Document:

<PAGE>

      [CONFIDENTIAL TREATMENT REQUESTED. UNREDACTED VERSION SEPARATELY FILED
                 WITH THE SECURITIES AND EXCHANGE COMMISSION.]

                              COOPERATION AGREEMENT

                                  by and among

                        WILLIS LEASE FINANCE CORPORATION,

                                 FLIGHTLEASE AG

                                       and

                                SR TECHNICS GROUP

                                November 7, 2000

                                                           Cooperation Agreement
<PAGE>

                              COOPERATION AGREEMENT

      THIS COOPERATION AGREEMENT (this "Agreement") is made as of the 7th day of
November, 2000 by and among WILLIS LEASE FINANCE CORPORATION, a Delaware
corporation ("WLFC"), FLIGHTLEASE AG, a company organized under the laws of
Switzerland ("Flightlease") and SR TECHNICS GROUP, a company organized under the
laws of Switzerland ("SRT").

      WHEREAS, WLFC desires to issue to Flightlease, SRT and/or a subsidiary
designated by them, and Flightlease and SRT desire to directly or indirectly
acquire from WLFC, common stock of WLFC as described and on the terms and
conditions set forth in the Investment Agreement dated as of the date hereof
(the "Investment Agreement") among the parties hereto, and in conjunction with
the transactions contemplated thereby, the parties hereto desire to set forth
their understanding on the on-going conduct of their respective businesses in
relation to aircraft engines and related aviation equipment, with effect from
and after the closing of the transactions contemplated by the Investment
Agreement.

      NOW, THEREFORE, the parties hereto confirm their understanding as follows:

      1. Composition of WLFC's Engine Portfolio. WLFC shall ensure that at least
1 member of WLFC's Steering Committee established and maintained in accordance
with the Stockholders' Agreement (as defined in the Investment Agreement) shall
be a person appointed by Flightlease and/or SRT and shall otherwise use its
reasonable commercial efforts to reasonably ensure that aircraft engines of the
make, model, type and sub-type that represent any portion of the aircraft
leasing business of Flightlease or any of its subsidiaries from time to time or
the maintenance business of SRT or any of its subsidiaries from time to time and
as to which Flightlease or SRT, as the case may be, has expressed to WLFC a need
for WLFC's spares support, will be available from the portfolio of aircraft
engines held or obtained by WLFC (the "WLFC Engines"), it being understood,
however, that nothing contained herein shall restrict WLFC's ability, in the
normal conduct of its business, to utilize WLFC Engines that have not been
placed with Flightlease, SRT or Designated Customers (as defined in Section 2
below) pursuant to this Agreement. In furtherance and without limiting the
generality of the foregoing, WLFC hereby agrees that (a) if there should from
time to time be engines that represent any portion of such businesses of
Flightlease, SRT or any of their respective subsidiaries and as to which
Flightlease or SRT has expressed to WLFC a need for WLFC's spares support, that
is not then in WLFC's engine portfolio, then, upon consultation with SRT, and
agreement on commercially reasonable terms, WLFC shall introduce such engines of
the appropriate type into its portfolio, and (b) WLFC shall provide to SRT
quarterly reports, commencing with a report on or about December 31, 2000, as to
the types of WLFC Engines that are available for lease or purchase from WLFC,
and SRT shall be afforded a 2-week period to elect to lease or purchase, as the
case may be, any one or more of the WLFC Engines identified in such quarterly
report. Flightlease and SRT shall also provide quarterly reports, commencing
with a report on or about December 31, 2000, as to their anticipated
requirements for WLFC Engine support.

      2. Availability of Engines from WLFC.

      (a) Long-Term Lease. Excluding the engines subject to the General Terms
Engine Lease Agreement to be entered into between WLFC (or a trustee or other
designee of WLFC) and SR Technics AG, and the individual Aircraft Engine Lease
Agreements entered

                                                           Cooperation Agreement
<PAGE>

into thereunder, in each case, as referred to in the Investment Agreement
(collectively, the "Sale/Leaseback Lease"), WLFC shall, upon request (which
request shall specify the exact engine requested and identify the air carrier
that will operate such engine), make available spare engines to SRT, Flightlease
or any air carrier or affiliate thereof designated by Flightlease or SRT from
time to time (a "Designated Customer") for lease, subject to a commercially
reasonable availability date to be mutually agreed in each instance between WLFC
and the requesting party. Such lease transaction may take the form of, but not
limited to, an operating lease, finance lease in particular, synthetic lease,
any form of structured lease transaction involving the use of special-purpose
vehicles or other form of lease structure and shall be for a term of 1 to 10
years, in each case, as designated by such requesting party, each with the
concurrence of WLFC, and shall provide preferential pricing (as described in
clause (c) below) and other competitive terms and conditions reasonably
satisfactory to such requesting party and WLFC (with respect to the
reasonableness of such terms and conditions, taking into consideration, without
limitation, general engine leasing market conditions, the creditworthiness of
the prospective lessee, the credit risks associated with the jurisdiction of
such lessee, WLFC's financial condition and ability to take on various levels of
risks, and other factors). The parties hereto shall use their respective
reasonable commercial efforts to complete the documentation of such lease and
effect delivery of the subject engine thereunder within a commercially
reasonable period of time.

