Document:

Exhibit 10.36

 

WILLIS ENGINE SECURITIZATION
TRUST

$28,276,878 Series 2005-B1 Floating Rate Notes

NOTE PURCHASE AGREEMENT

 

As of August 9, 2005

 

	
  Fortis
  Capital Corp.

  	
   

  	
  HSH
  Nordbank AG

  
	
  Three
  Stamford Plaza

  	
   

  	
  230
  Park Avenue

  
	
  301
  Tresser Boulevard

  	
   

  	
  New
  York, NY 10169-0005

  
	
  Stamford,
  CT 06901

  	
   

  	
   

  

 

 

Ladies
and Gentlemen:

 

1.  Introduction. Willis Lease Finance Corporation, a Delaware
corporation (“Willis”),
has formed Willis Engine Securitization Trust, a Delaware statutory
trust (“WEST”), that
will issue Willis Engine Securitization Trust Series 2005-B1 Floating Rate
Notes (the “Notes”), in the initial aggregate principal
amount of $28,276,878, secured by (among other things) WEST’s indirect
ownership interests in certain aircraft engines (“Engines”) and operating
leases thereon. WEST will acquire its indirect ownership interest in the
Engines and related leases and other assets from Willis pursuant to an asset
transfer agreement dated as of the Closing Date (as defined below) (the “Asset Transfer Agreement”). The Notes will be issued pursuant to an
indenture dated as of the Closing Date (the “Master Indenture”) between WEST and Deutsche Bank Trust Company Americas (“Deutsche”), as
indenture trustee (in such capacity the “Indenture
Trustee”) as
supplemented by the Series 2005-B1 supplement thereto dated as of the
Closing Date (the “Series Supplement” and, together with the Master Indenture,
the “Indenture”), and secured pursuant to a security
trust agreement dated as of the Closing Date among WEST and various of WEST’s
direct and indirect subsidiaries as grantors, and Deutsche as security trustee
(in such capacity the “Security
Trustee”). Capitalized
terms used herein that are not otherwise defined have the meanings given to
them in the Indenture.

 

WEST proposes to issue and sell the Notes (the “Offered Notes”) to Fortis and HSH (each a “Purchaser” and together the “Purchasers” or the “Initial
Purchaser”) pursuant to the terms and
conditions of this note purchase agreement (this “Agreement”).

 

WEST will offer the Offered Notes to the Purchasers for purchase
without their being registered under the Act (as defined herein) in reliance
upon exemptions provided by Section 4(2) and Rule 144A thereof
and Regulation S thereunder (“Regulation S”).

 

As used herein, “Qualified
Institutional Buyer” means
a “qualified
institutional buyer” within the
meaning of Rule 144A under the Securities Act of 1933, as amended (the “Act”); “U.S. Person”  means
a “U.S. person” within the meaning of Rule 902(k) of
Regulation S under the Act; and “Institutional
Accredited Investor” means
either (i) an “accredited
investor”

 

 

within
the meaning of paragraph (1), (2), (3), or (7) of Rule 501 (a) of
Regulation D under the Act or (ii) an entity all of whose equity owners
fall within those paragraphs.

 

2.  Offers and Sales of
Offered Notes; Fees and Expenses.

 

(a)  Subject to the terms and conditions contained herein and
on the basis of the representations and warranties herein set forth, WEST
hereby agrees to sell the Offered Notes to each Purchaser as provided herein,
and HSH and Fortis, hereby, severally and not jointly, agree to purchase such
Offered Notes from WEST on the Closing Date (as defined below), in the amount
and at the price (the “Purchase Price”) set forth on Schedule A hereto.

 

(b)  [Reserved].

 

(c)  [Reserved].

 

(d)  In addition, whether or not the transactions
contemplated by this Agreement are consummated, WEST agrees to pay or cause to
be paid the following (it being understood that if WEST should fail to pay such
amounts, Willis hereby agrees to pay such expenses of Fortis and HSH):

 

(i) the fees of, disbursements by, and
expenses of counsel to and accountants of each Purchaser and the reasonable
out-of-pocket expenses of each Purchaser, in each case incurred in connection
with the purchase of the Offered Notes;

 

(ii) all expenses in connection with the
preparation, printing, and distribution of the Series B1 Transaction
Documents and any amendments and supplements to them or revisions of them;

 

(iii) the cost of preparing certificates
representing the Offered Notes;

 

(iv) the fees charged by Moody’s and
Fitch for rating the Offered Notes;

 

(v) the fees and expenses of the
Indenture Trustee and Security Trustee and the fees and disbursements of
counsel for the Indenture Trustee and Security Trustee in connection with its
execution and delivery of the Indenture and the Security Trust Agreement, as
applicable; and

 

(vi) the fees and expenses of UT Finance
Corporation and the fees and disbursements of counsel for UT Finance
Corporation in connection with its execution and delivery of the Backup
Servicing Agreement and the Backup Administrative Agency Agreement, if any and
as applicable.

 

(e)  WEST agrees to pay, and will save each Purchaser
harmless from, all liabilities with respect to nonpayment or delay in payment
of, any taxes that may be payable with respect to the execution and delivery of
this Agreement or any other agreements entered into in connection with the
issuance and sale of the Offered Notes.

 

 

(f)  WEST agrees to pay, or reimburse each Purchaser for, all
reasonable expenses (including all reasonable out-of-pocket expenses that a
Purchaser may incur) in connection with (i) the enforcement of this
Agreement by a Purchaser against Willis or WEST, or (ii) a Purchaser’s
waiver, of. or giving of consents to amendments of, any terms of this Agreement
(whether or not the amendment or waiver becomes effective).

 

3.  Delivery. The Offered Notes shall be issued in the
forms provided in the Indenture and in denominations no less than the minimum
denominations specified in the Final Offering Memorandum, and payment for the
Offered Notes will be made at the offices of Pillsbury Winthrop Shaw Pittman
LLP, New York, New York (or such other place as shall be agreed upon by the
Purchasers and WEST), at 10:00 a.m., New York City time, on August 9,
2005 (or at such other time or date, not later than seven full Business Days
thereafter, as shall be agreed upon by the Purchasers and WEST) (such date and
time of payment and delivery being referred to herein as the “Closing Date”). WEST shall cause the Offered Notes (or
beneficial interests therein) to be delivered to each Purchaser against payment
to or upon the order of WEST by a Purchaser of the purchase price by wire
transfer of immediately available funds.

 

Delivery of the Offered Notes on the Closing Date will be made in
book-entry form through the facilities of The Depository Trust Company (“DTC”) and,
in the case of any Book-Entry Notes to be delivered or resold to non-U.S.
Persons, the facilities of Clearstream Banking sociéité
anonyme, or the Euroclear System (Notes delivered in book-entry
form, “Book-Entry Notes”). Each Class of Book-Entry Notes
will be represented by definitive global certificated Notes to be deposited by
or on behalf of WEST with DTC.

 

4.  Representations,
Warranties and Agreements.

 

(a)  [Reserved.]

 

(b)  Willis represents and warrants to, and agrees with, each
Purchaser that:

 

(i) Willis is a corporation, duly
organized, validly existing, and in good standing under the laws of the State
of Delaware, with full power and authority to own its properties and to conduct
its business, as described in the Series B1 Transaction Documents, and is
duly qualified (or, as of the Closing Date, will be so qualified) to do
business as a foreign corporation in each jurisdiction in which the nature of
its activities, its ownership or lease of property or the conduct of its
business requires such qualification. Willis (whether individually or in the
capacity of Servicer or Administrative Agent, as applicable) has full power and
authority to enter into and perform its obligations under this Agreement, as
well as (to the extent that it is a party thereto) the Series B1
Transaction Documents, and Willis is conducting its business so as to comply in
all material respects with all applicable statutes, ordinances, rules, and
regulations of the jurisdictions in which it is conducting business.

 

 

(ii) This Agreement has been duly
authorized, executed, and delivered by Willis. At or before the Closing Date,
Willis will have duly authorized, executed, and delivered each Series B1
Transaction Document to which it is a party.

 

(iii) Assuming their due authorization,
execution, and delivery by the other parties to them other than Willis or any
subsidiary thereof, as applicable, this Agreement and each of the Series B1
Transaction Documents to which Willis or any subsidiary thereof is a party,
when delivered by Willis or such subsidiary, will constitute valid and binding
agreements of Willis or such subsidiary, enforceable against Willis or such
subsidiary, as applicable, in accordance with their respective terms, except as
enforceability may be limited by

 

•                  bankruptcy,
insolvency, liquidation, receivership, moratorium, reorganization, fraudulent
conveyance, or other similar laws affecting the rights of creditors generally,

 

•                  general
principles of equity, regardless of whether enforcement is sought in a
proceeding in equity or at law, and

 

•                  public
policy considerations underlying the securities laws, to the extent that such
public policy considerations limit the enforceability of the provisions of any
of those agreements that provide indemnification or contribution from
securities law liabilities.

 

(iv) The execution, delivery, and
performance of this Agreement and the Series B1 Transaction Documents to
which it is a party, will not result in a breach or violation of any term of
the certificate of incorporation or by-laws or trust agreement or limited
liability company agreement of, or any statute or regulation applicable to,
Willis or any subsidiary thereof, or conflict with, result in a material
breach, violation, or acceleration of, or constitute a default under, any
indenture or other agreement or instrument to which Willis or any of its
subsidiaries is a party or by which any of them is bound, or any order or
decree applicable to Willis or any of its subsidiaries of any court, regulatory
body, administrative agency, or governmental body having jurisdiction over
Willis or any of its subsidiaries. None of Willis or any of its subsidiaries is
a party to, bound by, or in breach or violation of any indenture or other
agreement or instrument, or subject to or in violation of any statute, order,
or regulation of any court, regulatory body, administrative agency, or
governmental body having jurisdiction over it that materially adversely affects
the ability of Willis or such subsidiary, as applicable, to perform its
obligations under this Agreement or any Series B1 Transaction Document to
which it is a party.

 

(v) There are no actions or proceedings
against, or investigations of, Willis or any subsidiary thereof pending or, to
the knowledge of Willis, threatened before any court, administrative agency or
other tribunal

 

 

•                  asserting
the invalidity of this Agreement, any Series B1 Transaction Document, or
the Offered Notes,

 

•                  seeking
to prevent the issuance of the Offered Notes or the consummation of any of the
transactions contemplated by this Agreement or the Series B1 Transaction
Documents,

 

•                  that
might materially adversely affect the performance by Willis or any subsidiary
thereof (taken as a whole) of its respective obligations under, or the validity
or enforceability against any of them of, this Agreement or any Series B1
Transaction Document to which any of them is a party, or the Offered Notes, or

 

•                  seeking
to affect adversely the federal income tax attributes of the Offered Notes
described in the Offering Memorandum.

 

(vi) Since the date of the latest
audited financial statements of Willis there has been no material adverse
change, nor any development or event involving a prospective material adverse
change, in the condition (financial or otherwise), business, properties or
results of operations of Willis or its subsidiaries taken as a whole.

 

(vii) No authorization, approval, or
consent of, or filing with, any court or governmental authority or agency is
necessary in connection with (A) Willis’ or any subsidiary’s execution and
delivery of this Agreement or any Series B1 Transaction Document to which
it is a party, or (B) the offering, issuance, or sale of the Offered Notes
as contemplated in this Agreement and the Indenture, except such as may be
required under state securities laws, such security interest filings as may be
contemplated in the Security Trust Agreement or the Indenture or other
applicable Series B1 Transaction Document, and any disclosures with
respect to the transactions contemplated hereby required of Willis under the
federal securities laws.

 

(viii) Willis possesses all material
licenses, certificates, authorizations, and permits issued by the appropriate
state, federal, or foreign regulatory agencies or bodies necessary to conduct
the business now operated by it, except in cases in which failure to obtain all
licenses, certificates and permits or other approvals would not singly or in
the aggregate have a material adverse effect on Willis and any subsidiary
thereof taken as a whole. Willis has not received any notice of proceedings
relating to the revocation or modification of any such license, certificate,
authorization, or permit that, singly or in the aggregate, if the subject of
any unfavorable decision, ruling, or finding, would materially adversely affect
the business, operations, financial condition, properties or assets of Willis
and any subsidiary thereof taken as a whole.

 

(ix) Any taxes, fees, and other
governmental charges payable by Willis or any subsidiary thereof in connection
with the execution and delivery of this Agreement, the

 

 

Series B1 Transaction Documents to which any of them is a party
and the issuance and sale of the Offered Notes (other than federal, state, and
local taxes payable on the income or gain recognized therefrom), have been or
will be paid on or before the Closing Date.

 

(x) None of Willis nor any of its affiliates
nor any persons acting on its or their behalf (other than UBS Securities LLC
and UBS Limited, any affiliate of UBS Securities LLC or UBS Limited or anyone
acting on its or their behalf) has engaged or shall engage in any directed
selling efforts as defined in Rule 902 of Regulation S under the Act with
respect to the Offered Notes, and none of the foregoing persons has offered or
sold any of the Offered Notes; and none of the foregoing persons has entered
into any other contractual arrangements with any person with respect to the
distribution of the Offered Notes.

 

(xi) None of Willis or any of its affiliates
has offered or sold the Offered Notes by means of any form of general
solicitation or general advertising and none of the foregoing persons shall
offer to sell, offer for sale or sell the Offered Notes by means of any
advertisement, article, notice or other communication published in any
newspaper, magazine or similar medium or broadcast over television or radio, or
any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising.

 

(xii) Prior to the consummation of the
offering and resale transactions contemplated herein, none of Willis or any of
its affiliates has or will, either alone or with one or more other persons, bid
for or purchase for any account in which it or any of its affiliates has a
beneficial interest, any Offered Notes or attempt to induce any person to
purchase any Offered Notes; and none of them will make bids or purchases for
the purpose of creating actual, or apparent, active trading in, or raising the
price of, the Offered Notes.

 

(xiii) Willis is not required to be
registered as an “investment
company” under the Investment
Company Act of 1940, as amended (the “Investment
Company Act”).

 

(c)                                  WEST represents and warrants to, and agrees
with, each Purchaser that:

 

(i) WEST is a statutory trust, duly
organized, validly existing, and in good standing under the laws of the State
of Delaware, with full power and authority to own its properties and to conduct
its business, as described in the Series B1 Transaction Documents and as
presently conducted, and is duly qualified to do business as a foreign entity
in each jurisdiction in which the nature of its activities, its ownership or
lease of property or the conduct of its business requires such qualification.
WEST has full power and authority to enter into and perform its obligations
under this Agreement and the Series B1 Transaction Documents to which it
is a party, and WEST is conducting its

 

 

business so as to comply in all material respects with all applicable
statutes, ordinances, rules, and regulations of the jurisdictions in which it
is conducting business.

 

(ii) Each subsidiary of WEST that is
party to any Series B1 Transaction Document is an entity duly organized,
validly existing and (to the extent such concept is relevant) in good standing
under the laws of its applicable chartering jurisdiction, with full power and
authority to own its properties and to conduct its business, as described in
the Series B1 Transaction Documents and as presently conducted, and is
duly qualified to do business as a foreign entity in each jurisdiction in which
the nature of its activities, its ownership or lease of property or the conduct
of its business requires such qualification. Each such subsidiary has full
power and authority to enter into and perform its obligations under the Series B1
Transaction Documents to which it is a party, and each such subsidiary is
conducting its business so as to comply in all material respects with all
applicable statutes, ordinances, rules, and regulations of the jurisdictions in
which it is conducting business.

 

(iii) This Agreement has been duly
authorized, executed, and delivered by WEST. At or before the Closing Date,
WEST and each subsidiary thereof will have duly authorized, executed, and
delivered each Series B1 Transaction Document to which it is a party, as
applicable.

 

(iv) Assuming their due authorization,
execution, and delivery by the other parties to them other than Willis or WEST
or a subsidiary thereof, as applicable, this Agreement and each of the Series Bl
Transaction Documents, when delivered by any of WEST (or a subsidiary thereof)
that is a party thereto, will constitute valid and binding agreements of WEST
and/or such subsidiary (in each case to the extent a party thereto),
enforceable against WEST and/or such subsidiary in accordance with their
respective terms, except as enforceability may be limited by

 

•                  bankruptcy,
insolvency, liquidation, receivership, moratorium, reorganization, fraudulent
conveyance or other similar laws affecting the rights of creditors generally,

 

•                  general
principles of equity, regardless of whether enforcement is sought in a
proceeding in equity or at law, and

 

•                  public
policy considerations underlying the securities laws, to the extent that such
public policy considerations limit the enforceability of the provisions of any
of those agreements that provide indemnification or contribution from
securities law liabilities.

