Document:

Exhibit

10.27

 

	

   

  

 

AMENDED

AND RESTATED

CONTRIBUTION AND SALE AGREEMENT*

 

 

 

 

between

 

 

WILLIS

LEASE FINANCE CORPORATION,

 

 

and

 

 

WILLIS

ENGINE FUNDING LLC

 

 

 

 

Dated

as of

 

December

13, 2002

 

*                                         Portions

of the material in this Exhibit have been redacted pursuant to a request for

confidential treatment, and the redacted material has been filed separately

with the Securities and Exchange Commission (the “Commission”).  An asterisk has been placed in the precise

places in this Agreement where we have redacted information, and the asterisk

is keyed to a legend which states that the material has been omitted pursuant

to a request for confidential treatment.

 

	

   

  

 

 

TABLE OF CONTENTS

 

	

  ARTICLE I DEFINITIONS

  
	

   

  
	

   

  	

  Section 1.01.

  	

  Definitions.

  
	

   

  	

   

  	

   

  
	

  ARTICLE II TRANSFER OF ENGINES AND BENEFICIAL INTERESTS

  
	

   

  
	

   

  	

  Section 2.01.

  	

  Transfer of Initial Contributed Assets.

  
	

   

  	

  Section 2.02.

  	

  Conveyance and Reconveyance of Engines

  and Related Assets after the Initial Transfer Date.

  
	

   

  	

  Section 2.03.

  	

  Required Financing Statements; Marking of

  Records.

  
	

   

  	

  Section 2.04.

  	

  Servicing of Contributed Assets.

  
	

   

  	

  Section 2.05.

  	

  Security Agreement.

  
	

   

  	

  Section 2.06.

  	

  Additional Capital Contributions.

  
	

   

  	

  Section 2.07.

  	

  Contributed Engine Requirements.

  
	

   

  	

   

  	

   

  
	

  ARTICLE III REPRESENTATIONS AND WARRANTIES

  
	

   

  
	

   

  	

  Section 3.01.

  	

  Representations and Warranties of the

  Seller.

  
	

   

  	

  Section 3.02.

  	

  Representations and Warranties of the

  Issuer.

  
	

   

  	

   

  	

   

  
	

  ARTICLE IV COVENANTS OF THE SELLER AND THE

  ISSUER

  
	

   

  
	

   

  	

  Section 4.01.

  	

  Seller Covenants.

  
	

   

  	

  Section 4.02.

  	

  Issuer Covenants.

  
	

   

  	

  Section 4.03.

  	

  Transfer of Contributed Assets.

  
	

   

  	

   

  	

   

  
	

  ARTICLE V CONDITIONS PRECEDENT

  
	

   

  
	

   

  	

  Section 5.01.

  	

  Conditions to the Issuer’s Obligations.

  
	

   

  	

  Section 5.02.

  	

  Conditions to the Seller’s Obligations.

  
	

   

  	

   

  	

   

  
	

  ARTICLE VI TERMINATION

  
	

   

  
	

   

  	

  Section 6.01.

  	

  Termination.

  
	

   

  	

  Section 6.02.

  	

  Effect of Termination.

  
	

   

  	

   

  	

   

  
	

  ARTICLE VII MISCELLANEOUS PROVISIONS

  
	

   

  
	

   

  	

  Section 7.01.

  	

  Amendment.

  
	

   

  	

  Section 7.02.

  	

  Governing Law.

  
	

   

  	

  Section 7.03.

  	

  Notices.

  
	

   

  	

  Section 7.04.

  	

  Severability of Provisions.

  
	

   

  	

  Section 7.05.

  	

  Assignment.

  

 

i

 

	

   

  	

  Section 7.06.

  	

  Further Assurances.

  
	

   

  	

  Section 7.07.

  	

  No Waiver; Cumulative Remedies.

  
	

   

  	

  Section 7.08.

  	

  Counterparts.

  
	

   

  	

  Section 7.09.

  	

  Binding Effect.

  
	

   

  	

  Section 7.10.

  	

  Merger and Integration.

  
	

   

  	

  Section 7.11.

  	

  Headings.

  
	

   

  	

  Section 7.12.

  	

  Schedules and Exhibits.

  
	

   

  	

  Section 7.13.

  	

  General Interpretive Principles.

  
	

   

  	

  Section 7.14.

  	

  Third-Party Beneficiaries.

  
	

   

  	

   

  	

   

  
	

   

  	

  EXHIBIT A

  	

  Initial

  List of Engines and Lease Agreements

  
	

   

  	

  EXHIBIT B

  	

  Form

  of Engine Transfer Certificate

  
	

   

  	

   

  	

   

  
	

   

  	

  SCHEDULE 1

  	

  Certain Terms

  
				

 

ii

 

AMENDED AND RESTATED

CONTRIBUTION AND SALE AGREEMENT

 

THIS AMENDED AND RESTATED CONTRIBUTION AND SALE

AGREEMENT, dated as of December 13, 2002 (this “Agreement”), is entered into

between WILLIS LEASE FINANCE CORPORATION (the “Seller”), a company organized

and existing under the laws of Delaware located at 2320 Marinship Way,

Suite 300, Sausalito, California 94965 and WILLIS ENGINE FUNDING LLC (the

“Issuer”), a limited liability company organized and existing under the laws of

Delaware located at 2320 Marinship Way, Suite 300, Sausalito, California

94965.

 

W I T

N E S S E T H:

 

WHEREAS, the Seller and the Issuer are party to the

Contribution and Sale Agreement dated as of September 12, 2002, with Engine and Beneficial Interest Transfer

Certificate dated as of September 16, 2002 attached thereto, which was

recorded by the Federal Aviation Administration on December 6, 2002 and

assigned Conveyance No. J001810 (the “Original Sale Agreement”); and

 

WHEREAS, the Seller and the Issuer have agreed to

amend and restate the Original Sale Agreement as provided herein.

 

NOW, THEREFORE, in consideration of the mutual

covenants contained herein and other good and valuable consideration, the

receipt and adequacy of which is hereby acknowledged, the parties hereto agree

as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01.                             Definitions.  Capitalized terms used in this Agreement but

not defined herein shall have the meaning assigned to such terms in Exhibit B

to the Indenture.  Otherwise, terms

defined herein shall have the following meanings and the definitions of such

terms shall be equally applicable to the singular and plural forms of such

terms:

 

Aggregate Net Purchase Price:  With respect to Contributed Assets conveyed

by the Seller to the Issuer on any Transfer Date means the sum of the aggregate

Net Purchase Price of the Contributed Engines and the net book value of the

Related Assets.

 

Contribution Percentage:  This term is defined in Schedule 1

attached hereto.

 

Engine Transfer Certificate:  An Engine Transfer Certificate,

substantially in the form of Exhibit B hereto, executed and delivered by the

Seller and the Issuer in accordance with the terms of this Agreement.

 

Engine Representations and Warranties:  With respect to each Engine, the

representations and warranties of the Seller as set forth in

paragraphs (o) through (ii) inclusive of Section 3.01 of

 

Schedule 2-1

 

this Agreement; provided,

however, that with respect to any

Engine that is an Excess Asset, and only for so long as such Engine remains an

Excess Asset, the definition of “Engine Representation and Warranties” shall

not include paragraphs (r), (s), (u), (y), (bb), (cc), (dd), (ee), (hh)

and (ii) of Section 3.01.

 

Evidence of Filing:  This term is defined in Section 2.03(c).

 

Initial Transfer Date:  The date on which Engines were originally

contributed or sold by the Seller to the Issuer pursuant to the terms of the

Original Sale Agreement.

 

List of Engines:  A printed list of the Engines transferred by

the Seller to the Issuer and certified by an Authorized Signatory, which

includes a true and complete list of all Engines to be transferred on any

Transfer Date.  The List of Engines

delivered on the Initial Transfer Date is attached hereto as Exhibit A.

 

Released Assets:  Released Engines and Related Assets with

respect to such Released Engines.

 

Released Engine:  An Engine repurchased from the Issuer by the

Seller pursuant to Section 2.02(b).

 

Warranty Purchase Amount:  With respect to any Engine and Related

Assets repurchased from the Issuer by the Seller pursuant to Section 2.02(b)

hereof, the sum of the Net Purchase Price of such Engine and the net book value

of the Related Assets, in each case on the Transfer Date on which such Engine

and Related Assets were transferred by the Seller to the Issuer.

 

ARTICLE II

TRANSFER OF ENGINES AND BENEFICIAL INTERESTS

 

Section 2.01.                             Transfer

of Initial Contributed Assets.  On

the Initial Transfer Date, the Seller sold, transferred and conveyed to the

Issuer and the Issuer acquired from the Seller all of the Seller’s right, title

and interest in, to and under the initial Contributed Assets at a purchase

price equal to the Aggregate Net Purchase Price for such initial Contributed

Assets; provided,

however, that the excess of (x) the Aggregate Net Purchase

Price for such initial Contributed Assets over (y) the cash portion of the

purchase price of the initial Contributed Assets paid by the Issuer to the

Seller on the Initial Transfer Date constituted a capital contribution to the

Issuer.  The cash portion of the

purchase price of the initial Contributed Assets was equal to the Contribution

Percentage of the aggregate Net Book Value of the Contributed Engines.

 

Section 2.02.                             Conveyance

and Reconveyance of Engines and Related Assets after the Initial Transfer Date.

 

(a)                                  After

the Initial Transfer Date, (i) the Seller may sell, transfer and convey to

the Issuer additional Contributed Assets for consideration equal to the

Aggregate Net Purchase Price for such additional Contributed Assets; provided,

however, that the excess of (x) the Aggregate Net Purchase

Price for such Contributed Assets over (y) the cash portion of the

purchase price of such Contributed Assets paid by the Issuer to the Seller on

such Transfer Date shall constitute a

 

Schedule 2-2

 

capital contribution to the Issuer and (ii) the

Seller may transfer and convey to the Issuer Excess Assets as capital

contributions to the Issuer; provided,

however, that at such time as any

Engine included in the Excess Assets shall qualify as an Eligible Engine, the

Issuer shall be obligated to pay the Seller consideration equal to the Net

Purchase Price of such Engine and the Net Book Value of the Related Assets and

such Engine and the Related Assets shall thereafter constitute Contributed

Assets.  The cash portion of the

purchase price of such Contributed Assets shall be equal to the Contribution

Percentage of the aggregate Net Book Value of the Contributed Engines.

 

(b)                                 Upon

discovery by the Seller or the Issuer (or any of its successors or assigns) of

a breach of any of the Engine Representations and Warranties relating to any

Engine, the party (including any such successor or assign) discovering such

breach shall give prompt written notice to the other party, the trustee of the

Owner Trust which owns the applicable Engine, the Indenture Trustee and the

Administrative Agent.  If such breach

materially and adversely affects the interest of the Issuer (or any of its

successors or assigns), the Owner Trust, the Noteholders or the Indenture

Trustee, then, unless such breach shall have been cured or waived by the

Control Party with respect to the related Supplement for a Series within ninety

days after the Seller’s discovery or receipt of written notice of such breach,

the Issuer shall reconvey to the Seller, and the Seller shall acquire the

applicable Engine and Related Assets for, in the case of Contributed

Engines only, either (A) consideration in cash equal to the aggregate Warranty

Purchase Amount for such Engine and Related Assets or (B) one or more

Engines and Related Assets which Engines in each such case (i) satisfy

each of the Engine Representations and Warranties as of such date of transfer,

(ii) have an aggregate Appraised Value that equals or exceeds such

aggregate Warranty Purchase Amount, (iii) will constitute Contributed

Engines upon such transfer and (iv) are satisfactory to the Administrative

Agent.  In the event of a repurchase of

an Engine and Related Assets the Seller shall deposit the cash portion of the

Warranty Purchase Amount for such Engine and Related Assets to be repurchased

in the Trust Account prior to 10:00 a.m. (New York City time) on the

ninetieth day after the Seller’s discovery of or receipt of written notice of,

any such breach.  The excess of such

Warranty Purchase Amount over the cash portion of such Warranty Purchase Amount

paid by the Seller to the Issuer shall constitute a dividend from the Issuer to

the Seller.  The cash portion of any

Warranty Purchase Amount shall equal the cash portion of the purchase price

paid by the Issuer to the Seller in connection with the Issuer’s acquisition of

such Engine and Related Assets from the Seller.

 

(c)                                  In

connection with any transfer of Contributed Assets, Excess Assets or Released

Assets pursuant to the terms of this Agreement on any Transfer Date, the Seller

and the Issuer shall execute (on such Transfer Date, in the case of clause (i)

below, and on or before the third Business Day following such Transfer Date, in

the case of clause (iii) below) each of the following:

 

(i)                                     A

completed Engine Transfer Certificate with respect to each Contributed Engine

and each Excess Asset being transferred to the Issuer and with respect to each

Released Engine and Related Assets being retransferred to the Seller;

 

(ii)                                  [Reserved];

and

 

Schedule 2-3

 

(iii)                               A supplement to the List

of Engines setting forth the Manufacturer’s serial numbers of (A) each

Engine which is transferred to the Issuer by the Engine Transfer Certificate

and (B) each Engine which is a Released Engine or which is owned by an

Owner Trust, and identification of the Series to which such Released Engine, is

or was pledged.  Upon delivery of such

supplement, the List of Engines shall be deemed to have been amended to

incorporate the information contained in such supplement.

 

(d)                                 Each

Engine Transfer Certificate with respect to each Contributed Engine, Excess

Asset and each Released Engine, as the case may be, shall operate as an

assignment, without recourse, representation, or warranty, except (in the case

of transfers by the Seller) for the warranty of good title and other

representations and warranties specifically set forth in this Agreement, of all

the transferor’s right, title, and interest in and to such Contributed Assets,

Excess Assets or Released Assets, as the case may be, such assignment being an

outright assignment and not for security; and the transferee will thereupon own

such Contributed Assets, Excess Assets or Released Assets, as the case may be,

free of any claims of or further obligations to the transferor, in its capacity

as transferor, with respect thereto. 

All transfers of Released Assets by Issuer to Seller hereunder shall be

without recourse to, or representation or warranty of, Issuer of any kind.

 

Section 2.03.                             Required

Financing Statements; Marking of Records.

 

(a)                                  Reserved.

 

(b)                                 In

connection with all transfers on any Transfer Date, the Seller agrees to record

and file, at its own expense, on or before such Transfer Date, the following

UCC financing statements (and/or amendments to previously filed UCC financing

statements) and FAA recordations:

 

(i)                                     UCC

financing statements naming the Seller, as debtor/seller, the Issuer, as

secured party/purchaser, the Indenture Trustee, as assignee of the secured

party, and any “accounts”, “chattel paper” or “general intangible” (as defined

under the UCC) which are included in the Collateral transferred since the most

recent filing as collateral.  Such UCC

financing statements shall be filed in the appropriate filing offices as

required by the jurisdiction in which the Seller is “located” for purposes of

the UCC;

 

(ii)                                  UCC

financing statements naming the Issuer, as debtor, the Indenture Trustee, as

secured party, and the Collateral, as collateral.  Such UCC financing statements shall be filed in the appropriate

filing offices as required by the jurisdiction in which the Issuer is “located”

for purposes of the UCC;

 

(iii)                               UCC financing statements

naming the Owner Trust or the Owner Trustee, as the case may be under

applicable law, as debtor, the Indenture Trustee, as secured party, and the

Contributed Engines, Excess Assets and Related Assets as collateral.  Such UCC financing statements shall be filed

in the appropriate filing offices as required by the jurisdiction in which the

Owner Trust is “located” for purposes of the UCC.