      (b) Short-Term Lease. Excluding the engines subject to the Sale/Leaseback
Lease, WLFC shall use its reasonable commercial efforts to have available or
arrange immediate access to spare WLFC Engines then in WLFC's portfolio, of the
type specified in Schedule 1 (as amended from time to time by mutual agreement
of the parties hereto), for lease to Flightlease, SRT or any Designated
Customer, for a term shorter than that described in clause (a) above, as
designated by the requesting party (which request shall specify the exact engine
requested and identify the air carrier that will operate such engine), with the
concurrence of WLFC, and otherwise on preferential pricing (as described in
clause (c) below) and other competitive terms and conditions reasonably
satisfactory to such requesting party and WLFC. The parties hereto shall use
their respective reasonable commercial efforts to complete the documentation of
such lease and effect delivery of the subject engine thereunder as soon as
possible and within any specific period of time as mutually agreed between the
parties to such lease. Flightlease and SRT shall provide WLFC from time to time
an anticipated schedule of the time periods during which WLFC Engines of a
particular type may be required for lease under this clause (b), and WLFC shall
use its reasonable commercial efforts to arrange for the availability of such
WLFC Engines in accordance therewith.

      (c) Preferential Pricing. For purposes of the foregoing clauses (a) and
(b), "preferential pricing" shall mean XXX [CONFIDENTIAL TREATMENT REQUESTED.]

      3. "Most Favored Nation" Status. In relation to any proposed lease of any
WLFC Engine to Flightlease, SRT or any Designated Customer, WLFC shall offer
pricing and other terms and conditions that are at least as favorable, in the
reasonable judgment of the parties hereto, as any other comparable WLFC Engine
lease to any other comparable entity that was entered into after the date hereof
and as in effect on the date of such proposed lease or that is then being
offered to such other entity. WLFC shall provide to Flightlease and SRT

                                                           Cooperation Agreement
<PAGE>

quarterly reports, commencing with a report on or about December 31, 2000,
listing each engine lease transaction entered into by WLFC during the calendar
quarter then ended, in response to which Flightlease or SRT may at any time
request information and copies of lease documents (consisting of a general terms
lease agreement, an engine lease agreement and supplements, amendments, side
letter agreements and other documents governing the terms of such leasing
arrangement, as the case may be) in respect of any particular transaction
identified in such report (subject to the need for any confidentiality agreement
that may need to be executed by Flightlease or SRT as a condition to the release
of such information or documents).

      4. Engine Pooling Arrangements. The parties hereto shall use their
respective commercially reasonable efforts to establish a sufficient customer
base for participation in engine pooling arrangements for particular types of
engines within WLFC's then-current portfolio designated by Flightlease or SRT.
If, in the reasonable judgment of Flightlease or SRT, such customer base has
been established, Flightlease or SRT shall provide notice thereof to WLFC, and
(a) WLFC shall within 3 weeks provide an economic analysis of such pooling
arrangement to WLFC's Steering Committee for review and consideration of the
Steering Committee and (b) the parties hereto shall cooperate to develop a
mutually acceptable pooling product within 5 months (assuming such customer base
has been reasonably identified sufficiently prior to the end of such 5-month
period) after the Effective Date (as defined in Section 11(e) below), and
negotiate in good faith the following terms and conditions applicable thereto:

            (i) the specifics of WLFC's lead pool management responsibilities;

            (ii) the extent and nature of advantages to Flightlease, SRT, as the
      case may be, and the other pooling participants, as compared to current
      pooling arrangements to which such entity(ies) is (are) a participant;

            (iii) the extent and nature of any volume discount (such as, by way
      of example, a volume discount based upon the relative number of engine
      contributions into the pool) that may be afforded to Flightlease, SRT and
      the other pooling participants; and

            (iv) the extent and nature of any fractional engine interest and
      correspondingly fractional pooling fees that may be offered to pooling
      participants.

      5. Access to Network.

      (a) In providing engines to Flightlease, SRT or any Designated Customer
pursuant to any other provision of this Agreement, WLFC shall not be limited to
engines then owned, leased or otherwise held by WLFC at any relevant point in
time, but WLFC shall use its reasonable commercial efforts to provide (or assist
Flightlease, SRT or such Designated Customer in obtaining) engines for such
purposes from manufacturers, airlines, lessors or other engine providers with
whom WLFC shall be doing business from time to time, including arranging for the
use of spare engines that may be held by such entities.

      (b) When necessary to assist WLFC in the performance of its obligations
under clause (a) above, Flightlease and SRT will grant WLFC similar access to
(i) spare engines then owned by Flightlease or SRT, as the case may be, subject
to contractual restrictions binding on Flightlease or SRT, as the case may be,
limiting the availability of such engines,

                                                           Cooperation Agreement
<PAGE>

and (ii) Flightlease's or SRT's network of manufacturers, airlines, lessors or
other engine providers with whom Fightlease or SRT, as the case may be, shall be
doing business from time to time, and where appropriate and practicable, make
available Flightlease's or SRT's, as the case may be, purchasing power in the
new and used engine and financial markets.

      (c) If requested by WLFC, each of Flightlease and SRT shall consult with
WLFC concerning business opportunities with Flightlease's or SRT's, as the case
may be, airline partners and business customers for purposes of promoting WLFC's
engine leasing and other businesses, and when desired by WLFC, facilitate
dialogue with and presentation of business proposals to such airline partners
and business customers.

      6. Location of Spare Engines and WLFC Personnel in Zurich.

      (a) WLFC shall physically place spare WLFC Engines at the Zurich Airport
as mutually agreed among the parties hereto from time to time in a commercially
reasonable manner, to support short term lease arrangements, subject to Section
2(b) above.

      (b) WLFC shall at all times establish and maintain an office in Zurich
staffed by at least 1 person who is knowledgeable about this Agreement, the
Sale/Leaseback Lease and the subject matter hereof and thereof and who is
competent to interact with Flightlease and SRT concerning such matters,
including, without limitation, where appropriate, to take actions (subject to
having obtained any necessary approval of management located at WLFC's head
office) with respect to WLFC Engines located at the Zurich Airport pursuant to
the foregoing clause (a) (including being able to carry out instructions from
WLFC's head office regarding the release of any such engine to Flightlease, SRT
or a Designated Customer).

