreements and take all such other actions in connection therewith
      (including those requested by the Holders of a majority of the Registrable
      Certificates being sold) in order to expedite or facilitate the
      disposition of such Registrable Certificates including, but not limited
      to, an Underwritten Offering and in such connection, (i) to the extent
      possible, make such representations and warranties to the Holders and any
      Underwriters of such Registrable Certificates with respect to the business
      of the Company and its subsidiaries, the Registration Statement,
      Prospectus and documents incorporated by reference or deemed incorporated
      by reference therein, if any, in each case, in form, substance and scope
      as are customarily made by issuers to underwriters in underwritten
      offerings and confirm the same if and when requested, (ii) obtain opinions
      of counsel to the Company (which counsel and opinions, in form, scope and
      substance, shall be reasonably satisfactory to the Holders of a majority
      in principal amount of Registrable Certificates being sold and such
      Underwriters and their respective counsel) addressed to each selling
      Holder and Underwriter of Registrable Certificates, covering the matters
      customarily covered in opinions requested in underwritten offerings, (iii)
      obtain "cold comfort" letters from the independent certified public
      accountants of the Company (and, if necessary, any other certified public
      accountant of any subsidiary of the Company, or of any business acquired
      by the Company for which financial statements and financial data are or
      are required to be included in the Registration Statement) addressed to
      each selling Holder and Underwriter of Registrable Certificates, such
      letters to be in customary form and covering matters of the type
      customarily covered in "cold comfort" letters in connection with
      underwritten offerings, and (iv) deliver such documents and certificates
      as may be reasonably requested by the Holders of a majority in principal
      amount of the Registrable Certificates being sold or the Underwriters, and
      which are customarily delivered in underwritten offerings, to evidence the
      continued validity of the representations and warranties of the Company
      made pursuant to clause (i) above and to evidence compliance with any
      customary conditions contained in an underwriting agreement.

            In the case of a Shelf Registration Statement, the Company may
require each Holder of Registrable Certificates to furnish to the Company such
information regarding the Holder and the proposed distribution by such Holder of
such Registrable Certificates as the Company may from time to time reasonably
request in writing. The Company may exclude from such registration the
Registrable Certificates of any Holder who fails to furnish such information
within a reasonable time after receiving such request.

            In the case of a Shelf Registration Statement, each Holder agrees
that, upon receipt of any notice from the Company of the happening of any event
of the kind described in Section 3(e)(v) hereof, such Holder will forthwith
discontinue disposition of Registrable Certificates pursuant to a Shelf
Registration Statement until such Holder's receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(i) hereof, and, if
so directed by the Company, such Holder will deliver to the Company (at the
Company's expense) all copies in its possession, other than permanent file
copies then in such Holder's possession, of the Prospectus covering such
Registrable Certificates current at the time of receipt of such

                                       15
<PAGE>
notice. If the Company shall give any such notice to suspend the disposition of
Registrable Certificates pursuant to a Registration Statement, the Company shall
extend the period during which the Registration Statement shall be maintained
effective pursuant to this Agreement by the number of days during the period
from and including the date of the giving of such notice to and including the
date when the Holders shall have received copies of the supplemented or amended
Prospectus necessary to resume such dispositions.

            The Holders of Registrable Certificates covered by a Shelf
Registration Statement who desire to do so may sell such Registrable
Certificates in an Underwritten Offering. In any such Underwritten Offering, the
investment banker or investment bankers and manager or managers (the
"Underwriters") that will administer the offering will be selected by the
Majority Holders of the Registrable Certificates included in such offering,
subject to the consent of the Company (which shall not be unreasonably
withheld).

            4. Participation of Broker-Dealers in Exchange Offer. (a) The Staff
of the SEC has taken the position that any broker-dealer that receives Exchange
Certificates for its own account in the Exchange Offer in exchange for Offered
Certificates that were acquired by such broker-dealer as a result of market
making or other trading activities (a "Participating Broker-Dealer") may be
deemed to be an "underwriter" within the meaning of the 1933 Act and must
deliver a prospectus meeting the requirements of the 1933 Act in connection with
any resale of such Exchange Certificates. No Participating Broker-Dealers other
than the Placement Agents and persons who have obtained the Company's prior
written consent to act as a market maker shall have any rights as Participating
Broker-Dealers under this Agreement.

            The Company understands that it is the Staff's position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution containing a statement to the above effect and the means by
which Participating Broker-Dealers may resell the Exchange Certificates, without
naming the Participating Broker-Dealers or specifying the amount of Exchange
Certificates owned by them, such Prospectus may be delivered by Participating
Broker-Dealers to satisfy their prospectus delivery obligation under the 1933
Act in connection with resales of Exchange Certificates for their own accounts,
so long as the Prospectus otherwise meets the requirements of the 1933 Act.