 

(v) The issuance and sale of the Offered
Notes has been duly and validly authorized by WEST; and the Offered Notes, when
duly and validly executed by WEST and authenticated by the Indenture Trustee in
accordance with the Indenture, and paid

 

 

for and delivered as contemplated in this Agreement, will be valid,
binding and enforceable obligations of WEST entitled to the benefits of the
Indenture and the Security Trust Agreement, except as enforceability may be
limited by (A) bankruptcy, insolvency, liquidation, receivership,
moratorium, reorganization, fraudulent conveyance or other similar laws
affecting the rights of creditors generally, and (B) general principles of
equity, regardless of whether enforcement is sought in a proceeding in equity
or at law.

 

(vi) The execution, delivery, and
performance of this Agreement and the Series B1 Transaction Documents to
which it is a party, will not result in a breach or violation of any term of
the certificate of incorporation or by-laws or trust agreement or limited liability
company agreement of, or any statute or regulation applicable to, WEST or any
subsidiary thereof, or conflict with, result in a material breach, violation,
or acceleration of, or constitute a default under, any indenture or other
agreement or instrument to which WEST or any of its subsidiaries is a party or
by which any of them is bound, or any order or decree applicable to WEST or any
of its subsidiaries of any court, regulatory body, administrative agency, or
governmental body having jurisdiction over WEST or any of its subsidiaries.
None of WEST or any of its subsidiaries is a party to, bound by, or in breach
or violation of any indenture or other agreement or instrument, or subject to
or in violation of any statute, order, or regulation of any court, regulatory
body, administrative agency, or governmental body having jurisdiction over it
that materially adversely affects the ability of WEST or such subsidiary, as
applicable, to perform its obligations under this Agreement or any Series B1
Transaction Document to which it is a party.

 

(vii) There are no actions or
proceedings against, or investigations of, WEST or any subsidiary thereof
pending or, to the knowledge of WEST, threatened before any court,
administrative agency or other tribunal

 

•                  asserting
the invalidity of this Agreement, any Series Bl Transaction Document, or
the Offered Notes,

 

•                  seeking
to prevent the issuance of the Offered Notes or the consummation of any of the
transactions contemplated by this Agreement or the Series B1 Transaction
Documents,

 

•                  that
might materially adversely affect the performance by WEST or any subsidiary
thereof (taken as a whole) of its respective obligations under, or the validity
or enforceability against any of them of, this Agreement or any Series B1 Transaction
Document to which any of them is a party, or the Offered Notes, or

 

•                  seeking
to affect adversely the federal income tax attributes of the Offered Notes
described in the Offering Memorandum.

 

 

(viii) There has not been any material
adverse change in the business, operations, financial condition, properties, or
assets of WEST or any subsidiary thereof (except in respect of the adverse
effect that the financial difficulties of Varig and its subsidiary Rio Sul as a
lessee, as disclosed in the Offering Memorandum, would have on the affected
lessor subsidiaries of WEST Funding) that would have a material adverse effect
on the ability of any of them to perform its obligations under this Agreement,
or any Series B1 Transaction Document to which it is a party (as
applicable).

 

(ix) No authorization, approval, or
consent of, or filing with, any court or governmental authority or agency is
necessary in connection with (A) WEST’s or any subsidiary’s execution and
delivery of this Agreement or any Series B1 Transaction Document to which
it is a party, or (B) the offering, issuance, or sale of the Offered Notes
as contemplated in this Agreement and the Indenture, except such as may be
required under state securities laws, and such security interest filings as may
be contemplated in the Security Trust Agreement or the Indenture or other
applicable Series B1 Transaction Document.

 

(x) Each of WEST and any subsidiary thereof
party to a Series B1 Transaction Document possesses all material licenses,
certificates, authorizations, and permits issued by the appropriate state,
federal, or foreign regulatory agencies or bodies necessary to conduct the
business now operated by it, except in cases in which failure to obtain all
licenses, certificates and permits or other approvals would not singly or in
the aggregate have a material adverse effect on WEST and any subsidiary thereof
taken as a whole. Neither WEST nor any such subsidiary has received any notice
of proceedings relating to the revocation or modification of any such license,
certificate, authorization, or permit that, singly or in the aggregate, if the
subject of any unfavorable decision, ruling, or finding, would materially
adversely affect the business, operations, financial condition, properties or
assets of WEST or such subsidiary, as applicable.

 

(xi) Any taxes, fees, and other governmental
charges payable by WEST or any subsidiary thereof in connection with the
execution and delivery of this Agreement, the Series B1 Transaction
Documents to which any of them is a party and the issuance and sale of the
Offered Notes (other than federal, state, and local taxes payable on the income
or gain recognized therefrom), have been or will be paid on or before the
Closing Date.

 

(xii) Immediately following the closing of
the transactions contemplated on the Closing Date, there will not exist any
default by WEST or any condition, event or act, which, with notice or lapse of
time or both, would constitute an Event of Default or Early Amortization Event.

 

 

(xiii) WEST has not, directly or indirectly,
solicited any offer to buy or offered to sell, and shall not. directly or
indirectly, solicit any offer to buy or offer to sell, in the United States or
to any United States citizen or resident, any security which is or would be
integrated with the sale of the Offered Notes in a manner that would require
the Offered Notes to be registered under the Act, nor has WEST taken any other
action that would constitute a distribution of any Offered Note under the Act,
would render the disposition of any Offered Note a violation of Section 5
of the Act or any state securities law, or would require registration or
qualification pursuant thereto.

 

(xiv) The Offered Notes are eligible for
resale pursuant to Rule 144A under the Act and shall not be, on the
Closing Date, of the same class as securities listed on a national securities
exchange registered under Section 6 of the United States Securities
Exchange Act of 1934, as amended (the “Exchange
Act”), or quoted
in a United States automated interdealer quotation system.

 

(xv) None of WEST nor any of its affiliates
nor any persons acting on its or their behalf (other than UBS Securities LLC
and UBS Limited, any affiliate of UBS Securities LLC or UBS Limited or anyone
acting on its or their behalf) has engaged or shall engage in any directed
selling efforts as defined in Rule 902 of Regulation S under the Act with
respect to the Offered Notes, and none of the foregoing persons has offered or
sold any of the Offered Notes; and none of the foregoing persons has entered
into any other contractual arrangements with any person with respect to the
distribution of the Offered Notes.

 

(xvi) None of WEST or any of its affiliates
has offered or sold the Offered Notes by means of any form of general solicitation
or general advertising and none of the foregoing persons shall offer to sell,
offer for sale or sell the Offered Notes by means of any advertisement,
article, notice or other communication published in any newspaper, magazine or
similar medium or broadcast over television or radio, or any seminar or meeting
whose attendees have been invited by any general solicitation or general
advertising.

 

(xvii) Prior to the consummation of the
offering and resale transactions contemplated herein, none of WEST or any of
its affiliates has or will, either alone or with one or more other persons, bid
for or purchase for any account in which it or any of its affiliates has a
beneficial interest, any Offered Notes or attempt to induce any person to
purchase any Offered Notes; and none of them will make bids or purchases for
the purpose of creating actual, or apparent, active trading in, or raising the
price of, the Offered Notes.

 

(xviii) WEST is not required to be registered
as an “investment
company,” nor shall WEST be
required to register as an “investment
company,” under the Investment

 

 

Company Act, as a result of the conduct of its business in the manner
contemplated by the Offering Memorandum and the Series Bl Transaction
Documents.

 

(xix) Assuming the related Purchaser’s
representations set forth in Section 4(b) below are true and
accurate, no registration of the Offered Notes under the Act is required for
the offer and sale of the Offered Notes in the manner contemplated by this
Agreement and no qualification of an indenture under the Trust Indenture Act of
1939, as amended, is required for the offer and sale of the Offered Notes in
the manner contemplated by this Agreement.

 

(xx) Any sale of an Offered Note or an
interest in one made by WEST or any person acting on its behalf outside the
United States, its territories and possessions, to a non-U.S. Person has been
and will be so made in accordance with Regulation S under the Act. With respect
to such Offered Note, WEST and any of its affiliates, and any person acting on
its or their behalf has complied with and will implement “offering restrictions” within the meaning of Rule 902 under
the Act.

 

(xxi) WEST has not offered and shall not
offer the Offered Notes except in accordance with this Agreement.

 

(xxii) Each certificate representing an
Offered Note shall bear the applicable legend as set forth in the Indenture and
the related Supplement for the time period and upon the other terms stated in
the Indenture and the related Supplement.

 

(xxiii) None of the proceeds of the sale of
the Offered Notes will be used, directly or indirectly, for the purpose of
purchasing or carrying any “margin
securities” as that term is
defined in Regulation U of the Board of Governors of the Federal Reserve
System, as amended (the “Federal
Reserve Board”), for
the purpose of reducing or retiring any indebtedness which was originally
incurred to purchase or carry any margin security, or for any other purpose
which might cause any of the Offered Notes to be considered a “purpose credit” within the meanings of Regulation T, U or X of the Federal Reserve
Board.

 

(xxiv) Reserved.

 

(xxv) Reserved.

 

(xxvi) Except as disclosed in the Offering
Memorandum, there are no contracts, agreements or understanding between Willis,
WEST or any subsidiary thereof and any other person that would give rise to a
valid claim against Willis, WEST, any subsidiary thereof or a Purchaser for a
brokerage commission, finder’s fee or other like payment.

 

 

(d) Each Purchaser represents and warrants to and agrees with Willis
and WEST that:

 

(i) It is an “accredited investor” within the meaning of Regulation D under the
Securities Act.

 

(ii) It acknowledges that the Offered
Notes have not been registered under the Act and may not be sold (A) within
the United States or to or for the account or benefit of, U.S. persons except
pursuant to an exemption from the registration requirements of the Act, and (B) otherwise
in accordance with Regulation S.

 

(iii) [Reserved].

 

(iv) It will not solicit any resell to
any person any Offered Note or an interest in one (in the United States, its
territories and possessions, or to, or for the account or benefit of, a U.S.
Person) unless:

 

•                  such
Purchaser reasonably believes that such person at the time is a Qualified
Institutional Buyer that would purchase the Offered Note or interest therein
for its own account or the account of another Qualified Institutional Buyer; or

 

•                  the
resulting purchase transaction is otherwise exempt from the registration
requirements of the Act and such person is an Institutional Accredited
Investor.

 

5.  Certain Agreements of
WEST. WEST
covenants and agree with each Purchaser as follows:

 

(a) Neither the consent of Fortis or HSH of any such amendment or
supplement to the Offering Memorandum shall constitute a waiver of any of the
conditions set forth in Section 6 hereof.

 

(b) [Reserved].

 

(c) [Reserved].

 

(d) [Reserved].

 

(e) Upon the request of a Purchaser, WEST shall furnish to the
each Purchaser, as soon as available, a copy of each report regarding the
Offered Notes that is prepared pursuant to the Indenture or the Servicing
Agreement or Administrative Agency Agreement, furnished to WEST and mailed to
the holders of the Offered Notes.

 

 

(f) WEST will furnish to holders and prospective purchasers of the
Offered Notes, upon request, information satisfying the requirements of subsection (d)(4)(i) of
Rule 144A under the Act.

 

(g) [Reserved].

 

(h) WEST will furnish to each Purchaser and any holder of Offered
Notes a copy of the restrictions on transfer applicable to the Offered Notes
upon request.

 

(i) WEST will use its best efforts to cause the Offered Notes to
be made eligible for trading in The Portal(SM) Market of The Nasdaq Stock Market, Inc.

 

(j) WEST agrees that it shall not make any offer or sale of securities
if, as a result of the doctrine of “integration” referred to
in Rule 502 promulgated under the Act, such offer or sale could be deemed
to render invalid (for the purpose of (i) the sale of the Offered Notes to
the a Purchaser or (ii) the resale of the Offered Notes by a Purchaser to
others) the exemption from the registration requirements of the Act provided by
Section 4(2) thereof or by Rule 144A or by Regulation S
thereunder or otherwise.

 

(k) Until the expiration of one year after the original issuance of the
Offered Notes, WEST shall not resell any Offered Notes which are “restricted securities” (as such term is defined under Rule 144(a)(3) under
the Act) that have been re-acquired by WEST and shall immediately upon any
purchase of any such Offered Notes submit such Offered Notes to the Indenture
Trustee for cancellation.

 

(1) WEST shall use the net proceeds received by it from the sale
of the Offered Notes in the manner specified in the Final Offering Memorandum
under “Use of Proceeds”.

 

(m) [Reserved].

 

(n) To the extent that the ratings provided on the Offered Notes
are conditional upon the furnishing of documents or the taking of other actions
by WEST, then WEST shall use its reasonable best efforts to furnish such
documents and take any other such action.

 

6.  Conditions to the Obligations of the Purchasers. The obligation of the Purchasers to purchase
and pay for the Offered Notes as provided in this Agreement is subject to:

 

•                  the accuracy of the representations and
warranties on the part of Willis and WEST in this Agreement as of today and as
of the Closing Date,

 

•                  the accuracy of the statements of Willis and
WEST made in any certificates delivered pursuant to this Agreement,

 

 

•                  the performance by WEST and Willis of their
respective obligations under this Agreement, and

 

•                  the satisfaction of the following additional
conditions with respect to the Offered Notes:

 

(a)  Each Purchaser shall have received the Offering
Memorandum.

 

(b)  there shall not have occurred any of the following:

 

(i) any material adverse change, or any
development or event involving a known prospective change, in the business,
operations, financial condition, properties or assets of

 

•     Willis,

•     WEST, or

•     the
initial Engine portfolio, taken as a whole;

 

the effect of which is, in the judgment of a Purchaser, so material and
adverse as to make it impracticable or inadvisable to proceed with the sale or
delivery of the Offered Notes on the terms and in the manner contemplated by
this Agreement;

 

(ii) any downgrading in the rating of
any debt securities (or preferred stock) of Willis or any of its subsidiaries
by any “nationally
recognized statistical rating organization” (as defined for purposes of Rule 436(g) under the Act), or
any public announcement that any such organization has under surveillance or
review its rating of any debt securities (or preferred stock) of Willis or any
of its subsidiaries (other than an announcement with positive implications of a
possible upgrading, and no implication of a possible downgrading, of the
rating);

 

(iii) any material adverse change in
U.S. or international financial, political, or economic conditions or currency
exchange rates or exchange controls that would, in the reasonable judgment of a
Purchaser, be likely to prejudice materially the success of the proposed issue,
sale, or distribution of the Offered Notes, whether in the primary market or in
respect of dealings in the secondary market;

 

(iv) the suspension or limitation of
trading generally on the American Stock Exchange, the New York Stock Exchange,
the NASDAQ National Market System, the Chicago Board of Options Exchange or the
Chicago Board of Trade or the fixing of minimum or maximum prices or maximum
ranges for trading by any such exchange or by order of the Commission, the National
Association of Securities Dealers, Inc. or any other governmental
authority;

 

(v) any banking moratorium declared by
U.S. Federal or New York authorities;

 

 

(vi) any major disruption of settlements
of securities or clearance services in the United States;

 

(vii) any attack on, outbreak, or
escalation of hostilities or act of terrorism involving the United States, any
declaration of war by Congress, or any other national or international calamity
or emergency if, in the judgment of a Purchaser, the effect of the attack,
outbreak, escalation, act, declaration, calamity, or emergency makes it
impractical or inadvisable to proceed with completion of the offering or resale
of the Offered Notes; or

 

(viii) a change or development involving
a prospective change in United States taxation affecting WEST, the Offered
Notes or the transfer thereof or the imposition of exchange controls by the
United States, if, in the judgment of a Purchaser, the effect of such event
makes it impracticable or inadvisable to proceed with completion of the
offering or resale of the Offered Notes.

 

(c)  Each Purchaser shall have received from each of Willis
and WEST a certificate, dated the Closing Date and executed by their respective
executive officers (or, in the case of WEST, a trustee), to the effect that:

 

(i) the representations and warranties
of Willis or WEST, as applicable, in this Agreement are accurate in all
material respects as of the Closing Date with the same effect as if made on the
Closing Date; and

 

(ii) Willis and WEST, as applicable,
have complied with all the agreements and satisfied all the conditions on its
part to be performed or satisfied at or before the Closing Date.

 

(d)  Each Purchaser shall have received

 

(i) with respect to Willis a good
standing certificate from the Secretary of State of the State of Delaware,
dated not earlier than ten days before the Closing Date,

 

(ii) with respect to WEST a good
standing certificate from the Secretary of State of the State of Delaware,
dated not earlier than ten days before the Closing Date, and

 

(iii) with respect to WEST Funding, a
good standing certificate from the Secretary of State of Delaware, dated not
earlier than ten days before the Closing Date.

 

(e)  Each Purchaser shall have received from the Secretary or
an assistant secretary (or equivalent officer) of Willis, in the officer’s
individual capacity, a certificate, dated the Closing Date, to the effect that:

 

(i) each individual who, as an officer
or representative of Willis, signed this Agreement, any Series Bl
Transaction Document or any other document or certificate

 

 

delivered on or before the Closing Date in connection with the
transactions contemplated in this Agreement or in the Series B1
Transaction Documents, was at the respective times of such signing and
delivery, and is as of the Closing Date, duly elected or appointed, qualified,
and acting as such officer or representative, and the signature of the
individual appearing on the documents and certificates is the officer’s genuine
signature; and

 

(ii) no event (including any act or
omission on the part of Willis) has occurred since the date of the good
standing certificate referred to in paragraph (c) above that has affected
the good standing of Willis under the laws of the State of Delaware.