      7. Termination of Engine Lease or Pooling Agreement. In the event that
Flightlease, SRT or any Designated Customer desires to terminate any leasing,
pooling or other provisioning of any WLFC Engine effected hereunder prior to the
scheduled expiry thereof, the parties hereto shall negotiate mutually acceptable
and commercially reasonable financial terms governing any compensation to be
paid to WLFC in connection with such early termination (or alternatively, any
purchase option in lieu thereof), taking into account the engine fleet
management, financial and other considerations applicable to each party to such
terminated transaction.

      8. Services by SRT. If WLFC shall propose to enter into a maintenance
agreement with, or otherwise seeks to contract or subcontract out engine
maintenance work to, any other maintenance provider with respect to any WLFC
Engine of the type that SRT performs similar maintenance work on (excluding such
WLFC Engines subject to leases under which the lessees have the right to
designate maintenance providers), then WLFC shall provide notice of the bona
fide terms of such proposed agreement to SRT and SRT shall have the option to
enter into such agreement with WLFC. SRT shall notify WLFC of its decision
within 2 weeks after its receipt of such notice from WLFC. If SRT shall decline
such offer, WLFC shall enter into such agreement with such other maintenance
provider on the same terms described in its notice, within 2 weeks of such
notice. With respect to any engine maintenance work to be provided by SRT to
WLFC, SRT shall negotiate in good faith with WLFC with a view toward offering
preferential pricing for such work.

      9. Cross-Marketing. Each of Flightlease and SRT will provide reasonable
assistance and market support to WLFC in promoting WLFC's engine leasing efforts
and the

                                                           Cooperation Agreement
<PAGE>

development and marketing of other products, and WLFC will provide reasonable
assistance and market support to Flightlease and SRT in promoting their
respective leasing and maintenance businesses, including "maintenance by the
hour" or other engine maintenance proposals of SRT, and the development and
marketing of other products, it being understood, however, that no party hereto
shall be obligated to use or require the use of the others' products and
services.

      10. China Joint Venture. If requested by Flightlease or SRT, WLFC shall
consult with Flightlease and SRT concerning business opportunities with Sichuan
Snecma Aero-Engine Maintenance Co., Ltd., a joint venture in which WLFC is a
participant (including without limitation the acquisition by Flightlease or SRT
of WLFC's participation in such joint venture) and when desired by Flightlease
or SRT, facilitate dialogue with and presentation of business proposals to such
joint venture.

      11. Miscellaneous.

      (a) Notices. Any notice required or permitted hereunder shall be given in
accordance with the Investment Agreement.

      (b) Successors and Assigns. This Agreement shall inure to the benefit of
the successors and assigns of each party hereto.

      (c) Governing Law; Dispute Resolution. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York. The
arbitration provisions and any related attorneys' fees provision contained in
the Investment Agreement shall apply to this Agreement as if set forth herein in
full, mutatis mutandis.

      (d) Amendment. This Agreement may not be amended or modified, in whole or
in part, except by an agreement in writing signed by each of the parties hereto.

      (e) Effectiveness; Termination. This Agreement shall be in effect for a
term of 3 years from the date of the closing of the initial capital investment
contemplated by the Investment Agreement (the "Effective Date"), so long as
during such time period, Flightlease, SRT and/or a subsidiary designated by them
shall collectively hold at least the initial capital investment made by them in
accordance with the Investment Agreement (unless extended or earlier terminated
by mutual agreement among the parties hereto), and thereafter, until terminated
by mutual agreement among the parties hereto for as long as Flightlease, SRT
and/or a subsidiary designated by them shall collectively hold at least 30% of
the capital stock of WLFC.

      (f) Severability. If one or more provisions of this Agreement are held to
be unenforceable under applicable law, the parties agree to renegotiate such
provision in good faith. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision, then (i) such
provision shall be excluded from this Agreement, (ii) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (iii)
the balance of the Agreement shall be enforceable in accordance with its terms.

      (g) Waiver. The rights of the parties to this Agreement are cumulative and
not alternative. Neither any failure nor any delay by any party in exercising
any right, power, or privilege under this Agreement or any of the documents
referred to in this Agreement will

                                                           Cooperation Agreement
<PAGE>

operate as a waiver of such right, power, or privilege, and no single or partial
exercise of any such right, power, or privilege will preclude any other or
further exercise of such right, power, or privilege or the exercise of any other
right, power, or privilege.

      (h) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

      (i) Securitization. Notwithstanding anything to the contrary contained
herein, with respect to any engine, engine lease or other engine-related assets
(collectively, the "Securitized Assets") that are now or hereafter a part of the
engine, engine lease and other engine-related asset pool subject to (i) the
existing WLFC Funding Corporation securitization, wherein Variable Funding
Capital Corporation ("VFCC") and First Union Securities, Inc. ("First Union")
are transaction participants, as amended from time to time (including increases
thereof), (ii) any other securitization transaction with or involving WLFC, VFCC
and First Union (or any of their respective affiliates) or (iii) any refinancing
or securitization with other parties of any Securitized Assets theretofore
subject to a securitization described in the foregoing clause (i) or (ii) (each,
a "Securitization"), WLFC's obligations hereunder with respect to any
Securitized Asset shall be strictly subject to all applicable contractual
restrictions and limitations contained in documents effecting the
Securitization. For the avoidance of doubt, each party hereto agrees and
confirms that no Securitized Asset shall be subject to any of the foregoing
provisions of this Agreement. WLFC hereby confirms that it is the "Servicer"
under the existing Securitization documentation and that engines subject to the
existing Securitization are, and engines subject to future Securitizations are
anticipated to be, typically utilized for long-term leases (not less than 6
months). WLFC hereby agrees that it will provide Flightlease and SRT prompt
notice of any engine in any Securitization that comes off-lease and notice prior
to placing any engine into any Securitization.