            (b) In light of Section 4(a) above, notwithstanding the other
provisions of this Agreement, the Company agrees that the provisions of this
Agreement as they relate to a Shelf Registration shall also apply to the
Exchange Offer Registration to the extent, and with such reasonable
modifications thereto as may be reasonably requested by the Placement Agents or
by one or more Participating Broker-Dealers, in each case as provided in clause
(ii) below, in order to expedite or facilitate the disposition of any Exchange
Certificates by Participating Broker-Dealers consistent with the positions of
the Staff recited in Section 4(a) above; provided that:

            (i) the Company shall not be required to amend or supplement the
      Prospectus contained in the Exchange Offer Registration Statement, as
      would otherwise be contemplated by Section 3(i), for a period exceeding 90
      days after the last Exchange Date

                                       16
<PAGE>
      (as such period may be discontinued and extended pursuant to the
      penultimate paragraph of Section 3 of this Agreement) and Participating
      Broker-Dealers shall not be authorized by the Company to deliver and shall
      not deliver such Prospectus after such period in connection with the
      resales contemplated by this Section 4; and

            (ii) the application of the Shelf Registration procedures set forth
      in Section 3 of this Agreement to an Exchange Offer Registration, to the
      extent not required by the positions of the Staff of the SEC or the 1933
      Act and the rules and regulations thereunder, will be in conformity with
      the reasonable request to the Company by the Placement Agents or with the
      reasonable request in writing to the Company by one or more broker-dealers
      who certify to the Placement Agents and the Company in writing that they
      anticipate that they will be Participating Broker-Dealers in accordance
      with Section 4(a); provided that in connection with such application of
      the Shelf Registration procedures set forth in Section 3 to an Exchange
      Offer Registration, the Company shall be obligated (x) to deal only with
      one entity representing the Participating Broker-Dealers, which shall be
      Morgan Stanley unless it elects not to act as such representative, (y) to
      pay the fees and expenses of only one counsel representing the
      Participating Broker-Dealers, which shall be counsel to the Placement
      Agents unless such counsel elects not to so act, and (z) to cause to be
      delivered only one, if any, "cold comfort" letter with respect to the
      Prospectus in the form existing on the last Exchange Date and with respect
      to each subsequent amendment or supplement, if any, effected during the
      period specified in clause (i) above.

            (c) The Placement Agents shall have no liability to the Company or
any Holder with respect to any request that it may make pursuant to Section 4(b)
above.

            5. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless the Placement Agents, each Holder and each Person,
if any, who controls any Placement Agent or any Holder within the meaning of
either Section 15 of the 1933 Act or Section 20 of the 1934 Act, or is under
common control with, or is controlled by, any Placement Agent or any Holder,
from and against all losses, claims, damages and liabilities (including, without
limitation, any legal or other expenses reasonably incurred by the Placement
Agent, any such Holder or any such controlling or affiliated Person in
connection with defending or investigating any such action or claim) caused by
any untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement (or any amendment thereto) pursuant to which Exchange
Certificates or Registrable Certificates were registered under the 1933 Act,
including all documents incorporated therein by reference, or caused by any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, or
caused by any untrue statement or alleged untrue statement of a material fact
contained in any Prospectus (as amended or supplemented if the Company shall
have furnished any amendments or supplements thereto), or caused by any omission
or alleged omission to state therein a material fact necessary to make the
statements therein in light of the circumstances under which they were made not
misleading, except insofar as such losses, claims, damages or liabilities are
caused by any such untrue statement or omission or alleged untrue statement or
omission based upon information relating to the

                                       17
<PAGE>
Placement Agents or any Holder furnished to the Company in writing through
Morgan Stanley or any selling Holder expressly for use therein provided,
however, that the foregoing indemnity agreement shall not inure to the benefit
of any Holder to the extent that any such losses, claims, damages or liabilities
result from the fact that such Holder sold securities to a person to whom there
was not sent or given by or on behalf of such Holder (if required by law so to
have been delivered) a copy of the final Prospectus (in the case of any
preliminary Prospectus) or a prospectus amendment or supplement (in the case of
any Prospectus) at or prior to the written confirmation of the sale of the
Registrable Certificates to such person if the Company had previously furnished
copies thereof to such Holder and such untrue statement or omission or alleged
untrue statement or omission was corrected in such final Prospectus or
prospectus amendment or supplement, nor shall this indemnity agreement inure to
the benefit of any Holder from whom the person asserting any such losses,
claims, damages or liabilities purchased the Registrable Certificates concerned
if at the time of such purchase such Holder had received written notice from the
Company that the use of such Prospectus, amendment, supplement or preliminary
Prospectus was suspended as provided in the penultimate paragraph of Section 3.
In connection with any Underwritten Offering permitted by Section 3, the Company
will also indemnify the Underwriters, if any, selling brokers, dealers and
similar securities industry professionals participating in the distribution,
their officers and directors and each Person who controls such Persons (within
the meaning of the 1933 Act and the 1934 Act) to the same extent as provided
above with respect to the indemnification of the Holders, if requested in
connection with any Registration Statement.

