Document:

<PAGE>
                                                                    EXHIBIT 4.16

================================================================================

                           REVOLVING CREDIT AGREEMENT
                                    (2001-1C)

                            Dated as of May 24, 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 2001-1C

                                   as Borrower

                                       and

                           BOEING CAPITAL CORPORATION,

                              as Liquidity Provider

                  American Airlines Pass Through Trust 2001-1C
                            7.379% American Airlines
                           Pass Through Certificates,
                                 Series 2001-1C

<PAGE>

                                Table of Contents

<Table>
<Caption>
                                                                                        Page
                                                                                        ----

<S>                                                                                     <C>
                                        ARTICLE I
                                       DEFINITIONS

Section 1.01 Definitions ..............................................................    1

                                       ARTICLE II
                           AMOUNT AND TERMS OF THE COMMITMENT

Section 2.01 The Advances .............................................................    9
Section 2.02 Making of Advances .......................................................    9
Section 2.03 Fees .....................................................................   11
Section 2.04 Reduction, Increase or Termination of the Maximum Commitment .............   11
Section 2.05 Repayments of Interest Advances or the Final Advance .....................   12
Section 2.06 Repayments of Provider Advances ..........................................   12
Section 2.07 Payments to the Liquidity Provider Under the Intercreditor Agreement .....   14
Section 2.08 Book Entries .............................................................   14
Section 2.09 Payments from Available Funds Only .......................................   14
Section 2.10 Extension of the Expiry Date; Non-Extension Advance ......................   14

                                       ARTICLE III
                               OBLIGATIONS OF THE BORROWER

Section 3.01 Increased Costs ..........................................................   15
Section 3.02 [Intentionally omitted.] .................................................   16
Section 3.03 Withholding Taxes ........................................................   17
Section 3.04 Payments .................................................................   18
Section 3.05 Computations .............................................................   18
Section 3.06 Payment on Non-Business Days .............................................   18
Section 3.07 Interest .................................................................   19
Section 3.08 Replacement of Borrower ..................................................   20
Section 3.09 Funding Loss Indemnification .............................................   21
Section 3.10 Illegality ...............................................................   21

                                       ARTICLE IV
                                  CONDITIONS PRECEDENT

Section 4.01 Conditions Precedent to Effectiveness of Section 2.01 ....................   22
Section 4.02 Conditions Precedent to Borrowing ........................................   23

                                        ARTICLE V
                                        COVENANTS

Section 5.01 Affirmative Covenants of the Borrower ....................................   23
Section 5.02 Negative Covenants of the Borrower .......................................   24
</Table>

                                        i
<PAGE>

                                Table of Contents

<Table>
<Caption>
                                                                                        Page
                                                                                        ----

<S>                                                                                     <C>
                                       ARTICLE VI
                               LIQUIDITY EVENTS OF DEFAULT

Section 6.01 Liquidity Events of Default ..............................................   24

                                       ARTICLE VII
                                      MISCELLANEOUS

Section 7.01 No Oral Modifications or Continuing Waivers ..............................   24
Section 7.02 Notices ..................................................................   25
Section 7.03 No Waiver; Remedies ......................................................   26
Section 7.04 Further Assurances .......................................................   26
Section 7.05 Indemnification; Survival of Certain Provisions ..........................   26
Section 7.06 Liability of the Liquidity Provider ......................................   27
Section 7.07 Certain Costs and Expenses ...............................................   27
Section 7.08 Binding Effect; Participations ...........................................   28
Section 7.09 Severability .............................................................   29
Section 7.10 Governing Law ............................................................   29
Section 7.11 Submission to Jurisdiction; Waiver of Jury Trial; Waiver of Immunity .....   29
Section 7.12 Counterparts .............................................................   30
Section 7.13 Entirety .................................................................   30
Section 7.14 Headings .................................................................   30
Section 7.15 Liquidity Provider's Obligation to Make Advances .........................   30
</Table>

Annex I - Interest Advance Notice of Borrowing
Annex II - Non-Extension Advance Notice of Borrowing
Annex III - Downgrade 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>

                           REVOLVING CREDIT AGREEMENT

         This REVOLVING CREDIT AGREEMENT, dated as of May 24, 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 BOEING CAPITAL CORPORATION, a Delaware corporation (the
"Liquidity Provider").