                            [Signature page follows.]

                                                           Cooperation Agreement
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

                                        WILLIS LEASE FINANCE CORPORATION

                                        By: /s/ CHARLES F. WILLIS, IV
                                           -------------------------------------
                                           Charles F. Willis, IV
                                           Chief Executive Officer and President

                                        FLIGHTLEASE AG

                                        By: /s/ HANS JORG HUNZIKER
                                           -------------------------------------
                                           Hans Jorg Hunziker
                                           President

                                        By: /s/ MATTHIAS MUELLER
                                           -------------------------------------
                                           Matthias Mueller
                                           Head of Business Development

                                        SR TECHNICS GROUP

                                        By: /s/ HANS ULRICH BEYELER
                                           -------------------------------------
                                           Hans Ulrich Beyeler
                                           President and CEO

                                        By: /s/ GEORG RADON
                                           -------------------------------------
                                           Georg Radon
                                           Vice-President and CFO

                                                           Cooperation Agreement<PAGE>

--------------------------------------------------------------------------------

      [CONFIDENTIAL TREATMENT REQUESTED. UNREDACTED VERSION SEPARATELY FILED
                 WITH THE SECURITIES AND EXCHANGE COMMISSION.]

                               [GRAPHIC OMITTED]

                       AIRCRAFT ENGINE PURCHASE AGREEMENT

                                    BETWEEN

                        WILLIS LEASE FINANCE CORPORATION

                                      AND

                           SR TECHNICS AG, as Seller

                               Sale and Leaseback

--------------------------------------------------------------------------------

                                                              Purchase Agreement
<PAGE>

                                 AIRCRAFT ENGINE
                               PURCHASE AGREEMENT

      THIS AIRCRAFT ENGINE PURCHASE AGREEMENT (this "Agreement") is made and
entered into as of 7 November, 2000, by and between SR TECHNICS AG, with offices
at Zurich Airport, Zurich CH 8058, Switzerland ("Seller") and WILLIS LEASE
FINANCE CORPORATION, a Delaware corporation, whose address is 2320 Marinship
Way, Suite 300, Sausalito, CA 94965 ("WLFC").

                                    RECITALS

      A. Seller is the owner of five (5) serviceable aircraft engines, more
fully described on the attached Schedule 1 (each herein after referred to as an
"Engine" or collectively the "Engines").

      B. Seller desires to sell the Engines to Buyer (as designated by WLFC
pursuant to Section 2 hereof), and WLFC desires to cause Buyer to buy the
Engines from Seller, pursuant to the terms and conditions hereof.

      C. Upon the sale of the Engines, Seller desires to lease the Engines from
Buyer, and WLFC desires to cause the Buyer to lease the Engines to Seller,
pursuant to the terms and conditions of the GTA and Engine Leases more fully
described below.

      IT IS AGREED:

      1. Definitions

      The following terms shall have the following meanings attributed thereto.
Each reference to any entity shall be deemed a reference to such entity and its
successors and permitted assigns. Each reference to any law, legislation,
statute or regulation shall be deemed a reference to the same as amended,
supplemented or otherwise modified and in effect from time to time and to any
successor law, legislation, statute or regulation. Each reference to any
agreement shall be deemed a reference to the same as amended, supplemented or
otherwise modified (subject to any and all applicable conditions or restrictions
on such amendment, supplement or other modification agreed to by the parties
hereto) and in effect from time to time.

      "Bill of Sale" has the meaning set forth in Section 4.2.

      "Buyer" has the meaning set forth in Section 2.

      "Delivery Period" has the meaning set forth in Section 4.1.

      "Delivery Receipt" has the meaning set forth in Section 4.3.

                                                              Purchase Agreement
<PAGE>

      "Engine(s)" has the meaning set forth in Recital A.

      "Engine Lease" means, with respect to each Engine, an Aircraft Engine
Lease Agreement substantially in the form of Exhibit A to the GTA relating to
such Engine between Buyer, as lessor thereunder, and Seller, as lessee
thereunder.

      "Engine Manufacturer" means United Technologies International, Inc., Pratt
& Whitney Division, a Guam corporation.

      "Engine Transfer Documents" means, with respect to each Engine, the
following relating to such Engine: this Agreement, the Bill of Sale, the Letter
of Quiet Enjoyment, the Engine Warranty Assignment, the GTA, the Engine Lease
and the Sublease.

      "Engine Warranty Assignment" means, with respect to each Engine, the
Engine Warranty Assignment substantially in the form of Exhibit D hereto
relating to such Engine between Seller and the relevant Buyer, together with the
Consent and Agreement of the Engine Manufacturer substantially in the from of
Appendix A thereto and the Engine Warranty Assignment Supplement relating to
such Engine substantially in the form of Appendix B thereto.

      "Financing Documents" means, with respect to each Engine, the documents,
if any, pursuant to which Lender provides financing to Buyer for the purpose of
acquiring or maintaining ownership of such Engine.

      "GTA" means a General Terms Engine Lease Agreement substantially in the
form of Exhibit C hereto between Buyer, as lessor thereunder, and Seller, as
lessee thereunder.

      "Investment Agreement" means the Investment Agreement dated as of the date
hereof among WLFC, FlightTechnics, Inc., Flightlease AG, SR Technics Group and
SR Technics Group America, Inc.

      "Lease" means, with respect to each Engine, the GTA and the Engine Lease
relating to such Engine.