 

(iv)                              Evidence

of recordation of (A) this Agreement, the Indenture, the Series 2002-1

Supplement and each Lease Agreement with respect to each Contributed Engine

 

Schedule 2-4

 

transferred on such date, together with any amendments and supplements

hereto or thereto, with the FAA, and (B) with respect to Contributed

Engines leased to Lessees domiciled outside the United States, appropriate

documents with all Government Authorities of the country in which the chief

executive office of such Lessee is located, where necessary to perfect the lien

or security interest of the Indenture Trustee in such Contributed Engines;

 

(v)                                 UCC-1

financing statements naming each lease originator which is an Affiliate of the

Seller, as debtor, the Seller, as secured party, the Indenture Trustee, as

assignee of the secured party, and the Lease Agreements being transferred to

the Issuer after the Initial Transfer Date, as Collateral, in the appropriate

filing offices as required by the jurisdiction in which the lease originator is

“located” for purposes of the UCC;

 

(vi)                              any

other UCC-1 financing statements reasonably requested by the Deal Agent to

perfect the security interest of the Indenture Trustee in the Collateral; and

 

(vii)                           UCC financing statements

evidencing the termination of the security interest of any other Person with

respect to any of the Contributed Assets or Excess Assets being transferred to

the Issuer.

 

(c)                                  All

such UCC financing statements and recordations shall meet the requirements of

applicable law.  The Seller shall, on or

prior to the applicable Transfer Date, deliver to the Issuer (with copies to

the Indenture Trustee and the Administrative Agent), (i) with respect to such

UCC financing statements, a file-stamped copy of such UCC financing statements

or, in the event that a file-stamped copy of such UCC financing statements

cannot be obtained in any given jurisdiction, a certificate signed by the

relevant filing agent indicating that he/she filed such UCC financing

statements with the relevant governmental authority in such jurisdiction, and

(ii) with respect to such recordations, evidence of submission of the

applicable recorded documents.  Such

file-stamped copies of such UCC financing statements (or certificates signed by

the relevant filing agent, if applicable) and evidences of submission of the

applicable recorded documents delivered pursuant to the immediately preceding

sentence on any given Transfer Date shall constitute the “Evidence of Filing”

for such Transfer Date.  Nothing

contained in this Section 2.03 shall limit the Seller’s obligation to file

continuation or termination statements in accordance with Section 4.01(k)

of this Agreement and any applicable law.

 

(d)                                 In

connection with each transfer and conveyance of Contributed Engines, Related

Assets and Excess Assets, the Seller shall, on or prior to each Transfer Date,

at its own expense (i) cause its computer records to be marked to show

that the Contributed Engines, Related Assets and Excess Assets have been

transferred to the Issuer and, in the case of Contributed Engines, Related

Assets and Excess Assets that have been transferred by the Issuer to Owner

Trusts, that the applicable Contributed Engines, Related Assets and Excess

Assets have been transferred to the applicable Owner Trusts and then pledged to

the Indenture Trustee and (ii) prepare and hold, in its capacity as

Servicer, the List of Engines.

 

(e)                                  In

connection with each transfer and conveyance of Engines and Related Assets, the

Seller shall take, and shall cause the Issuer to take, all steps necessary to

perfect the Issuer’s and the Indenture Trustee’s perfected first priority

interest in the Collateral under the laws of any applicable foreign

jurisdiction.

 

Schedule 2-5

 

Section 2.04.                             Servicing

of Contributed Assets.  The Issuer

and the Seller intend that, following each conveyance of the Contributed Assets

and Excess Assets pursuant to this Agreement, the Contributed Assets, Excess

Assets and any assets owned by an Owner Trust the Beneficial Interest in which

is owned by the Issuer will be serviced by the Seller (and its successors and

assigns), as Servicer, pursuant to the terms of the Servicing Agreement.

 

Section 2.05.                             Security

Agreement.

 

(a)                                  The

Seller and the Issuer intend that the transfer by the Seller of the initial

Contributed Assets pursuant to Section 2.01 hereof and each subsequent

transfer by the Seller of additional Contributed Assets and Excess Assets

pursuant to Section 2.02 hereof shall each constitute a valid sale, transfer

and conveyance by the Seller of the Contributed Assets and Excess Assets and

that the Contributed Assets and Excess Assets shall not be part of the Seller’s

estate in the event of the insolvency or bankruptcy of the Seller.

 

(b)                                 The

Seller and the Issuer intend that their operations and business would not be

substantively consolidated in the event of the bankruptcy or insolvency of the

Seller and that the separate existence of the Seller and the Issuer would not

be disregarded in the event of the insolvency or the bankruptcy of the

Seller.  In the event that (i) any

such Contributed Assets or Excess Assets are held to be property of the

Seller’s bankruptcy estate or (ii) this Agreement is held or deemed to

create a security interest in the Contributed Assets and Excess Assets, then

(x) this Agreement shall constitute a security agreement within the

meaning of Article 8 and Article 9 of the UCC as in effect in the

State of New York and (y) the conveyances provided for in Section 2.01 and

Section 2.02 hereof shall constitute a grant by the Seller to the Issuer of a

valid first priority perfected security interest in all of the Seller’s right,

title and interest in and to the Contributed Assets and Excess Assets, which

security interest has been assigned to the Indenture Trustee pursuant to

Section 4.03 hereof and which security interest will be deemed to have

been granted directly to the Indenture Trustee from the Seller in the event of

the consolidation of the Seller and the Issuer in any Insolvency Proceeding.  In furtherance of the foregoing,

(i) the Issuer shall have all of the rights of a secured party with

respect to the Contributed Assets and Excess Assets pursuant to applicable law

and (ii) the Seller shall execute all documents, including but not limited

to UCC financing statements, as the Issuer may reasonably require to

effectively perfect and evidence the Issuer’s first priority security interest

in the Contributed Assets, Excess Assets and each Owner Trust’s ownership

interest in the Engines, Lease Agreements and other Related Assets owned or

purported to be owned by such Owner Trust. 

The Seller also covenants not to pledge, assign or grant any interest to

any other party in any Contributed Assets and Excess Assets other than the

leasehold interest which is granted to a Lessee pursuant to the applicable

Lease Agreement.

 

Section 2.06.                             Additional

Capital Contributions.  Any transfer

of cash or Excess Assets by the Seller to the Issuer (other than any such

transfers by the Seller as initial Servicer in accordance with the terms of the

Servicing Agreement) shall constitute a capital contribution to the

Issuer.  As of the date of any such

transfer of cash, the Seller shall not be insolvent under the Insolvency Law

and will not be rendered insolvent by any such transfer.

 

Section 2.07.                             Contributed

Engine Requirements.  Each

Contributed Engine and each Engine that is an Excess Asset must satisfy the

Engine Representations and Warranties.

 

Schedule 2-6

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.01.                             Representations

and Warranties of the Seller.  The

Seller hereby makes the following representations and warranties for the

benefit of the Indenture Trustee, the Noteholders and the Issuer, on which the

Issuer relies in accepting the conveyance of the Contributed Assets and Excess

Assets.  Such representations and

warranties are made as of each Transfer Date with respect to the Contributed

Assets and Excess Assets transferred to the Issuer on such date unless otherwise

indicated, but shall survive each transfer and conveyance of the respective

Contributed Assets and Excess Assets to the Issuer and the pledge of such

Contributed Assets and Excess Assets to the Indenture Trustee until the Notes

have been paid in full.

 

(a)                                  Organization

and Good Standing.  The Seller is a

company duly organized, validly existing and in compliance under the laws of

the state of its incorporation, with corporate power and authority to own its

properties and to conduct its business as such properties are currently owned

and such business is currently conducted, had at all relevant times, and now

has, power, authority, and legal right to acquire and to own the Contributed

Assets and Excess Assets and to perform its obligations hereunder and under any

Related Document to which it is a party, and has had the same legal name for

the past nine months and does not do business under any other name;

 

(b)                                 Due

Qualification.  The Seller is

qualified as a foreign corporation in each jurisdiction where failure to be so

qualified would have a material adverse effect upon its business and has

obtained all necessary licenses and approvals as required under Applicable Law,

in each case, where the failure to be so qualified, licensed or approved, could

adversely affect the ability of (i) the Seller to perform its obligations

under and comply with the terms of this Agreement and any other Related

Document to which it is a party or (ii) the Issuer to enforce its rights

under any Lease Agreement or with respect to any Contributed Assets or Excess

Assets or (iii) any Owner Trust to enforce its rights under any Lease

Agreement or with respect to any Engine or Related Asset owned or purportedly

owned by it;

 

(c)                                  Power

and Authority.  The Seller has the

corporate power and authority to execute and deliver this Agreement and any

other Related Documents to which it is a party and to carry out their terms;

the Seller has duly authorized the transfer and conveyance to the Issuer of the

Contributed Assets and Excess Assets by all necessary corporate action; the

execution, delivery, and performance of this Agreement, any other Related

Document and any Lease Agreement to which it is a party has been duly

authorized by the Seller by all necessary corporate action and this Agreement,

any other Related Document and any Lease Agreement to which it is a party have

been duly executed and delivered by the Seller and each applicable Owner Trust;

 

(d)                                 Valid

Assignment; Binding Obligations. 

This Agreement constitutes a valid sale, transfer and conveyance to the

Issuer of all right, title and interest of the Seller in, to and under the

Contributed Assets and Excess Assets and the Contributed Assets and Excess

Assets will be held by the Issuer free and clear of any Lien of any Person claiming

through or under the Seller, except for (i) Permitted Encumbrances,

(ii) the Lien created by the Indenture and (iii) Liens which may be

created under this Agreement; and this Agreement and each other Related

 

Schedule 2-7

 

Document to which it is a party, when duly executed and delivered by

the other parties thereto, will constitute a legal, valid and binding

obligation of the Seller enforceable against the Seller in accordance with its

terms subject as to enforceability to applicable bankruptcy, reorganization,

insolvency, moratorium, fraudulent conveyance or other laws affecting

creditors’ rights generally and to general principles of equity (regardless of

whether enforcement is sought in a proceeding in equity or at law);

 

(e)                                  No

Violation.  The consummation of the

transactions contemplated by and the fulfillment of the terms of this Agreement

and the Related Documents to which the Seller is a party will not conflict

with, result in any breach of any of the terms and provisions of, or constitute

(with or without notice or lapse of time or both) a default under, the charter

documents or by-laws of the Seller, or any material term of any indenture,

agreement, mortgage, deed of trust, or other instrument to which the Seller is

a party or by which it is bound, or result in the creation or imposition of any

Lien upon any of its properties pursuant to the terms of any such indenture,

agreement, mortgage, deed of trust, or other instrument, other than this Agreement

and the Indenture, or violate any law or any order, rule, or regulation

applicable to the Seller of any court or of any federal or state regulatory

body, administrative agency, or other Governmental Authority having

jurisdiction over the Seller or any of its properties;

 

(f)                                    No

Proceedings or Injunctions.  There

are (i) no proceedings or investigations pending, or, to the knowledge of

the Seller, threatened, before any court, regulatory body, administrative

agency, or other tribunal or Governmental Authority (A) asserting the

invalidity of this Agreement or any other Related Document to which it is a

party, (B) seeking to prevent the consummation of any of the transactions

contemplated by this Agreement or any other Related Document to which it is a

party or (C) seeking any determination or ruling that might materially and

adversely affect the performance by the Seller of its obligations under, or the

validity or enforceability of, this Agreement or any other Related Document to

which it is a party and (ii) no injunctions, writs, restraining orders or

other orders in effect against the Seller that would adversely affect its

ability to perform under this Agreement or any other Related Document to which

it is a party;

 

(g)                                 Insolvency.  The Seller is solvent and will not become

insolvent after giving effect to the transactions contemplated hereby.  At all times during this Agreement, the

Seller shall possess sufficient net capital and liquid assets (or ability to

access the same) to satisfy its obligations as they become due in the normal

course of business, and will not be rendered insolvent by the sale or other

transfer of any Contributed Assets or Excess Assets;

 

(h)                                 Principal

Place of Business and State of Incorporation.  As of the date hereof, the Seller’s principal place of business

and chief executive office are each at 2320 Marinship Way, Suite 300,

Sausalito, California 94965 and the Seller has maintained such addresses for

the immediately preceding four months. 

As of the date hereof, the Seller’s state of incorporation is the State

of Delaware.

 

(i)                                     Accounting

and Tax Treatment.  The Seller

(i) will treat the transfer of the Contributed Assets to the Issuer

pursuant to this Agreement as a capital contribution (in part) and sale (in

part) of such Contributed Assets (which allocation between capital contribution

and sale will be determined in accordance with Section 2.01 and

Section 2.02 hereof) for financial

 

Schedule 2-8

 

reporting, accounting and all income tax purposes and (ii) will

treat the transfer of the Excess Assets to the Issuer pursuant to this

Agreement as a capital contribution for financial reporting, accounting and all

income tax purposes;

 

(j)                                     Approvals.  All approvals, authorizations, consents,

orders or other actions of any Person required to be obtained by the Seller or,

to the knowledge of the Seller, by any other party in connection with the

execution and delivery of this Agreement or any other Related Document to which

it is a party have been or will be taken or obtained on or prior to the date

hereof;

 

(k)                                  Financial

Statements.  The consolidated

balance sheet of the Seller at December 31, 2001 and the consolidated

statements of income, retained earnings and cash flows for the fiscal years

ended on such dates, are accompanied by reports thereon containing opinions

without qualification, except as therein noted, by the independent accountants,

have been prepared in accordance with generally accepted accounting principles

consistently applied, and present fairly the financial position of the Seller

and its subsidiaries as of such dates and the results of their operations for

such periods;

 

Since December 31, 2001, there has been no change

in the business or condition (financial or otherwise) of the Seller except

changes in the ordinary course of business, and those changes which were

reported in the Seller’s public filings with the Securities and Exchange

Commission, none of which individually or in the aggregate has been materially

adverse.  Neither the Seller nor any of

its subsidiaries (other than the Issuer) has any material liabilities or

obligations other than those disclosed in the financial statements referred to

in the preceding paragraph or for which adequate reserves are reflected in such

financial statements.  The Issuer does

not have any material liabilities or obligations other than under the Related

Documents;

 

(l)                                     Governmental

Consent.  With the exception of a

Current Report on Form 8-K which the Seller shall promptly file with the SEC

regarding the execution and delivery of this Agreement and the other

Transaction Documents to which it is a party, no consent, approval or

authorization of, or filing, registration or qualification with, any

Governmental Authority is or will be necessary or required on the part of the

Seller in connection with the execution and delivery of this Agreement or the

transfer and conveyance of the Contributed Assets and Excess Assets hereunder;

 

(m)                               Investment

Company.  The Seller is not an

“investment company” or a company “controlled” by an “investment company”

within the meaning of the Investment Company Act of 1940, as amended;

 

(n)                                 Valid

Business Purpose.  The Seller has

valid business reasons for selling, transferring and conveying the Contributed

Assets and Excess Assets to the Issuer;

 

(o)                                 Title

to Contributed Assets and Excess Assets. 

Immediately prior to the transfer of any Contributed Asset or any Excess

Asset to the Issuer pursuant to the terms of this Agreement, the Seller had

good and marketable title to such Contributed Asset or Excess Asset free and

clear of all Liens except Permitted Encumbrances, and as of the applicable

Transfer Date, the Seller shall convey to the Issuer good and marketable title

to each such Contributed

 

Schedule 2-9

 

Asset and Excess Assets, free and clear of all Liens, except Permitted

Encumbrances and the Liens in favor of the Indenture Trustee;

 

(p)                                 Delivery

of Required Financing Statements. 

The Seller has filed on or prior to each Transfer Date all of the

filings pursuant to Sections 2.03(a) or (b), as the case may be, and (c)

hereof with respect to the Contributed Assets and Excess Assets for such

Transfer Date.

 

(q)                                 Casualty

Loss.  No Contributed Engine or

Excess Asset shall have suffered a Casualty Loss on or prior to the related

Transfer Date;

 

(r)                                    No

Violation of Lease Agreements.  The

transfer and conveyance to the Issuer of the Contributed Assets will not

violate the terms or provisions of any Lease Agreement or any other agreement

to which the Seller then is a party or by which it is bound;

 

(s)                                  Rights

to Lease Agreements are Assignable. 