                                   WITNESSETH:

         WHEREAS, pursuant to the Class C Trust Agreement, the 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.

                                       1
<PAGE>

         (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, 2.00%

         "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.

                                        2
<PAGE>

         "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 Seattle,
Washington, 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.

         "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(f) 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 November 24, 2001, initially, or any date to which
the Expiry Date is extended pursuant to Section 2.10.

                                        3
<PAGE>

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

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

         "Intercreditor Agreement" means the Intercreditor Agreement, dated as
of the date hereof, among the Trustees, the Liquidity Provider, the liquidity
provider under each Liquidity Facility (other than this Agreement) and the
Subordination Agent, as the same may be 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 3780 Kilroy Airport Way, M/C D091-0070, Suite 750, Long
Beach, California 90806, 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.

                                        4
<PAGE>

         "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 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.

                                        5
<PAGE>

         "Maximum Commitment" means initially $20,314,018, as the same may be
reduced or increased from time to time in accordance with Section 2.04(a).

         "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.

         "Offering Memorandum" means the Offering Memorandum dated May 18, 2001,
relating to the 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

                                        6
<PAGE>

         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.

         "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 (whether or not
having the force of law), 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 any other condition
regarding this Agreement or any Advance 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.

         "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

                                        7
<PAGE>

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.

         (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", "Class C Trust", "Class C Trust Agreement", "Class C
Trustee", "Closing Date", "Collection Account", "Controlling Party", "Corporate
Trust Office", "Distribution Date", "Dollars", "Downgraded Facility", "Equipment
Notes", "Fee Letter", "Final Legal Distribution Date", "Indenture", "Interest
Payment Date", "Investment Earnings", "Leased Aircraft", "Liquidity Facility",
"Liquidity Obligations", "Loan Trustee", "Moody's", "Non- Extended Facility",
"Operative Agreements", "Owned Aircraft", "Participation Agreements",
"Performing Equipment Note", "Person", "Placement Agents", "Placement
Agreement", "Pool Balance", "Rating Agencies", "Ratings Confirmation", "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".

                                        8
<PAGE>

                                   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
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.

                                       9
<PAGE>

         (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) 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

                                      10
<PAGE>

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 Fee Letter.

         Section 2.04 Reduction, Increase or Termination of the Maximum
Commitment.

         (a) Automatic Reduction. Promptly following each date on which the
Required Amount is (i) 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) and (ii) increased or decreased as a result of any
increase or decrease in the Stated Interest Rate of the Class C Certificates
pursuant to the definition of "Stated Interest Rate" set forth in the
Intercreditor Agreement, the Maximum Commitment shall be automatically increased
or decreased to an amount equal to such increased or decreased Required Amount
(as calculated by the Borrower). The Borrower shall give

                                       11
<PAGE>

notice of any such automatic reduction or increase 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 or increase 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

                                       12
<PAGE>

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 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 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.

                                      13
<PAGE>

         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.

         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 relating to the Owned Aircraft and Section 10 of the
Participation Agreements relating to the Leased Aircraft 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. By
written agreement between the Borrower and the Liquidity Provider, entered into
at any time prior to the 25(th) day prior to the then-effective Expiry Date
(with the written consent of Moody's, so long as Boeing Capital Corporation is
the Liquidity Provider), the then-

                                      14
<PAGE>

effective Expiry Date may be extended, effective on such 25th day (unless such
then- effective Expiry Date is on or after the date that is 15 days after the
Final Legal Distribution Date for the Class C Certificates), for a period of 364
days after such then- effective Expiry Date (unless 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, (or if Moody's does not consent to such extension,
if Boeing Capital Corporation is the Liquidity Provider) prior to such 25(th)
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 or not having the force of law)
there shall be (x) any increase by an amount reasonably deemed by the Liquidity
Provider to be material 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 by an amount reasonably deemed by the Liquidity Provider to be
material in the amount receivable by the Liquidity Provider under this Agreement
or the Intercreditor Agreement in respect thereof, or (z) any reduction
reasonably deemed by the Liquidity Provider to be material 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 45 days prior to
the date of delivery of such certificate. Such

                                      15
<PAGE>

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 minimize, to
the greatest 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 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 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 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 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 commercial 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.]