      "Lender" means the financial institution, if any, providing financing to
Buyer under the Financing Documents, as identified by Buyer reasonably in
advance of the delivery date of the relevant Engine.

      "Letter of Quiet Enjoyment" means, with respect to each Engine, a letter
of quiet enjoyment substantially in the form of Exhibit E hereto.

      "Mortgagee" means, with respect to each Engine, the entity that holds the
security interest in such Engine pursuant to the Financing Documents, whether it
be the relevant Lender itself or a security agent, security trustee,
administrative agent or other agent, trustee or representative appointed for
such purpose by such Lender.

      "Permitted Liens" means, with respect to each Engine, (a) liens arising
under, constituted by or permitted by the Engine Transfer Documents or the
Financing Documents and

                                                              Purchase Agreement
<PAGE>

the rights of the parties thereunder, (b) any and all liens attributable to
WLFC, Buyer, Lender, Mortgagee or any of their respective affiliates and (c)
liens arising from the following types of liabilities of Lessee or any other
operator of such Engine, so long as such liabilities are either not yet due or
are being contested in good faith through appropriate proceedings that do not
give rise to any reasonable likelihood of sale, forfeiture or other loss of such
Engine, title thereto or Mortgagee's security interest therein or of criminal or
unindemnified civil liability on the part of WLFC, Buyer, Lender or Mortgagee
and with respect to which Seller maintains adequate reserves (in the reasonable
judgment of Buyer): (i) fees or charges of any airport or air navigation
authority, (ii) taxes, (iii) liabilities incurred in the ordinary course of
business giving rise to materialmen's, mechanics', workmen's, repairmen's,
employees' or other like liens, (iv) judgments, or (v) salvage or other rights
of insurers.

      "Purchase Price" has the meaning set forth in Section 3.1.

      "Securitization Vehicle" means a special-purpose corporation, trust or
other form of entity established for the sole purpose of (and whose sole
activities will remain) a securitization of WLFC's aircraft engines (including
the Engines) and related assets (such as the rental streams from leases of such
engines), whereby such engines and assets are assigned to such vehicle to
support the issuance by it of non-recourse securities (rated or unrated)
representing an interest in a pool of such engines and assets.

      "Seller" has the meaning set forth in the heading to this Agreement.

      "Sublease" means, with respect to each Engine, the document identified as
the "Sublease" in the related Engine Lease.

      "VAT" means value added tax and any goods and services, sales or turnover
tax, imposition or levy of a like nature.

      "WLFC" has the meaning set forth in the heading to this Agreement.

      2. Designation of Buyer; Sale

      2.1 WLFC shall designate either itself, one of its wholly-owned
subsidiaries or a United States bank or trust company acting as trustee for a
grantor trust for which WLFC or such subsidiary shall be the beneficiary (or
other entity reasonably acceptable to Seller) as the buyer of the Engines
pursuant to this Agreement (such designated entity being referred to herein as
"Buyer"). Such designation shall be made by WLFC sufficiently in advance of the
commencement of the Delivery Period (as defined herein) so as to allow Seller
and Buyer a reasonable opportunity to prepare, review and negotiate the
necessary documentation reflecting the identity of the designated Buyer. Upon
and subject to the terms and conditions of this Agreement, Seller will sell and
WLFC will cause the Buyer to buy the Engines during the Delivery Period.

      2.2 If WLFC shall have designated a Buyer other than itself, then WLFC
hereby agrees that:

                                                              Purchase Agreement
<PAGE>

      (a) it will not take any action to subject such Buyer to the
reorganization or liquidation provisions the U.S. Bankruptcy Code or any other
applicable bankruptcy or insolvency statute; and

      (b) it will not assign, transfer or otherwise dispose of its beneficial
interest (in the case of a trust) or ownership interest (in the case of a
corporation) in and to such Buyer to any other person, firm, corporation or
other entity without the prior consent of Seller, which consent shall not be
unreasonably withheld or delayed; provided that (i) no such consent shall be
necessary during the continuance of any Event of Default under, and as defined
in, the GTA and (ii) WLFC may, without the consent of Seller, assign, transfer
or otherwise dispose of such beneficial or ownership interest to any of its
affiliates or a Securitization Vehicle, or assign the same by way of security to
Mortgagee.

      3. Purchase Price

      3.1 The purchase price for each Engine shall be the amount specified for
such Engine in Schedule 1 (the "Purchase Price"). The Purchase Price for each
Engine shall be payable as set forth below.

      3.2 Payment of the Purchase Price shall be made to an account designated
by Seller prior to the date of such payment:

      4. Delivery

      4.1 Seller will deliver the Engines to Buyer no later than 31 December,
2000 (the "Delivery Period"), each at a location mutually agreed to by the
parties.

      4.2 On the delivery date for each Engine, Seller will deliver to Buyer a
Warranty Bill of Sale (the "Bill of Sale") for such Engine, substantially in the
form set forth in Exhibit A attached hereto.

      4.3 On the delivery date for each Engine, WLFC will cause Buyer to deliver
to Seller an Engine Delivery Receipt (the "Delivery Receipt") for such Engine,
substantially in the form set forth in Exhibit B attached hereto.