The rights of the Seller with respect to each Lease Agreement

transferred pursuant to this Agreement are assignable by the Seller without the

consent of any Person other than consents which will have been obtained prior

to the related Transfer Date;

 

(t)                                    All

Necessary Action Taken.  Immediately

after each of the transfers and conveyances to the Issuer as contemplated in

this Agreement, (i) all necessary action will have been taken by the Seller to

validly transfer and convey to the Issuer free and clear of all Liens except

Permitted Encumbrances and, (A) all right, title and interest of the

Seller in and to each Lease Agreement and the payments due and to become due

thereunder to the extent related to a Contributed Engine and all scheduled

lease payments to become due thereunder which related to a Contributed Engine

and (B) all right, title and interest of the Seller in and to any

Contributed Engines, Related Assets and Excess Assets which are transferred

hereunder and (ii) all necessary action will have been taken by the relevant

parties to grant to the Indenture Trustee a perfected, first priority security

interest in the Collateral (except, with respect to Contributed Engines leased

to Lessees domiciled outside the United States, only to the extent reasonably

available);

 

(u)                                 Origination

and Collection Practices.  To the

best of the Seller’s knowledge, the origination, acquisition and collection

practices used by the Seller with respect to each Lease Agreement have been in

all respects legal, proper, prudent and in accordance with the standards it

uses for its own portfolio;

 

(v)                                 Reserved;

 

(w)                               Owner

Trust.  The Owner Trust that will

hold such Engine is duly organized, validly existing and in compliance under

the laws of the state of its formation, as indicated in the applicable Engine

Transfer Certificate, with all necessary power and authority to own its

properties and to conduct its business as such properties are currently owned

or contemplated to be owned and such business is currently or contemplated to

be conducted, had at all relevant times, and now has, power, authority, and

legal right to acquire and own the Engine and Lease owned by it, as described

in the applicable Engine Transfer Certificate and to perform its obligations

under any Related Document to which it is a party, and has not at any time had

any other legal name except as set forth in the applicable Engine Transfer

Certificate;

 

Schedule 2-10

 

(x)                                   Reserved;

 

(y)                                 Ordinary

Course of Business.  All Lease

Agreements related to Contributed Engines and Contributed Beneficial Interests

were originated in the ordinary course of business of the Seller’s business;

 

(z)                                   No

Adverse Selection Procedures:  Eligible

Engines.  No adverse selection

procedures have been used by the Seller in selecting any Contributed Engine

(and related Lease Agreement) or Excess Asset and each Contributed Engine and

each Lease Agreement is an Eligible Engine and an Eligible Lease, respectively,

and each Excess Asset is an Eligible Engine except with respect to

clauses (1) and (2) of the definition thereof;

 

(aa)                            Ordinary

Course.  The transactions contemplated

by this Agreement are being consummated by the Seller in good faith and in

furtherance of the Seller’s ordinary business purposes and constitute a

practical and reasonable course of action by the Seller designed to improve the

financial position of the Seller, with no contemplation of insolvency and with

no intent to hinder, delay or defraud any of its present or future creditors;

 

(bb)                          To

the best of the Seller’s knowledge, each Lease Agreement and all accompanying

documents are complete and authentic and all signatures thereon are genuine;

 

(cc)                            Each

Lease Agreement arose from a bona fide transaction, complying with all

applicable laws and regulations of Governmental Authorities, with persons

having legal capacity to contract and was duly authorized, executed and

delivered by the Seller;

 

(dd)                          All

amounts represented to be payable under each Lease Agreement are, in fact,

payable in accordance with the provisions of each Lease Agreement;

 

(ee)                            No

Event of Default (as defined in the Lease Agreement) has occurred under any

Lease Agreement;

 

(ff)                                Each

Engine conforms to the description thereof as set forth on the List of Engines

and any applicable Engine Transfer Certificate;

 

(gg)                          The

items in each Collateral File that are required to be delivered on the

applicable Transfer Date have been delivered to the Custodian and each of such

items delivered on the applicable Transfer Date complies with the terms herein

and in the Indenture;

 

(hh)                          Each

Lease Agreement requires Lessee to pay, and indemnify, defend and hold Lessor

and Lessor’s lender (which term includes the Noteholders and the Indenture

Trustee) harmless on a net after tax basis from and against any and all taxes

of whatever kind or nature, including costs or expenses incurred in connection

therewith, which may be assessed against, chargeable to or collectible from any

of Lessee, Lessor’s lender or lessor by any taxing authority, foreign, federal,

state or local, and which are based upon, levied or assessed with respect to

the lease of any Engine or the operation, possession or use of such Engine

while under any Lease, except taxes based on the net income of Lessor; and

 

Schedule 2-11

 

(ii)                                  Each

Lease Agreement is non-cancelable by the Lessee during the term of such Lease

Agreement unless such requirement is waived in writing by the Administrative

Agent.

 

Section 3.02.                             Representations

and Warranties of the Issuer.  The

Issuer hereby makes the following representations and warranties, for the

benefit of the Seller, the Indenture Trustee, the Noteholders and any Series

Enhancer, if any, on which the Seller relies in transferring the Contributed

Assets and Excess Assets to the Issuer. 

Such representations and warranties speak as of each Transfer Date with

respect to the Contributed Assets and Excess Assets transferred to the Issuer

on such date, unless otherwise indicated, but shall survive each transfer and

conveyance of the respective Contributed Assets and Excess Assets to the Issuer

and the pledge of such Contributed Assets and Excess Assets to the Indenture

Trustee until the Notes have been paid in full.

 

(a)                                  Organization

and Good Standing.  The Issuer is a

limited liability company duly organized and validly existing in compliance

under the laws of Delaware, with full power and authority to own and operate

its properties and to conduct its business as presently conducted and to enter

into and perform its obligations under this Agreement and each other Related

Document to which it is a party and the transactions contemplated hereby and

thereby;

 

(b)                                 Due

Qualification.  The Issuer is duly

qualified to do business as a foreign limited liability company in good

standing, and has obtained all necessary licenses and approvals in all

jurisdictions in which the ownership or lease of property or the conduct of its

business requires such qualification, except to the extent that the failure to

be so qualified, licensed or approved would not, in the aggregate, materially

and adversely affect the ability of (i) the Issuer to perform its

obligations under and comply with the terms of this Agreement or any other

Related Documents to which it is a party or (ii) the Indenture Trustee to

enforce its rights under any Lease Agreement, this Agreement or any other Related

Document;

 

(c)                                  Power

and Authority.  The Issuer has the

power and authority to execute and deliver this Agreement and to carry out its

terms; and the execution, delivery and performance of this Agreement have been

duly authorized by the Issuer by all necessary action; the Issuer will have the

power and authority to acquire and will have acquired whatever right, title and

interest in the Contributed Assets and Excess Assets as was conveyed to it by

the Seller; and the Issuer will have duly authorized, executed and delivered

the Notes, this Agreement and the other Related Documents to which it is a

party;

 

(d)                                 Binding

Obligations.  This Agreement and

each other Related Document to which the Issuer is a party, when duly executed

and delivered by the other parties hereto or thereto, will constitute a legal,

valid and binding obligation of the Issuer enforceable in accordance with its

terms subject as to enforceability to applicable bankruptcy, reorganization,

insolvency, moratorium or other laws affecting creditors’ rights generally and

to general principles of equity (regardless of whether enforcement is sought in

a proceeding in equity or at law);

 

(e)                                  No

Violation.  The consummation of the

transactions contemplated by and the fulfillment of the terms of this Agreement

will not conflict with, result in any breach of any of the terms and provisions

of, or constitute (with or without notice or lapse of time) a default

 

Schedule 2-12

 

under, the charter documents or by-laws of the Issuer, or any term of

any indenture to which the Issuer is a party or by which its assets may be

bound;

 

(f)                                    No

Proceedings or Injunctions.  There

are (i) no proceedings or investigations to which the Issuer, or any

Affiliate of the Issuer, is a party pending, or, to the knowledge of the

Issuer, threatened, before any court, regulatory body, administrative agency or

other tribunal or Governmental Authority (A) asserting the invalidity of

the Notes, this Agreement or the other Related Documents to which Issuer is a

party, (B) seeking to prevent the issuance of the Notes or the

consummation of any of the transactions contemplated by this Agreement or the

other Related Documents to which the Issuer is a party or (C) seeking any

determination or ruling that would materially and adversely affect (1) the

performance by the Issuer of its obligations under, or the validity or

enforceability of, the Notes, this Agreement or the other Related Documents to

which the Issuer is a party or (2) the ability of any Owner Trust, the

Indenture Trustee or any Series Enhancer, if any, to enforce its rights under

any Lease Agreement, this Agreement or any other Related Document and

(ii) no injunctions, writs, restraining orders or other orders in effect

against the Issuer that would adversely affect (1) its ability to perform

under the Notes, this Agreement or the other Related Documents to which it is a

party or (2) the ability of any Owner Trust, the Indenture Trustee or any

Series Enhancer, if any, to enforce its rights under any Lease Agreement, this

Agreement or any other Related Document;

 

(g)                                 Approvals.  All approvals, authorizations, consents,

orders or other actions of any Person required to be obtained by the Issuer or,

to the knowledge of the Issuer, by any other party in connection with the

execution and delivery of this Agreement or any other Related Document to which

it is a party have been or will be taken or obtained on or prior to the date

hereof;

 

(h)                                 Solvency.  The Issuer is not insolvent under the Insolvency

Law;

 

(i)                                     Principal

Place of Business and State of Formation; Trade Names.  The Issuer has only one place of business

and its chief executive office is located at the address set forth in the

preamble hereto.  The Issuer’s state of

formation is the State of Delaware.  The

Issuer has not been known by any name other than “Willis Engine Funding LLC”;

 

(j)                                     Subsidiaries.  Except for WLFC Funding (Ireland) Limited, a

corporation organized under the law of the Republic of Ireland, the Issuer has

no Subsidiaries; and

 

(k)                                  Ordinary

Course.  The transactions

contemplated by this Agreement are being consummated by the Issuer in good

faith and in furtherance of the Issuer’s ordinary business purposes and

constitute a practical and reasonable course of action by the Issuer designed

to improve the financial position of the Issuer, with no contemplation of

insolvency and with no intent to hinder, delay or defraud any of its present or

future creditors.

 

ARTICLE IV

COVENANTS OF THE SELLER AND THE ISSUER

 

Section 4.01.                             Seller

Covenants.  The Seller hereby

covenants and agrees with the Issuer, the Noteholders and the Indenture Trustee

as follows:

 

Schedule 2-13

 

(a)                                  Merger

or Consolidation of, or Assumption of the Obligations of, the Seller.  Notwithstanding anything in this Agreement

to the contrary, any corporation (i) into which the Seller may be merged

or consolidated, (ii) resulting from any merger, conversion or

consolidation to which the Seller shall be party or (iii) succeeding to

the business of the Seller substantially as a whole, will be the successor to

the Seller under this Agreement, without the execution or filing of any

document or any further act on the part of any of the parties to this

Agreement; provided, however, that (x) immediately after giving effect to

such transaction, no Event of Default shall result therefrom and no

representation or warranty made pursuant to Section 3.01 shall have been

breached, (y) the Seller shall have delivered to the Issuer, the

Administrative Agent and each Rating Agency, if any, an Officer’s Certificate

and an Opinion of Counsel each stating that such consolidation, merger or

succession and such agreement of assumption comply with this Section 4.01

and that all conditions precedent, if any, provided for in this Agreement

relating to such transaction have been complied with and (z) the Seller

shall have delivered to the Issuer, the Administrative Agent and each Rating

Agency an Opinion of Counsel either (1) stating that, in the opinion of

such counsel, all UCC financing statements and amendments thereto have been

executed and filed that are necessary fully to preserve and protect the

interests of the Issuer, the Indenture Trustee and any Series Enhancer, if any,

in the Contributed Assets and Excess Assets, or (2) stating that, in the

opinion of such counsel, no such action shall be necessary to preserve and

protect such interests.

 

(b)                                 Limitation

on Liability of the Seller and Others. 

The Seller and any director, officer, employee or agent of the Seller

may rely in good faith on any document of any kind, prima  facie

properly executed and submitted by any Person respecting any matters arising

under this Agreement; provided, however, that any such limitation does not

affect the obligation of the Seller to accept reconveyance of certain

Contributed Engines and the Related Assets or Excess Assets and pay the

consideration therefor pursuant to Section 2.02 hereof.  The Seller shall not be under any obligation

to appear in, prosecute or defend any legal action that is not incidental to

its obligations as the transferor of the Contributed Assets and Excess Assets

under this Agreement, any Engine Transfer Certificate and that in its

reasonable opinion may involve it in any expense or liability.

 

(c)                                  Preservation

of Security Interest.  The Seller

shall execute and file such UCC financing statements in such manner and in such

places as may be required by law fully to preserve, maintain and protect the

interest of the Issuer under this Agreement and the security interest of the

Noteholders and the Indenture Trustee in the Contributed Assets and Excess

Assets.

 

(d)                                 Preservation

of Name, etc.  The Seller will not

change its name, identity or corporate structure in any manner unless

(i) the Seller shall have given the Issuer, the Indenture Trustee, each

Series Enhancer, if any, the Administrative Agent and the Noteholders at least

30 days’ prior written notice thereof and (ii) the Seller shall have filed

any necessary UCC financing statements necessary to continue the effectiveness

of any UCC financing statement referred to in paragraph (c) above.

 

(e)                                  Preservation

of Office.  The Seller will give the

Issuer, each Series Enhancer, if any, the Administrative Agent, the Indenture

Trustee and the Noteholders at least 30 days’ prior written notice of any

relocation of its chief executive office.

 

Schedule 2-14

 

(f)                                    Books

and Records.  The Seller will, at

its own cost and expense, mark its books and records to the effect that each

Contributed Engine, Related Asset and Excess Asset has been transferred to

the Issuer and subsequently pledged to the Indenture Trustee pursuant to the

Indenture.

 

(g)                                 Obligations

with Respect to Engines and Beneficial Interests.  The Seller will do nothing to impair the

rights of the Issuer, the Owner Trusts, the Noteholders or the Indenture

Trustee in the Contributed Engines, the Related Assets and the Excess Assets,

as the case may be, other than as permitted by the Servicing Agreement.

 

(h)                                 Compliance

with Law.  The Seller will comply,

in all material respects, with all acts, rules, regulations, orders, decrees

and directions of any Governmental Authority applicable to the Contributed

Assets, Excess Assets or any part thereof, provided, however,

that the Seller may contest any act, rule, regulation, order, decree or

direction in any reasonable manner which shall not materially and adversely

affect the rights of the Issuer, the Noteholders or the Indenture Trustee in

any of the Contributed Assets or Excess Assets.

 

(i)                                     Conveyance

of Contributed Assets and Excess Assets; Security Interests.  Except for the transfers and conveyances

hereunder and the security interest created pursuant to the Indenture, the

Seller will not pledge, assign or transfer to any other Person, or grant,

create, incur, assume or suffer to exist any Lien other than Permitted

Encumbrances on, any Contributed Asset or Excess Asset (or any interest

therein) other than the rights of a lessee under a Lease Agreement and the

Seller shall defend the right, title and interest of the Issuer and its

successors and assigns in, to and under the Contributed Assets and Excess

Assets against all claims of third parties claiming through or under the

Seller.

 

(j)                                     Notification

of Breach.  The Seller will advise

the Issuer, the Administrative Agent and the Indenture Trustee promptly, in

reasonable detail, upon discovery of the occurrence of any breach by the Seller

of any of its representations, warranties and covenants contained herein.