 

Such
certificate shall be accompanied by accurate copies (certified as such by the
Secretary or an assistant secretary of Willis) of the organizational documents
of Willis, as in effect on the Closing Date, and of the resolutions of Willis
and any required consent relating to the transactions contemplated in this
Agreement and the Series B1 Transaction Documents.

 

(f)  Each Purchaser shall have received from the Secretary or
an assistant secretary of WEST (or of a trustee for WEST), in such person’s
individual capacity, a certificate, dated the Closing Date, to the effect that:

 

(i) each individual who, as an officer
or representative of WEST, signed this Agreement, any Series B1
Transaction Document, or any other document or certificate delivered on or
before the Closing Date in connection with the transactions contemplated in
this Agreement or in the Series B1 Transaction Documents, was at the
respective times of such signing and delivery, and is as of the Closing Date,
duly elected or appointed, qualified, and acting as such officer or
representative, and the signature of the individual appearing on the documents
and certificates is the officer’s genuine signature; and

 

(ii) no event (including any act or
omission on the part of WEST) has occurred since the date of the good standing
certificate referred to in paragraph (c) above that has affected the good
standing of WEST under the laws of the State of Delaware.

 

Such
certificate shall be accompanied by accurate copies (certified as such by the
Secretary or an assistant secretary of WEST) of the trust agreement of WEST, as
in effect on the Closing Date, and of the resolutions of WEST, and of any
required consent relating to the transactions contemplated in this Agreement
and the Series B1 Transaction Documents.

 

(g)  Each Purchaser shall have received from the Secretary or
an assistant secretary of WEST Funding, in the officer’s individual capacity, a
certificate, dated the Closing Date, to the effect that:

 

(i) each individual who, as an officer
or representative of WEST Funding or a subsidiary thereof, signed the relevant Series B1
Transaction Document to which it is a

 

 

party, or any other document or certificate
delivered on or before the Closing Date in connection with the transactions
contemplated in the Series B1 Transaction Documents, was at the respective
times of such signing and delivery, and is as of the Closing Date, duly elected
or appointed, qualified, and acting as such officer or representative, and the
signature of the individual appearing on the documents and certificates is the
officer’s genuine signature; and

 

(ii) no event (including any act or
omission on the part of WEST Funding or such subsidiary thereof has occurred
since the date of the good standing certificate referred to in paragraph (c) above
that has affected the good standing of it or such subsidiary under the laws of
its chartering jurisdiction (to the extent such concept is relevant to such
subsidiary).

 

Such certificate shall be accompanied by accurate copies (certified as
such by the Secretary or an assistant secretary of WEST Funding) of the
relevant organizational documents of WEST Funding and each such subsidiary, as
in effect on the Closing Date, and of the resolutions of WEST Funding and (if
relevant) each such subsidiary, and of any required consent relating to the
transactions contemplated in the Series B1 Transaction Documents.

 

(h) Each Purchaser shall have received opinions, dated the Closing
Date, from (i) Pillsbury Winthrop Shaw Pittman LLP, in its capacity as
special counsel for Willis, WEST and its subsidiaries party to any Series B1
Transaction Document, (ii) the General Counsel of Willis (as to
entity-specific matters traditionally covered by internal counsel in
asset-backed Rule 144A debt offerings), and (iii) such other law
firms reasonably acceptable to the Purchasers and their counsel, substantially
to the effect that:

 

(i) WEST has been duly
formed, and each of Willis, WEST and any subsidiary thereof party to a Series B1
Transaction Document (any, a “WEST Entity”) is validly existing and (if such concept
is relevant to such entity) is in good standing under the laws of the state of
its formation, with power and authority to own its properties and conduct its
business as described in the Series B1 Transaction Documents; and each
WEST Entity is duly qualified to do business as a foreign entity in good
standing in all other jurisdictions in which its ownership or lease of property
or the conduct of its business requires such qualification.

 

(ii) This Agreement and
any Series B1 Transaction Document to which any of them is a party, each
have been duly authorized, executed and delivered by each WEST Entity party
thereto, as applicable; the Offered Notes have been duly authorized, executed,
authenticated, issued and delivered; and this Agreement and each Series B1
Transaction Document with respect to which a WEST Entity is a party,
constitutes a valid and binding agreement of the relevant WEST Entity,
enforceable against such WEST Entity in accordance with its terms, subject to
the effect of (A) bankruptcy, insolvency, reorganization, receivership,
fraudulent conveyance, fraudulent transfer, moratorium and other laws affecting
the rights and remedies of creditors

 

 

generally and general principles of equity (whether considered in a
proceeding inequity or at law) and (B) concepts of materiality,
reasonableness, good faith and fair dealings and the discretion of the court
before which any proceeding may be brought.

 

(iii) The Security
Trust Agreement creates a valid lien in favor of the Security Trustee upon all
of the Collateral as granted thereunder; the Security Trustee for the benefit
of the holders of the Offered Notes from time to time will have, upon the
filing of certain financing statements, a perfected security interest in the
Collateral.

 

(iv) WEST is not an “investment company” as such term is defined in the Investment
Company Act.

 

(v) No consent,
approval, authorization or order of, or filing with, any governmental agency or
body or any court is required for the consummation of the transactions
contemplated by this Agreement in connection with the issuance or sale of the
Offered Notes, except for security interest filings contemplated in the
Security Trust Agreement and such as may be required under state securities
laws.

 

(vi) There are no
pending actions, suits or proceedings against or affecting any WEST Entity, or
any of their properties that, if determined adversely, would individually or in
the aggregate have a material adverse effect on the ability of such WEST Entity
to perform its respective obligations under this Agreement or any Series B1
Transaction Document to which it is a party; and no such actions, suits or
proceedings are, to such counsel’s knowledge, threatened or contemplated.

 

(vii) The execution,
delivery and performance of this Agreement and any other Series B1
Transaction Documents to which any WEST Entity is a party, and the issuance and
sale of the Offered Notes and compliance with the terms and provisions thereof
will not result in a breach or violation of any of the terms and provisions of,
or constitute a default under, any statute, any rule, regulation or order of
any governmental agency or body or any court having jurisdiction over such WEST
Entity or any of its properties, or any agreement or instrument to which such
WEST Entity is a party or by which such WEST Entity or any of its properties is
bound or subject, or the organizational or formation documents of such WEST
Entity; and WEST has full power and authority to authorize, issue and sell the
Offered Notes as contemplated by this Agreement.

 

(viii) Such counsel
have no reason to believe that the Offering Memorandum, or any amendment or
supplement thereto, as of the date hereof and as of the Closing Date, contained
any untrue statement of a material fact or omitted or omits to state a material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

 

(ix) Assuming that the
representations and warranties of WEST in this Agreement are accurate and the
agreements of WEST in this Agreement are complied with, it is not necessary in
connection with the offer, sale and delivery of the Offered Notes by WEST to
the Purchasers under this Agreement to register the Offered Notes under the Act
(it being understood that no opinion is expressed as to any sale subsequent to
the initial resales of the Offered Notes by a Purchaser) or to qualify the
Indenture under the Trust Indenture Act of 1939, as amended;

 

(x) The statements in the
Final Offering Memorandum with respect to the Series B1 Transaction
Documents and the Offered Notes, to the extent that they constitute summaries
thereof, constitute accurate summaries of the terms thereof in all material
respects.

 

(xi) The statements made in
the Final Offering Memorandum under the captions “CERTAIN U.S. FEDERAL INCOME TAX CONSEQUENCES” and “CERTAIN ERISA CONSIDERATIONS”, to the extent that they constitute matters of law or regulation or
legal conclusions, constitute accurate summaries in all material respects;

 

(xii) Assuming compliance
with all the terms specified in the Principal Transaction Agreements and the
Amended and Restated Trust Agreement for WEST, the Offered Notes will be
classified as debt, and WEST will not be classified as an association (or a
publicly traded partnership) taxable as a corporation, in each case for U.S.
federal income tax purposes.

 

(xiii) In the event of a
bankruptcy case involving Willis as debtor under the Bankruptcy Code, a court
properly presented with the facts would hold that Willis’s transfer of the
equity interest in WEST Funding to WEST pursuant to the Asset Transfer
Agreement would constitute a transfer of ownership, and not a mere transfer of
a security interest securing a borrowing by Willis, and that accordingly such
equity interest so transferred (and the property and assets of WEST Funding and
its subsidiaries) and the proceeds thereof would not constitute “property of the estate” of the transferor for purposes of Section 541
of the Bankruptcy Code and would not as a result of such bankruptcy case be
subject to the automatic stay of Section 362(a) of the Bankruptcy
Code.

 

(xiv) In the event of a
bankruptcy case involving Willis as debtor under the Bankruptcy Code, a court
properly presented with the facts would not grant an order substantively
consolidating the assets and liabilities of WEST and its subsidiaries with
those of Willis.

 

(xv) Such other matters as a
Purchaser or its counsel may reasonably request.

 

(i) Each Purchaser shall have received an opinion from counsel or
special counsel to the Indenture Trustee, Security Trustee, Backup Servicer and
the Backup Administrative Agent,

 

 

dated
the Closing Date and addressing customary entity and agreement enforceability
matters, in form and substance reasonably satisfactory to each Purchaser.

 

(j) On or prior to the Closing Date WEST shall have caused the Engine
Mortgages to be filed/registered with the FAA and the Purchasers shall have
received from McAfee & Tatt, special FAA counsel to WEST, an opinion
dated the Closing Date (or the day thereafter) and in customary form as to the
occurrence, validity, perfection and priority of such filing/registration under
applicable U.S. federal law.

 

(k) The Purchasers shall have received from Deloitte & Touche,
certified public accountants, a letter, dated as of the date of the Final
Offering Memorandum, in form and substance reasonably satisfactory to the
Purchasers, stating in effect that (using the assumptions and methodology
acceptable to the Purchasers, all of which shall be described in such letter)
they have recalculated the numbers and percentages in the Final Offering
Memorandum as the Purchasers reasonably request compared the results of their
calculations to the corresponding items in the Final Offering Memorandum, and
found each of those numbers and percentages in the Final Offering Memorandum to
be in agreement with the results of their calculations.

 

(l) Each Purchaser shall have received all opinions, certificates,
and other documents required under any Series B1 Transaction Document to
be delivered by Willis, WEST or any subsidiary thereof and/or its counsel in
connection with the transactions contemplated thereby, and each such opinion
shall be dated the Closing Date and addressed to each Purchaser.

 

(m) Each Purchaser shall have received all opinions rendered to Moody’s
and/or Fitch by counsel to Willis, WEST and/or any subsidiary thereof, and each
such opinion shall be dated the Closing Date and addressed to each Purchaser.

 

(n) The Offered Notes shall have been rated by Moody’s and Fitch as
specified in the Final Offering Memorandum and such ratings shall not have been
rescinded.

 

(o) The Series B1 Transaction Documents shall have been duly
executed and delivered by the parties thereto.

 

(p) The Offered Notes shall have been executed by WEST and
authenticated by the Indenture Trustee, and the conditions precedent thereto,
as set forth in the Indenture, shall have been satisfied.

 

(q) The Series A1 Notes, the Series A2 Notes, and the Series B2
Notes (each as described in the Offering Memorandum) shall have been validly
issued and delivered to the holders thereof, and all Series B1 Transaction
Documentation in connection therewith (including documentation evidencing the
commitment by such holders to advance funds to WEST under the unfunded portion
of such notes that constitute Warehouse Notes) shall have been validly executed
and delivered and be in full force and effect.

 

 

(r) Each Purchaser shall have received all opinions rendered to the
holders/purchasers of the Series A1 Notes, the Series A2 Notes or the
Series B2 Notes by counsel to Willis, WEST and/or any subsidiary thereof,
and each such opinion shall be dated the Closing Date and addressed to each
Purchaser (or a reliance letter with respect thereto shall have been executed
and delivered to each Purchaser).

 

(s) On or prior to the Closing Date, WEST shall have funded the Senior
Restricted Cash Account, the Junior Restricted Cash Account, the Engine Reserve
Account, the Security Deposit Account, and the Series A1 Interest Reserve
Account (if any), in each case as contemplated or described in the Series B1
Transaction Documents.

 

(t) The conditions to transfer specified in the Asset Transfer
Agreement (including without limitation with respect to Security Deposits
evidenced by letters of credit) shall have been satisfied as of or prior to the
Closing Date.

 

(u) Custody of “chattel
paper” originals of each of the
Initial Leases shall have been delivered to the Security Trustee or to a
custodian acting as agent of the Security Trustee on or prior to the Closing
Date.

 

(v) Reserved.

 

(w) All proceedings in connection with the transactions contemplated by
this Agreement, and all documents incident to this Agreement and those
proceedings, shall be otherwise reasonably satisfactory in form and substance
to each Purchaser and counsel for each Purchaser.

 

6A. Conditions to the Obligations of WEST. The obligation of WEST to issue the Offered
Notes to a Purchaser as provided in this Agreement is subject to:

 

•                  the
accuracy of the representations and warranties on the part of such Purchaser in
this Agreement as of the Closing Date,

 

•                  the
accuracy of the statements of such Purchaser made in any certificates delivered
pursuant to this Agreement,

 

•                  the
performance by such Purchaser of its obligations under this Agreement, and

 

•                  the
satisfaction of the following additional conditions with respect to the Offered
Notes:

 

(a)                                  there shall not have occurred a change or
development involving a prospective change in United States taxation affecting
WEST, the Offered Notes or the transfer thereof or the imposition of exchange
controls by the United States, if, in the

 

 

judgment of WEST, the effect of such event makes it impractical or
inadvisable to proceed with completion of the issuance of the Offered Notes.

 

(b)                                 WEST shall have received an opinion from
counsel or special counsel to the Indenture Trustee, Security Trustee, Backup
Servicer and the Backup Administrative Agent dated the Closing Date and
addressing customary entity and agreement enforceability matters, in form and
substance reasonably satisfactory to WEST.

 

(c)                                  The Offered Notes shall have been rated by
Moody’s and Fitch as specified in the Final Offering Memorandum and such
ratings shall not have been rescinded.

 

(d)                                 The Series B1 Transaction Documents
shall have been duly executed and delivered by the parties thereto other than
Willis and WEST.

 

(e)                                  The Series A1 Notes, the Series A2
Notes, and the Series B2 Notes (each as described in the Offering Memorandum)
shall have been validly issued and delivered to the holders thereof, and all Series B1
Transaction Documentation in connection therewith (including documentation
evidencing the commitment by such holders to advance funds to WEST under the
unfunded portion of such notes that constitute Warehouse Notes) shall have been
validly executed and delivered and be in full force and effect.

 

7. Indemnification
and Contribution.

 

(a) WEST and Willis each agree to indemnify

 

•                  each
Purchaser,

 

•                  the
directors, officers, employees, and agents of each Purchaser, and

 

•                  each
person who controls a Purchaser within the meaning of either the Act or the
Exchange Act,

 

against
any and all losses, claims, damages, liabilities, costs, and expenses, joint or
several, as the same are incurred, to which they or any of them may become
subject (under the Act, the Exchange Act, or otherwise) insofar as such losses,
claims, damages, liabilities, costs, and expenses (or actions in respect
thereof) arise out of or are based upon any breach of any representation,
warranty or covenant in this Agreement or any other Series B1 Transaction
Document or any certificate or other written material delivered hereto, and
will periodically reimburse each indemnified party for any legal or other expenses
reasonably incurred by it (as incurred) in connection with investigating or
defending against, settling, compromising or paying any such loss, claim,
damage, liability, cost, expense, or action.

 

 

(b) [Reserved.]

 

(c) Promptly after receipt by an indemnified party under this Section of
notice of the commencement of any action covered under Section 7(a) hereof,
the indemnified party shall, if a claim in respect thereof is to be made
against the indemnifying party under Section 7(a), notify the indemnifying
party in writing of the commencement of the action; but the omission to so
notify the indemnifying party shall not relieve it from any liability that it
may have to any indemnified party under this Section (except to the extent
that it has been prejudiced in any material respect by such omission) or from
any liability that it may have to such indemnified party otherwise than under Section 7(a) hereof.
In case any action is brought against any indemnified party and the
indemnifying party is notified of its commencement, the indemnifying party
shall be entitled to participate in it, and, if it elects by written notice delivered
to the indemnified party promptly after receiving the notice referred to in the
preceding sentence, the indemnifying party shall be entitled to assume the
defense of the action (jointly with any other indemnifying party similarly
notified) with counsel reasonably satisfactory to the indemnified party; provided,
however, that if the defendants in any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have
reasonably concluded that there may be legal defenses available to it and/or
other indemnified parties which are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall
have the right to select separate counsel to assert such legal defenses and to
otherwise participate in the defense of such action on behalf of such indemnified
party or parties. Upon receipt of notice from the indemnifying party to the indemnified
party of its election to so assume the defense of the action, the indemnifying
party shall not be liable to the indemnified party under Section 7(a) hereof
for any legal or other expenses subsequently incurred by the indemnified party
in connection with the defense thereof unless (i) the indemnified party
shall have employed separate counsel in connection with the assertion of legal
defenses in accordance with the proviso to the immediately preceding sentence
(it being understood, however, that the indemnifying party shall not be liable
for the expenses of more than one separate counsel (in addition to local
counsel) for the indemnified party), (ii) the indemnifying party shall not
have employed counsel satisfactory to the indemnified party at the expense of
the indemnifying party to represent the indemnified party within a reasonable
time after notice of commencement of the action or (iii) the indemnifying party
has authorized the employment of counsel for the indemnified party at the
expense of the indemnifying party; and except that, if clause (i) or (iii) is
applicable, such liability shall be only in respect of the counsel referred to
in such clause (i) or (iii).