                                      16
<PAGE>

         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 the Liquidity Provider is
not a United States person for U.S. federal income tax purposes and 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 and actually utilizes 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, if
the Liquidity Provider is not a United States person for U.S. federal income tax
purposes, 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.

         (b) All payments (including, without limitation, Advances) made by the
Liquidity Provider under this Agreement shall be made free and clear of, and
without

                                      17
<PAGE>

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 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, New York, New York; ABA #021000021; Account name:
Boeing Capital Corporation; Account number: 910 1 307412; Reference: Liquidity
Facility Fee, 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

                                      18
<PAGE>

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 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

                                      19
<PAGE>

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 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.

         (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

                                      20
<PAGE>

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 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

                                      21
<PAGE>

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):

         (a) The Liquidity Provider shall have received on or before the Closing
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 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 Closing Date (other
         than this Agreement and the Intercreditor Agreement);

                  (iv) A fully executed copy of the 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 Closing Date
         pursuant to the Class C Trust Agreement, the Intercreditor Agreement
         and the other Operative Agreements (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 such
         transactions with officers and employees of American.

                                      22
<PAGE>

         (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 Fee Letter.

         (d) All conditions precedent to the issuance of the Certificates under
the Trust Agreement shall have been satisfied or waived, all conditions
precedent to the effectiveness of the other Liquidity Facilities shall have been
satisfied or waived, and all conditions precedent to the purchase of the
Certificates by the Placement Agents under the Placement Agreement shall have
been satisfied (unless any of such conditions precedent under the Placement
Agreement shall have been waived by the 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

                                      23
<PAGE>

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 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 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

                                      24
<PAGE>

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 received 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),

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:

Operations Department
C/O BOEING CAPITAL CORPORATION
Mail Code 6Y-16
500 Naches Avenue SW
Renton, Washington 98055

Telephone: (425) 393-1078
Telecopy: (425) 393-1008

with a copy to:

BOEING CAPITAL CORPORATION
3780 Kilroy Airport Way, M/C D091-0070
Suite 750
Long Beach, California 90806
Attention: BCC Treasury

Telephone: (562) 997-3419
Telecopy: (562) 997-3338

                                      25
<PAGE>

         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 relating to the
Owned Aircraft and Section 10 of the Participation Agreements relating to the
Leased Aircraft. 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 Fee Letter (regardless of whether indemnified
against pursuant to said Sections or in such 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 connection with, any action, suit or proceeding by
any third party against such Liquidity Indemnitee and relating to this
Agreement, the 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 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 relating to the

                                      26
<PAGE>

Owned Aircraft and Section 10 of the Participation Agreements relating to the
Leased Aircraft. 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 relating to the Owned Aircraft and Section 10 of the Participation
Agreements relating to the Leased Aircraft 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 any waiver or consent
under the Operative Documents 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 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

                                      27
<PAGE>

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 or a corporation formed under the laws of the United States or any
state thereof, (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

                                      28
<PAGE>

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, 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.

         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.

         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

                                      29
<PAGE>

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.

         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

                                      30
<PAGE>

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.

                                      31
<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 Class C Trust, as Borrower

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

                                    BOEING CAPITAL CORPORATION,
                                    as Liquidity Provider

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

                                     32
<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 Boeing Capital Corporation (the
"Liquidity Provider"), with reference to the Revolving Credit Agreement
(2001-1C), dated as of May __, 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 or the Class C Certificates, or interest on the Class A-1
Certificates, the Class A-2 Certificates or the Class B Certificates, (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 Boeing Capital
Corporation (the "Liquidity Provider"), with reference to the Revolving Credit
Agreement (2001-1 C), dated as of May __, 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 or the Class B Certificates, (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 I 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 Boeing Capital
Corporation (the "Liquidity Provider"), with reference to the Revolving Credit
Agreement (2001-1C), dated as of May __, 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 or the Class B Certificates, (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 Boeing Capital Corporation (the
"Liquidity Provider"), with reference to the Revolving Credit Agreement
(2001-1C), dated as of May __, 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 or the Class B Certificates, (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 May __, 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- 1C, as Borrower, and Boeing Capital
         Corporation (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.

