Document:

exv10w26

 

Exhibit 10.26

AMERICAN AIRLINES

2007 EMPLOYEE PROFIT SHARING PLAN

Purpose

The purpose of the 2007 American Airlines Employee Profit Sharing Plan (“Plan”) is to provide
participating employees with a sense of commitment to, and direct financial interest in, the
success of American Airlines.

Definitions

Capitalized terms not otherwise defined in the Plan will have the meanings set forth in the 2003
Employee Stock Incentive Plan (the “2003 Stock Plan”).

“AMR” is defined as AMR Corporation.

“Affiliate” is defined as a subsidiary of AMR or any entity that is designated by the Committee as
a participating employer under the Plan, provided that AMR directly or indirectly owns at least 20%
of the combined voting power of all classes of stock of such entity.

“American” is defined as AMR less AMR subsidiaries other than American Airlines, Inc. and its
subsidiaries.

“American Airlines” is defined as American Airlines, Inc.

“American’s Pre-Tax Earnings” is defined as American’s earnings before any applicable income tax
expense excluding any accruals for profit sharing or accounting adjustments or extraordinary or
one-time items as may be determined by the Committee in its discretion, after consultation with
AMR’s independent auditors.

“Committee” is defined as the AMR Incentive Compensation Committee.

“Disabled”, “Disability” or variants thereof will have the meaning as defined in section
409(a)(2)(C) of the Internal Revenue Code of 1986, as amended (the “Code”).

“Eligible Earnings” is defined by the nature of the work group. For employees who are represented
by a union, the definition of Eligible Earnings will be the definition contained in the Letter of
Agreement between the union and the company. For employees who are not represented by a union the
definition of Eligible Earnings will be identical to the term “Qualified Earnings” under the 2003
American Airlines Employee Profit Sharing Plan.

“Fund” is defined as the profit sharing fund, if any, accumulated in accordance with this Plan.

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“Letter(s) of Agreement” is defined as the agreement(s) reached with each union during the April
2003 restructuring process that define the framework of the Plan.

“Plan Year” is the 2007 calendar year.

Eligibility for Participation

In order to be eligible to receive a profit sharing award, the employee must:

	•	 	Be a U.S. domestic employee (where domestic means the United
States, Puerto Rico and the U.S. Virgin Islands);

	•	 	Have been employed as a regular full-time or part-time employee at
American in a participating workgroup (employees other than
management Level 5 and above), during 2007; and

	•	 	Be employed at American or an Affiliate at the time awards are
paid. If at the time awards are paid under the Plan, an
individual has retired from American or an Affiliate (pursuant to
the terms and conditions of an applicable pension plan), has been
laid off, is on a leave of absence with re-instatement rights, is
Disabled or has died, the award which the individual otherwise
would have received under the Plan but for such retirement,
lay-off, leave, Disability or death may be paid (on a pro-rata
basis) to the individual or his/her estate in the event of death,
at the discretion of the Committee.

Notwithstanding the foregoing, however, an employee will not be eligible to participate in the Plan
if such employee is, at the same time, eligible to participate in:

	 	i)	 	any incentive compensation, profit sharing, commission or other bonus plan
sponsored by an Affiliate of American; or
	 
	 	ii)	 	any commission or bonus plan, with the exception of American’s Annual
Incentive Plan, sponsored by American, any division of American or any Affiliate of
American

Awards under the Plan will be determined on a proportionate basis for participation in more than
one comparable plan during a Plan Year. Employees who transfer from/to Affiliates or any other
plan described above during a Plan Year, and satisfy eligibility requirements, will receive awards
from such plans on a proportionate basis.

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The Profit Sharing Fund Accumulation

Performance will be measured by American’s Pre-Tax Earnings and the Fund will accumulate based on
that performance. The Fund will be established at 15% of every $1 exceeding $500 million in
American’s Pre-Tax Earnings.

Award Distribution

For eligible domestic employees, individual awards will be distributed based upon an employee’s
Eligible Earnings for the Plan Year. Award percentages will be determined by dividing the Fund by
the aggregate Eligible Earnings of all eligible employees. This percentage will be multiplied by
the individual employee’s Eligible Earnings to determine the amount of an individual award.

Administration

The Plan will be administered by the Committee. The Committee will have authority to administer
and interpret the Plan, establish administrative rules, determine eligibility and take any other
action necessary for the proper and efficient operation of the Plan, consistent with the Letters of
Agreement reached with each of the unions. The amount, if any, of the Fund shall be based on a
certification of American’s Pre-Tax Earnings by AMR’s independent auditors. A summary of awards
under the Plan shall be provided to the Board of Directors of AMR at the first regular meeting
following determination of the awards.