 

(d) [Reserved.]

 

(e) [Reserved.]

 

(f) The indemnity agreement in this Section shall remain in
full force regardless of

 

 

(i) any termination of this Agreement,

 

(ii) any investigation made by Willis,
WEST, a Purchaser, any of their respective directors, trustees (in the case of
WEST) or officers, or any person controlling any of them, and

 

(iii) acceptance of and payment for any
of the Offered Notes.

 

8. Termination. This Agreement shall become effective as of
the date first written above and shall remain in full force and effect.

 

9. Representations, Warranties, Covenants, and
Indemnities to Survive Delivery. All representations, warranties, covenants,
and indemnities in this Agreement shall remain in full force, regardless of any
investigation made by or on behalf of a Purchaser, Willis, WEST or any of the
controlling persons referred to in Section 7, and shall survive delivery
of and payment for the Offered Notes or termination or cancellation of this
Agreement.

 

10. Notices. All communications under this Agreement will
be in writing and effective only on receipt, and

 

•                  if
sent to Fortis, will be mailed, delivered, or either telegraphed or transmitted
by telecopier and confirmed to them at Three Stamford Plaza, 301 Tresser
Boulevard, Stamford, CT 06901, Attention: Loan Administration, with a copy at c/o
Fortis Bank (Nederland) N.V., 3000 AS Rotterdam, The Netherlands - R01.16.02,
Attention: Aviation and Intermodal Finance Group (or at another address
furnished by Fortis to Willis and WEST in accordance with this Section 10);

 

•                if sent to HSH, will be mailed, delivered, or
either telegraphed or transmitted by telecopier and confirmed to them at 230
Park Avenue, New York, NY 10169-0005, Attention: Transportation Finance
Americas (or at another address furnished by Fortis to Willis and WEST in
accordance with this Section 10);

 

•                 if
sent to Willis, delivered or either telegraphed or transmitted by telecopier
and confirmed to it at 2320 Marinship Way, Sausalito, California 94965,
Attention: General Counsel, fax (415) 275-5127 (or at another address furnished
by Willis to each Purchaser and WEST in accordance with this Section 10);
or

 

•                 if
sent to WEST, delivered or either telegraphed or transmitted by telecopier and confirmed
to it at c/o Willis at 2320 Marinship Way, Sausalito, California 94965,
Attention: General Counsel, fax (415) 275-5127 (or at another address furnished
by WEST to each Purchaser and Willis in accordance with this Section 10).

 

11. Amendments, Waivers; Counterparts; Assignment. Neither this Agreement nor any provision of
this Agreement may be changed, waived, discharged, or terminated except by a

 

 

writing
signed by a duly authorized officer of the party against whom the change,
waiver, discharge, or termination is sought to be enforced. This Agreement may
be executed in any number of counterparts, each of which shall for all purposes
be deemed to be an original and all of which shall together constitute but one
and the same instrument.

 

This Agreement is not assignable by Willis or WEST.

 

12. Successors. This Agreement shall inure to the benefit of
and be binding upon its parties and the officers, directors, trustees and
controlling persons referred to in Section 7 and their respective
successors, and no other person will have any right or obligation under this Agreement.

 

13. Severabitity of Provisions. Any part, provision, representation,
warranty, or covenant of this Agreement that is prohibited or is held to be
void or unenforceable shall be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this
Agreement, and any such prohibition or unenforceability in any particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. To the extent permitted by applicable law, the parties to
this Agreement waive any provision of law that prohibits or renders void or
unenforceable any provision of this Agreement.

 

14. Submission to Jurisdiction. Each of Willis, WEST and each Purchaser
hereby irrevocably and unconditionally submits, for itself and its property, to
the non-exclusive jurisdiction of the Supreme Court of the State of New York
sitting in the Borough of Manhattan in The City of New York and of the United
States District Court for the Southern District of New York sitting in the Borough
of Manhattan in The City of New York, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement, and
Willis, WEST and each Purchaser hereby irrevocably agree that all claims in
respect of such action or proceeding may be heard and determined in such New
York State or Federal court. Willis, WEST and each Purchaser hereby irrevocably
waive, to the fullest extent that they may legally do so, the defense of an
inconvenient forum to the maintenance of such action or proceeding. Willis and
WEST and each Purchaser agree that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.

 

15. Waiver of Jury Trial. THE PARTIES HEREBY
IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND
ALL RIGHT TO TRIAL BY JURY (BUT NO OTHER JUDICIAL REMEDIES) IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

 

16.     Applicable Law. This Agreement shall be construed,
interpreted and enforced, in accordance with the internal laws of the State of
New York, (including, without limitation, Sections 5-1401 and 5-1402 of the
General Obligations Law of the State of New York) without giving effect to the
conflict of laws principles thereof.

 

17.     Entire Agreement. This Agreement constitutes the entire
agreement of the parties with respect to the subject matter of this Agreement,
and supersedes all prior negotiations, agreements and understandings with
respect thereto.

 

[signatures follow]

 

 

If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us a counterpart of this Agreement,
whereupon this Agreement along with all counterparts will become a binding
agreement between Willis, WEST and the Initial Purchaser in accordance with its
terms.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  WILLIS
  ENGINE SECURITIZATION

  
	
   

  	
  TRUST)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Monica J. Burke

  	
   

  
	
   

  	
   

  	
    Name:
  

  	
   

  
	
   

  	
   

  	
    Title:
  

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
  WILLIS
  LEASE FINANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Monica J. Burke

  	
   

  
	
   

  	
   

  	
    Name:
  

  	
  Monica
  J. Burke

  
	
   

  	
   

  	
    Title:
  

  	
  Executive
  Vice President

  Chief Financial Officer

  
					

 

Accepted
at New York, New York, as of the date first above written:

 

	
  UBS
  SECURITIES LLC

  	
  UBS
  LIMITED

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
   

  	
   

  	
  By:
  

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

33

 

If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us a counterpart of this Agreement,
whereupon this Agreement along with all counterparts will become a binding
agreement between Willis, WEST and the Initial Purchaser in accordance with its
terms.

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  WILLIS
  ENGINE SECURITIZATION

  
	
   

  	
  TRUST)

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
   

  	
   

  
	
   

  	
   

  	
    Name:
  

  	
   

  
	
   

  	
   

  	
    Title:
  

  	
   

  
	
   

  	
   

  
	
   

  	
  WILLIS
  LEASE FINANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
   

  	
   

  
	
   

  	
   

  	
    Name:
  

  	
   

  
	
   

  	
   

  	
    Title:
  

  	
   

  
						

 

Accepted at New York, New
York, as of the date first above
written:

 

	
  UBS
  SECURITIES LLC

  	
   

  	
  UBS
  LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Berlage

  	
   

  	
  By:

  	
  /s/ Ian Pearce

  	
   

  
	
   

  	
    Name:

  	
  BERLAGE

  	
   

  	
   

  	
    Name:

  	
  IAN PEARCE

  	
   

  
	
   

  	
    Title:

  	
  DIRECTOR

  	
   

  	
   

  	
    Title:

  	
  ASSOCIATE DIRECTOR

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ M. Shahmohammed

  	
   

  	
  By:

  	
  /s/ Paul Hevrman

  	
   

  
	
   

  	
    Name:

  	
  M. SHAHMOHAMMED

  	
   

  	
   

  	
    Name:

  	
  PAUL HEVRMAN

  	
   

  
	
   

  	
    Title:

  	
  EXECUTIVE DIRECTOR

  	
   

  	
   

  	
    Title:

  	
  EXECUTIVE DIRECTORExhibit 10.37

 

EXECUTION VERSION

 

REDACTED COPY

 

Portions of this Exhibit 10.37 have been
omitted pursuant to a confidential treatment request. The omitted material has
been filed separately with the Securities and Exchange Commission.

 

 

 

WILLIS ENGINE SECURITIZATION TRUST,

Issuer

 

and

 

WILLIS
LEASE FINANCE CORPORATION,

Servicer

 

 

and

 

FORTIS
CAPITAL.

and HSH
NORDBANK AG,

as Series A2
Note Holders

 

 

 

 

SERIES A2 NOTE PURCHASE AND LOAN AGREEMENT

 

Dated as of August 9, 2005

 

 

SERIES A2 NOTES

 

 

 

 

TABLE OF CONTENTS

 

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Definitions

  	
   

  
	
  Section
  1.02.

  	
  Other
  Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  	
   

  
	
  PURCHASE AND SALE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.01.

  	
  Sale
  and Delivery of the Series A2 Notes

  	
   

  
	
  Section
  2.02.

  	
  Funding
  of Loans

  	
   

  
	
  Section
  2.03.

  	
  Increase
  or Decrease in Maximum Commitments

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  	
   

  
	
  CONDITIONS PRECEDENT TO
  OBLIGATION OF THE SERIES A2 NOTEHOLDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.01.

  	
  Conditions
  Precedent to Issuance of Series A2 Notes

  	
   

  
	
  Section
  3.02.

  	
  Conditions
  Precedent on Initial Closing Date

  	
   

  
	
  Section
  3.03.

  	
  Conditions
  Precedent To Loans

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND
  WARRANTIES OF WEST AND WILLIS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.01.

  	
  Representations
  and Warranties of WEST

  	
   

  
	
  Section
  4.02.

  	
  Representations
  and Warranties and Agreements of Willis

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND
  WARRANTIES OF THE SERIES A2 NOTEHOLDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  5.01.

  	
  Authority,
  etc.

  	
   

  
	
  Section
  5.02.

  	
  Securities
  Act

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  	
   

  
	
  OTHER COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.01.

  	
  Securities
  Act

  	
   

  
	
  Section
  6.02.

  	
  Legal
  Conditions to Closing

  	
   

  

 

 

	
  Section
  6.03.

  	
  Expenses
  and Fees

  	
   

  
	
  Section
  6.04.

  	
  Mutual
  Obligations

  	
   

  
	
  Section
  6.05.

  	
  Pledge
  to Liquidity Providers

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  	
   

  
	
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.01.

  	
  Indemnification
  by WEST

  	
   

  
	
  Section
  7.02.

  	
  Indemnification
  by Willis

  	
   

  
	
  Section
  7.03.

  	
  Procedure

  	
   

  
	
  Section
  7.04.

  	
  Defense
  of Claims

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  8.01.

  	
  Amendments

  	
   

  
	
  Section
  8.02.

  	
  Notices

  	
   

  
	
  Section
  8.03.

  	
  No
  Waiver; Remedies

  	
   

  
	
  Section
  8.04.

  	
  Binding
  Effect; Assignability

  	
   

  
	
  Section
  8.05.

  	
  GOVERNING
  LAW; JURISDICTION

  	
   

  
	
  Section
  8.06.

  	
  No
  Proceedings

  	
   

  
	
  Section
  8.07.

  	
  Execution
  in Counterparts

  	
   

  
	
  Section
  8.08.

  	
  Limited
  Recourse

  	
   

  
	
  Section
  8.09.

  	
  Survival

  	
   

  
	
  Section
  8.10.

  	
  Appointment
  of Agent for Service of Process

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1

  	
  Maximum Commitments

  	
   

  
	
  SCHEDULE 2

  	
  Addresses of Series A2
  Noteholders

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of Loan Request

  	
   

  
	
  EXHIBIT B

  	
  Form of Assignment and Assumption

  	
   

  

 

ii

 

SERIES A2 NOTE PURCHASE AND
LOAN AGREEMENT (“Series A2 Note Purchase Agreement”)
dated as of August 9 2005, among WILLIS ENGINE SECURITIZATION TRUST, a
Delaware statutory trust (“WEST”), WILLIS
LEASE FINANCE CORPORATION, a Delaware corporation (the “Servicer”),
Fortis Captial Corp., a Connecticut corporation (“Fortis”),
and HSH NORDBANK, AG, a German banking corporation (“HSH”
and together with Fortis, the initial “Series A2 Noteholders”).

 

PREAMBLE

 

WHEREAS, WEST has entered
into the Indenture, dated as of August 9, 2005 (the “Indenture”),
with Deutsche Bank Trust Company Americas, a New York banking corporation (“Deutsche Bank”), as indenture trustee (“Indenture
Trustee”); and

 

WHEREAS, WEST and the
Indenture Trustee have entered into the Series A2 Supplement to the
Indenture, dated as of August 9, 2005 (the “Series A2
Supplement”), pursuant to which WEST is to issue the Series A2
Notes in an initial aggregate Maximum Principal Balance of $100,000,000;

 

WHEREAS, the Series A2
Noteholders are willing to make loans to WEST on the Initial Closing Date and
from time to time thereafter until the occurrence of a Conversion Event, and
the obligation of WEST to repay such Loans will be represented by the Series A2
Notes;

 

NOW THEREFORE, for good
and valuable consideration, the receipt of which is hereby acknowledged, the
parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01.          Definitions.  (a)  Capitalized terms used herein and
not otherwise defined shall have the meaning set forth in the Indenture.  Whenever used in this Agreement, the
following words and phrases shall have the following meanings, and the
definitions of such terms are applicable to the singular as well as the plural
forms of such terms and to the masculine as well as to the feminine and neuter
genders of such terms.

 

“Assignment and Assumption”
means an Assignment and Assumption Agreement, substantially in the form of Exhibit B
attached hereto, pursuant to which the transferee of a Series A2 Note
agrees to make Series A2 Loans to the extent of the Unused Commitment
allocable to the Series A2 Note that is transferred to such transferee.

 

“Buyer” has the
meaning set forth in Section 3.03(m) hereof.

 

“Commercial Paper Notes”
means commercial paper notes issued by, or on behalf of, a CP Noteholder for
the purpose of funding or maintaining its Loans to WEST and its holding of its Series A2
Note, including all such commercial paper notes so issued to re-finance matured
commercial paper notes issued by, or on behalf of, such CP Noteholder that were
originally issued to finance or maintain such CP Noteholder’s Loans to WEST and
such holding.

 

 

“Conversion Date”
means July 31, 2007 or such later date to which the Conversion Date may be
extended (if extended) in the sole discretion of the Series A2 Note
Purchasers in accordance with the terms of Section 2.03(b) hereof.

 

“CP Noteholder”
means any Series A2 Noteholder that will fund or maintain its Loans and
its holding of its Series A2 Note with the issuance of Commercial Paper
Notes.

 

“Eligible Transferee” means (i) an
Affiliate of a Series A2 Noteholder, or (ii) any other then existing Series A2
Noteholder, or (iii) a commercial bank, insurance company or other
financial institution that (x) complies with the transfer provisions of Section 2.11
of the Indenture, and (y) if such transfer is to occur prior to the Conversion
Date, such transferee in the reasonable determination of WEST, has the
capability to make Loans to WEST up to the Unused Commitment in respect of the Series A2
Note being transferred to such financial institution and is otherwise
reasonably acceptable to WEST, as evidenced to the Indenture Trustee in writing
(which approval shall not be unreasonably withheld or delayed).

 

“Engine Information”
means, with respect to any Engine, the manufacturer, type and model of such
Engine, and manufacturer’s serial numbers of such Engine.

 

“Funding Date” means
as to any Loan, the Business Day that is specified in the Funding Request for
such Loan in accordance with Section 2.02 hereof.

 

“Funding Date Engine”
has the meaning set forth in Section 3.03(m)hereof.

 

“Funding Request”
means a written request by WEST to obtain Loans from the Series A2
Noteholders, such notice to be in the form of Exhibit A hereto and
to conform to requirements of Section 2.02 hereof.

 

“Indemnified Party”
has the meaning specified in Section 7.01 hereof.

 

“Indenture”
means the Indenture, as supplemented by the Supplements, including the Series A2
Supplement, as the same may be amended and supplemented from time to time.

 

“Liquidity Agreement”
means any agreement to which a CP Noteholder is a party and under which one or
more Liquidity Providers has agreed to purchase from such CP Noteholder the Series A2
Notes held by such CP Noteholder and to assume such CP Noteholder’s obligation
to make Loans in an amount up to the Unused Commitment of such CP Noteholder.