 

(k)                                  Further

Assurances.  The Seller will make,

execute or endorse, acknowledge and file or deliver to the Issuer, the Owner

Trusts and each Series Enhancer, if any, from time to time such UCC financing

statements (including any termination or continuation statements), schedules,

confirmatory assignments, conveyances, transfer endorsements, powers of

attorney, certificates, reports and other assurances or instruments and take

such further steps relating to the Contributed Assets, Excess Assets and other

rights covered by this Agreement, as the Issuer, the Owner Trusts or each

Series Enhancer, if any, may request and reasonably require.  The Seller shall take all steps necessary to

perfect the Issuer’s and the Indenture Trustee’s interest in the Contributed

Assets and Excess Assets under any international perfection standards that may

be adopted after the date of this Agreement to the extent practicable and

without unreasonable cost.

 

(l)                                     Indemnification.  The Seller agrees to indemnify, defend and

hold the Issuer and the Owner Trusts harmless from and against any and all

loss, liability, damage, judgment, claim, deficiency or expense (including

interest, penalties, reasonable attorneys’ fees and amounts paid in settlement)

to which the Issuer or the Owner Trusts may become subject insofar as such

loss, liability, damage, judgment, claim, deficiency or expense arises out of

or is based upon a breach

 

Schedule 2-15

 

by the Seller of its covenants contained in Section 4.01, or any

information certified in any schedule delivered by the Seller hereunder being

untrue in any material respect as of the date of such certification.  The obligations of the Seller under this

Section 4.01(l) shall be considered to have been relied upon by the Issuer, the

Owner Trusts, the Noteholders, the Administrative Agent and the Indenture

Trustee and shall survive the execution, delivery, and performance of this

Agreement regardless of any investigation made by the Issuer or on its behalf.

 

(m)                               Notice

of Liens.  The Seller shall notify

the Issuer promptly after becoming aware of any Lien other than Permitted

Encumbrances on the Contributed Assets or Excess Assets or on any assets owned

by any Owner Trust.

 

(n)                                 Transfer

Taxes.  The Seller shall,

immediately upon (i) receipt of notice from any applicable Governmental

Authority that a tax or related fine is due or (ii) the imposition of any

related Lien on any property of the Issuer, pay all taxes, related fines and

related expenses (including attorney’s fees) incurred or required to be paid by

the Seller or the Issuer in connection with or related to the conveyance of the

Contributed Assets from the Seller to the Issuer and from the Issuer to the

Owner Trusts, and acknowledges that the Issuer shall have no responsibility

with respect thereto.

 

(o)                                 No

Bankruptcy Petition Against the Issuer or the Owner Trusts.  The Seller will not, prior to the date that

is one year and one day after the payment in full of all amounts owing pursuant

to the Indenture, this Agreement and the Related Documents, institute against

the Issuer or any Owner Trust, or join any other Person in instituting against

the Issuer or any Owner Trust, any bankruptcy, reorganization, arrangement,

insolvency or liquidation proceedings or similar proceedings under the laws of

any applicable jurisdiction.  This

subsection 4.01(o) shall survive the termination of this Agreement.

 

(p)                                 ERISA.  The Seller agrees to indemnify, defend and

hold the Issuer and each Owner Trust harmless from and against any and all

loss, liability, damage, judgment, claim, deficiency or expense (including

interest, penalties, reasonable attorneys’ fees and amounts paid in settlement)

to which the Issuer or any Owner Trust may become subject insofar as such loss,

liability, damage, judgment, claim, deficiency or expense arises out of any

Plan.

 

(q)                                 Substantive

Consolidation.  The Seller will be

operated in such a manner so that it would not be substantively consolidated

with the Issuer or any Owner Trust, so that the separate existence of the

Seller, on the one hand, and the Issuer and each Owner Trust, on the other

hand, would not be disregarded in the event of a bankruptcy or insolvency of

the Seller or the Issuer or any Owner Trust, and in such regard, among other

things:

 

(i)                                     the

Seller, on the one hand, will not be involved in the day-to-day management of

the Issuer or any Owner Trust, on the other hand;

 

(ii)                                  the

Seller, on the one hand, will maintain separate corporate records and books of

account from the Issuer and each Owner Trust, on the other hand, and otherwise

will observe corporate formalities and have a separate area from the Issuer for

its business;

 

(iii)                               the financial statements

and books and records of the Seller will be prepared after the date of creation

of the Issuer to reflect and will reflect the separate existence of the Issuer

and each Owner Trust, provided, that the Issuer’s and the Owner Trust’s assets

and

 

Schedule 2-16

 

liabilities may be included in a consolidated financial statement

issued by an Affiliate of the Issuer; provided, however, that any such

consolidated financial statement will make clear that the Issuer’s and the

Owner Trust’s assets are not available to satisfy the obligations of such

Affiliate;

 

(iv)                              the

Seller, on the one hand, will maintain its assets separately from the assets of

the Issuer and each Owner Trust, on the other hand (including through the

maintenance of a separate bank account), and the Seller’s assets, and records

relating thereto, have not been, are not and will not be, commingled with those

of the Issuer or any Owner Trust;

 

(v)                                 all

of the Seller’s business correspondence and other communications will be

conducted in the Seller’s own name and on its own respective stationery;

 

(vi)                              the

Seller does not act as an agent for the Issuer or any Owner Trust, other than

in its capacity as the Servicer, and in connection therewith, will present

itself to the public as an agent for the Issuer and each Owner Trust and as a

corporation separate from the Issuer and each Owner Trust;

 

(vii)                           the Seller does not conduct

any of the business of the Issuer or any Owner Trust in the Seller’s name;

 

(viii)                        the Seller does not pay any

liabilities of the Issuer or any Owner Trust out of the Seller’s funds or

assets;

 

(ix)                                the

Seller maintains an arm’s-length relationship with the Issuer and each Owner

Trust except with respect to the making of the Guaranty;

 

(x)                                   the

Seller will not assume or guarantee or become obligated for the debts of the

Issuer or any Owner Trust or hold out its credit as being available to satisfy

the obligations of the Issuer or any Owner Trust except with respect to (A)

obligations of the Seller under the Guaranty and (B) obligations of the Seller

to Lessees arising by operation of law under Eligible Leases with respect to

which the consent of such Lessees has not been obtained prior to the transfer

of such Eligible Leases to Issuer by Seller pursuant to this Agreement;

 

(xi)                                the

Seller will not acquire obligations of the Issuer or any Owner Trust;

 

(xii)                             the Seller will allocate

fairly and reasonably overhead or other expenses that are properly shared with

the Issuer, including without limitation, shared office space;

 

(xiii)                          the Seller will identify and

hold itself out as a separate and distinct entity from the Issuer and each

Owner Trust;

 

(xiv)                         the Seller will correct any

known misunderstanding regarding its separate identity from the Issuer and each

Owner Trust;

 

(xv)                            the

Seller will not identify the Issuer or any Owner Trust as a division or part of

itself,

 

(xvi)                         the Seller will not enter

into, or be a party to, any transaction with the Issuer or any Owner Trust

except in the ordinary course of its business and on terms which are

 

Schedule 2-17

 

intrinsically fair and are no less favorable to it than would be

obtained in a comparable arm’s-length transaction with an unrelated third

party, other than with respect to the making of the Guaranty; and

 

(xvii)                      the Seller does not pay the

salaries of the Issuer’s or any Owner Trust’s employees, if any.

 

Section 4.02.                             Issuer

Covenants.

 

(a)                                  Non-Consolidation.  The Issuer will be operated in such a manner

so that neither it nor any Owner Trust would be substantively consolidated with

the Seller, so that the separate existence of the Issuer and each Owner Trust,

on the one hand, and the Seller, on the other hand, would not be disregarded in

the event of a bankruptcy or insolvency of the Issuer, any Owner Trust, or the

Seller, and in such regard, among other things:

 

(i)                                     the

Issuer will not be involved in the day-to-day management of the Seller;

 

(ii)                                  the

Issuer (A) will, on its behalf and on behalf of each Owner Trust, maintain

separate records and books of account from the Seller and otherwise will

observe all formalities and have a separate area from the Seller for its

business and (B) will cause to be maintained, on behalf of each Owner Trust,

separate trust records and financial records which may be produced upon demand

identifying the assets, liabilities, revenues and expenses of such Owner Trust

separately from those of the Issuer and;

 

(iii)                               the financial statements

and books and records of the Issuer and the financial records of each Owner

Trust, on the one hand, will reflect its separate existence from the Seller, on

the other hand, provided, that the Issuer’s and the Owner Trust’s assets and

liabilities may be included in a consolidated financial statement issued by an

Affiliate of the Issuer; provided, however, that any such consolidated

financial statement will make clear that the Issuer’s and the Owner Trust’s

assets are not available to satisfy the obligations of such Affiliate;

 

(iv)                              the

Issuer will and will cause each Owner Trust to maintain its assets separately

from the assets of the Seller and records relating thereto, have not been, are

not and will not be commingled with those of the Seller’s assets;

 

(v)                                 all

of the Issuer’s and each Owner Trust’s business correspondence and other

communications will be conducted in its own name and on its own stationery;

 

(vi)                              the

Issuer will not and will not permit any Owner Trust to act as an agent of the

Seller in any capacity and will present itself to the public as a corporation

or Trust separate from the Seller;

 

(vii)                           the Issuer will and will

cause each Owner Trust to conduct its business solely in its own name;

 

(viii)                        the Issuer will and will cause

each Owner Trust to pay its own liabilities out of its own funds and assets;

 

Schedule 2-18

 

(ix)                                the

Issuer will and will cause each Owner Trust to maintain an arm’s-length

relationship with its Affiliates;

 

(x)                                   the

Issuer will not and will not permit any Owner Trust to assume or guarantee or

become obligated for the debts of any other entity or hold out its credit as

being available to satisfy the obligation of any other entity, (in each case

other than guarantees or other obligations of any Owner Trust in respect of

obligations of the Issuer) and will not permit any other person to assume or

guarantee or become obligated for its debts or hold out its credit as being

available to satisfy its obligations, except with respect to (A) obligations of

the Seller under the Guaranty and (B) obligations of the Seller to Lessees

arising by operation of law under Eligible Leases with respect to which the

consent of such Lessees has not been obtained prior to the transfer of such

Eligible Leases to Issuer by Seller pursuant to this Agreement;

 

(xi)                                the

Issuer will not acquire obligations or securities of its stockholders;

 

(xii)                             the Issuer will allocate

fairly and reasonably overhead or other expenses that are properly shared with

any other person or entity, including without limitation, shared office space,

and use separate stationery, invoices and checks;

 

(xiii)                          the Issuer will and will

cause each Owner Trust to identify and hold itself out as a separate and

distinct entity under its own name and not as a division or part of any other

person or entity;

 

(xiv)                         the Issuer will and will cause

each Owner Trust to correct any known misunderstanding regarding its separate

identity;

 

(xv)                            the

Issuer will not and will not permit any Owner Trust to make loans to any person

or entity;

 

(xvi)                         the Issuer will not identify

its stockholders, or any Affiliates of any of them, as a division or part of

itself;

 

(xvii)                      the Issuer will not and will not

permit any Owner Trust to enter into, or be a party to, any transaction with

its stockholders or their Affiliates except in the ordinary course of its

business and on terms which are intrinsically fair and are no less favorable to

it than would be obtained in a comparable arm’s-length transaction with an

unrelated third party; and

 

(xviii)                   the Issuer will pay the salaries of

its own employees, if any, from its own funds.

 

Section 4.03.                             Transfer

of Contributed Assets.  The Seller

understands that the Issuer intends to assign the Contributed Assets, Excess

Assets and its rights under this Agreement to the Indenture Trustee under the

Indenture, and hereby consents to the assignment of all or any portion of this

Agreement by the Issuer to such Indenture Trustee.  The Seller agrees that upon such assignment the Indenture Trustee

may exercise the rights of the Issuer hereunder and shall be entitled to all of

the benefits of the Issuer hereunder.

 

Schedule 2-19

 

ARTICLE V

CONDITIONS PRECEDENT

 

Section 5.01.                             Conditions

to the Issuer’s Obligations.  The

obligations of the Issuer to acquire Contributed Assets or Excess Assets on any

Transfer Date shall be subject to the satisfaction of the following conditions

(in addition to the procedures required by Section 2.02(d)):

 

(a)                                  All

representations and warranties of the Seller contained in this Agreement shall

be true and correct on the Transfer Date (including without limitation the

Engine Representations and Warranties) with the same effect as though such

representations and warranties had been made on such date;

 

(b)                                 All

information concerning the Contributed Assets and Excess Assets provided to the

Issuer shall be true and correct in all material respects;

 

(c)                                  The

Seller shall have performed all other obligations required to be performed by

the provisions of this Agreement and the other Related Documents;

 

(d)                                 All

corporate and legal proceedings and all instruments in connection with the

transactions contemplated by this Agreement shall be satisfactory in form and

substance to the Issuer, and the Issuer shall have received from the Seller

copies of all documents (including without limitation records of corporate

proceedings) relevant to the transactions herein contemplated as the Issuer may

reasonably have requested; and

 

(e)                                  No

Event of Default or Early Amortization Event shall have occurred and then be

continuing or result from the acquisitions of such Contributed Assets or Excess

Assets.

 

Section 5.02.                             Conditions

to the Seller’s Obligations.  The

obligations of the Seller to convey and contribute Contributed Assets or Excess

Assets on each Transfer Date shall be subject to the satisfaction of the

following conditions (in addition to the procedures required by section

2.02(d)):

 

(a)                                  All

representations and warranties of the Issuer contained in this Agreement shall

be true and correct with the same effect as though such representations and

warranties had been made on such date; and

 

(b)                                 All

limited liability company and legal proceedings and all instruments in

connection with the transactions contemplated by this Agreement shall be

satisfactory in form and substance to the Seller, and the Seller shall have

received from the Issuer copies of all documents (including without limitation

records of limited liability company proceedings) relevant to the transactions

herein contemplated as the Seller may reasonably have requested.

 

Schedule 2-20

 

ARTICLE VI

TERMINATION

 

Section 6.01.                             Termination.  The respective obligations and

responsibilities of the Seller and the Issuer created by this Agreement shall

not terminate prior to payment in full of all Outstanding Obligations.

 

Section 6.02.                             Effect

of Termination.  No termination or

rejection or failure to assume the executory obligations of this Agreement in

the bankruptcy of the Seller or the Issuer shall be deemed to impair or affect

the obligation pertaining to any executed conveyance or executed obligations,

including without limitation breaches of representations and warranties by the

Seller or the Issuer occurring prior to the date of such termination.  Without limiting the foregoing, prior to

termination, neither the failure of the parties to execute and to deliver an

Engine Transfer Certificate pursuant to Section 2.02, nor the failure of

the Seller to pay in cash or kind the compensation therefor shall render such

transfer or obligation executory, nor shall the continued duties of the parties

pursuant to Article 4 or Section 7.06 of this Agreement render an

executed conveyance executory.

 

ARTICLE VII

MISCELLANEOUS PROVISIONS

 

Section 7.01.                             Amendment.  This Agreement may be amended from time to

time by the Seller and the Issuer only with the prior written consent of the

Indenture Trustee as directed by each Control Party of each Series and upon

prior notice to each Rating Agency, if any. 

The Issuer shall forward copies of any amendment to this Agreement to

the Administrative Agent and the Rating Agencies, if any.

 

Section 7.02.                             Governing

Law.  This Agreement and any

amendment hereof pursuant to Section 7.01 shall be construed in accordance

with and governed by the substantive laws of New York (without regard to choice

of law principles) applicable to agreements made and to be performed therein

and the obligations, rights and remedies of the parties under this Agreement

shall be determined in accordance with such laws.