Method of Payment

The Committee shall determine the method of payment of awards. Subject to the terms of the Plan,
awards shall be paid as soon as practicable after audited financial statements for the year 2007
are available, but no later than March 15, 2008.

General

Neither this Plan nor any action taken hereunder shall be construed as giving to any employee or
participant the right to be retained in the employ of American or an Affiliate.

Nothing in the Plan shall be deemed to give any employee any right, contractually or otherwise, to
participate in the Plan or in any benefits hereunder, other than the right to receive payment of
such award as may have been expressly determined by the Committee.

In consideration of the employee’s privilege to participate in the Plan, the employee agrees (i)
not to disclose any trade secrets of, or other confidential or restricted information of, American
or its Affiliates to any unauthorized party (ii) not to make any unauthorized use of such trade
secrets or confidential or
restricted information during

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his or her employment with American or its Affiliates or after such
employment is terminated, and (iii) not to solicit any current employees of American or any other
Subsidiaries of AMR to join the employee at his or her new place of employment after his or her
employment with American or its Affiliates is terminated.

Per the Letters of Agreement, nothing is intended to limit AMR’s rights under applicable laws to
modify, annul or terminate the Plan.

The employee shall not have any right to defer any payment under the Plan. The Committee and
American Airlines shall not accelerate any payments under the Plan.

The Committee and American Airlines shall not accelerate any payments under the Plan.

4exv10w9

 

Exhibit 10.9

November 29, 2006

Mr. John W. Bachmann

Edward Jones

12555 Manchester Road

St. Louis, MO 63131-3279

Dear John:

     This will confirm the following agreement relating to the deferral of your director’s
fees in 2007.

     1. All
director’s
fees and retainers
(“Fees”) payable to you in connection
with your service on the boards of directors (including committees of such boards) of AMR
Corporation and American Airlines, Inc. for the period January 1, 2007 through December 31, 2007,
will be deferred and paid to you in accordance with this letter agreement.

     2. Fees will be converted to Stock Equivalent Units in accordance with the Directors’ Stock
Equivalent Purchase Plan, a copy of which is attached hereto as
Exhibit A (the “Plan”).

     3. On the 30th business day after the date when you cease to be a Director of AMR
Corporation, the Stock Equivalent Units accrued in 2007 pursuant to the Plan will be converted to
cash and paid to you by multiplying the number of such Stock Equivalent Units by the arithmetic
mean of the high and the low of AMR stock (“fair market
value”) during the month when
you ceased to be a Director of AMR Corporation.

     4. In the event of your death, the number of Stock Equivalent Units as of your date of death
will be multiplied by the fair market value of AMR stock during the calendar month immediately
preceding your death, and the amount paid to Katharine Bachmann. The payment contemplated by this
paragraph 4 will be made on the 30th business day following the date of your death.

 

 

     If the foregoing is satisfactory to you, please indicate by signing one of the originals (two
are enclosed) and returning it to me.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	
 	 
	 	Kenneth W. Wimberly 	 
	 	Corporate Secretary 	 
	 

	 	 	 	 	 
	Accepted and agreed:

 	 	 
	/s/ John W. Bachmann
 	 	 
	John W. Bachmann 	 	 
	 	 	 
	12/15/06

	Dateexv10w18

 

Exhibit 10.18

November 29, 2006

Mr. Edward A. Brennan

400 North Michigan Avenue

Suite 400

Chicago, IL 60611

Dear Ed:

     This
will confirm the following agreement relating to the deferral of your director’s
fees in 2007.

     1. All
director’s fees and retainers (“Fees”) payable to you in connection
with your service on the boards of directors (including committees of such boards) of AMR
Corporation and American Airlines, Inc. for the period January 1, 2007 through the date of the
annual meeting of AMR Corporation, will be deferred and paid to you in accordance with this letter
agreement.

     2. Fees will be converted to Stock Equivalent Units in accordance with the Directors’ Stock
Equivalent Purchase Plan, a copy of which is attached hereto as Attachment A (the
“Plan”).

     3. In the event of your death during 2007, the number of Stock Equivalent Units as of your
date of death will be multiplied by the fair market value of AMR stock during the calendar month
immediately preceding your death, and the amount paid to Lois Brennan. The payment contemplated by
this paragraph 3 will be made on the 30th business day following the date of your death.

     If the foregoing is satisfactory to you, please indicate by signing one of the originals (two
are enclosed) and returning it to me.

	 	 	 	 
	 

	 	Very truly yours,
	 

	 	
	 

	 	Kenneth W. Wimberly
	 

	 	Corporate Secretary

Accepted and agreed:

	 	 	 
	/s/ Edward A. Brennan
 

	 	  
	Edward A. Brennan
	 	 
	 
	12/4/06
 

	 	  
	Date

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