         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,

                                          Boeing Capital Corporation,
                                          as Liquidity Provider

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

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

                                      V-1
<PAGE>

                                                                     ANNEX VI to
                                                      REVOLVING CREDIT AGREEMENT

                    NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]
Attention:

Re:      Revolving Credit Agreement, dated as of May __, 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- 1C, as Borrower, and Boeing Capital
         Corporation (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.

         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-1<PAGE>
                                                                    EXHIBIT 4.17

                          REGISTRATION RIGHTS AGREEMENT

                  THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made
and entered into May 18, 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, Salomon Smith Barney Inc. and Dresdner
Kleinwort Wasserstein Securities LLC (collectively with Morgan Stanley, the
"Placement Agents").

                  This Agreement is made pursuant to the Placement Agreement
dated May 18, 2001, among the Company and the Placement Agents (the "Placement
Agreement"), which provides for the sale to the Placement Agents of (i)
$420,880,000 aggregate principal amount of 6.977% 2001-1A-1 Pass Through
Certificates (the "Class A-1 Certificates"), (ii) $392,209,000 aggregate
principal amount of 6.817 % 2001-1A-2 Pass Through Certificates (the "Class A-2
Certificates"), (iii) $297,430,000 aggregate principal amount of 7.377% 2001-1B
Pass Through Certificates (the "Class B Certificates"), (iv)$183,530,000
aggregate principal amount of 7.379% 2001-1C Pass Through Certificates, (the
"Class C Certificates) and (v) $25,600,000 aggregate principal amount of 7.686%
2001-1D Pass Through Certificates, and together with the Class A-1 Certificates,
the Class A-2 Certificates, the Class B Certificates and the Class C
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 May 24, 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 (the "Closing Time") (individually, a "Trust
Supplement") (the Basic Agreement, as supplemented by each such Trust
Supplement, being referred to herein as the "Pass Through Trust Agreements").
The Pass Through Trust Agreements are related to the creation and administration
of American Airlines, Inc., Pass Through Trust Series 2001-1A-1 (the "Class A-1
Trust"), American Airlines, Inc., Pass Through Trust Series 2001-1A-2 (the
"Class A-2 Trust"), American Airlines, Inc., Pass Through Trust Series 2001-1B
(the "Class B Trust"), American Airlines, Inc., Pass Through Trust Series
2001-1C (the "Class C Trust") and American Airlines, Inc., Pass Through Trust
Series 2001-1D (the "Class D Trust"; and together with the Class A-1 Trust, the
Class A-2 Trust, the Class B Trust and the Class C 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, (iii) with respect to the Class B
         Certificates, the Class B Holders or the Class B Trustee, the Class B
         Trust Agreement, (iv) with respect to the Class C Certificates, the
         Class C Holders or the Class C Trustee, the Class C Trust Agreement and
         (v) with respect to the Class D Certificates, the Class D Holders or
         the Class D Trustee, the Class D 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
         shall have been

                                       2

<PAGE>

         declared effective under the 1933 Act and such Class A-1 Certificates
         shall have been disposed of pursuant to such Registration Statement,
         (iii) such Class A-1 Certificates shall have 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-1 Certificates
         shall have 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
         shall have been declared effective under the 1933 Act and such Class
         A-2 Certificates shall have been disposed of pursuant to such
         Registration Statement, (iii) such Class A-2 Certificates shall have
         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 shall have 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 shall have been
         declared effective under the 1933 Act and such Class B Certificates
         shall have been disposed of pursuant to such Registration Statement,
         (iii) such Class B Certificates shall have 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
         shall have 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.

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

                  "Class C Exchange Certificates" shall mean securities issued
         under the Class C Trust Agreement of equal outstanding principal amount
         as and containing terms identical to the Class C Certificates (except
         that (i) interest thereon shall accrue from the last date on which
         interest was paid on the Class C 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 C
         Certificates in exchange for such Class C Certificates pursuant to the
         Exchange Offer.