 

Section 7.03.                             Notices.  All demands, notices and communications

under this Agreement shall be in writing personally delivered, or sent by

facsimile (with subsequent telephone confirmation of receipt thereof) or sent

by overnight courier service, at the following address:  (a) Seller, at its address at Willis

Lease Finance Corporation, 2320 Marinship Way, Suite 300, Sausalito,

California 94965; (b) Issuer, at its address at Willis Engine Funding LLC,

2320 Marinship Way, Suite 300, Sausalito, California 94965 and (c) the

Indenture Trustee, the Noteholders, the Rating Agencies and the Series

Enhancer, if any, and Administrative Agent at their respective addresses set

forth in the related Supplement.  Notice

shall be effective and deemed received (a) two days after being delivered

to the courier service, if sent by courier, (b) upon receipt of

confirmation of transmission, if sent by facsimile or (c) when delivered,

if delivered by hand.  Either party may

alter the address to which communications are to be sent by

 

Schedule 2-21

 

giving notice of such change of address in conformity with the

provisions of this Section 7.03 for giving notice and by otherwise

complying with any applicable terms of this Agreement.

 

Wherever notice or a report is required to be given or

delivered to or from any party pursuant to this Agreement, a copy of such

notice or report shall also be given or delivered to the Administrative Agent.

 

Section 7.04.                             Severability

of Provisions.  If any one or more

of the covenants, agreements, provisions or terms of this Agreement shall be

for any reason whatsoever held invalid, then such covenants, agreements,

provisions or terms shall be deemed severable from the remaining covenants,

agreements, provisions or terms of this Agreement and shall in no way affect

the validity or enforceability of the other covenants, agreements, provisions

or terms of this Agreement.

 

Section 7.05.                             Assignment.  Notwithstanding anything to the contrary

contained in this Agreement, this Agreement may not be assigned by the Seller

except as provided in Section 4.01(a), without the prior written consent

(which consent shall not be unreasonably withheld) of the Issuer and the

Indenture Trustee at the direction of each Control Party of each Series and,

except as provided in Section 4.03, this Agreement may not be assigned by

the Issuer without the prior written consent (which consent shall not be

unreasonably withheld) of each Control Party of each Series.  Whether or not expressly stated, all

representations, warranties, covenants and agreements of the Seller (whether as

the Seller or as Servicer) and the Issuer in this Agreement, or in any document

delivered by any of them in connection with this Agreement, shall be for the

benefit of, and shall be exercisable by, the Indenture Trustee, each Series

Enhancer, if any, and the Noteholders.

 

Section 7.06.                             Further

Assurances.  Each of the Seller and

the Issuer agrees to do such further acts and things and to execute and deliver

such additional assignments, agreements, powers and instruments as are

reasonably required to carry into effect the purposes of this Agreement or to

better assure and confirm unto the Indenture Trustee, the Series Enhancers, if

any, or the Noteholders their rights, powers and remedies hereunder.

 

Section 7.07.                             No

Waiver; Cumulative Remedies.  No

failure to exercise and no delay in exercising, on the part of the Issuer or

the Seller, any right, remedy, power or privilege hereunder, shall operate as a

waiver thereof, nor shall any single or partial exercise of any right, remedy,

power or privilege hereunder preclude any other or further exercise hereof or

the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges

herein provided are cumulative and not exhaustive of any rights, remedies,

powers and privileges provided by law.

 

Section 7.08.                             Counterparts.  This Agreement may be executed in two or

more counterparts (and by different parties on separate counterparts), each of

which shall be an original, but all of which shall constitute one and the same

instrument.

 

Section 7.09.                             Binding

Effect.  This Agreement will inure

to the benefit of and be binding upon the parties hereto and, upon the transfer

contemplated by Section 4.03 hereof, the Indenture Trustee, the

Noteholders and their respective successors and permitted assigns.

 

Schedule 2-22

 

Section 7.10.                             Merger

and Integration.  Except as

specifically stated otherwise herein, this Agreement sets forth the entire

understanding of the parties relating to the subject matter hereof, and all

prior understandings, written or oral, are superseded by this Agreement.  This Agreement may not be modified, amended,

waived or supplemented except as provided herein.

 

Section 7.11.                             Headings.  The headings herein are for purposes of

reference only and shall not otherwise affect the meaning or interpretation of

any provision hereof

 

Section 7.12.                             Schedules

and Exhibits.  The schedules and

exhibits attached hereto and referred to herein shall constitute a part of this

Agreement and are incorporated into this Agreement for all purposes.

 

Section 7.13.                             General

Interpretive Principles.  For

purposes of this Agreement except as otherwise expressly provided or unless the

context otherwise requires:

 

(a)                                  the

terms defined in this Agreement have the meanings assigned to them in this

Agreement and include the plural as well as the singular, and the use of any

gender herein shall be deemed to include the other gender;

 

(b)                                 accounting

terms not otherwise defined herein have the meanings assigned to them in

accordance with generally accepted accounting principles as in effect on the

date hereof;

 

(c)                                  references

herein to “Articles”, “Sections”, “Subsections”, “paragraphs” and other

subdivisions without reference to a document are to designated Articles,

Sections, Subsections, paragraphs and other subdivisions of this

Agreement;

 

(d)                                 a

reference to a Subsection section without further reference to a

Section is a reference to such Subsection section as contained in the same

Section in which the reference appears, and this rule shall also apply to

paragraphs and other subdivisions;

 

(e)                                  the

words “herein”, “hereof”, “hereunder” and other words of similar import refer

to this Agreement as a whole and not to any particular provision; and

 

(f)                                    the

term “include” or “including” shall mean without limitation by reason of

enumeration.

 

Section 7.14.                             Third-Party

Beneficiaries.  This Agreement will

inure to the benefit of and be binding upon the parties hereto, the Indenture

Trustee and the Noteholders, and their respective successors and permitted

assigns.

 

Section 7.15.                             Effect

on Original Sale Agreement.  The

Seller and the Issuer hereby agree that as of the Effective Date the terms and

provisions of the Original Sale Agreement shall be and hereby are amended and

restated in their entirety by the terms and provisions of this Agreement.

 

Schedule 2-23

 

IN WITNESS WHEREOF, the Seller and the Issuer have

caused this Amended and Restated Contribution and Sale Agreement to be duly

executed by their respective officers as of the day and year first above

written.

 

	

   

  	

  WILLIS LEASE FINANCE

  CORPORATION

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

  /s/ DONALD A. NUNEMAKER

  	

   

  
	

   

  	

  Name:

  	

   

  	

  Donald A. Nunemaker

  	

   

  
	

   

  	

  Title:

  	

   

  	

  Executive Vice

  President

  	

   

  
	

   

  	

   

  	

  Chief Operating Officer

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  WILLIS ENGINE FUNDING

  LLC

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

  /s/ MONICA J. BURKE

  	

   

  
	

   

  	

  Name:

  	

   

  	

  Monica J. Burke

  	

   

  
	

   

  	

  Title:

  	

   

  	

  Chief Financial Officer

  	

   

  
							

 

Schedule 2-24

 

SCHEDULE 1 to

Amended and Restated Contribution And Sale Agreement

 

“Contribution

Percentage” means

                       

percent (    %).*

 

*                                         This redacted

material has been omitted pursuant to a request for confidential treatment, and

the material has been filed separately with the Commission.

 

Schedule 1-1Exhibit

10.28

 

WILLIS

ENGINE FUNDING LLC *

Issuer

 

 

and

 

 

THE

BANK OF NEW YORK
Indenture Trustee

 

 

AMENDED

AND RESTATED

SERIES 2002-1 SUPPLEMENT

 

 

Dated as of December 13, 2002

 

to

 

AMENDED

AND RESTATED

INDENTURE

 

Dated as of December 13, 2002

 

 

SERIES

2002-1 NOTES

 

 

*                                         Portions

of the material in this Exhibit have been redacted pursuant to a request for

confidential treatment, and the redacted material has been filed separately

with the Securities and Exchange Commission (the “Commission”).  An asterisk has been placed in the precise

places in this Agreement where we have redacted information, and the asterisk

is keyed to a legend which states that the material has been omitted pursuant

to a request for confidential treatment.

 

 

TABLE

OF CONTENTS

 

	

  ARTICLE I

  DEFINITIONS; CALCULATION GUIDELINES

  
	

   

  
	

   

  	

  Section 1.1

  	

  Definitions.

  
	

   

  	

  Section 1.2

  	

  Calculation

  Guidelines.

  
	

   

  	

   

  	

   

  
	

  ARTICLE II

  CREATION OF THE SERIES 2002-1 NOTES

  
	

   

  
	

   

  	

  Section 2.1

  	

  Designation:

  General Terms and Conditions.

  
	

   

  	

  Section 2.2

  	

  Interest

  Payments on the Series 2002-1 Notes.

  
	

   

  	

  Section 2.3

  	

  Principal Payments

  on the Series 2002-1 Notes.

  
	

   

  	

  Section 2.4

  	

  Amounts and

  Terms of Series 2002-1 Noteholder Commitments; Fees Payable by Issuer.

  
	

   

  	

  Section 2.5

  	

  Increased Cost;

  Capital Adequacy; Taxes.

  
	

   

  	

  Section 2.6

  	

  Payments,

  Computations, Etc.

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  III SERIES 2002-1 SERIES ACCOUNT AND ALLOCATION AND APPLICATION OF AMOUNTS

  THEREIN

  
	

   

  
	

   

  	

  Section 3.1

  	

  Series 2002-1

  Series Account.

  
	

   

  	

  Section 3.2

  	

  Distributions

  from Series 2002-1 Series Account on each Payment Date.

  
	

   

  	

  Section 3.3

  	

  Allocation of

  Excess Cash Available for Distribution.

  
	

   

  	

  Section 3.4

  	

  Series 2002-1

  Restricted Cash Account.

  
	

   

  	

  Section 3.5

  	

  Series 2002-1

  Engine Reserve Account.

  
	

   

  	

  Section 3.6

  	

  Series 2002-1

  Security Deposit Account.

  
	

   

  	

  Section 3.7

  	

  Securities

  Accounts.

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  IV ADDITIONAL COVENANTS

  
	

   

  
	

   

  	

  Section 4.1

  	

  Additional

  Series.

  
	

   

  	

  Section 4.2

  	

  Reserved.

  
	

   

  	

  Section 4.3

  	

  Inspections.

  
	

   

  	

  Section 4.4

  	

  Portfolio

  Report; Principal Report.

  
	

   

  	

  Section 4.5

  	

  Interest Rate

  Hedge Agreements.

  
	

   

  	

  Section 4.6

  	

  Insurance.

  
	

   

  	

  Section 4.7

  	

  Lessee

  Acknowledgment.

  
	

   

  	

  Section 4.8

  	

  Opinions of

  Foreign Local Counsel.

  
	

   

  	

  Section 4.9

  	

  Filing of

  Leases with FAA.

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  V CONDITIONS OF EFFECTIVENESS AND FUTURE LENDING

  
	

   

  
	

   

  	

  Section 5.1

  	

  Effectiveness

  of Supplement.

  
	

   

  	

  Section 5.2

  	

  Advances on

  Notes.

  
	

   

  	

  Section

  5.3

  	

  Deliveries.

  

 

i

 

	

  ARTICLE

  VI REPRESENTATIONS AND WARRANTIES

  
	

   

  
	

   

  	

  Section 6.1

  	

  Existence.

  
	

   

  	

  Section 6.2

  	

  Authorization.

  
	

   

  	

  Section 6.3

  	

  No Conflict;

  Legal Compliance.

  
	

   

  	

  Section 6.4

  	

  Validity and

  Binding Effect.

  
	

   

  	

  Section 6.5

  	

  Financial

  Statements.

  
	

   

  	

  Section 6.6

  	

  Executive

  Offices.

  
	

   

  	

  Section 6.7

  	

  No Agreements

  or Contracts.

  
	

   

  	

  Section 6.8

  	

  Consents and

  Approvals.

  
	

   

  	

  Section 6.9

  	

  Margin

  Regulations.

  
	

   

  	

  Section 6.10

  	

  Taxes.

  
	

   

  	

  Section 6.11

  	

  Other

  Regulations.

  
	

   

  	

  Section 6.12

  	

  Solvency and

  Separateness.

  
	

   

  	

  Section 6.13

  	

  No

  Proceedings.

  
	

   

  	

  Section 6.14

  	

  Recourse

  Against Certain Parties.

  
	

   

  	

  Section 6.15

  	

  Survival of

  Representations and Warranties.

  
	

   

  	

  Section 6.16

  	

  No Event of

  Default or Early Amortization Event.

  
	

   

  	

  Section 6.17

  	

  Litigation

  and Contingent Liabilities.

  
	

   

  	

  Section 6.18

  	

  Title; Liens.

  
	

   

  	

  Section 6.19

  	

  Subsidiaries.

  
	

   

  	

  Section 6.20

  	

  No

  Partnership.

  
	

   

  	

  Section 6.21

  	

  Pension and

  Welfare Plans.

  
	

   

  	

  Section 6.22

  	

  Ownership of

  Issuer.

  
	

   

  	

  Section 6.23

  	

  Security

  Interest.

  
	

   

  	

  Section 6.24

  	

  Eligible

  Lease Agreements; Eligible Engines.

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  VII EARLY AMORTIZATION EVENT

  
	

   

  
	

   

  	

  Section 7.1

  	

  Early

  Amortization Event.

  
	

   

  	

   

  	

   

  
	

  ARTICLE VIII MISCELLANEOUS PROVISIONS

  
	

   

  
	

   

  	

  Section 8.1

  	

  Ratification of

  Indenture.

  
	

   

  	

  Section 8.2

  	

  Counterparts.

  
	

   

  	

  Section 8.3

  	

  Governing Law.

  
	

   

  	

  Section 8.4

  	

  Effect on

  Original Supplement.

  
	

   

  	

   

  	

   

  
	

  EXHIBITS

  
	

   

  	

   

  	

   

  
	

  EXHIBIT A-1

  	

  Form of Subclass A-1

  Note

  
	

  EXHIBIT A-2

  	

  Form of Subclass A-2

  Note

  
	

  EXHIBIT B-1

  	

  Form of Subclass B-1

  Note

  
	

  EXHIBIT B-2

  	

  Form of Subclass B-2

  Note

  
	

  EXHIBIT C

  	

  Eligible Engines,

  Depreciation Periods and Maximum Concentration Limits

  
	

  EXHIBIT D-1

  	

  Lessee Acknowledgment

  (First Security Bank Form)

  

 

ii

 

	

  EXHIBIT D-2

  	

  Lessee Acknowledgment

  (Willis Form)

  
	

  EXHIBIT E

  	

  Asset Base Certificate

  
	

  EXHIBIT F

  	

  Withdrawal Notice

  
	

  EXHIBIT G

  	

  Funding Deliverables

  
	

  EXHIBIT H-1

  	

  Form of Trust Agreement

  
	

  EXHIBIT H-2

  	

  Form of Owner Trustee

  Guaranty

  
	

  EXHIBIT H-3

  	

  Form of Owner Trustee

  Mortgage

  
	

  EXHIBIT H-4

  	

  Form of Beneficial

  Interest Pledge Agreement

  
	

  EXHIBIT J-1

  	

  Form of Portfolio

  Report

  
	

  EXHIBIT J-2

  	

  Form of Principal

  Report

  
	

   

  	

   

  
	

  SCHEDULES

  
	

  SCHEDULE 1

  	

  Certain Terms

  
	

  SCHEDULE 2

  	

  Initial List of Engines and Lease Agreements

  

 

iii

 

AMENDED AND RESTATED

SERIES 2002–1 SUPPLEMENT, dated as of December 13, 2002 (the “Supplement”

or the “Series 2002-1 Supplement”), between Willis Engine Funding LLC, a

limited liability company organized and existing under the laws of the State of

Delaware (the “Issuer”), and The Bank of New York, a New York banking

corporation, as Indenture Trustee (the “Indenture Trustee”).

 

The Issuer and the

Indenture Trustee are party to the Indenture dated as of September 12, 2002, as

supplemented by the Series 2002-1 Supplement dated as of September 12, 2002

(such supplement, the “Original Supplement”; and, the Indenture as supplemented

by the Original Supplement, the “Original Indenture”).

