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DEFERRED UNIT AWARD AGREEMENT

Deferred Unit Award Agreement

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This Deferred Unit Award Agreement involves

AMR CORP

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Title: DEFERRED UNIT AWARD AGREEMENT
Governing Law: Texas     Date: 7/26/2005
Industry: AIRLIN     Sector: TRANSP

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                                                Exhibit 10.2

 

                DEFERRED UNIT AWARD AGREEMENT

 

     This  AGREEMENT made this date, July 25, 2005,  by  and

between   AMR  Corporation,  a  Delaware  corporation   (the

"Corporation"),  and  First Last (the "Employee"),  employee

number 000000.

 

     WHEREAS,  the  Compensation Committee (the "Committee")

of  the  Board of Directors has determined that the Employee

is  a  key  employee and has further determined to  make  an

award of Deferred Units to the Employee as an inducement for

the Employee to remain with the Corporation (or a Subsidiary

or  Affiliate  thereof) and to motivate the Employee  during

such employment.

 

     NOW, THEREFORE, the Corporation and the Employee hereby

agree as follows:

 

     1.   Grant of Award.

 

     The Employee is hereby granted as of July 25, 2005 (the

"Grant  Date") a Deferred Unit Award (the "Award"),  subject

to  the terms and conditions of this Agreement, with respect

to 0,000 Deferred Units (the "Units").  The Units covered by

the Award will vest, if at all, in accordance with Section 2

hereof.   July  25,  2008,  is  hereby  established  as  the

"Vesting Date" of the Award.

 

     2.   Distribution of Award.

 

     Payment with respect to the Award, on the Vesting Date,

will  occur,  if  at all, in accordance with  the  following

terms and conditions:

 

     (a)   If the Employee is on the payroll of a Subsidiary

that  is  wholly owned by the Corporation as of the  Vesting

Date, a payment (determined in accordance with Section 4  of

this  Agreement) will be made to the Employee in  accordance

with the following schedule:

 

        Number of Units        Vesting Date         

             0,000              7/25/2008           

                                                     

     Payment under this Section 2(a) will be made within  30

days of the Vesting Date.

    

     (b)   In  the event the Employee's employment with  the

Corporation  (or  a  Subsidiary  or  Affiliate  thereof)  is

terminated  prior to the Vesting Date due to the  Employee's

death,  Disability, Retirement or termination not for  Cause

(each an "Early Termination"), the Award will vest on a pro-

rata  basis  and will be paid to the Employee  (or,  in  the

event  of  the  Employee's death, the Employee's  designated

beneficiary for the purposes of the Award, or in the absence

of  an  effective  beneficiary designation,  the  Employee's

estate).  The pro-rata basis will be a percentage where  the

denominator is 36 and the numerator is the number of  months

from  the Grant Date through the month of Early Termination,

inclusive.  The pro-rata Award will be paid to the  Employee

(or,  in  the event of the Employee's death, the  Employee's

designated beneficiary for the purposes of the Award, or  in

the  absence  of  an effective beneficiary designation,  the

Employee's  estate)  within  60 days  after  the  Employee's

death,  date of separation from employment due to Retirement

or  termination not for Cause or Disability subject  in  all

cases  to Section 2(e).  For purposes of this Section  2(b),

"Disability" shall mean "disability" as defined  in  section

409A(a)(2)(C)  of  the Internal Revenue  Code  of  1986,  as

amended  (the  "Code"). The amount of  the  payout  will  be

calculated in accordance with Section 4.

    

     (c)   In  the  event  of a Change  in  Control  of  the

Corporation prior

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