      5. Conditions Precedent

      5.1 For each Engine, the obligations of Seller under Section 4 above shall
be subject to the prior fulfillment of the following conditions:

            (a) WLFC shall have made satisfactory arrangements with Seller for
      payment of the Purchase Price for such Engine in accordance with Section
      3.2;

            (b) Buyer shall have delivered to Seller a copy of the GTA and an
      Engine Lease, each executed by Buyer;

                                                              Purchase Agreement
<PAGE>

            (c) Buyer shall have delivered to Seller a copy of an Engine
      Warranty Assignment executed by Buyer;

            (d) Buyer shall have delivered to Seller a copy of a Letter of Quiet
      Enjoyment executed by WLFC and, upon the reasonable request of Seller,
      shall have obtained assurances substantively equivalent to that contained
      in the Letter of Quiet Enjoyment from Mortgagee;

            (e) WLFC shall have delivered to Seller a legal opinion in form and
      substance acceptable to Seller, and other documents mutually agreed upon
      by Buyer and Seller as are reasonable and customary for transactions of
      the kind contemplated herein;

            (f) all governmental and third party approvals necessary for
      execution and delivery of this Agreement and for the consummation of the
      transactions contemplated hereby will have been received and be in full
      force and effect; and

            (g) Seller shall be reasonably satisfied that the initial capital
      investments under the Investment Agreement and the other Transaction
      Documents (as defined in the Investment Agreement) will proceed
      substantially concurrently with, or within a reasonable period of time
      after, the sale and purchase of such Engine pursuant hereto.

      5.2 For each Engine, the obligations of Buyer under Sections 3 and 4 above
shall be subject to the prior fulfillment of the following conditions:

            (a) Seller shall have delivered to Buyer all operating, repair and
      maintenance records pertaining to such Engine including, but not limited
      to, traceability back to birth for all life-limited parts and those
      expressly and reasonably requested by Buyer from Seller, and Buyer shall
      be reasonably satisfied with the condition of such records;

            (b) Seller shall have delivered to Buyer a copy of the GTA and an
      Engine Lease, each executed by Seller;

            (c) Seller shall have delivered to Buyer a copy of an Engine
      Warranty Assignment executed by Buyer and (with respect to the Consent and
      Agreement forming a part thereof) Engine Manufacturer;

            (d) Seller shall have delivered to Buyer a legal opinion in form and
      substance acceptable to Buyer and Mortgagee, and such other documents
      requested by Buyer as are reasonable and customary for transactions of the
      kind contemplated, or required herein and in the Lease;

            (e) such Engine shall not have suffered any material (in the
      reasonable judgment of Buyer, it being agreed that any damage requiring
      repair costs in excess of [CONFIDENTIAL TREATMENT REQUESTED] shall be
      deemed material) damage (ordinary use, wear and tear excepted) after
      the date hereof which continues unremedied at the time of delivery
      hereunder (it being understood and agreed that even if Buyer accepts an
      Engine despite the existence of any damage, Seller, as lessee under the
      Lease, shall be obligated to repair such damage);

                                                              Purchase Agreement
<PAGE>

            (f) Buyer shall have received evidence that such Engine is free and
      clear of liens, other than Permitted Liens;

            (g) all governmental and third party approvals necessary for
      execution and delivery of this Agreement and for the consummation of the
      transactions contemplated hereby will have been received and be in full
      force and effect; and

            (h) Buyer shall be reasonably satisfied that the initial capital
      investments under the Investment Agreement and the other Transaction
      Documents (as defined in the Investment Agreement) will proceed
      substantially concurrently with, or within a reasonable period of time
      after, the sale and purchase of such Engine pursuant hereto.

      6. Title

      Seller warrants that when transferred to Buyer hereunder, title to each
Engine shall be free and clear of any and all mortgages, leases, pledges, liens,
charges, rights of detention or encumbrances whatsoever (other than the
Permitted Liens). Seller agrees to indemnify and defend Buyer in respect of all
claims, losses, costs, expenses, charges or liabilities arising out of any
defect in Seller's title or of any breach of the warranty contained in this
Section. Notwithstanding the foregoing, WLFC acknowledges that each Engine is
subject to the Sublease specified in the related Engine Lease, and hereby
consents to the terms of such Sublease, to the extent disclosed by Seller to
WLFC.

      7. Inspection

      Each Engine shall be deemed delivered in the condition set forth in
Schedule 2 hereto. Buyer has inspected each Engine and has found that such
Engine is acceptable for purposes of this Agreement.

      8. Risk of Loss and Damage

      Risk of loss of, or damage to each Engine from any cause whatsoever shall
be borne by Seller until the transfer of title during the Delivery Period,
evidenced by the executed Bill of Sale relating to such Engine, and by Buyer
thereafter.

      9. Taxes, Fees and Expenses

      Seller shall be responsible for all sales, use, ad valorem and other taxes
imposed on Buyer or Seller as a result of the execution of this Agreement and/or
delivery of the Engines to Buyer, provided, however, that (a) Seller shall not
be responsible for any taxes based on the net income of WLFC or Buyer and (b)
VAT assessed by the relevant taxing authorities of Switzerland with respect to
the sale of each Engine by Seller to Buyer shall be paid by WLFC within any
applicable time period prescribed by the applicable laws and regulations of
Switzerland. WLFC and/or Buyer will register in the Swiss VAT register to enable
the recapture of such VAT payments and Seller hereby agrees to act, or cause one
of its Swiss affiliates to act, as tax representative for WLFC and/or Buyer for
such purpose. Each party

                                                              Purchase Agreement
<PAGE>

hereto agrees to cooperate with each other in order to arrange the sale so as to
minimize such taxes. Each party shall pay its respective legal fees and
expenses.