 

Contemporaneously

herewith, the Issuer and the Indenture Trustee have amended and restated the

Original Indenture (as so amended and restated, and as amended, restated,

supplemented or otherwise modified from time to time hereafter, the

“Indenture”)

 

Pursuant to the Original

Supplement, the Issuer and the Indenture Trustee created the Series 2002-1

Notes and specified the Principal Terms thereof.

 

The Issuer and, with the

unanimous consent of the Holders of the outstanding Willis Engine Funding LLC

Secured Notes, Series 2002-1, Class A and B, the Indenture Trustee have agreed

to amend and restate the Original Supplement but only upon the terms and

conditions hereinafter set forth and in reliance on the representations and

warranties of the Issuer set forth herein.

 

NOW THEREFORE, in

consideration of the mutual agreements herein contained, the parties hereto

agree as follows:

 

ARTICLE I

DEFINITIONS; CALCULATION GUIDELINES

 

Section 1.1                                   Definitions.

 

Capitalized terms used in

this Supplement but not defined herein shall have the meaning assigned to such

terms in the Indenture.  Whenever used

in this Supplement, 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.

 

Section 1.2                                   Calculation

Guidelines.

 

For purposes of

calculating the Class A Note Interest Payment, the Class A Note Principal

Balance shall at all times be equal to the sum of all Class A Loans then

outstanding.  For purposes of

calculating the Class B Note Interest Payment, the Class B Note Principal

Balance shall at all times be equal to the sum of all Class B Loans then

outstanding.

 

 

ARTICLE II

CREATION OF THE SERIES 2002-1 NOTES

 

Section 2.1                                   Designation:

General Terms and Conditions.

 

(a)                                  There

is hereby created a Series of Notes to be issued in two Classes pursuant to the

Indenture and this Supplement to be known respectively as the “Willis Engine

Funding LLC Secured Notes, Series 2002-1, Class A and Class B”.  The Class A Notes are hereby further divided

into two subclasses to be known as the “Willis Engine Funding LLC Secured

Notes, Series 2002-1, Subclass A-1” and the “Willis Engine Funding LLC Secured

Notes, Series 2002-1, Subclass A-2”. 

The Class B Notes are hereby further divided into two subclasses to be

known as the “Willis Engine Funding LLC Secured Notes, Series 2002-1, Subclass

B-1” and the “Willis Engine Funding LLC Secured Notes, Series 2002-1, Subclass

B-2”.  The Series 2002-1 Notes shall not

be rated by any Rating Agency unless required by the Deal Agent.

 

(b)                                 The

Payment Date with respect to the Series 2002-1 Notes shall be the twentieth day

of each month, or, if such day is not a Business Day, the immediately following

Business Day.

 

(c)                                  The

“Class A Notes” and “Class B Notes” issued under the Original Indenture shall

be exchanged for the Subclass A-1 Notes and the Subclass B-1 Notes in definitive

form substantially in the forms of Exhibit A-1 and Exhibit B-1

hereto.  The Subclass A-2 Notes and the

Subclass B-2 Notes shall be issued in definitive form substantially in the

forms of Exhibit A-2 and Exhibit B-2 hereto.

 

(d)                                 Payments

of principal and interest on the Series 2002-1 Notes shall be payable solely

from funds on deposit in the Series 2002-1 Series Account or from other funds

as set forth in this Series 2002-1 Supplement at the times and in the amounts

set forth in Article III of this Supplement.

 

(e)                                  In

furtherance of, and in addition to the property identified in, the Granting

Clause set forth in the Indenture, as it relates to this Supplement, the Issuer

hereby grants to the Indenture Trustee, for the benefit of the Series 2002-1

Noteholders, a security interest in all of Issuer’s right, title and interest

in and to (i) each of the Series 2002-1 Engines, (ii) the Lease Agreements that

encumber the Series 2002-1 Engines on their respective Transfer Dates or on any

date thereafter, (iii) the Series 2002-1 Series Account, the Series 2002-1

Engine Reserve Account, the Series 2002-1 Security Deposit Account and the

Series 2002-1 Restricted Cash Account and all amounts and Eligible Investments

from time to time on deposit therein, (iv) each Beneficial Interest in an Owner

Trust that owns a Series 2002-1 Engine, and (v) all income, payments and

proceeds of the foregoing (all such property identified in this Section 2.1(e),

collectively, the “Series Collateral”). 

Such Series Collateral (except as set forth in Section 401(d) of the

Indenture with respect to Excess Cash Available for Distribution) shall not be

available to pay any other Aggregate Outstanding Obligations until all

Outstanding Obligations under this Supplement have been paid in full.

 

2

 

(f)                                    In

the event that any term or provision contained herein shall conflict with or be

inconsistent with any term or provision contained in the Indenture, the terms

and provisions of this Supplement shall govern.

 

Section 2.2                                   Interest

Payments on the Series 2002-1 Notes.

 

(a)                                  Interest

on Series 2002-1 Notes.  Each Loan

shall bear interest on the outstanding principal amount thereof from the date

when made, continued or converted until paid in full at a rate per annum equal

to the sum of the applicable Spread and the applicable Interest Rate.  Such interest shall be payable on each

Payment Date from amounts on deposit in the Series 2002-1 Series Account in

accordance with Section 302 of the Indenture and Section 3.2 of this

Supplement.

 

(b)                                 Default

Interest.  If an Event of Default

has occurred and is continuing on any given day, the Issuer shall pay interest

(“Default Interest”) at a rate per annum equal to the Overdue Rate, for the

period during which such amounts shall remain unpaid.  Such interest shall be payable (i) on each Payment Date from

amounts on deposit in the Series 2002-1 Series Account in accordance with

Section 3.2 of this Supplement and (ii) as further provided Article VIII of the

Indenture.

 

(c)                                  Determination

of Interest.  The Administrative

Agent shall determine the Interest on any Class of Notes as provided herein and

pursuant to Section 2.06 of the applicable Note Purchase Agreement.

 

Section 2.3                                   Principal

Payments on the Series 2002-1 Notes.

 

Principal of the Series 2002-1 Notes shall be payable

on each Payment Date from amounts on deposit in the Series 2002-1 Series

Account (and on the Final Payment Date, from amounts on deposit in the Series

2002-1 Restricted Cash Account) in accordance with Section 3.2 of this

Supplement.  The unpaid principal amount

of the Series 2002-1 Notes shall be due and payable in full on the Final

Payment Date, together with all unpaid interest, fees, expenses, costs and

other amounts payable by the Issuer pursuant to the terms of the Indenture and

this Supplement.

 

Section 2.4                                   Amounts

and Terms of Series 2002-1 Noteholder Commitments; Fees Payable by Issuer.

 

(a)                                  Subject

to the terms and conditions of this Supplement and the Class A Note Purchase

Agreements and the Class B Note Purchase Agreements (i) the Subclass A-1 Note

Commitment and the Subclass B-1 Note Commitment, respectively, shall be

available to the Issuer on and after the Closing Date until the Conversion Date

and (ii) the Subclass A-2 Note Commitment and the Subclass B-2 Note Commitment,

respectively, shall be available to the Issuer on and after the Effective Date

until the Subclass A2/B2 Amortization Commencement Date.

 

(b)                                 During

the applicable Revolving Period, the respective Series 2002-1 Notes shall be

revolving notes with maximum aggregate principal amounts equal to their

respective Note Commitments, then in effect; provided, however,

that at no time shall the Class A Note Principal

 

3

 

Balance exceed the Senior Asset Base for this Series 2002-1 nor shall

the Class B Note Principal Balance exceed the Subordinate Asset Base for this

Series 2002-1.  The Deal Agent shall

maintain a record of all Loans and repayments made on the Class A Notes and the

Class B Notes and absent manifest error such records shall be conclusive.  On any date requested by the Issuer, after

the Issuer shall have satisfied all applicable conditions precedent set forth

in Article V hereof and in each Class A Note Purchase Agreement and each Class

B Note Purchase Agreement, each Purchaser shall, at the Issuer’s request for a

Loan as specified in a notice given to the Deal Agent in accordance with the

terms of the applicable Note Purchase Agreement, make payment thereof (in proportion

to its respective commitment) in accordance with the terms of the applicable

Note Purchase Agreement in an amount specified in such notice, and in

accordance with the written direction of the Issuer by wire transfer in same

day funds provided, that each request for an advance of principal of the

applicable Note shall, subject to the applicable Note Commitment then in

effect, be in minimum and multiple aggregate amounts as set forth in Section

2.04(b) of the applicable Note Purchase Agreement.  The Issuer shall pay interest on the Class A Notes and the Class

B Notes at the rates and in the manner set forth in Section 2.2 hereof.  The unpaid principal amount of the Notes and

all unpaid interest accrued thereon, together with any unpaid Senior Step-Up Program

Fee, Subordinate Step-Up Program Fee, Renewal Fee and all other fees, expenses,

costs and other sums chargeable to the Issuer incurred in connection therewith,

shall be due and payable on the Final Payment Date.

 

Each request for a Loan shall constitute a

reaffirmation by the Issuer that (1) no Event of Default or Early Amortization

Event has occurred and is continuing and (2) the representations and warranties

contained in the Series 2002-1 Transaction Documents are true, correct and

complete in all material respects to the same extent as though made on and as

of the date of the request, except to the extent such representations and

warranties specifically relate to an earlier date, in which event they shall be

true, correct and complete in all material respects as of such earlier date.

 

Notwithstanding any other provision of this Section

2.4(b), following the consummation of the Term Securitization, the Purchasers

shall not be obligated to fund Loans under this Series 2002-1 Supplement and

the Note Purchase Agreements until the Issuer and the Purchasers have agreed in

writing regarding the Spreads for such Loans.

 

(c)                                  The

Issuer may, on any Payment Date, repay all or any portion of the Class A Note

Principal Balance and Class B Note Principal Balance provided that the Issuer

gives written notice of such prepayment to the Deal Agent that number of days

before such Payment Date as may be mutually agreed by the Issuer and the Deal

Agent and in accordance with the terms of this Supplement and complies with all

other applicable requirements of the applicable Note Purchase Agreements, by

making a wire transfer to the Deal Agent; provided, however, that

(i) in connection with any such prepayment before the Conversion Date, such

prepayment shall be applied first to reduce pro rata the Subclass A-2 Note Principal Balance and the Subclass B-2

Note Principal Balance until paid in full and thereafter to reduce pro rata the

Subclass A-1 Note Principal Balance and the Subclass B-1 Note Principal Balance

until paid in full and (ii) in connection with any such prepayment from and

after the Conversion Date, such prepayment shall be applied to reduce pro rata

the Aggregate Note Principal Balance; provided, further, however

that the Issuer may not make such repayment from funds in the Series 2002-1

Restricted Cash Account unless the Issuer is repaying all of the Class A Note

Principal Balance

 

4

 

and all of the Class B Note Principal Balance.  Such repayment shall be accompanied by

instructions to apply such cash to the reduction of principal and accrued

Interest through the date of such payment. 

If the Issuer does not notify each Purchaser and the Deal Agent of any

such principal reduction at least 30 days prior to such principal reduction,

the Issuer shall pay all costs related to the reduction of outstanding

principal, including Breakage Costs and all costs associated with the

outstanding Commercial Paper Notes related to such principal reduction.  The Issuer understands (i) that Commercial

Paper Notes issued in connection with such principal may not be prepaid, (ii)

that the amount of cash proceeds received by each Purchaser may not match the

amount of maturing Commercial Paper Notes on the desired repayment date and

(iii) that each Purchaser shall use its reasonable best efforts to minimize any

such Breakage Costs.

 

(d)                                 The

Issuer may terminate or reduce (i) the Subclass A-1 Maximum Limit or the

Subclass A-2 Maximum Limit pursuant to Section 2.05 of the corresponding Class A

Note Purchase Agreement or (ii) the Subclass B-1 Maximum Limit or the

Subclass B-2 Maximum Limit pursuant to Section 2.05 of the corresponding

Class B Note Purchase Agreement.

 

(e)                                  The

Issuer shall pay on each quarterly Payment Date, beginning with the third

Payment Date, an Administrative Agent Fee to the Administrative Agent as set

forth in Schedule 1.

 

(f)                                    The

Issuer shall pay on any applicable Payment Date the Renewal Fee to the Deal

Agent as set forth in the Issuer Fee Letter.

 

(g)                                 The

Issuer shall pay to the Deal Agent on the Effective Date the Warehouse

Structuring Fee and the Prepaid Interest then due and payable together with any

other fees and expenses of the Deal Agent, each as set forth in the

Supplemental Issuer Fee Letter.

 

(h)                                 The

Issuer shall pay on any Payment Date on or after the Conversion Date the Senior

Step-Up Program Fee and the Subordinate Step-Up Program Fee to the

corresponding Class A Noteholders and the Class B Noteholders, respectively, as

set forth in the Issuer Fee Letter.

 

Section 2.5                                   Increased

Cost; Capital Adequacy; Taxes.

 

The provisions set forth

in Sections 2.08, 2.09 and 2.10 of each Class A Note Purchase Agreement and

Class B Note Purchase Agreement are incorporated herein.

 

Section 2.6                                   Payments,

Computations, Etc.

 

(a)                                  Unless

otherwise expressly provided herein, all amounts to be deposited by the

Issuer or the Servicer hereunder shall be deposited in accordance with the

terms hereof no later than 11:00 a.m. (New York City time) on the day when due

in lawful money of the United States in immediately available funds.  Unless otherwise expressly provided

herein, all amounts to be paid to the Deal Agent or to any Noteholder, as

applicable, shall be paid in accordance with the terms hereof on the day when

due in lawful money of the United States in immediately available funds to a

dollar denominated account maintained by the Deal Agent or any Noteholder in

accordance with wire instructions given to the Indenture Trustee by the Deal

Agent or Noteholder.  All computations

of interest and other fees hereunder shall be made on the basis of

 

5

 

a year of 360 days for the actual number of days (including the first

but excluding the last day) elapsed.

 

(b)                                 Whenever

any payment hereunder shall be stated to be due on a day other than a Business

Day, such payment shall be made on the next succeeding Business Day, and such

extension of time shall in such case be included in the computation of payment

of Interest or any fee payable hereunder, as the case may be.

 

(c)                                  If

any Loan requested by the Issuer and approved by a Purchaser and the Deal Agent

pursuant to Section 2.04(b) of the applicable Note Purchase Agreement is not,

for any reason whatsoever related to a default or nonperformance by the Issuer,

made or effectuated, as the case may be, on the date specified therefor, the

Issuer shall indemnify such Purchaser against any reasonable loss, cost or

expense incurred by such Purchaser, including, without limitation, any loss

(including loss of anticipated profits), cost or expense incurred by reason of

the liquidation or reemployment of deposits or other funds acquired by such

Purchaser to fund or maintain such Loan, as the case may be, during such

Interest Accrual Period.

 

ARTICLE III

SERIES 2002-1 SERIES ACCOUNT AND ALLOCATION

AND APPLICATION OF

AMOUNTS THEREIN

 

Section 3.1                                   Series

2002-1 Series Account.

 

The Issuer shall establish on the Effective Date and

maintain, so long as any Series 2002-1 Note is Outstanding, an Eligible Account

with the Indenture Trustee which shall be designated as the Series 2002-1

Series Account, which account is hereby pledged to the Indenture Trustee for

the benefit of the Series 2002-1 Noteholders pursuant to the Indenture and this

Supplement.  All deposits of funds by or

for the benefit of the Series 2002-1 Noteholders from the Trust Account and the

Series 2002-1 Restricted Cash Account shall be accumulated in, and withdrawn

from, the Series 2002-1 Series Account in accordance with the provisions of the

Indenture and this Supplement.

 

Section 3.2                                   Distributions

from Series 2002-1 Series Account on each Payment Date.