 

“Liquidity
Provider” means any financial institution that is an Eligible
Transferee and a party to a Liquidity Agreement with a CP Noteholder.

 

“Loans” means
the Series A2 Loans and the Series B2 Loans.

 

“Material
Adverse Effect” has the meaning specified in Section 4.01(a) hereof.

 

“Maximum Commitment” shall mean
(a), for all Series A2 Noteholders, $100,000,000 in the aggregate, which
amount may be increased up to $150,000,000 as provided in Section 2.03(d) of
the Series A2 Supplement and Section 2.03(c) hereof, and (b),
for each Series A2

 

2

 

Noteholder,
the amount set forth opposite the name of such Series A2 Noteholder in Schedule 1
attached hereto, increased proportionately in the event of any increase in the
aggregate Maximum Commitment described in clause (a) of this definition.

 

“Maximum Principal Balance” shall mean,
with respect to any Warehouse Note, the maximum amount that WEST may borrow
from the holder of such Warehouse Note, which shall be equal to the Maximum
Commitment of such holder.

 

“Notes” means
the Series A Notes and the Series B Notes.

 

“Series A Notes”
means, collectively, (a) the $100,000,000 in maximum principal amount of WEST’s
Series A2 Notes dated August 9, 2005 and issued pursuant to this Series A2
Note Purchase Agreement and the Series A2 Supplement and (b) the
$200,000,000 in stated principal amount of WEST’s Series A1 Notes dated August 9,
2005 and issued pursuant to the Series A1 Note Purchase Agreement and the Series A1
Supplement.

 

“Series A2 Loan”
means a funding by the Series A2 Noteholder of a loan to WEST pursuant to Article II
hereof.

 

“Series A2 Noteholder” means,
initially, Fortis and HSH and, at any time of determination for the Series A2
Notes thereafter, any person in whose name a Series A2 Note is registered
in the Register.

 

“Series A2 Note Purchase Agreement” means this Series A2
Note Purchase and Loan Agreement, dated as of August 9, 2005, among WEST,
Willis and the Series A2 Note Purchasers, as may be amended, modified or
supplemented from time to time in accordance with its terms.

 

 “Series A2 Related Documents”
means the Series A2 Transaction Documents and the Related Documents, as
the same may be amended, supplemented, restated, replaced or otherwise modified
from time to time.

 

“Series A2 Supplement”
means the Series A2 Supplement dated as of August 9, 2005, between
WEST and the Indenture Trustee, as the same may be amended, supplemented or
otherwise modified from time to time.

 

“Series B Notes”
means, collectively, (a) the $28,276,878 in stated principal amount of WEST’s
Series B1 Notes dated August 9, 2005 and issued pursuant to the Series B1
Note Purchase Agreement and the Series B1 Supplement, and (b) the
$13,558,400 in maximum principal amount of WEST’s Series B2 Notes dated August 9.
2005 and issued pursuant to the Series B2 Note Purchase Agreement and the Series B2
Supplement.

 

“Series B2 Loan” means,
individually or in the aggregate, a loan to WEST by the Holder or Holders of
the Series B2 Notes pursuant to the Series B2 Supplement and the Series B2
Note Purchase Agreement.

 

“Series B2 Note Purchase Agreement” means the Series B2
Note Purchase and Loan Agreement, dated as of August 9, 2005, among WEST,
Willis and the Series B2 Noteholders.

 

3

 

“Series B2 Noteholders” means, on the
Closing Date, Fortis and HSH and, at any time of determination thereafter, any
person in whose name a Series B2 Note is registered in the Register.

 

“Series B2 Supplement”
means the Series B2 Supplement to the Indenture, dated as of August 9,
2005, between WEST and the Indenture Trustee.

 

 “Third Party Claim” has the
meaning specified in Section 7.01 hereof.

 

Section 1.02.          Other Definitional Provisions.  The conventions of construction and usage set
forth in Section 1.02 of the Indenture are hereby incorporated by
reference in this Supplement.

 

ARTICLE II

PURCHASE AND SALE

 

Section 2.01.          Sale and Delivery of the Series A2
Notes.  In reliance on the
representations, warranties and agreements and on the terms and conditions set
forth herein and in the Indenture and the Series A2 Supplement, WEST
agrees to sell, and each of the Series A2 Noteholders severally and not
jointly agrees to purchase, on the Initial Closing Date, a Series A2 Note with the Maximum Principal Balance for
each Series A2 Noteholder set forth in Schedule 1 (which Maximum
Principal Balances may be increased pursuant to Section 2.03(a) hereof
and Section 2.03(d) of the Series A2 Supplement).  The Series A2 Notes shall be duly
executed by WEST, duly authenticated by the Indenture Trustee and registered in
the names of the Series A2 Noteholders. 
The actual Outstanding Principal Balance of each Series A2 Note
will be equal to the principal amount of the Loans made by the holder thereof
from time to time in accordance with the terms hereof and of the Series A2
Supplement minus any payments of the principal amount of the Series A2
Notes made in accordance with the terms thereof and the Series A2
Supplement and the Indenture.

 

Section 2.02.          Funding of Loans.  (a)  On the terms and conditions
hereinafter set forth, each Series A2 Noteholder severally and not jointly
agrees that it will make Loans to WEST, on the Initial Closing Date and from
time to time thereafter until the occurrence of a Conversion Event, upon the
receipt of a Funding Request from WEST and otherwise as provided in this Section 2.02
and in each subject to satisfaction of the applicable conditions precedent set
forth in Article III hereof and in Article IV of the Series A2
Supplement, in a total amount outstanding at any time up to its Maximum
Commitment.  It is expressly understood
and agreed that WEST shall not have any right to receive, and each Series A2
Noteholder shall not have any obligation to disburse, (x) any amount in excess
of the Maximum Commitment of such Series A2 Noteholder or (y) any amount
whatsoever on or after the date on which a Conversion Event occurs.  Under no circumstances shall the Series A2
Noteholders fund any Loans if after giving effect to such Loans, (i) the
aggregate Series A2 Note Outstanding Principal Balance outstanding hereunder
would either (A) exceed the Series A2 Maximum Commitment or (B) result
in a

 

4

 

Senior Borrowing Base Deficiency
or (ii) the Aggregate Note Principal Balance would exceed the Maximum
Borrowing Base.

 

(b)           On the Initial Closing Date, each of
the Series A2 Noteholders shall, upon satisfaction of the applicable
conditions set forth in Sections 3.02 and 3.03 hereof, make a Loan to WEST in
the amount set forth beside its name on Schedule 1.

 

(c)           On any Business Day after the Initial
Closing Date and prior to the date on which a Conversion Event occurs, each of
the Series A2 Noteholders agrees that it shall make a Loan to WEST in the
amount specified in a Funding Request delivered to the Series A2 Noteholders
by WEST at least three Business Days prior to the Funding Date set forth in
such Funding Request, which shall specify (i) the aggregate amount of the
Loans to be made by the Series A2 Noteholders and the amount of the Loan
to be made by each individual Series A2 Noteholder on such Funding Date, (ii) the
proposed Funding Date, and (iii) the use of the proceeds of such Loans,
including the Engine Information for any Funding Date Engine being acquired
with the proceeds of such Loans.  Each Funding
Request delivered by WEST pursuant to this Section 2.04 shall be
irrevocable.  On the Funding Date, each
of the Series A2 Noteholders shall, upon satisfaction of the applicable
conditions set forth in Article III hereof and Article IV of the Series A2
Supplement, make available to WEST by wire transfer in immediately available
funds, at such bank or other location reasonably designated by WEST in the
applicable Funding Request, an amount equal to the amount of such Loan related
to such Funding.

 

(d)           If any Series A2 Noteholder
shall default on its obligation to make a Loan on any Funding Date, one or more
of the other Series A2 Noteholders may elect (but shall not be required
to) to make the Loan of the defaulting Series A2 Noteholder.  In such event, the Maximum Principal Balance
of the Series A2 Note held by the defaulting Series A2 Noteholder and
the Maximum Commitment of the defaulting Series A2 Noteholder shall be
reduced by the amount of the Loan so made, and the Maximum Principal Balance of
the Series A2 Note held by the Series A2 Noteholder making such Loan
and the Maximum Commitment of such Series A2 Noteholder shall be increased
by the amount of such Loan.

 

(e)           WEST may, within 75 days, but no
later than 45 days, prior to the then existing Conversion Date, by written
notice to each Series A2 Noteholder, make written request for the Series A2
Note Noteholders to extend the Conversion Date for an additional period of 364
days.  The Series A2 Noteholders
shall make a determination, in their sole discretion and after a full credit
review, not more than 30 days and not less than 15 days prior to the then
applicable Conversion Date as to whether or not they will agree to extend the
Conversion Date; provided, however, that the
failure of any Series A2 Noteholder to make a timely response to WEST’s
request for extension of the Conversion Date shall be deemed to constitute a
refusal by such Series A2 Noteholders to extend the Conversion Date.  It shall be a condition to the extension of
the Conversion Date that (i) the commitment of all of the Series A2
Noteholders under the Series A2 Note Purchase Agreement be extended to the
same date, (ii) a Rating Agency Confirmation shall have been received in
respect of such extension and (iii) the commitments of all Series B2
Noteholders under the Series B2 Note Purchase Agreement be extended to the
same date.

 

5

 

Section 2.03.          Increase or Decrease in Maximum
Commitments.  (a)  WEST may
elect to increase the aggregate Maximum Principal Balances of the Series A2
Notes and the aggregate Maximum Commitments of the Series A2 Noteholders
to an amount greater than $100,000,000 but not in excess of $150,000,000,
subject to the receipt of (i) the prior written consent of all of the Series A2
Noteholders and (ii) a Rating Agency Confirmation, provided that, as a
condition of any such increase, WEST also shall elect to increase the Maximum
Principal Balances of the Series B2 Notes and the Maximum Commitments of
the Series B2 Noteholders by a proportionate amount, as provided in the Series B2
Supplement and the Series B2 Note Purchase Agreement. Any increase
pursuant to the preceding sentence shall be applied to increase the Maximum
Principal Balances of the individual Series A2 Notes and the Maximum Commitments
of the Series A2 Noteholders proportionately to the Maximum Principal
Balances of the Series A2 Notes held by the Series A2 Noteholders
immediately prior to such increase, and each Series A2 Noteholder agrees
that its Maximum Commitment shall be increased by an amount equal to the amount
by which the Maximum Principal Balance of its Series A2 Note is so
increased, and that such increases shall be deemed to occur without any Series A2
Noteholder having to surrender its Series A2 Notes in exchange for a new Series A2
Note reflecting the increased Maximum Principal Balance.

 

(b)           WEST may, upon at least five Business
Days’ notice to the Series A2 Noteholders, terminate in whole or reduce in
part the aggregate Maximum Commitments of the Series A2 Noteholders and
the Maximum Principal Balances of the Series A2 Notes in an aggregate
amount not to exceed the excess of such Maximum Principal Balances over the
then aggregate Outstanding Principal Balance of the Series A2 Notes;
provided that any partial reduction of the aggregate Maximum Commitments of the
Series A2 Noteholders and the Maximum Principal Balances of the Series A2
Notes shall be applied pro rata to the individual Maximum Commitments of the Series A2
Noteholders and the Maximum Principal Balances of the Series A2 Notes,
respectively, and shall be accompanied by a proportionate partial reduction of
the aggregate Maximum Commitments of the Series B2 Noteholders. Each
notice of reduction or termination pursuant to this Section 2.03(b) shall
be irrevocable, and such reduction shall be deemed to occur without any Series A2
Noteholder having to surrender its Series A2 Notes in exchange for a new Series A2
Note reflecting the reduced Maximum Principal Balance.

 

ARTICLE III

CONDITIONS PRECEDENT TO OBLIGATION OF THE SERIES A2 NOTEHOLDERS

 

Section 3.01.          Conditions Precedent to Issuance of
Series A2 Notes.  The obligation
of WEST to issue the Series A2 Notes to the Series A2 Noteholders is
subject to satisfaction of the following conditions precedent:

 

(a)           All of the conditions precedent to
the obligations of WEST set forth in Section 6A of the Series A1 Note
Purchase Agreement shall have been satisfied by WEST and WEST, Willis and the Series A1
Noteholders shall have executed and delivered the Series A1 Note Purchase
Agreement.

 

(b)           WEST, Willis and the Series A2
Noteholders shall have executed and delivered this Agreement.

 

6

 

(c)           WEST, Willis and the Series B2
Noteholders shall have executed and delivered the Series B2 Note Purchase
Agreement.

 

(d)           WEST, Willis and the Series B1
Noteholders shall have executed and delivered the Series B1 Note Purchase
Agreement.

 

Section 3.02.          Conditions Precedent on Initial
Closing Date.  The effectiveness of
the agreement of the Series A2 Noteholders to make the Loans and their
obligation to make the Initial Loans on the Initial Closing Date is subject to
satisfaction of the following conditions precedent:

 

(a)           The Series A2 Noteholders shall
have received from WEST a certificate, dated the Initial Closing Date and
executed by a Controlling Trustee, to the effect that:

 

(i)            the representations and warranties
of WEST in this Agreement and the Series A2 Supplement are accurate in all
material respects as of the Initial Closing Date; and

 

(ii)           WEST has complied with all the
agreements and satisfied all the conditions on its part to be performed or
satisfied at or before the Initial Closing Date.

 

(b)           The Series A2 Noteholders shall
have received from Willis a certificate, dated the Initial Closing Date and
executed by a Responsible Officer, to the effect that:

 

(i)            the representations and warranties
of Willis in this Agreement and in the other Related Documents to which Willis
is a party are accurate in all material respects as of the Initial Closing
Date; and

 

(ii)           Willis has complied with all the
agreements and satisfied all the conditions on its part to be performed or
satisfied at or before the Initial Closing Date.

 

(c)           The Series A2 Noteholders shall
have received the following:

 

(i)            with respect to Willis a good
standing certificate from the Secretary of State of the State of Delaware,
dated not earlier than ten days before the Closing Date,

 

(ii)           with respect to WEST a good standing
certificate from the Secretary of State of the State of Delaware, dated not
earlier than ten days before the Closing Date, and

 

(iii)          with respect to WEST Funding, a good
standing certificate from the Secretary of State of Delaware, dated not earlier
than ten days before the Closing Date.

 

(d)           The Series A2 Noteholders shall
have received from the Secretary or other Responsible Officer of Willis, in the
officer’s individual capacity, a certificate, dated the Initial Closing Date,
to the effect that:

 

7

 

(i)            each individual who, as an officer
or representative of Willis, signed this Agreement, any Related Document or any
other document or certificate delivered on or before the Initial Closing Date
in connection with the transactions contemplated in this Agreement or in the
Related Documents was at the respective times of such signing and delivery, and
is as of the Initial Closing Date, duly elected or appointed, qualified, and
acting as such officer or representative, and the signature of the individual appearing
on the documents and certificates is the officer’s genuine signature; and

 

(ii)           no event (including any act or
omission on the part of Willis) has occurred since the date of the good
standing certificate referred to in paragraph (c) above that has affected
the good standing of Willis under the laws of the State of Delaware.

 

(iii)          attached to such certificate are
accurate copies of the organizational documents of Willis, as in effect on the
Initial Closing Date, and of the resolutions of Willis and any required consent
relating to the transactions contemplated in this Agreement and the Related
Documents.

 

(e)           The Series A2 Noteholders shall
have received from a Controlling Trustee of WEST a certificate, dated the
Closing Date, to the effect that:

 

(i)            each individual who, as a
Controlling Trustee or other representative of WEST, signed this Agreement, any
Related Document, or any other document or certificate delivered on or before
the Initial Closing Date in connection with the transactions contemplated in
this Agreement or in the Related Documents, was at the respective times of such
signing and delivery, and is as of the Initial Closing Date, duly elected or
appointed, qualified, and acting as such Controlling Trustee or representative,
and the signature of the individual appearing on the documents and certificates
is such Controlling Trustee’s genuine signature; and

 

(ii)           no event (including any act or
omission on the part of WEST) has occurred since the date of the good standing
certificate referred to in paragraph (c) above that has affected the good
standing of WEST under the laws of the State of Delaware.

 

(iii)          attached to such certificate are
accurate copies of the trust agreement of WEST, as in effect on the Initial
Closing Date, and of the resolutions of WEST, and of any required consent
relating to the transactions contemplated in this Agreement and the Related
Documents.