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

                  "Class C Registrable Certificates" shall mean the Class C
         Certificates; provided, however, that the Class C Certificates shall
         cease to be Class C Registrable Certificates upon the earliest to occur
         of (i) the consummation of the Exchange Offer, (ii) a Registration
         Statement with respect to such Class C Certificates shall have been
         declared effective under the 1933 Act and such Class C Certificates
         shall have been disposed of pursuant to such Registration Statement,
         (iii) such Class C Certificates shall have 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 C Certificates
         shall have ceased to be outstanding.

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

                  "Class C 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 C Trust Agreement,
         but solely as Trustee under the Class C Trust Agreement, together with
         any successor Trustee under the terms of the Class C Trust Agreement.

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

                                       5
<PAGE>

                  "Class D Exchange Certificates" shall mean securities issued
         under the Class D Trust Agreement of equal outstanding principal amount
         as and containing terms identical to the Class D Certificates (except
         that (i) interest thereon shall accrue from the last date on which
         interest was paid on the Class D 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 D
         Certificates in exchange for such Class D Certificates pursuant to the
         Exchange Offer.

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

                  "Class D Registrable Certificates" shall mean the Class D
         Certificates; provided, however, that the Class D Certificates shall
         cease to be Class D Registrable Certificates upon the earliest to occur
         of (i) the consummation of the Exchange Offer, (ii) a Registration
         Statement with respect to such Class D Certificates shall have been
         declared effective under the 1933 Act and such Class D Certificates
         shall have been disposed of pursuant to such Registration Statement,
         (iii) such Class D Certificates shall have 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 D Certificates
         shall have ceased to be outstanding.

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

                  "Class D 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 D Trust Agreement,
         but solely as Trustee under the Class D Trust Agreement, together with
         any successor Trustee under the terms of the Class D 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, the Class B
         Exchange Certificates, the Class C Exchange Certificates and the Class
         D Exchange Certificates.

                                       6
<PAGE>

                  "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, a
         Class B Holder, a Class C Holder or a Class D 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.

                  "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.

                                       7
<PAGE>

                  "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, the
         Class B Registrable Certificates, the Class C Registrable Certificates
         and the Class D 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 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.

                                       8
<PAGE>

                  "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 which 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, (C) all of the Class B
Registrable Certificates for Class B Exchange Certificates, (D) all of the Class
C Registrable Certificates for Class C Exchange Certificates and (E) all of the
Class D Registrable Certificates for Class D 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 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;

                                       9
<PAGE>

                  (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 (located in the
         Borough of Manhattan, The City of New York) 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 (located in the Borough
         of Manhattan, The City of New York) 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 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;

                  (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

                                       10
<PAGE>

         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;

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

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

                                       11
<PAGE>

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 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 (iii) 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,

                                       12
<PAGE>

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 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

                                       13
<PAGE>

         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;

                  (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

                                       14
<PAGE>

         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 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

                                       15
<PAGE>

         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 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);

                                       16
<PAGE>

                  (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

                  (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

                                       17
<PAGE>

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 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

                                       18
<PAGE>

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 (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

                                       19
<PAGE>

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 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

                                       20
<PAGE>

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 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 & Co. Incorporated.
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

                                       21
<PAGE>

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 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.

                                       22
<PAGE>

                  (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 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

                                       23
<PAGE>

and then resell or otherwise transfer any 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.

                  (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.

                                       24
<PAGE>

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

                                          AMERICAN AIRLINES, INC.

                                          By:    /s/ Leslie M. Benners
                                                 ----------------------
                                          Name:  Leslie M. Benners
                                          Title: Managing Director,
                                                 Corporate Finance and Banking

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

                                          By:    /s/ Alison Della Bella
                                                 ----------------------
                                          Name:  Alison Della Bella
                                          Title: Assistant Vice President

Confirmed and accepted as of
  the date first above written:

MORGAN STANLEY & CO. INCORPORATED
CREDIT SUISSE FIRST BOSTON CORPORATION
SALOMON SMITH BARNEY INC.
DRESDNER KLEINWORT WASSERSTEIN SECURITIES LLC

By:  MORGAN STANLEY & CO.  INCORPORATED

         By:    /s/ P.M. Kaufer
                -----------------
         Name:  Patrick M. Kaufer
         Title: Principal

                                       25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]