 

On

each Payment Date, the Indenture Trustee shall, in accordance with the Servicer

Report, distribute funds then on deposit in the Series 2002-1 Series Account

and any other funds available for application to the Series 2002-1 Notes to the

following Persons and in the following order of priority:

 

I                                            If

an Early Amortization Event shall not then be continuing:

 

(A)                              By

wire transfer of immediately available funds, to the Indenture Trustee, all

Indenture Trustee’s Fees, to the Custodian, all Collateral Custodian’s Fees, to

any Owner Trustee of an Owner Trust that owns a Series 2002-1 Engine, any fees

and expenses incurred in performing its duties under the applicable Trust

Agreement, in each case then due and payable for Series 2002-1 to the extent

not paid by the Servicer;

 

6

 

(B)                                (i)                                     if

the Indenture Trustee has received the Servicer Report for the related Collection

Period, to the Servicer by wire transfer of immediately available funds, an

amount equal to the sum of any (x) Servicing Fee Arrearage and

(y) Servicing Fee then due and payable and (ii) to the Servicer by

wire transfer of immediately available funds, an amount equal to any

outstanding Servicer Advance;

 

(C)                                To

the Administrative Agent, any fees and expenses then payable to the

Administrative Agent approved by the Requisite Global Majority pursuant to

Section 405(b) of the Indenture;

 

(D)                               To

each Interest Rate Hedge Provider, any payments owing under the related

Interest Rate Hedge Agreement other than termination payments;

 

(E)                                 To

each Holder of a Class A Note on the immediately preceding Record Date an

amount equal to such Holder’s pro rata portion of first, any

Class A Note Interest Arrearage, and second, the Class A Note

Interest Payment for such Payment Date;

 

(F)                                 To

each Holder of a Class B Note on the immediately preceding Record Date, an

amount equal to its pro rata portion of first, any Class B

Note Interest Arrearage, and second, the Class B Note Interest Payment for

such Payment Date;

 

(G)                                To

the Series 2002-1 Restricted Cash Account, an amount sufficient so that the

total amount on deposit therein is equal to the Series 2002-1 Restricted Cash

Amount for such Payment Date;

 

(H)                               (i)

To the Deal Agent, an amount equal to the Renewal Fee, if applicable and (ii)

to the Administrative Agent an amount equal to the sum of (x) the

Administrative Agent Fee then due and payable and (y) any unpaid Administrative

Agent Fee from all prior Payment Dates;

 

(I)                                    On

a pro rata basis, (i) to each

Holder of a Class A Note on the immediately preceding Record Date, an

amount equal to its pro rata portion of the Class A Note

Minimum Principal Payment Amount, (ii) for any Payment Date on or after the

Subclass A2/B2 Amortization Commencement Date but before the Conversion Date,

to each Holder of a Subclass A-2 Note on the immediately preceding Record Date,

an amount equal to its pro rata

portion of the Subclass A-2 Amortization Amount and (iii) to each Interest Rate

Hedge Provider any termination payments owing under the related Interest Rate

Hedge Agreement;

 

(J)                                   On

a pro rata basis, (i) to each

Holder of a Class B Note on the immediately preceding Record Date, an amount

equal to its pro rata portion of the Class B Note Minimum Principal

Payment Amount and (ii) for any Payment Date on or after the Subclass A2/B2

Amortization Commencement Date but before the Conversion Date, to each Holder

of a Subclass B-2 Note on the immediately preceding Record Date, an amount

equal to its pro rata portion of

the Subclass B-2 Amortization Amount;

 

7

 

(K)                               For

any Payment Date on or after the Conversion Date, to each Holder of a Class A Note

on the immediately preceding Record Date, an amount equal to its pro rata

portion of the sum of (x) the Senior Step-Up Program Fee then due and

payable and (y) any unpaid Senior Step-Up Program Fee from all prior

Payment Dates, if any;

 

(L)                                 For

any Payment Date on or after the Conversion Date, to each Holder of a Class B

Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the sum of

(x) the Subordinate Step-Up Program Fee then due and payable and

(y) any unpaid Subordinate Step-Up Program Fee from all prior Payment

Dates, if any;

 

(M)                            For

any Payment Date on or after the Conversion Date, to each Holder of a

Class A Note on the immediately preceding Record Date, an amount equal to

its pro

rata portion of the Class A Note Distributable Amortization

Amount;

 

(N)                               For

any Payment Date on or after the Conversion Date, to each Holder of a

Class B Note on the immediately preceding Record Date, an amount equal to

its pro rata portion of the

Class B Note Distributable Amortization Amount;

 

(O)                               To

each Holder of a Class A Note on the immediately preceding Record Date, pro rata,

an amount equal to any Class A Increased Costs and amounts due pursuant to

Sections 2.5 and 2.6 hereof, if any, then due and payable with respect to

such Class A Note and any other costs, expenses, taxes and indemnities payable

by the Issuer pursuant to each Class A Note Purchase Agreement;

 

(P)                                 To

each Holder of a Class B Note on the immediately preceding Record Date, pro rata,

an amount equal to any Class B Increased Costs and amounts due pursuant to

Sections 2.5 and 2.6 hereof, if any, then due and payable with respect to

such Class B Note and any other costs, expenses, taxes and indemnities payable

by the Issuer pursuant to each Class B Note Purchase Agreement;

 

(Q)                               To

the Indenture Trustee for distribution pursuant to Section 401(d) of the

Indenture, as Excess Cash Available for Distribution, to the extent that any

Deficient Series is Outstanding on such Payment Date; and

 

(R)                                To

the Issuer by wire transfer of immediately available funds, any remaining

amount on deposit in the Series 2002-1 Series Account on such Payment

Date.

 

Notwithstanding

the foregoing, the amounts set forth in clause (R) shall be payable only at

such times as no Deficient Series then exists.

 

II                                        If

an Early Amortization Event shall then be continuing:

 

(A)                              By

wire transfer of immediately available funds, to the Indenture Trustee, all

Indenture Trustee’s Fees, to the Custodian, all Collateral Custodian’s Fees, to

any Owner Trustee of an Owner Trust that owns a Series 2002-1 Engine, any fees

and

 

8

 

expenses

incurred in performing its duties under the applicable Trust Agreement, in each

case then due and payable for Series 2002-1 to the extent not paid by the

Servicer;

 

(B)                                (i)                                     If

the Indenture Trustee has received the Servicer Report for the related

Collection Period, to the Servicer by wire transfer of immediately available

funds, an amount equal to the sum of any (x) Servicer Fee Arrearage and

(y) Servicer Fee then due and payable and (ii) to the Servicer by

wire transfer of immediately available funds, an amount equal to any

outstanding Servicer Advance;

 

(C)                                To

the Administrative Agent, any fees and expenses then payable to the Administrative

Agent approved by the Requisite Global Majority pursuant to

Section 405(b) of the Indenture;

 

(D)                               To

an Interest Rate Hedge Provider, any payments owing under the related Interest

Rate Hedge Agreement other than termination payments;

 

(E)                                 To

each Holder of a Class A Note on the immediately preceding Record Date an

amount equal to such Holder’s pro rata portion of first, any

Class A Note Interest Arrearage, and second, the Class A Note

Interest Payment for such Payment Date;

 

(F)                                 To

each Holder of a Class B Note on the immediately preceding Record Date, an

amount equal to its pro rata portion of first, any

Class B Note Interest Arrearage, and second, the Class B Note Interest

Payment for such Payment Date;

 

(G)                                To

the Series 2002-1 Restricted Cash Account, an amount sufficient so that the

total amount on deposit therein is equal to the Series 2002-1 Restricted Cash

Amount for such Payment Date;

 

(H)                               (i)

To the Deal Agent, an amount equal to the Renewal Fee, if applicable and (ii)

to the Administrative Agent an amount equal to the sum of (x) the

Administrative Agent Fee then due and payable and (y) any unpaid Administrative

Agent Fee from all prior Payment Dates;

 

(I)                                    For

any Payment Date on or after the Conversion Date, to each Holder of a Class A

Note on the immediately preceding Record Date, an amount equal to its pro rata

portion of the sum of (x) the Senior Step-Up Program Fee then due and

payable and (y) any unpaid Senior Step-Up Program Fee from all prior

Payment Dates, if any;

 

(J)                                   For

any Payment Date on or after the Conversion Date, to each Holder of a Class B

Note on the immediately preceding Record Date, an amount equal to its pro rata

portion of the sum of (x) the Subordinate Step-Up Program Fee then due and

payable and (y) any unpaid Subordinate Step-Up Program Fee from all prior

Payment Dates, if any;

 

(K)                               On

a pro rata basis, (i) to each

Holder of a Class A Note on the immediately preceding Record Date, an

amount equal to its pro rata portion of the

 

9

 

Class A

Note Minimum Principal Payment Amount and (ii) to each Interest Rate Hedge

Provider any termination payments owing under the related Interest Rate Hedge

Agreement;

 

(L)                                 To

each Holder of a Class B Note on the immediately preceding Record Date, an

amount equal to its pro rata portion of the Class B Note

Minimum Principal Payment Amount;

 

(M)                            To

each Holder of a Class A Note on the immediately preceding Record Date, pro rata,

an amount equal to any Class A Increased Costs and amounts due pursuant to

Sections 2.5 and 2.6 hereof, if any, then due and payable with respect to

such Class A Note and any other costs, expenses, taxes and indemnities payable

by the Issuer pursuant to each Class A Note Purchase Agreement;

 

(N)                               To

each Holder of a Class B Note on the immediately preceding Record Date, pro rata,

an amount equal to any Class B Increased Costs and amounts due pursuant to

Sections 2.5 and 2.6 hereof, if any, then due and payable with respect to

such Class B Note and any other costs, expenses, taxes and indemnities payable

by the Issuer pursuant to each Class B Note Purchase Agreement;

 

(O)                               To

the Indenture Trustee for distribution pursuant to Section 401(d) of the

Indenture, as Excess Cash Available for Distribution, to the extent that any Deficient

Series is Outstanding on such Payment Date; and

 

(P)                                 To

the Issuer by wire transfer of immediately available funds, any remaining

amount on deposit in the Series 2002-1 Series Account on such Payment

Date.

 

Any amounts payable to a

Noteholder shall be made by wire transfer of immediately available funds to the

account that such Noteholder has designated to the Indenture Trustee in writing

on or prior to the Business Day immediately preceding the Payment Date.

 

Section 3.3                                   Allocation

of Excess Cash Available for Distribution.

 

On each Payment Date, the

Indenture Trustee shall distribute any Excess Cash Available for Distribution

deposited into the Series 2002-1 Series Account in accordance with Section 401

of the Indenture in payment of the amounts and in the order of priority set

forth in Section 3.2(I) or (II) hereof, as the case may be.

 

Section 3.4                                   Series

2002-1 Restricted Cash Account.

 

(a)                                  The

Issuer shall establish on the Effective Date and maintain so long as any Series

2002-1 Note is Outstanding an Eligible Account with the Indenture Trustee which

shall be designated as the Series 2002-1 Restricted Cash Account, which account

is hereby pledged to the Indenture Trustee pursuant to the Indenture and this

Supplement.  On the date on which the initial

Loan is made, the Issuer will deposit the Series 2002-1 Restricted Cash Amount

in the Series 2002-1 Restricted Cash Account from the proceeds of issuance of

the Series 2002-1 Notes and thereafter amounts shall be deposited in the Series

2002-1 Restricted Cash Account in accordance with Section 3.2 of this

Supplement.  Any and all moneys remitted

by the Indenture

 

10

 

Trustee to the Series 2002-1 Restricted Cash Account shall be invested

in Eligible Investments in accordance with the Indenture and shall be

distributed in accordance with this Section 3.4.

 

(b)                                 The

Indenture Trustee shall as promptly as practicable, in accordance with written

instructions from the Deal Agent delivered to the Indenture Trustee prior to

each Payment Date, make a draw on the Series 2002-1 Restricted Cash Account in

an amount equal to the extent by which amounts on deposit in the Series 2002-1

Series Account will be insufficient to pay those amounts payable pursuant to

Section 3.2(I)(E) and (F) or Section 3.2(II)(E) and (F), as the case may be, on

such Payment Date (after giving effect to any distributions to be made on such

Payment Date prior to the payment of such amounts) and the amount of any such

draw shall be deposited in the Series 2002-1 Series Account.

 

(c)                                  On

each Payment Date, the Indenture Trustee shall, in accordance with the Servicer

Report or pursuant to written instructions from the Deal Agent, deposit in the

Series 2002-1 Series Account the excess, if any, of (A) amounts then on deposit

in the Restricted Cash Account (after giving effect to any withdrawals

therefrom on such Payment Date) over (B) the Series 2002-1 Restricted Cash

Amount.  On the Final Payment Date, any

remaining funds in the Series 2002-1 Restricted Cash Account shall be deposited

in the Series 2002-1 Series Account and distributed in accordance with Section

3.2 of this Supplement.

 

Section 3.5                                   Series

2002-1 Engine Reserve Account.

 

(a)                                  The

Issuer shall establish on the Effective Date and maintain an Eligible Account

with the Indenture Trustee which shall be designated as the Series 2002-1

Engine Reserve Account, which account is hereby pledged to the Indenture

Trustee pursuant to the Indenture and this Supplement.  The Issuer, or Servicer on its behalf; shall

cause the Lessees to remit the Maintenance Reserve Payments to the Trust

Account, and the Servicer, pursuant to the Servicing Agreement, shall, by not

later than each Determination Date, specifically identify those Maintenance

Reserve Payments to a particular Eligible Engine and instruct the Indenture

Trustee to allocate all Maintenance Reserve Payments on deposit in the Trust

Account which relate to any Engine pledged as collateral for the Series 2002-1

Notes, to the Series 2002-1 Engine Reserve Account.

 

(b)                                 The

Issuer shall maintain (or shall cause the Servicer to maintain) records that

will identify amounts on deposit in the Series 2002-1 Engine Reserve Account to

a specific Eligible Engine.  The

Servicer shall be entitled to withdraw funds from the Series 2002-1 Engine

Reserve Account for the payment of maintenance expenses with respect to the

related Eligible Engine, at the times and subject to the further conditions set

forth in the Servicing Agreement; provided, however, that the Servicer may not

make any such withdrawal in an amount greater than $1,000,000 unless the Deal

Agent determines (or is deemed to determine) that the use of proceeds of such

withdrawal complies with the Maintenance Reserve Withdrawal Conditions (as

defined below).

 

The Servicer shall give the Indenture Trustee and the

Deal Agent prior written notice of any such requested withdrawal in excess of

$1,000,000, accompanied by supporting documentation showing compliance with the

Maintenance Reserve Withdrawal Conditions. 

Such request shall be accompanied by a notice in the form of Exhibit

F to this Supplement, duly

 

11

 

completed (a “Withdrawal Notice”).  The Indenture Trustee shall, upon receipt of such notice of a

requested withdrawal and supporting documentation, transmit copies thereof by

telecopy to the Deal Agent.  If such

notice and documentation are received by the Indenture Trustee prior to

2:00 p.m. (New York time) on any Business Day, the Indenture Trustee will

telecopy the same to the Deal Agent at (212) 412-3266 on the same Business

Day.  In all other cases the Indenture

Trustee will telecopy such notice and documentation to the Deal Agent at such

telecopy number on the next Business Day following the Indenture Trustee’s

receipt thereof.  If the Deal Agent

determines that such supporting documentation does not show that such drawing

complies with the Maintenance Reserve Withdrawal Conditions or that it has

received insufficient supporting documentation to show such compliance, it will

so indicate by signing the applicable Withdrawal Notice in the space provided,

and sending such signed Withdrawal Notice to the Indenture Trustee and the

Servicer no later than 5:00 p.m. (New York time) on the second Business

Day after the day on which the Deal Agent received such telecopy from the

Indenture Trustee.  Such notice by the

Deal Agent, if given, will be sent to the Indenture Trustee by telecopy at

(212) 815-2493.  If the Indenture

Trustee does not receive such notice by 5:00 p.m. (New York time) on such

second Business Day at such telecopy number, the Deal Agent will be deemed to

have determined that such withdrawal complies with the Maintenance Reserve

Withdrawal Conditions.  If the Indenture

Trustee timely receives such Withdrawal Notice signed by the Deal Agent, it

will not permit the applicable withdrawal from the Series 2002-1 Engine Reserve

Account.  If the Indenture Trustee does

not timely receive such Withdrawal Notice signed by the Deal Agent, it will

permit the applicable withdrawal.