      10. Warranties of Seller and Disclaimer

      The Engines are used, serviceable aircraft engines and are being sold "AS
IS, WHERE IS" based on the inspection of Buyer pursuant to Section 6 hereof, and
SELLER DISCLAIMS AND WLFC WAIVES (AND BUYER SHALL BE DEEMED TO HAVE WAIVED) ALL
EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS OF ANY KIND OR NATURE WITH
RESPECT TO THE ENGINES (INCLUDING, WITHOUT LIMITATION, ANY OBLIGATION OR
LIABILITY IN NEGLIGENCE, WHETHER ACTIVE OR PASSIVE, OR WITH RESPECT TO FITNESS,
MERCHANTABILITY, LOSS OF USE OR CONSEQUENTIAL DAMAGES), except that Seller
represents and warrants that at the time title transfers from Seller to Buyer
for an Engine:

            (a) Seller will be the lawful owner of the Engine delivered;

            (b) Seller will have good and sufficient legal and beneficial title
      to such Engine, free of any mortgage, lease, pledge, lien, right of
      detention, charge or other encumbrance (other than Permitted Liens that
      may exist at such time);

            (c) Seller will have full power and lawful authority to transfer
      such title to Buyer;

            (d) to Seller's knowledge, there will be no unpaid invoices,
      penalties, taxes or charges that would have resulted, or could by
      operation of law or otherwise result, in the impression of a mechanic's
      lien, materialmen's lien, artisan's lien or other such lien encumbering
      such Engine;

            (e) other than as disclosed to Buyer, there is no provision in any
      Sublease that will materially and adversely impact the transfer of title
      to such Engine to Seller in accordance with the terms hereof or the
      Seller's holding of such title.

            (f) such Engine will not be registered with an aircraft in the Swiss
      aircraft book (luftfahrzeugbuch); and

            (g) on or prior to the transfer of title, Seller shall provide Buyer
      with a material certification for such Engine that reads as follows:

            Seller certifies that to Seller's knowledge, the Engine has not been
            removed from an aircraft that was involved in an incident or
            accident, major failure, or fire nor has the Engine been subjected
            to extreme stress or heat or obtained from the U.S. Government or
            any Military Sources.

                                                              Purchase Agreement
<PAGE>

      11. Assignment of Warranties

      Seller hereby assigns to Buyer any and all assignable warranties of
manufacturers, maintenance facilities and overhaul agencies, of and for each
Engine, effective concurrently with the delivery of such Engine (subject to
Section 12(d) of the GTA and the relevant Engine Warranty Assignment). Upon the
request of Buyer, Seller shall give Buyer aid and assistance in enforcing the
rights of Buyer arising under such warranties. Upon the request of Buyer, Seller
shall give notice to any such manufacturers, maintenance facilities and overhaul
agencies of the assignment of such warranties to Buyer.

      12. Governing Law, Jurisdiction and Venue

      12.1 This Agreement shall be governed and construed as to validity
enforcement, interpretation, construction, effect and in all other respect by
the statutes, laws and decisions of the State of New York.

      12.2 The parties agree that any state or federal court located in the
Borough of Manhattan, New York, New York, or in San Francisco, California shall
have non-exclusive jurisdiction to hear any suit, action or proceeding arising
out of or in connection with this Agreement. Each party hereby acknowledges and
irrevocably consents and submits to the jurisdiction of any such court in any
such suit, action or proceeding. Service of process may be made against a party
either in person, wherever such party may be found, or by notice as permitted
herein to the address of the party or its agent for service of process set forth
in this Agreement. Seller specifically appoints Swissair AG, 41 Pinelawn Road,
Melville, NY 11747, Attention: Ms. Erin King, Legal and Regulatory Affairs,
Telephone: (631) 844-4504, Facsimile: (631) 844-4543, as Seller's Agent to
receive service of process in any such action or proceeding.

      12.3 To the extent that either party hereto may now or hereafter be
entitled, in any jurisdiction, to claim for itself or its property, immunity
from suit, legal action or other proceeding, for the jurisdiction of any court,
from service of legal process judgment or otherwise) or other legal process or
order and, to the extent that in any such jurisdiction there may now or
hereafter be attributed to itself or its property any such immunity (whether or
not claimed), such party hereby irrevocably and unconditionally waives such
immunity to the fullest extent permitted by applicable law of such jurisdiction.
Without in any way limiting the effect of the foregoing waiver, Seller
acknowledges that its waiver of immunity from jurisdiction, attachment and
execution as aforesaid is intended to satisfy the requirement therefor of the
Foreign Sovereign Immunities Act of 1976 of the United States of America and the
equivalent legislation in Switzerland.

      13. Broker's Commission

      Each Engine is being sold without benefit of a broker. Should any person
assert any claim against WLFC, Buyer or Seller for fees or commissions by reason
of any alleged employment to act as a broker for WLFC, Buyer or Seller in regard
to this transaction, the party for which said person claims to have acted shall
defend, indemnify and hold harmless the other party from and against all claims,
demands, liabilities, damages, losses, judgments and expenses

                                                              Purchase Agreement
<PAGE>

of every kind (including reasonable attorneys' fees) arising out of said claim.
Notwithstanding the above, the parties acknowledge that WLFC shall be solely
responsible for fees owed to Lazard Freres & Co. LLC, if any, relating to this
transaction.

      14. Representations and Warranties

      14.1 Seller represents that:

            (a) Seller has been duly incorporated as a limited liability company
      and is in good standing under the laws of Switzerland, is qualified to do
      business in all states material to its operation, and has full corporate
      power and authority to perform its obligations under this Agreement;

            (b) the execution and delivery of this Agreement by Seller and the
      consummation of the transactions contemplated herein do not and will not
      result in the violation of the provisions of Seller's articles of
      incorporation or other organizational documents or result in a default
      under or breach of any agreement, indenture, mortgage or other instrument
      to which Seller is a party; and

            (c) on or prior to delivery date of each Engine, Seller will have
      received every consent, approval or authorization, and will have given
      every notice, that is required for it to execute and deliver this
      Agreement and to perform the transactions contemplated hereby, all of
      which will be valid and effective as of such date.