 

(f)            The Series A2 Noteholders shall
have received from the Secretary or other Responsible Officer of WEST Funding,
in the officer’s individual capacity, a certificate, dated the Closing Date, to
the effect that:

 

(i)            each individual who, as an officer
or representative of WEST Funding, signed any Related Document or any other
document or certificate delivered on or before the Initial Closing Date in
connection with the transactions contemplated in the Related Documents, was at
the respective times of such signing and delivery, and is as of the Initial
Closing Date, duly elected or appointed, qualified, and acting as such officer
or

 

8

 

representative, and the
signature of the individual appearing on the documents and certificates is the
officer’s genuine signature; and

 

(ii)           no event (including any act or
omission on the part of WEST Funding) has occurred since the date of the good
standing certificate referred to in paragraph (c) above that has affected
the good standing of WEST Funding under the laws of its chartering
jurisdiction, and

 

(iii)          attached to such certificate are accurate
copies of the relevant organizational documents of WEST Funding, as in effect
on the Initial Closing Date, and of the resolutions of WEST Funding, and of any
required consent relating to the transactions contemplated in the Related
Documents.

 

(g)           The Series A2 Noteholders shall
have received from Thomas C. Nord, in his capacity as General Counsel of Willis
and Pillsbury Winthrop Shaw Pittman LLP, in its capacity as special New York
counsel for Willis, WEST and WEST Funding, an opinion or opinions, dated the
Initial Closing Date and addressed to the Series A2 Noteholders,
addressing corporate/entity matters, enforceability, security interest, tax,
securities law and disclosure matters, that is or are in form and substance
reasonably acceptable to the Series A2 Noteholders.

 

(h)           The Series A2 Noteholders shall
have received from Morris, James, Hitchens & Williams LLP, in its
capacity as special Delaware counsel for Willis, WEST and WEST Funding, an
opinion or opinions, dated the Initial Closing Date and addressed to the Series A2
Noteholders, addressing Delaware entity and security interest perfection
matters, that is in form and substance reasonably acceptable to the Series A2
Noteholders.

 

(i)            The Series A2 Noteholders shall
have received from Pillsbury Winthrop Shaw Pittman LLP, in its capacity as
special bankruptcy counsel for Willis, WEST and WEST Funding, an opinion or
opinions, dated the Closing Date and addressed to the Indenture Trustee and the
Security Trustee, addressing “true sale” matters in connection with the
transfers contemplated under the Asset Transfer Agreement, and substantive
consolidation with respect to WEST and its subsidiaries and Willis, in each
case under the U.S. federal bankruptcy law, that is or are in form and
substance acceptable to the Placement Agent in its sole discretion.

 

(j)            The Series A2 Notes shall have
been rated by Moody’s and Fitch not less than Baa1 and “A”, respectively, and
such ratings shall not have been rescinded.

 

(k)           The Series A2 Transaction
Documents and the Related Documents shall have been duly executed and delivered
by the parties thereto.

 

(l)            The Series A2 Notes shall have
been executed by WEST and authenticated by the Indenture Trustee.

 

(m)          Evidence of recordation of the Initial
Engine Mortgages with the FAA and an opinion from McAfee & Taft in its
capacity as special The Series A2 Notes shall have been executed by WEST
and authenticated by the Indenture Trustee.

 

9

 

(n)           All proceedings in connection with
the transactions contemplated by this Agreement, the other Series A2
Transaction Documents and the Related Documents shall be satisfactory in form
and substance to the Series A2 Noteholders.

 

Section 3.03.          Conditions Precedent To Loans.  The obligations of the Series A2
Noteholders to make Loans on any Funding Date after the Initial Closing Date are
subject to the following conditions precedent:

 

(a)           Funding Request.  WEST shall have delivered a Funding Request
to the Series A2 Noteholders in respect of such Loans at least three (3) Business
Days prior to the Funding Date.

 

(b)           Series A2 Loans.  On such Funding Date, Loans are also made by
the Series B2 Noteholders under the Series B2 Note Purchase Agreement
in an amount that shall be accompanied by a proportionate partial reduction of
the aggregate Maximum Commitments of the Series A2 Noteholders under this
Agreement.

 

(c)           No
Conversion Event.  As of the
Funding Date, as applicable, no Conversion Event shall have occurred, unless
Noteholders representing one hundred percent (100%) of the Outstanding
Principal Balance of the Series A2 Notes and the Series B2 Notes have
waived the occurrence of each and every Conversion Event that has occurred.

 

(d)           No Early
Amortization Event.  Before
and after giving effect to such Loan, no Early Amortization Event shall have
occurred, unless Noteholders representing one hundred percent (100%) of the
Outstanding Principal Balance of the Series A2 Notes and the Series B2
Note have waived the occurrence of each and every Early Amortization Event that
has occurred.

 

(e)           No Servicer
Termination Event.  Before and
after giving effect to such Loan, no Servicer Termination Event shall have
occurred, unless Noteholders representing one hundred percent (100%) of the
Outstanding Principal Balance of the Series A2 Notes and the Series B2
Note have waived the occurrence of each and every Servicer Termination Event
that has occurred.

 

(f)            No Violation of Maximum Commitment.  Before and after giving effect to such Loan,
the aggregate Outstanding Principal Balance of the Series A2 Notes will
not exceed the Maximum Commitment of the Series A2 Noteholders.

 

(g)           No Senior
Borrowing Base Deficiency.  Before
and after giving effect to such Loan, and the acquisition of any Additional
Engine with the proceeds thereof, no Senior Borrowing Base Deficiency is or
would be continuing.

 

(h)           Senior
Borrowing Base and Junior Borrowing Base.  Before and after giving effect to such Loan,
the aggregate Outstanding Principal Balance of all Series then Outstanding
does not exceed the Senior Borrowing Base or the Junior Borrowing Base,
as the case may be.

 

10

 

(i)            Certificate.  Each of
the following shall be true and the Indenture Trustee shall have received a
certificate signed by a Controlling Trustee of WEST stating that

 

(i)            the representations
and warranties of WEST contained in this Agreement are true and correct on and
as of the Funding Date, as though made on and as of such date;

 

(ii)           the conditions
described in clauses (a), (b) and (c) are satisfied; and

 

(iii)          no Default or Event
of Default has occurred or is continuing;

 

(j)            Available Collections Amount.  If the proceeds of the Loan are being used to
increase the Available Collections Amount on any Payment Date, the Indenture
Trustee shall have received a certificate from the Administrative Agent to the
effect that the Available Collections Amount for such Payment Date without the
inclusion of such Loan is in an amount sufficient to pay Base Interest on all Series B
Notes in accordance with Section 3.13 of the Indenture.

 

(k)           Engine
Modifications.  If the
proceeds of the Loan are being used to fund Mandatory Engine Modifications or
Discretionary Engine Modifications, the Indenture Trustee, the Series A2 Noteholders
and the Series B Noteholders shall have received (x) evidence satisfactory
to the Indenture Trustee, the Series A2 Noteholders and the Series B2
Noteholders that the approvals by the Controlling Trustees required by Section 5.03(c) of
the Indenture and (y) invoices or other evidence of the cost of such Mandatory
Engine Modifications or Discretionary Engine Modifications, as the case may be,
have been obtained.

 

(l)            Funding Date Engine.  If
the proceeds of the Loan are to be used to acquire the Third Remaining Engine
or an Additional Engine (all such Engines being collectively referred to herein
with respect to the applicable Funding Date as, the “Funding
Date Engines”), the Indenture Trustee shall have received evidence
satisfactory to the Indenture Trustee as to the following:

 

(i)            the approvals by
the Controlling Trustees required by Section 5.03(b) have been
obtained;

 

(ii)           the Funding Date
Engine satisfies the requirements in the definition of an “Engine” in the
Indenture, and the purchase price for the Funding Date Engine satisfies the
requirements of Section 5.03(b) of the Indenture;

 

(iii)          no Event of Loss
has occurred with respect to the Funding Date Engine and that no other damage
has occurred with respect to the Funding Date Engine that would materially
adversely affect the value of the Funding Date Engine;

 

(iv)          the Mortgage with
respect to each Funding Date Engine has been duly registered with the FAA, and
such other filings and actions as the Indenture Trustee reasonably deems
necessary have been made and taken to establish the priority and perfection of
the Lien of the Security Trustee in each Funding Date Engine and the other
Collateral;

 

11

 

(v)           the Lien created by
each Mortgage constitutes a first priority security interest in the applicable
Funding Date Engine and any other Collateral (including the Accounts) owned by
WEST free and clear of liens (other than Permitted Liens), and any Prior
Financing in respect of any Funding Date Engine has been fully paid and
satisfied and any Liens created in connection with such Prior Financing have
been released and discharged on all applicable public records, or the Indenture
Trustee has received such evidence of the release and discharge of such Liens or
the obligation of the lender under such Prior Financing to release and
discharge such Liens as shall be acceptable to the Indenture Trustee;

 

(vi)          all necessary fees
and Taxes relating to such filings and registration have been paid;

 

(vii)         if applicable, UCC
financing statements and other appropriate financing statements (including one
or more financing statements to be filed with respect to the Lease for each
Funding Date Engine) or notices and consents, duly executed by WEST or the
Buyer or other appropriate Person, and duly filed with the appropriate offices
or registers as designated by the Indenture Trustee, and WEST and the Buyer
shall have done such other acts requested by the Lender to perfect the security
interest or charge in any Collateral covered by any Document (including the
Accounts);

 

(viii)        after the inclusion
of the Funding Date Engines, (i) the percentage of Off-Production Engines
in the Portfolio (measured by Adjusted Borrowing Value) does not exceed ***
until the fourth anniversary of the Closing Date and *** thereafter, and (ii) the
Administrative Agent shall have provided a schedule showing the total
amounts of the Initial Borrowing Values of the Funding Date Engines and the
Adjusted Borrowing Values of all other Engines within each Concentration Limit
category and of Off-Production Engines as a percentage of the Aggregate
Adjusted Borrowing Value of the Portfolio;

 

(ix)           the making of the
Loan or Loans will not result in a Senior Borrowing Base Deficiency, Junior
Borrowing Base Deficiency or Maximum Borrowing Base Deficiency, and the
Administrative Agent shall have provided a schedule showing the total
amounts of the Initial Borrowing Values of the Funding Date Engines and the
Adjusted Borrowing Values of all other Engines in relation to the Series A
Notes Balances, Series B Notes Balances and Aggregate Note Balances after
all Loans are made on the Funding Date and certifying that (A) the Series A
Note Outstanding principal balance (after giving effect to the proposed Loans
on such Funding Date) will not exceed the Senior Borrowing Base (calculated
after giving effect to the acquisition of such Engine) and (B) the Series B
Note Outstanding principal balance (after giving effect to the proposed Loans
on such Funding Date) will not exceed the Junior Borrowing Base and complies
with the requirements therefor set forth in the Indenture and the Series A2
Supplement;

 

(x)            an invoice,
contract or other written document evidencing the amount of the Purchase Price
of each Funding Date Engine; a copy of the Appraisals for each Funding Date
Engine, dated not more than six (6) months prior to the Funding Date and,

 

***           Confidential information omitted
pursuant to a request for confidential treatment filed separately with the
Securities and Exchange Commission.

 

12

 

(xi)           if the Seller is an
Affiliate of WEST, evidence of the book value of the Funding Date Engine in the
hands of the Seller, and the Administrative Agent shall have delivered to the
Indenture Trustee, the Servicer and the Series A2 Noteholders a
certificate as to the Initial Appraised Value and Initial Borrowing Value of
each Funding Date Engine; and

 

(xii)          all conditions
precedent under the Asset Transfer Agreement, with respect to the Third
Remaining Engine, or the applicable Acquisition Agreement, with respect to any
Additional Engine, shall have been satisfied or waived by the relevant parties;

 

(m)          Mortgage and
Acquisition Agreement.  If the
proceeds of the Loan are to be used to acquire a Funding Date Engine, the
following documents shall have been duly executed and delivered by the
indicated parties: a Mortgage, duly executed and delivered by the Engine
Subsidiary or Engine Trust that will own such Funding Date Engine (the “Buyer”), and an Acquisition Agreement, duly executed and
delivered by WEST, the applicable Seller and any WEST Subsidiary a party
thereto (including the Buyer, if applicable);

 

(n)           Lease.  If a Funding Date Engine is subject to a
Lease, (i) such Lease meets the requirements of the Indenture, (ii) a
chattel paper copy of the Lease for each Funding Date Engine and a chattel
paper copy of any Lease Supplement for each Funding Date Engine shall have been
delivered pursuant to the requirements of the Security Trust Agreement and the
Custodial Agreement (or if any such chattel paper copy does not exist,
appropriate evidence with respect to the missing chattel paper copy reasonably
acceptable to the Indenture Trustee and the Series A2 Noteholders), and (iii) the
Lessee under each Lease relating to each Funding Date Engine shall have been
directed to remit to the Collections Account all Lease Payments owing pursuant
to such Lease;

 

(o)           Maintenance
Reserves.  If a Funding Date
Engine is subject to a Lease that requires Maintenance Reserves Payments, any
Maintenance Reserve Payment Balance for each such Funding Date Engine shall
have been transferred to the Engine Reserve Account.

 

(p)           Security
Deposits.  If a Funding Date
Engine is subject to a Lease that requires Security Deposits, such Security
Deposits, if any, for each such Funding Date Engine that are in the form of
cash or funds shall have been transferred to the Security Deposit Account and
such Security Deposits, if any, in the form of letters of credit or similar
collateral shall have been transferred to the Security Trustee.

 

(q)           Engine
Trustee Documents.  With
respect to each Funding Date Engine owned or to be owned by an Engine Trustee,
the Security Trustee shall have received from such Engine Trustee (i) a
copy of the resolutions of the Board of Directors of the Engine Trustee, in its
individual capacity, certified by a Responsible Officer of the Engine Trustee,
duly authorizing the execution, delivery and performance by the Engine Trustee
of each of the Related Documents to which the Engine Trustee is or will be a
party; (ii) an incumbency certificate of the Engine Trustee, as to the
persons authorized to execute and deliver the Related Documents to which it is
or will be a party and the signatures of such person or persons; and (iii) a
legal

 

13

 

opinion of counsel to the Engine Trustee with respect to the due
authorization, execution and delivery by the Engine Trustee of the Related
Documents to which it is or will be a party.

 

(r)            Legal Opinions.  If a
Funding Date Engine is being acquired, the Indenture Trustee shall have
received an opinion of special FAA counsel in the United States as to the
creation, priority and perfection of the security interest created by the Mortgage
in each Funding Date Engine and the other Collateral effected pursuant to
clause (k)(v) above, in form and substance satisfactory to the Indenture
Trustee.

 

(s)           Insurance.  If a Funding Date Engine that is being
acquired is subject to a Lease, the Indenture Trustee shall have received a
certificate from an insurance broker, naming the Indenture Trustee as sole loss
payee and additional insured.

 

(t)            Governmental Consents. 
The Indenture Trustee shall have received originals (or copies certified
to be true copies by a Responsible Officer of the Administrative Agent) of all
approvals or consents of Governmental Authorities or other third parties, if
any, necessary for WEST to execute, deliver and perform its obligations under
the Related Documents and the transactions contemplated thereby.

 

(u)           Illegality.  No change shall have occurred after the date
of this Agreement in Applicable Law or regulations thereunder or
interpretations thereof by appropriate regulatory authorities or any court that
would make it illegal for any party to execute, deliver and perform the Series A2
Related Documents to which it is a party and no action or proceeding shall have
been instituted nor shall any action or proceeding be threatened before any
court or Governmental Authority, nor shall any order, judgment or decree have
been issued by any court or Governmental Authority prior to the Funding Date to
set aside, restrain, enjoin or prevent the completion and consummation of this
Agreement or any other Series A2 Transaction Document or the transactions
contemplated hereby or thereby.

 

(v)           Senior
Restricted Cash Account. 
After giving effect to such Loan, the balance of funds on deposit in the
Senior Restricted Cash Account Shall be not less than the Senior Restricted
Cash Amount (calculated after giving effect to such Loan).

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF WEST AND WILLIS

 

Section 4.01.          Representations and Warranties of
WEST.  WEST represents (as of the
initial Closing Date and as of each Funding Date on which a Loan is made by a Series A2
Noteholder pursuant to the Supplement and this Agreement, unless otherwise
indicated) and warrants to, and agrees with, the Series A2 Noteholders
that:

 

(a)           WEST has been duly formed and is
validly existing as a Delaware statutory trust in good standing under the laws
of the State of Delaware with organizational power and authority to own, lease
and operate its properties and to conduct its business as described in the Offering
Memorandum, has been duly qualified as a foreign trust to transact business and
is in good standing in each jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure to be so

 

14

 

qualified would
not have a material adverse effect on (i) its condition (financial or
otherwise), results of operations, assets, affairs of WEST and the WEST
Subsidiaries taken as a whole, or (ii) the ability of WEST to perform its
obligations under any Related Document to which it is a party, or (iii) the
enforceability of any Related Document including the ability of the Indenture
Trustee to enforce its rights under any Related Document (any of clauses (i), (ii) and
(iii), a “Material Adverse Effect”).

 

(b)           WEST Funding has been duly formed and
is validly existing as a Delaware limited liability company in good standing
under the laws of the State of Delaware with corporate power and authority to
own, lease and operate its properties and to conduct its business as currently
conducted, has been duly qualified as a foreign limited liability company to
transact business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of
property or the conduct of business, except where the failure to be so
qualified would not have a Material Adverse Effect.