            (b) Each Holder agrees, severally and not jointly, to indemnify and
hold harmless the Company, the Placement Agents and the other selling Holders
and each of their respective directors, officers who sign the Registration
Statement and each Person, if any, who controls the Company, any Placement Agent
and any other selling Holder within the meaning of either Section 15 of the 1933
Act or Section 20 of the 1934 Act to the same extent as the foregoing indemnity
from the Company to the Placement Agents and the Holders, but only with
reference to information relating to such Holder furnished to the Company in
writing by such Holder expressly for use in any Registration Statement (or any
amendment thereto) or any Prospectus (or any amendment or supplement thereto).

            (c) In case any proceeding (including any governmental
investigation) shall be instituted involving any Person in respect of which
indemnity may be sought pursuant to either of paragraph (a) or paragraph (b)
above, such Person (the "indemnified party") shall promptly notify the Person
against whom such indemnity may be sought (the "indemnifying party") in writing
and the indemnifying party, upon request of the indemnified party, shall retain
counsel reasonably satisfactory to the indemnified party to represent the
indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the fees and disbursements of such counsel related to
such proceeding. In any such proceeding, any indemnified party shall have the
right to retain its own counsel, but the fees and expenses of such counsel shall
be at the expense of such indemnified party unless (i) the indemnifying party
and the indemnified party shall have mutually agreed to the retention of such
counsel or (ii) the named parties to any such proceeding (including any
impleaded parties) include both the

                                       18
<PAGE>
indemnifying party and the indemnified party and representation of both parties
by the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that the indemnifying party shall not,
in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for (a) the fees and expenses of more than one separate
firm (in addition to any local counsel) for the Placement Agents and all
Persons, if any, who control any Placement Agent within the meaning of either
Section 15 of the 1933 Act or Section 20 of the 1934 Act, (b) the fees and
expenses of more than one separate firm (in addition to any local counsel) for
the Company, its directors, its officers who sign the Registration Statement and
each Person, if any, who controls the Company within the meaning of either such
Section and (c) the fees and expenses of more than one separate firm (in
addition to any local counsel) for all Holders and all Persons, if any, who
control any Holders within the meaning of either such Section, and that all such
fees and expenses shall be reimbursed as they are incurred. In such case
involving the Placement Agents and Persons who control the Placement Agents,
such firm shall be designated in writing by Morgan Stanley. In such case
involving the Holders and such Persons who control Holders, such firm shall be
designated in writing by the Majority Holders. In all other cases, such firm
shall be designated by the Company. The indemnifying party shall not be liable
for any settlement of any proceeding effected without its written consent (which
consent shall not be unreasonably withheld) but, if settled with such consent or
if there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by reason
of such settlement or judgment. Notwithstanding the foregoing sentence, if at
any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel as contemplated
by the second and third sentences of this paragraph, the indemnifying party
agrees that it shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 90
days after receipt by such indemnifying party of the aforesaid request and (ii)
such indemnifying party shall not have reimbursed the indemnified party for such
fees and expenses of counsel in accordance with such request prior to the date
of such settlement. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any pending or
threatened proceeding in respect of which such indemnified party is or could
have been a party and indemnity could have been sought hereunder by such
indemnified party (which consent shall not be unreasonably withheld), unless
such settlement includes an unconditional release of such indemnified party from
all liability on claims that are the subject matter of such proceeding.

            (d) If the indemnification provided for in paragraph (a) or
paragraph (b) of this Section 5 is unavailable to an indemnified party or
insufficient in respect of any losses, claims, damages or liabilities, then each
indemnifying party under such paragraph, in lieu of indemnifying such
indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities in such proportion as is appropriate to reflect the relative fault
of the indemnifying party or parties on the one hand and of the indemnified
party or parties on the other hand in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations. The relative fault of the
Company and the Holders shall be determined by reference to, among other things,
whether the untrue or alleged untrue

                                       19
<PAGE>
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company or the Holders and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Holders' respective
obligations to contribute pursuant to this Section 5(d) are several in
proportion to the respective principle amount of Registrable Certificates of
such Holder that were registered pursuant to a Registration Statement.

