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EXHIBIT 10.18
February 19, 1998
Xx. Xxxxxxx X. Xxxxxx, III
Xxxxxxxxxxx Xxxxxx
Xxxxx 000
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Dear Chick:
This will confirm the following agreement relating to the deferral of,
and payment of, your directors' fees:
1. All directors' fees and retainers payable to you in connection with
your service on the boards of directors (including committees of such boards) of
AMR Corporation ("AMR") and American Airlines, Inc. for the period January 1,
1998, through December 31, 1998, will be paid to you on a deferred basis as set
forth below.
2. Interest will be accrued on the amounts to be paid on a deferred
basis pursuant to paragraph 1 above, from the date such fees would otherwise
have been paid to the date actually paid, at the prime rate which The Chase
Manhattan Bank (National Association) from time to time charges in New York for
90-day loans to responsible commercial borrowers, such interest to be compounded
monthly.
3. The total amount to be paid on a deferred basis plus the aggregate
amount of interest accrued thereon and to accrue on the portion unpaid from time
to time will be paid to you in four installments as follows:
a) on January 1, 2003, 25% of the deferred fees and 25% of the
interest accrued through December 31 of the immediately preceding year;
b) on January 1, 2004, 25% of the deferred fees and 25% of the
interest accrued through December 31 of the immediately preceding year;
c) on January 1, 2005, 25% of the deferred fees and 25% of the
interest accrued through December 31 of the immediately preceding year; and
d) on January 1, 2006, 25% of the deferred fees and all interest
accrued and remaining to be paid on such payment date.
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4. AMR's obligation to make payments pursuant to paragraph 3 hereof
will not be released or modified by reason of your death. In the event of your
death prior to the payments contemplated by paragraph 3 hereof, the amounts
remaining will be paid to Xxxxxxx X. Xxxxxx, III, trustee, under the Xxxxxxx X.
Xxxxxx, III Revocable Living Trust, dated March 24, 1988, as amended x/x XXX
Xxxx, Xxxxxxx, Xxxxxxxx.
If the foregoing is satisfactory to you, please indicate by signing and
returning the enclosed copy of this letter.
Very truly yours,
Xxxxxxx X. XxxXxxx
Corporate Secretary
Accepted and agreed:
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Xxxxxxx X. Xxxxxx, III
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