 

(c)           WEST has all requisite organizational
power and authority to execute, deliver and perform its obligations under this
Agreement and the other Related Documents and to consummate the transactions
contemplated hereby and thereby, including, without limitation, the
organizational power and authority to issue, sell and deliver the Series A2
Notes as provided herein and therein.

 

(d)           This Agreement, the Indenture and
each of the other Related Documents to which WEST is a party have been, or as
of the Initial Closing Date will be, duly authorized, executed and delivered by
WEST and constitute valid and legally binding agreements enforceable against
WEST in accordance with their terms, except as enforceability may be limited by
(A) bankruptcy, insolvency, fraudulent conveyance, reorganization,
receivership, moratorium or other similar laws affecting the enforcement of the
rights of creditors generally, (B) general principles of equity, whether
enforcement is sought in a proceeding in equity or at law, and (C) public
policy considerations underlying the securities laws, to the extent that such
public policy considerations limit the enforceability of the provisions of such
Related Documents that purport to provide indemnification from securities law
liabilities.

 

(e)           The Series A2 Notes have been
duly and validly authorized by WEST for issuance and sale to the Series A2
Noteholders pursuant to this Agreement and, when issued and authenticated in
accordance with the terms of the Indenture and the Series A2 Supplement
and delivered against payment therefor in accordance with the terms hereof,
will constitute valid and legally binding obligations of WEST, enforceable
against WEST in accordance with their terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditors’ rights and remedies, and to general principles of equity,
including principles of commercial reasonableness, good faith and fair dealing
(whether considered in a proceeding at law or in equity), and will be entitled
to the benefits of the Indenture.

 

(f)            Neither WEST nor any WEST Subsidiary
is (A) in violation of its organizational documents, (B) in default
in the performance or observance of any material obligation, agreement,
covenant or condition contained in any contract, indenture, mortgage, loan
agreement, note, lease or other instrument to which WEST or any WEST Subsidiary
is a

 

15

 

party, or to which
any of the property or assets of WEST or of any WEST Subsidiary may be subject,
or by which it may be bound, or (C) in violation of any applicable local,
state or federal law, statute, ordinance, rule, regulation, requirement,
judgment or court decree having jurisdiction over any of them or any of their
assets or properties (whether owned or leased) other than, in the case of
clauses (B) and (C), any default or violation that could not reasonably be
expected to (x) individually or in the aggregate, result in a Material Adverse
Effect, or (y) in any manner draw into question the validity of this Agreement
or any other Related Document.

 

(g)           None of (A) the execution,
delivery or performance by WEST or any WEST Subsidiary of this Agreement and
the other Related Documents, (B) the issuance and sale of the Series A2
Notes, and (C) consummation of the transactions contemplated hereby and
thereby violates, conflicts with or constitutes a breach of any of the terms or
provisions of, or a default under (or an event that with notice or the lapse of
time, or both, would constitute a default), or requires consent that has not
been obtained under, or will result in the imposition of a lien or encumbrance
other than a Permitted Encumbrance, on any properties of WEST or any WEST
Subsidiary, or an acceleration of any indebtedness of WEST or any WEST
Subsidiary pursuant to (i) the organizational documents of WEST or any
WEST Subsidiary, (ii) material obligation, agreement, covenant or
condition contained in any contract, indenture, mortgage, loan agreement, note,
lease or other instrument to which WEST or any WEST Subsidiary is a party, or
to which any of the property or assets of WEST or of any WEST Subsidiary may be
subject, or by which it may be bound, (iii) any statute, rule or
regulation applicable to WEST or any WEST Subsidiary or any of their assets or
properties or (iv) any judgment, order or decree of any court or Governmental
Authority having jurisdiction over WEST or any WEST Subsidiary or any of their
assets or properties, except in the case of clauses (ii), (iii) and (iv) for
such violations, conflicts, breaches, defaults, consent, impositions of liens
or accelerations that would not singly, or in the aggregate, have a Material
Adverse Effect.

 

(h)           There is no action, suit or proceeding
before or by any court or Governmental Authority, domestic or foreign, now
pending, or, to the knowledge of WEST, threatened, against or affecting WEST or
any of the WEST Subsidiaries or any of their respective properties, at law or
in equity, that, if adversely determined, would have a Material Adverse Effect
or that might materially and adversely affect the consummation of the
transactions contemplated by the Related Documents to which WEST or any WEST
Subsidiary is a party.

 

(i)            No authorization, approval, consent
or order of or filing, registration, qualification, license or permit of or
with any court or Governmental Authority or agency or any other Person is
necessary in connection with (A) assuming the accuracy of the
representations, warranties, agreements and covenants of each of the Series A2
Noteholders contained in Articles V hereof, the offering, issuance or sale of the
Series A2 Notes hereunder and (B) the execution, delivery and
performance by Willis, WEST and the WEST Subsidiaries of this Agreement and the
other Related Documents, except such as have been, or as of the Closing Date
will have been, obtained, or such as may otherwise be required under applicable
state securities laws in connection with the offer for sale and the purchase by
the Series A2 Noteholders of the Series A2 Notes, any recordation of
the pledge of the Collateral to the Security Trustee pursuant to the Security
Trust Agreement that has not yet been completed, or other than as provided in
the Related Transaction Documents.

 

16

 

(j)            Since July 25, 2005, (A) there
has been no material adverse change, or any development that is reasonably
likely to result in a Material Adverse Effect, whether or not arising in the
ordinary course of business, and (B) there have been no transactions
entered into by WEST or any WEST Subsidiary, other than those in the ordinary
course of business, that are material with respect to WEST and the WEST
Subsidiaries taken as a whole.

 

(k)           WEST and each of the WEST
Subsidiaries, at the Initial Closing Date and on each Funding Date, will have
good and marketable title to all properties and assets, free and clear of all
liens, charges, encumbrances or restrictions, except for Permitted Encumbrances
or are not material to the business of WEST and the WEST Subsidiaries.

 

(l)            WEST and each WEST Subsidiary
possesses, and at the Initial Closing Date and on each Funding Date, will
possess all material licenses, certificates, authorities or permits, if any are
required pursuant to prevailing Applicable Law, issued by the appropriate
state, federal or foreign regulatory agencies or bodies necessary to conduct
its business, and WEST has not received any notice of proceedings relating to
the revocation or modification of any such license, certificate, authority or
permit which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, (1) would result in a Material Adverse
Effect, or (2) would materially and adversely affect the ability of WEST
to perform its obligations hereunder or under the Related Documents.

 

(m)          No part of the proceeds of the Loans
will be used for “buying” or “carrying” any “margin stock” within the
respective meanings of each of the quoted terms under Regulation T, U and X as
now and from time to time hereafter in effect or for any purpose that violates
the provisions of the Regulations of the Board.

 

(n)           WEST is not, and after giving effect
to the sale of the Series A2 Notes to the Series A2 Noteholders
pursuant to this Agreement and the application of the proceeds therefrom, will
not be an “investment company” under the 1940 Act nor is WEST an entity “controlled”
by an “investment company” as such term is defined in the 1940 Act.

 

(o)           Other than the insurance with respect
to the Engines under Leases, which insurance is maintained by the respective
Lessees, WEST and the WEST Subsidiaries maintain insurance with respect to the
assets, properties and business of WEST and the WEST Subsidiaries of the types
and in amounts generally deemed adequate for their businesses and consistent
with insurance coverage maintained by similar companies and businesses and as
required by the Indenture and other Related Documents, all of which insurance
is in full force and effect.

 

(p)           Any taxes, fees and other
governmental charges in connection with the execution, delivery and issuance of
the Related Documents to which WEST is a party and of the Series A2 Notes
have been paid or will be paid at or prior to the Closing Date.

 

(q)           Assuming the accuracy of the
representations, warranties, agreements and covenants of each of the Series A2
Noteholders contained in Article V hereof, the offer, sale and delivery of
the Series A2 Notes in the manner contemplated by this Agreement do not
require

 

17

 

registration under
the Securities Act and, in connection therewith, the Indenture is not required
to be qualified under the Trust Indenture Act of 1939.

 

(r)            No securities of the same class
(within the meaning of paragraph (d)(3) of Rule 144A under the
Securities Act) as the Series A2 Notes are listed on any national
securities exchange registered under Section 6 of the Exchange Act or
quoted on any United States automated inter-dealer quotation system.

 

(s)           Neither WEST nor any of its
affiliates (as defined for purposes of Rule 501(b) of Regulation D)
has, directly or through any agent (provided that no representation is made as
to the Series A2 Noteholders or any person acting on their behalf), (i) sold,
offered for sale, solicited offers to buy or otherwise negotiated in respect of
any security (as defined for purposes of the Securities Act) that is or will be
integrated with the offering and sale of the Notes in a manner that would
require the registration thereof under the Securities Act or (ii) solicited
any offer to buy or offer to sell the Notes in any manner involving a public offering
(within the meaning of Section 4(2) of the Securities Act), including
by means of, or in connection with the offering of the Notes otherwise engaging
in, any form of general solicitation or general advertising (within the meaning
of Regulation D).

 

(t)            WEST and any “employee benefit plan”
(as defined under the Employee Retirement Income Security Act of 1974, as
amended, and the regulations and published interpretations thereunder
(collectively, “ERISA”)) established or
maintained by WEST, or its “ERISA Affiliates” (as
defined below) are in compliance in all material respects with ERISA.  “ERISA Affiliate”
means, with respect to WEST or a WEST Subsidiary, any member of any group of
organizations described in Sections 414(b), (c), (m) or (o) of the Internal
Revenue Code of 1986, as amended, and the regulations and published
interpretations thereunder (the “Code”) of
which WEST is a member.  No “reportable
event” (as defined under ERISA) has occurred or is reasonably expected to occur
with respect to any “employee benefit plan” established or maintained by WEST,
or any of its ERISA Affiliates.  No “employee
benefit plan” established or maintained by WEST, or any of its ERISA
Affiliates, if such “employee benefit plan” were terminated, would have any “amount
of unfunded benefit liabilities” (as defined under ERISA).  Neither WEST nor any of its ERISA Affiliates
has incurred or reasonably expects to incur any liability under (i) Title
IV of ERISA with respect to termination of, or withdrawal from, any “employee
benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the Code.  Each “employee benefit plan” established or
maintained by WEST, or any of its ERISA Affiliates that is intended to be
qualified under Section 401(a) of the Code is so qualified and nothing
has occurred, whether by action or failure to act, which would cause the loss
of such qualification.

 

(u)           The representations and warranties of
WEST and each WEST Subsidiary in the Security Trust Agreement will be true and
correct (unless such representation or warranty specifically relates to an
earlier date in which case it shall be true and correct as of such earlier
date).

 

(v)           The representations and warranties of
WEST set forth in Section 5.01 of the Indenture will be true and correct
(unless such representation or warranty specifically relates to an earlier date
in which case it shall be true and correct as of such earlier date).

 

18

 

Section 4.02.          Representations and Warranties and
Agreements of Willis.  Willis hereby
represents and warrants as of the Initial Closing Date and covenants with the Series A2
Noteholders that:

 

(a)           Willis has been duly formed and is
validly existing as a Delaware corporation in good standing under the laws of
the State of Delaware with corporate power and authority to own, lease and
operate its properties and to conduct its business as presently conducted, has
been duly qualified as a foreign corporation to transact business and is in
good standing in each jurisdiction in which such qualification is required,
whether by reason of the ownership or leasing of property or the conduct of
business, except where the failure to be so qualified would not have a Material
Adverse Effect.

 

(b)           Willis has all requisite corporate power
and authority to execute, deliver and perform its obligations under this
Agreement and the other Related Documents to which it is a party and to
consummate the transactions contemplated hereby and thereby.

 

(c)           This Agreement and each of the other
Related Documents to which Willis is a party have been duly authorized,
executed and delivered by Willis and constitute valid and legally binding
agreements enforceable against Willis in accordance with their terms, except as
enforceability may be limited by (A) bankruptcy, insolvency, fraudulent
conveyance, reorganization, receivership, moratorium or other similar laws
affecting the enforcement of the rights of creditors generally, (B) general
principles of equity, whether enforcement is sought in a proceeding in equity
or at law, and (C) public policy considerations underlying the securities
laws, to the extent that such public policy considerations limit the
enforceability of the provisions of such Related Documents that purport to
provide indemnification from securities law liabilities.

 

(d)           Willis is not (A) in violation
of its certificate of incorporation or by-laws (or similar organizational
documents), (B) in default in the performance or observance of any
material obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan agreement, note, lease or other instrument
to which Willis is a party, or to which any of the property or assets of Willis
may be subject, or by which it may be bound, or (C) in violation of any Applicable
Law, statute, ordinance, rule, regulation, requirement, judgment or court
decree having jurisdiction over it or any of its assets or properties (whether
owned or leased) other than, in the case of clauses (B) and (C), any
default or violation that could not reasonably be expected to (x) individually
or in the aggregate, result in a Material Adverse Effect, (y) interfere with or
adversely affect the issuance or marketability of the Notes pursuant hereto or
(z) in any manner draw into question the validity of this Agreement or any
other Transaction Document.

 

(e)           No authorization, approval, consent
or order of or filing, registration, qualification, license or permit of or
with any court or Governmental Authority or agency or any other Person is
necessary in connection with (A) the offering, issuance or sale of the Series A2
Notes hereunder and (B) the execution, delivery and performance by Willis,
WEST and the WEST Subsidiaries of this Agreement and the other Related
Documents, except such as have been, or as of the Initial Closing Date will
have been, obtained or such as may otherwise be required under applicable state
securities laws in connection with the offer for sale and purchase

 

19

 

by the Series A2
Noteholders of the Series A2 Notes, and any recordation of the pledge of
the Collateral to the Security Trustee pursuant to the Security Trust Agreement
that has not yet been completed, other than as provided in the Related
Documents.

 

(f)            Other than the insurance with
respect to the Engines under Leases, which insurance is maintained by the
respective Lessees, Willis maintains insurance with respect to the assets,
properties and business of Willis of the types and in amounts generally deemed
adequate for their businesses and consistent with insurance coverage maintained
by similar companies and businesses and as required by the Indenture and other
Related Documents, all of which insurance is in full force and effect.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE SERIES A2 NOTEHOLDERS

 

Each of the Series A2
Noteholders hereby severally and not jointly makes the following
representations and warranties as to itself to WEST and Willis as of the Initial
Closing Date and as of each Funding Date:

 

Section 5.01.          Authority, etc.  This Series A2 Note Purchase Agreement has been duly and validly
executed and delivered by the Series A2 Noteholder and constitutes a
legal, valid and binding obligation of the Series A2 Noteholder,
enforceable against the Series A2 Noteholder in accordance with its terms,
subject as to enforcement to bankruptcy, reorganization, insolvency, moratorium
and other similar laws of general applicability relating to or affecting
creditors’ rights and to general principles of equity.

 

Section 5.02.          Securities Act.  (a)  The Series A2 Note purchased
by such Series A2 Noteholder pursuant to this Series A2 Note Purchase
Agreement will be acquired for investment only and not with a view to any
public distribution thereof, and such Series A2 Noteholder will not offer
to sell or otherwise dispose of its Series A2 Note (or any interest
therein) in violation of any of the registration requirements of the Securities
Act or any applicable state or other securities laws.

 

(b)           The Series A2 Noteholder acknowledges
that it has no right to require WEST to register the Series A2 Notes under
the Securities Act or any other securities law. 
The Series A2 Noteholder agrees that the Series A2 Notes may
not be reoffered, resold, pledged or otherwise transferred except in compliance
with the Securities Act and to a person that the Series A2 reasonably
believes is a Qualified Institutional Buyer or Institutional Accredited
Investor purchasing for its own account. 
Neither such Series A2 Noteholder nor any of its Affiliates nor any
persons acting on their behalf have engaged or will engage in any general
solicitation or general advertising with respect to the Series A2 Note.

 

(c)           Such Series A2 Noteholder (as to
itself) is aware of the following:  (i) there
are significant restrictions on and conditions to the transferability of the Series A2
Note (and the Series A2 Note will bear legends referring to such
restrictions) and there is no market for the Series A2 Note and no market
is expected to develop for the Series A2 Note, and accordingly, it may not
be possible for the Series A2 Noteholder to liquidate its investment in
the Series A2

 

20

 

Notes; (ii) no
Governmental Authority has made any findings as to the fairness of this Series A2
Note Purchase Agreement or the terms and conditions of the Series A2 Note;
(iii) there are numerous risks and uncertainties involved in the Series A2
Noteholder’s acquisition of the Series A2 Note and the Series A2
Noteholder has been advised of and understands such risks and uncertainties;
and (iv) any projections or predictions that may have been made available
to the Series A2 Noteholder are based on estimates, assumptions, and
forecasts which may prove to be incorrect; and no assurance is given that
actual results will correspond with the results contemplated by the various
projections.