            (e) The Company and each Holder agree that it would not be just or
equitable if contribution pursuant to this Section 5 were determined by pro rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in paragraph (d) above. The amount paid
or payable by an indemnified party as a result of the losses, claims, damages
and liabilities referred to in paragraph (d) above shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this
Section 5, no Holder shall be required to indemnify or contribute any amount in
excess of the amount by which the total price at which Registrable Certificates
were sold by such Holder exceeds the amount of any damages that such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. The remedies provided for in this Section 5 are not exclusive
and shall not limit any rights or remedies which may otherwise be available to
any indemnified party at law or in equity.

            The indemnity and contribution provisions contained in this Section
5 shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
the Placement Agents, any Holder or any person controlling any Placement Agent
or any Holder, or by or on behalf of the Company, its officers or directors or
any person controlling the Company, (iii) acceptance of any of the Exchange
Certificates and (iv) any sale of Registrable Certificates pursuant to a Shelf
Registration Statement.

            6. Miscellaneous. (a) No Inconsistent Agreements. The Company has
not entered into, and on or after the date of this Agreement will not enter
into, any agreement that is inconsistent with the rights granted to the Holders
of Registrable Certificates in this Agreement or otherwise conflicts with the
provisions hereof. The rights granted to the Holders hereunder do not in any way
conflict with and are not inconsistent with the rights granted to the holders of
the Company's other issued and outstanding securities under any such agreements.

            (b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Company has obtained the written consent of Holders
of at least a majority in aggregate principal amount of the outstanding
Registrable Certificates affected by such amendment, modification, supplement,
waiver or consent; provided, however, that no amendment, modification,
supplement, waiver or

                                       20
<PAGE>
consents to any departure from the provisions of Section 5 hereof shall be
effective as against any Holder of Registrable Certificates unless consented to
in writing by such Holder.

            (c) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (i) if to a Holder, at the most current address given by such Holder to
the Company by means of a notice given in accordance with the provisions of this
Section 6(c), which address initially is, with respect to the Placement Agents,
the address set forth in the Placement Agreement, and (ii) if to the Company,
initially at the Company's address set forth in the Placement Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c).

            All such notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five
business days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt is acknowledged, if telecopied; and
on the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

            Copies of all such notices, demands, or other communications shall
be concurrently delivered by the person giving the same to each applicable
Trustee, at the address specified in the Applicable Trust Agreement.

            (d) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Certificates in violation of the terms of the Placement Agreement or the Trust
Agreements. If any transferee of any Holder shall acquire Registrable
Certificates, in any manner, whether by operation of law or otherwise, such
Registrable Certificates shall be held subject to all of the terms of this
Agreement, and by taking and holding such Registrable Certificates, such Person
shall be conclusively deemed to have agreed to be bound by and to perform all of
the terms and provisions of this Agreement and such Person shall be entitled to
receive the benefits hereof. The Placement Agents (in their capacity as
Placement Agents) shall have no liability or obligation to the Company with
respect to any failure by any other Holder to comply with, or any breach by any
other Holder of, any of the obligations of such other Holder under this
Agreement.

            (e) Purchases and Sales of Certificates. The Company shall not, and
shall use its best efforts to cause its affiliates (as defined in Rule 405 under
the 1933 Act) to not, purchase and then resell or otherwise transfer any Offered
Certificates prior to consummation of the Exchange Offer or a Shelf Registration
Statement being declared effective.

            (f) Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder and shall have the right to
enforce such agreements directly to the extent they deem such enforcement
necessary or advisable to protect their rights hereunder.

                                       21
<PAGE>
            (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

            (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

            (i) Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York.

            (j) Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

            (k) Trustees. The Trustees shall take such action as may be
reasonably requested by the Company in connection with the Company satisfying
its obligations arising under this Agreement.

                                       22
<PAGE>
            IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first written above.

                                        AMERICAN AIRLINES, INC.

                                        By: ____________________________________
                                            Name:
                                            Title:

                                        STATE STREET BANK AND TRUST COMPANY
                                        OF CONNECTICUT, NATIONAL ASSOCIATION,
                                        as Trustee

                                        By: ____________________________________
                                            Name:
                                            Title:

Confirmed and accepted as of the date first above written:

MORGAN STANLEY & CO. INCORPORATED
CREDIT SUISSE FIRST BOSTON CORPORATION
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
J.P. MORGAN SECURITIES INC.
SALOMON SMITH BARNEY INC.

By: MORGAN STANLEY & CO.  INCORPORATED

    By:_______________________________
       Name:
       Title:

                                       23

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