      14.2 WLFC represents that:

            (a) WLFC has been duly incorporated as a corporation and is in good
      standing under the laws of the State of Delaware, is qualified to do
      business in all states material to its operation, has full corporate power
      and authority to perform its obligations under this Agreement;

            (b) the execution and delivery of this Agreement by WLFC and the
      consummation of the transactions contemplated herein do not and will not
      result in the violation of the provisions of WLFC's Certificate of
      Incorporation or Bylaws (as in effect on the date hereof) or result in a
      default under or breach of any agreement, indenture, mortgage or other
      instrument to which WLFC is a party (except for certain consents and
      approvals required to be obtained by WLFC, as disclosed in the Investment
      Agreement and the other Transactions Documents (as defined in the
      Investment Agreement)); and

            (c) on or prior to the delivery date of each Engine, WLFC will have
      received every consent, approval or authorization, and will have given
      every notice, that is required for it to execute and deliver this
      Agreement and to perform the transactions contemplated hereby, all of
      which will be valid and effective as of such date.

                                                              Purchase Agreement
<PAGE>

      15. Indemnities

      Seller hereby releases and agrees to indemnify, defend and save harmless
each of WLFC and Buyer, its directors, officers, agents and employees from and
against any and all liability, damages, losses, expenses, and claims (including
without limitation all attorneys' fees and all other costs and expenses incurred
in connection therewith and incident thereto) for death of or injury to any
person whomsoever, and for loss of, loss of use of, damage to, or delay in
delivery of any property whatsoever (including without limitation any aircraft
on which any Engine may be installed), in each case, any manner arising out of,
incident to, or incurred in connection with the ownership, possession,
maintenance, use, operation, storage, or testing of any Engine prior to the
delivery of such Engine to Buyer hereunder; provided that Seller's obligations
under this Section 15 shall not apply to any liability, damage, loss, expense or
claim to the extent arising from WLFC's or Buyer's own acts.

      16. Further Provisions

      16.1 Assignment. Neither party shall assign the benefit of this Agreement
without the written consent of the other party, except to an affiliate or to
Mortgagee for security purposes; provided that WLFC shall have the right, in its
sole discretion, to structure the purchase of the Engine as a like kind exchange
pursuant to Internal Revenue Code Section 1031 and to assign its rights
hereunder to another entity acting as a qualified intermediary in connection
with such exchange.

      16.2 Amendments, Modifications and Waivers. No amendment to this Agreement
shall be effective unless in writing signed by each of the parties hereto. No
term or provision of this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the party
against which the enforcement of the change, waiver, discharge or termination is
sought.

      16.3 Notices. Any notice or communication under or in connection with this
Agreement shall be in writing and shall be delivered personally or by post,
telex or telecopier to the address given in this Agreement or to such other
address as the recipient may have notified to the other party in writing. Proof
of posting or dispatch shall be deemed to be proof of receipt:

            (a) In the case of a letter, on the fifth (5th) business day after
      posting;

            (b) In the case of a telex, on the business day immediately
      following the date of dispatch;

            (c) In the case of delivery in person or by telecopier, on the date
      of dispatch; and

            (d) In the case of delivery by internationally recognized air
      courier two (2) business days after delivery to such air courier.

      16.4 Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of

                                                              Purchase Agreement
<PAGE>

such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

      16.5 Time of Essence. Time shall be of the essence of this Agreement.

      16.6 Interpretation. Any ambiguities in the construction or interpretation
of this Agreement or any Section or provision herein shall not be construed or
resolved against WLFC solely because WLFC drafted this Agreement.

      16.7 Headings. The headings of Sections and subsections contained herein
are for convenience and reference only and are not intended to define or limit
the scope of any provision of this Agreement.

      16.8 Entire Agreement. This Agreement and the other Transfer Documents
contain the entire understanding of the parties with respect to the purchase and
sale of the Engine, and no warranties, representations or undertakings have been
made by either party except as expressly set forth herein. Any other previous
oral or written communications, representations, agreements or understanding
between Seller and WLFC are no longer of any force and are superseded and
replaced in their entirety by the provisions of this Agreement.

      16.9 Binding Agreement. This Agreement shall be binding upon and inure to
the benefit of the respective successors and assigns (where permitted) of the
parties hereto.

      16.10 Survival. Seller's warranty of title with respect to the Engines
provided for in Section 10 and the provisions of Sections 9, 10, 11, 12, 14.1,
14.2 and 15 shall survive the delivery of each Engine to Buyer and the closing
of this transaction.

      16.11 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument. A facsimile signature on any counterpart hereto will be deemed an
original for all purposes.

      16.12 Additional Engines. Seller may sell the additional engines
identified in Schedule 3 to WLFC under similar terms and conditions as contained
in this Agreement and the Leases, provided that economic terms contained in such
Transfer Documents based on current LIBOR shall be based on the then-applicable
LIBOR.

                            [Signature page follows.]

                                                              Purchase Agreement
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective duly authorized officers as of the date first set
forth above.

                                        WILLIS LEASE FINANCE CORPORATION

                                        By: /s/  Charles F. Willis, IV
                                          --------------------------------------
                                          Name:  Charles F. Willis, IV
                                          Title: Chief Executive Officer
                                                 and President

                                        SR TECHNICS AG

                                        By: /s/  Hans Ulrich Beyeler
                                          --------------------------------------
                                          Name:  Hans Ulrich Beyeler
                                          Title: President and
                                                 Chief Executive Officer

                                        By: /s/  Georg Radon
                                          --------------------------------------
                                          Name:  Georg Radon
                                          Title: Vice President
                                                 and Chief Financial Officer

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