 

(d)           Such Series A2 Noteholder has
knowledge and experience in financial and business matters, is capable of
evaluating the merits and risks of an investment in the Series A2 Notes
and has carefully considered the suitability of an investment in such Notes and
has determined that the Series A2 Notes are a suitable investment.  Such Series A2 Noteholder has received
and carefully read the Related Transaction Documents and the Series A2
Noteholder confirms that all documents, records and books pertaining to the Series A2
Notes, WEST and its assets and the other parties to the Related Transaction
Documents which are relevant to the Series A2 Noteholder’s investment
decision have been made available to such Series A2 Noteholder.  Such Series A2 Noteholder is capable of
bearing the risks and burdens of its investment in the Series A2 Notes and
is aware that an Optional Redemption of the Series A2 Notes may occur and
that no premium will be paid upon any Optional Redemption.

 

ARTICLE VI

OTHER COVENANTS

 

Section 6.01.          Securities Act.  WEST agrees not to sell, offer for sale or
solicit offers to buy or otherwise negotiate in respect of any security (as
defined in the Securities Act) that would be integrated with the sale of the Series A2
Notes and the Series B2 Notes in a manner that would require the
registration under the Securities Act of the sale to the Series A2
Noteholders and the Series B2 Noteholders of the Series A2 Notes and
the Series B2 Notes, respectively.

 

Section 6.02.          Legal Conditions to Closing.  The Series A2 Noteholders,  WEST and Willis will take all reasonable
actions necessary to comply promptly with all legal requirements which may be
imposed on any of them with respect to the consummation of the transactions
contemplated by this Agreement and will promptly cooperate with and furnish
information to one another in connection with any such legal requirements.  The Series A2 Noteholders, WEST, and
Willis will take all reasonable action necessary to obtain (and will cooperate
with one another in obtaining) any consent, authorization, permit, license,
franchise, order or approval of, or any exemption by, any Governmental
Authority or any other Person, required to be obtained or made by it in
connection with any of the transactions contemplated by this Agreement.

 

Section 6.03.          Expenses and Fees.  Except as otherwise expressly provided
herein, all Issuance Expenses incurred in connection with the entering into
this Series A2 Note Purchase Agreement and the transactions contemplated
hereby shall be paid by WEST.

 

Section 6.04.          Mutual Obligations.  On and after the date of this Agreement, the Series A2
Noteholders, WEST and Willis will do, execute and perform all such other acts,
deeds and

 

21

 

documents as the other
party may from time to time reasonably require in order to carry out the intent
of this Agreement.

 

Section 6.05.          Pledge to Liquidity Providers.  WEST recognizes the obligations of any CP
Noteholder under the terms of the related Liquidity Agreement and hereby
consents to the transfer by such CP Noteholder of the Series A2 Notes to
the Liquidity Providers when required and in accordance with the terms of the
Liquidity Agreement; provided that
each of the Liquidity Providers shall be a Qualified Institutional Buyer, the
total number of Liquidity Providers for such CP Noteholder shall not at any
time exceed three (3), and each Liquidity Provider shall have delivered to WEST
and the Indenture Trustee on or before the later of the date hereof and the
date on which it first becomes a Liquidity Provider, an Investment Letter
making representations and warranties substantially identical to those set
forth in the form of Exhibit B to the Indenture and an Assignment and
Assumption Agreement, and provided,  further that, prior to the Conversion Date, each Liquidity
Provider shall be an Eligible Transferee and shall execute an Assignment and
Assumption as a condition of such transfer. 
Transfers of the Series A2 Notes under the terms of the Liquidity
Agreement shall be subject to the terms of this Section 5.05, but shall
not otherwise be subject to the transfer restrictions set forth in the
Indenture.

 

ARTICLE VII

INDEMNIFICATION

 

Section 7.01.          Indemnification by WEST.  WEST agrees to indemnify and hold harmless
the Series A2 Noteholders and any of their respective officers, directors,
employees, agents, representatives, assignees and Affiliates (each, an “Indemnified Party”) against any and all losses, claims,
damages, liabilities or expenses (including reasonable legal and accounting
fees) (collectively, “Losses”), as
incurred (payable promptly upon written request), for or on account of or
arising from or in connection with any breach of any representation, warranty
or covenant of WEST in this Agreement or any other Related Document or in any
certificate or other written material delivered pursuant hereto; provided,
however, that WEST shall not be so required to indemnify any such Person or
otherwise be liable to any such Person hereunder for any Losses arising from
such Person’s gross negligence, willful misconduct or bad faith.
Notwithstanding the foregoing, WEST shall not be liable for any settlement of
any proceeding effected without its written consent.  All amounts due to an Indemnified Party under
this Article VII shall be included in Noteholder Increased Costs for the Series A2
Notes and the Indenture Trustee shall pay such amounts to such Series A2
Noteholders as part of the Series A2 Increased Costs out of the Available
Collections Amount on each Payment Date as provided in Section 3.13 of the
Indenture and Section 3.02 of the Series A2 Supplement.

 

Section 7.02.          Indemnification by Willis.  Willis agrees to indemnify and hold harmless
an Indemnified Party against all Losses, as incurred (payable promptly upon
written request), for or on account of or arising from or in connection with
any breach of any representation, warranty or covenant of Willis in this Agreement
or any other Related Document or in any certificate or other written material
delivered pursuant hereto; provided, however, that Willis shall not be so
required to indemnify any such Person or otherwise be liable to any such Person
hereunder for any Losses arising from such Person’s gross negligence, willful
misconduct or bad faith.

 

22

 

Notwithstanding the
foregoing, Willis shall not be liable for any settlement of any proceeding
effected without its written consent.

 

Section 7.03.          Procedure.  In order for any Indemnified Party to be
entitled to any indemnification provided for under this Agreement in respect
of, arising out of, or involving a claim made by any Person against the
Indemnified Party (a “Third Party Claim”),
such Indemnified Party must notify WEST in writing of the Third Party Claim
within five Business Days of receipt of a summons, complaint or other written notice
of the commencement of litigation and within ten Business Days after receipt by
such Indemnified Party of any other written notice of the Third Party
Claim.  Thereafter, the Indemnified Party
shall deliver to WEST, within a reasonable time after the Indemnified Party’s
receipt thereof, copies of all notices and documents (including court papers)
received by the Indemnified Party relating to the Third Party Claim.

 

Section 7.04.          Defense of Claims. If a Third
Party Claim is made against an Indemnified Party, (a) WEST or Willis, as
the case may be, will be entitled to participate in the defense thereof and, (b) if
it so chooses, to assume the defense thereof with counsel selected by WEST or
Willis, as the case may be, provided that in connection with such assumption (i) such
counsel is not reasonably objected to by the Indemnified Party and (ii) WEST
or Willis, as the case may be,  first
admits in writing its liability to indemnify the Indemnified Party with respect
to all elements of such claim in full. 
Should WEST or Willis, as the case may be, so elect to assume the
defense of a Third Party Claim, WEST or Willis, as the case may be, will not be
liable to the Indemnified Party for any legal expenses subsequently incurred by
the Indemnified Party in connection with the defense thereof.  If WEST or Willis, as the case may be, elects
to assume the defense of a Third Party Claim, the Indemnified Party will (i) cooperate
in all reasonable respects with WEST or Willis, as the case may be, in
connection with such defense and (ii) not admit any liability with respect
to, or settle, compromise or discharge, such Third Party Claim without WEST’s or
Willis’, as the case may be, prior written consent.  If WEST or Willis, as the case may be, shall
assume the defense of any Third Party Claim, the Indemnified Party shall be
entitled to participate in (but not control) such defense with its own counsel
at its own expense.  If WEST or Willis,
as the case may be, does not assume the defense of any such Third Party Claim,
the Indemnified Party may defend the same in such manner as it may deem
appropriate, including settling such claim or litigation after giving notice to
WEST or Willis, as the case may be, of such terms and, WEST or Willis, as the
case may be, will promptly reimburse the Indemnified Party upon written
request.

 

ARTICLE VIII

 

MISCELLANEOUS

 

Section 8.01.          Amendments.  No amendment or waiver of any provision of
this Series A2 Note Purchase Agreement shall in any event be effective
unless the same shall be in writing and signed by all of the parties hereto,
and then such amendment, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

 

Section 8.02.          Notices.  All notices and other communications provided
for hereunder shall, unless otherwise stated herein, be in writing (including
telecopies) or delivered by

 

23

 

overnight courier
service, as to each party hereto, at its address set forth below or at such
other address as shall be designated by such party in a written notice to the
other parties hereto.  All such notices
and communications shall, when telecopied or sent by overnight delivery
service, be effective with respect to telecopy notices, when the sending
machine receives confirmation of the transmission, and with respect to
overnight delivery service when confirmed by signed receipt.

 

If to the Series A2 Noteholder, to the addresses
set forth in Schedule 2:

 

If to WEST:

 

Willis Engine Securitization Trust

c/o Willis Lease Finance Corporation

2320 Marinship Way

Suite 300

Sausalito, California 94965

Telephone No.  (415) 331-5281

Facsimile No.  (415) 331-5167

 

If to Indenture Trustee :

 

Deutsche Bank Trust Company Americas

60 Wall Street

New York, New York 10005

New York, New York 

Attention: TSS-Structured Finance

Facsimile No.  (212) 797-8606

 

Section 8.03.          No Waiver; Remedies.  No failure on the part of any party hereto to
exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
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 8.04.          Binding Effect; Assignability.  This Agreement shall be binding upon and inure
to the benefit of WEST and the Series A2 Noteholders and their respective
successors and assigns (including any subsequent Holders of the Series A2
Notes, subject to their executing and delivering an Assignment and Assumption);
provided, however, that WEST shall not
have the right to assign its rights hereunder or any interest herein (by
operation of law or otherwise) without the prior written consent of the Series A2
Noteholders and that, prior to the occurrence of a Conversion Event, a Series A2
Noteholder shall not have the right to assign its rights and obligations
hereunder to any Person that is not an Eligible Transferee.  This Agreement shall create and constitute
the continuing obligation of the parties hereto in accordance with its terms,
and shall remain in full force and effect until such time as all amounts
payable with respect to the Series A2 Notes shall have been paid in full.

 

Section 8.05.          GOVERNING LAW; JURISDICTION.  THIS SERIES A2 NOTE PURCHASE AGREEMENT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.  Each of the parties to

 

24

 

this Agreement hereby
agrees to the jurisdiction of the United States District Court for the Southern
District of New York and any appellate court having jurisdiction to review the
judgments thereof.  Each of the parties
hereby waives any objection based on forum non conveniens and any objection to
venue of any action instituted hereunder in any of the aforementioned courts
and consents to the granting of such legal or equitable relief as is deemed
appropriate by such court.

 

Section 8.06.          No Proceedings.  (a)  WEST agrees that so long as any of
any CP Noteholder’s Commercial Paper Notes shall be outstanding or there shall
not have elapsed one year plus one day since the last day on which any of such
CP Noteholder’s Commercial Paper Notes shall have been outstanding, it shall
not file, or join in the filing of, a petition
against such CP Noteholder under the Federal Bankruptcy Code, or join in the
commencement of any bankruptcy, reorganization, arrangement, insolvency,
liquidation or other similar proceeding against such CP Noteholder.

 

(b)           Each of the Series A2
Noteholders agrees that so long as the Series A2 Notes shall be
outstanding or there shall not have elapsed one year plus one day since the
last day on which the Series A2 Notes shall have been outstanding, it
shall not file, or join in the filing of, a petition against WEST under the
Federal Bankruptcy Code, or join in the commencement of any bankruptcy,
reorganization, arrangement, insolvency, liquidation or other similar
proceeding against WEST.

 

Section 8.07.          Execution in Counterparts.  This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
when taken together shall constitute one and the same agreement.

 

Section 8.08.          Limited Recourse.  The obligations of WEST under this Agreement
shall be payable only out of the Collateral and the Series A2 Noteholders
shall not look to any property or assets of WEST, other than to the Collateral
remaining after all obligations of WEST under the Indenture are satisfied. To
the extent that the proceeds of the Collateral after application in accordance
with the provisions of the Indenture are insufficient to satisfy the
obligations of WEST under the Indenture and under this Agreement, WEST shall
have no further obligation in respect hereof and any remaining outstanding
obligation shall be extinguished.

 

Section 8.09.          Survival.  All representations, warranties, guaranties
and indemnifications (including the payment obligations in Article VII
hereof) contained in this Agreement and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the
sale and transfer of the Series A2 Notes.

 

Section 8.10.          Appointment of Agent for Service of
Process.  WEST hereby appoints
Corporation Service Company having an address at 1133 Avenue of the Americas,
New York, New York 10036 as its agent for service of process in the State of
New York.

 

[Signatures on next page]

 

25

 

IN WITNESS WHEREOF, the
parties have caused this Series A2 Note Purchase and Loan Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

 

	
   

  	
  WILLIS
  ENGINE SECURITIZATION TRUST

  
	
   

  	
  as Issuer,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Monica J. Burke

  	
   

  
	
   

  	
   

  	
  Name:
  Monica J. Burke

  	
   

  
	
   

  	
   

  	
  Title:   Controlling Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WILLIS
  LEASE FINANCE CORPORATION,

  
	
   

  	
  as Servicer,

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Monica J. Burke

  	
   

  
	
   

  	
   

  	
  Name:
  Monica J. Burke

  	
   

  
	
   

  	
   

  	
  Title:  
  Executive Vice President

  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FORTIS CAPITAL CORP.

  
	
   

  	
  as a Series A2 Noteholder

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John W. Benton

  	
   

  
	
   

  	
   

  	
  Name:
  John W. Benton

  	
   

  
	
   

  	
   

  	
  Title:   President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HSH
  NORDBANK AG

  	
   

  
	
   

  	
  as a Series A2 Noteholder

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jack Campbell

  	
   

  
	
   

  	
   

  	
  Name:
  Jack Campbell

  	
   

  
	
   

  	
   

  	
  Title:   Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Hari Raghavan

  	
   

  
	
   

  	
   

  	
  Name:
  Hari Raghavan

  	
   

  
	
   

  	
   

  	
  Title:   Senior Vice President

  	
   

  

 

Signature Page

to

Series A2 Note Purchase and Loan Agreement

 

 

SERIES A2 NOTE PURCHASE AND LOAN AGREEMENT

SCHEDULE 1

 

 

MAXIMUM COMMITMENTS OF SERIES
A2 NOTEHOLDERS

AND LOANS ON INITIAL
CLOSING DATE

 

 

SERIES A2 NOTE PURCHASE
AND LOAN AGREEMENT

SCHEDULE 1

 

ADDRESSES OF SERIES A2
NOTEHOLDERS

 

2

 

SERIES A2 NOTE PURCHASE AND LOAN AGREEMENT

EXHIBIT A

 

FORM OF LOAN REQUEST

 

Date:                                                    

 

[                         ]

[                         ]

New York, New York [      ]

Attention:     [                      ]

 

Fax:         [                             ]

 

RE:                              Series A2
Note Purchase and Loan Agreement (the “Agreement”),
dated as of August 9, 2005 among Willis Lease Finance Corporation (“Willis”), Willis Engine Securitization Trust (“WEST”), Fortis Capital Corp. and HSH Nordbank AG

 

Pursuant to Section 2.4(b) of
the Agreement, WEST hereby requests a Loan on                                                 
(the “Funding Date”) in the aggregate
principal amount of $                                .  The undersigned requests that the Loan amount
be deposited in the following account:

 

The undersigned does
hereby certify that (i) the representations, warranties and covenants
contained in the Series A2 Related Documents are true and correct as of
the date hereof; (ii) WEST has performed all agreements contained in the Series A2
Transaction Documents to be performed on its part at or prior to the date
hereof; (iii) no Event of Default, Servicer Termination Event or Early
Amortization Event has occurred and is continuing and no fact, condition or
event exists or has occurred which would, upon the giving of notice or the
passage of time or both, constitute an Event of Default, Servicer Termination
Event or Early Amortization Event; (iv) on the Funding Date, after such
Loan is funded, the aggregate Outstanding Principal Balance of the Series A2
Notes will not exceed the aggregate Series A2 Maximum Principal Balances
of the Series A2 Notes or aggregate Maximum Commitments of the holders of
the Series A2 Notes; (v) no proceeding is pending which would
prohibit consummation of the transactions contemplated by the Series A2
Related Transaction Documents, and (vi) the proceeds of the Loan will be
used for the following purposes, as indicated:

 

To acquire the Third
Remaining Engine or an Additional Engine

 

To fund a Discretionary
Engine Modification

 

A-1

 

To increase the Available
Collections Amount on the following Payment Date:

 

If the proceeds of the
Loan are being used to acquire the Third Remaining Engine or an Additional
Engine, the following Engine Information is provided.

 

Capitalized terms used
but not defined herein have the meanings set forth in the Agreement.

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

A-2

 

SERIES A2 NOTE PURCHASE AND LOAN AGREEMENT

EXHIBIT B

 

FORM OF ASSIGNMENT
AND ASSUMPTION

 

A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]