 

The “Maintenance Reserve

Withdrawal Conditions” applicable to any Withdrawal Notice are that

 

(i)                                     the

amount requested to be withdrawn must be no greater than the aggregate amount

of the invoices for work done on the applicable Eligible Engine, copies of

which are delivered as part of the supporting documentation for such Withdrawal

Notice, and

 

(ii)                                  the

amount requested to be withdrawn must be no greater than the aggregate amount

of all Maintenance Reserve Payments on deposit in the Series  2002-1

Engine Reserve Account which were shown as being allocated to the applicable

Eligible Engine in the most recently delivered Servicer Report.

 

Notwithstanding the

foregoing, so long as a Servicer Default is then in effect, the Servicer shall

not be entitled to make any such withdrawal (irrespective of the amount

thereof) except upon presentation of supporting documentation reasonably

determined by the Deal Agent to comply with the Maintenance Reserve Withdrawal

Conditions and the terms of the applicable Lease Agreement (which shall

evidence its determination by written instrument delivered to the Indenture

Trustee).

 

Section 3.6                                   Series

2002-1 Security Deposit Account.

 

(a)                                  The

Issuer shall establish on the Effective Date and maintain an Eligible Account

with the Indenture Trustee which shall be designated as the Series 2002-1

Security Deposit Account, which account is hereby pledged to the Indenture

Trustee pursuant to the Indenture and

 

12

 

this Supplement.  The Issuer, or

Servicer on its behalf, shall cause the Lessees to remit the Security Deposits

to the Trust Account, and the Servicer, pursuant to the Servicing Agreement,

shall, by not later than each Determination Date, specifically identify those

Security Deposits to a particular Eligible Engine and instruct the Indenture

Trustee to allocate all Security Deposits on deposit in the Trust Account which

relate to any Engine pledged as collateral for the Series 2002-1 Notes, to the

Series 2002-1 Security Deposit Account.

 

(b)                                 The

Issuer shall maintain (or shall cause the Servicer to maintain) records that

will identify amounts on deposit in the Series 2002-1 Security Deposit Account

to a specific Eligible Engine.  The

Servicer shall be entitled to withdraw funds from the Series 2002-1 Security

Deposit Account for the refund to the Lessee of the Security Deposit with

respect to the related Eligible Engine, at the times and subject to the further

conditions set forth in the Servicing Agreement; provided, however,

that so long as a Servicer Default is then in effect, the Servicer shall not be

entitled to make such withdrawal except upon presentation of supporting

documentation reasonably determined by the Deal Agent to comply with the terms

of the applicable Lease Agreement (which shall evidence its determination by

written instrument delivered to the Indenture Trustee).

 

(c)                                  The

Servicer shall be entitled to withdraw any funds eligible for withdrawal

pursuant to Section 3.6(b) from the Series 2002-1 Security Deposit Account and

transfer them to the Series 2002-1 Collection Account to be applied (i) in

respect of a final Scheduled Payment due and owing by the related Lessee with

respect to the related Eligible Engine or (ii) otherwise upon a payment default

by the related Lessee pursuant to the applicable Lease, at the times and

subject to the further conditions set forth in the Servicing Agreement; provided,

however, that so long as a Servicer Default is then in effect, the

Servicer shall not be entitled to make such withdrawal except upon presentation

of supporting documentation reasonably determined by the Deal Agent to comply

with the terms of the applicable Lease Agreement (which shall evidence its

determination by written instrument delivered to the Indenture Trustee).

 

Section 3.7                                   Securities

Accounts.

 

(a)                                  Notwithstanding

any other provision of this Supplement or the Indenture, with respect to each

of the Securities Accounts, the Securities Intermediary hereby agrees that it

will comply with entitlement orders (as such term is defined under the UCC)

originated by the Indenture Trustee without further consent by the Issuer.

 

(b)                                 Each

of the Issuer, the Securities Intermediary and the Indenture Trustee intends

that the provisions of Section 3.7(a) will give the Indenture Trustee “control”

over the Securities Accounts (as the term “control” is defined under the UCC),

without prejudice to any other provision of the UCC that also would be deemed

to give the Indenture Trustee such control.

 

ARTICLE IV

ADDITIONAL COVENANTS

 

In addition to the

covenants set forth in Article VI of the Indenture, the Issuer hereby makes the

following additional covenants for the benefit of the Series 2002-1

Noteholders:

 

13

 

Section 4.1                                   Additional

Series.

 

For so long as any Series

2002-1 Note is Outstanding, the Issuer shall not issue any additional Series of

Notes on or after the Effective Date without (a) the prior written consent of

the Control Party for this Series 2002-1, (b) confirmation in writing that the

Outstanding obligations of each Series of Notes (calculated after giving effect

to such proposed issues) shall not exceed the Asset Base for such Series of

Notes as evidenced by the related Asset Base Certificate most recently received

by the Indenture Trustee (but not earlier than the preceding Payment Date) and

(c) confirmation in writing that no Early Amortization Event or Event of

Default has occurred and is then continuing, and as a result of the issuance of

such new Series no Early Amortization Event or Event of Default will exist.

 

Section 4.2                                   Reserved.

 

Section 4.3                                   Inspections.

 

The Issuer agrees that

any Person designated in writing by the Deal Agent may consult with the proper

officials of the Issuer (including, without limitation, officials of any

Affiliate of the Issuer in charge of servicing the Lease Agreements) at such

times during normal business hours and as often as the Deal Agent may

reasonably request regarding the information required to be furnished pursuant

to the Servicing Agreement or regarding the performance of its respective

covenants and agreements contained in any of this Supplement or any of the

Related Documents to which it is a party.

 

Section 4.4                                   Portfolio

Report; Principal Report.

 

(a)                                  The

Issuer shall (or shall cause the Servicer to) on each Determination Date

prepare and deliver to the Indenture Trustee, each Series Enhancer (if

applicable), each Rating Agency (if applicable) and the Administrative Agent a

monthly report substantially in the form attached hereto as Exhibit J-1 (the

“Portfolio Report”) detailing the status of each Lease including but not

limited to engine utilization, engine lease rates, engine purchases and

dispositions, current Lessees, any repossessions under any Lease and any

delinquencies under any Lease.

 

(b)                                 The

Issuer shall (or shall cause the Servicer to) on each Principal Report Date

prepare and deliver to the Administrative Agent a monthly report substantially

in the form attached hereto as Exhibit J-2 (the “Principal Report”) for the

related Payment Date listing the Class A Note Principal Balance and the Class B

Note Principal Balance that will be outstanding on such Payment Date after all

distributions of principal on such Payment Date.

 

Section 4.5                                   Interest

Rate Hedge Agreements.

 

(a)                                  The

Issuer shall enter into Interest Rate Hedge Agreements in order to protect the

Issuer, to the extent commercially practicable, from fluctuations in interest

rates which would increase the interest payments of the Issuer on Notes issued

under this Supplement; provided that Interest Rate Hedge Agreements

shall be maintained in at least the amount specified in Schedule 1 and in form

and substance acceptable to the Deal Agent and be with an Interest Rate Hedge

Provider acceptable to the Deal Agent; provided, however, that

following any Servicer Default

 

14

 

the Deal Agent shall have the right, in its sole discretion but after

consultation with the initial Servicer if the initial Servicer is still an

operating entity, to direct the Indenture Trustee to enter into Interest Rate

Hedge Agreements on the Issuer’s or the Indenture Trustee’s behalf on or prior

to the effective date of each such Interest Rate Hedge Agreement which is not

solely a cap agreement, the Interest Rate Hedge Providers thereunder shall

agree, for the period of one year after all Indebtedness under this Supplement

shall have been paid in full, not to commence any case, proceeding or other

action under any existing or future Insolvency Law seeking to have an order for

relief entered with respect to the Issuer. 

In addition, long term senior unsecured indebtedness of the related

Interest Rate Hedge Provider shall be rated not less than “A” by Standard &

Poor’s and “A2” by Moody’s.

 

(b)                                 Each

Interest Rate Hedge Agreement shall provide that all payments made pursuant

thereto shall be paid directly to the Series 2002-1 Series Account or shall be

assigned to the Issuer with directions from the Issuer to deposit such payments

in the Series 2002-1 Series Account, and all payments received from an Interest

Rate Hedge Provider shall be deposited by the Issuer or the Indenture Trustee

directly into the Series 2002-1 Series Account.

 

Section 4.6                                   Insurance.

 

The Issuer shall at all times cause each Engine, the

Indenture Trustee, the Administrative Agent, the Deal Agent and the Noteholders

to be covered by insurance of the type and having limits, scope and coverage

described in clause (13) of the definition of Eligible Engine contained in Exhibit

B to the Indenture.  On or before the

Transfer Date for an Engine, and on or before the date of any Subsequent Lease

Transaction, the Issuer shall deliver to the Custodian one or more insurance

broker’s certificates evidencing the insurance coverage required hereby (in

addition to any insurance coverage required by the Servicing Agreement), which

shall be satisfactory to the Deal Agent. 

Certificates evidencing replacements and renewals of such required

insurance shall be timely obtained and promptly thereafter delivered by the

Issuer to the Custodian.

 

Section 4.7                                   Lessee

Acknowledgment.

 

Within 90 days of the

Transfer Date with respect to any Engine, the Lessee under the Lease Agreement

relating to such Engine, if any, shall have executed and delivered to the Deal

Agent a written agreement, substantially in the form attached hereto as Exhibit

D.

 

Section 4.8                                   Opinions

of Foreign Local Counsel.

 

Within 120 days of the

Transfer Date related to each Engine and related Lease Agreement, as the case

may be, the Issuer shall cause the delivery to the Series 2002-1 Noteholders of

such Opinions of Counsel as may be requested by the Deal Agent, other than

counsel employed by the Issuer, the Seller or the Servicer for purposes other

than solely with respect to the issuance of such opinions, in form and

substance satisfactory to the Series 2002-1 Noteholders, as to the perfection

and priority (to the extent applicable in such jurisdiction) of the Indenture

Trustee’s security interest in each Engine and related Lease Agreement, which

are subject to the applicable laws of any jurisdiction other than the United

States.

 

15

 

Section 4.9                                   Filing

of Leases with FAA.

 

The Issuer will cause

each Lease to be duly filed with the FAA, together with any Lease assignment

which may be necessary to perfect the Indenture Trustee’s security interest in

such Lease, no later than the Transfer Date of the applicable Engine and, in

the case of any Lease executed and delivered after such Transfer Date, no later

than the date of such execution and delivery, and will deliver, or will cause

to be delivered, evidence of such filing together with any “chattel paper”

original of such Lease to the Custodian within three Business Days of such

filing.

 

ARTICLE V

CONDITIONS OF EFFECTIVENESS AND FUTURE

LENDING

 

Section 5.1                                   Effectiveness

of Supplement.

 

The effectiveness of this

Supplement is subject to the condition precedent that the Indenture Trustee

shall have received all of the following, each duly executed and dated as of

the Effective Date, in form and substance satisfactory to all of the Series

2002-1 Noteholders and each (except for the Series 2002-1 Notes, of which only

the originals shall be signed) in sufficient number of signed counterparts to provide

one for each Series 2002-1 Noteholder:

 

(a)                                  Series

2002-1 Notes:  Series 2002-1 Notes

executed by the Issuer, and duly authenticated by the Indenture Trustee, in

favor of the purchasers thereof in the stated principal amount of such Series

2002-1 Notes.

 

(b)                                 Certificate(s)

of Secretary or Assistant Secretary. 

Separate certificates executed by the corporate secretary or assistant

secretary of each of Willis Lease Finance Corporation (in its capacities as the

Seller) and the Issuer, dated the Effective Date, certifying (i) that the

respective company has the authority to execute and deliver, and perform its

respective obligations under each of the Series 2002-1 Transaction Documents to

which it is a party, and (ii) that attached are true, correct and complete

copies of the Certificate of Incorporation, by-laws (or, in the case of the

Certificate of Incorporation and by-laws, that such documents have not been

amended, restated, or otherwise supplemented since the Closing Date), board

resolutions and incumbency certificates (in the case of Willis Lease Finance

Corporation) or Certificate of Formation, Limited Liability Company Agreement

(or, in the case of the Certificate of Formation and Limited Liability Company

Agreement, that such documents have not been amended, restated, or otherwise

supplemented since the Closing Date) and incumbency certificates (in the case

of the Issuer), in form and substance satisfactory to all of the Series 2002-1

Noteholders.

 

(c)                                  Security

Documents.  The Indenture and this Supplement,

in form and substance satisfactory to all of the Series 2002-1 Noteholders,

shall have been executed and delivered by Issuer, and all other parties

thereto, together with other documents reasonably requested by the Series

2002-1 Noteholders.

 

(d)                                 Series

2002-1 Transaction Documents.  Each

of the Indenture, the Subclass A-1 Note Purchase Agreement, the Subclass A-2

Note Purchase Agreement, the Subclass B-1 Note

 

16

 

Purchase Agreement, the Subclass B-2 Note Purchase Agreement, the

Servicing Agreement and the Contribution and Sale Agreement shall have been

duly executed and delivered.

 

(e)                                  Opinions

of Counsel.  Opinions of Counsel to

the Issuer, the Seller, the Guarantor and the Servicer as to the enforceability

of the Series 2002-1 Transaction Documents to which each is a party and the

filing of the Series 2002-1 Transaction Documents with the Federal Aviation

Administration, such Opinions of Counsel to be in form and substance

satisfactory to the Series 2002-1 Noteholders.

 

(f)                                    Legal

Fees.  The Issuer shall have paid to

Sidley Austin Brown & Wood llp

its fees and expenses as counsel for the Deal Agent and the Purchasers.

 

(g)                                 Guaranty.  The Guarantor shall have duly executed and

delivered the Guaranty.

 

Purchase of the Subclass

A-2 and Subclass B-2 Notes by the corresponding Series 2002-1 Noteholders shall

be conclusive evidence, upon which the Indenture Trustee may rely that the

Series 2002-1 Noteholders have determined that the conditions precedent to the

effectiveness of the Series 2002-1 Supplement set forth in (a) through (g)

above, have been complied with to their satisfaction.

 

Section 5.2                                   Advances

on Notes.

 

The obligation of a Purchaser to make any Loans

pursuant to the applicable Note Commitment under this Supplement and the

applicable Note Purchase Agreement is subject to the following further

conditions precedent; provided, however, that the Deal Agent may waive in

writing those conditions set forth in subdivisions (o), (r), (s), (v) and (w) of

this Section 5.2:

 

(a)                                  Default.  Before and after giving effect to such

advance, no Event of Default shall have occurred and be continuing.

 

(b)                                 Early

Amortization Event.  Before and

after giving effect to such advance, no Early Amortization Event shall have

occurred and be continuing, unless each of the Requisite Global Majority and

Holders representing one hundred percent (100%) of the Aggregate Note Principal

Balance have approved such advance.

 

(c)                                  Certification.  Issuer shall have delivered to the Custodian,

Deal Agent and Sheffield a compliance certificate, signed by an officer of

Issuer, as to the matters set out in Article V and in Article VI of this

Supplement.

 

(d)                                 Asset

Base Certificate.  Issuer shall have

delivered to the Custodian, Deal Agent and Sheffield a duly completed and

executed Asset Base Certificate, as of each Determination Date and one (1) day

preceding an Incremental Funding (as defined in applicable Note Purchase

Agreement), that states that (i) the Class A Note Principal Balance (after

giving effect to such proposed advance of principal of the Class A Note, if

applicable) will not exceed the Senior Asset Base for Series 2002-1 and (ii)

the Class B Note Principal Balance (after giving effect to such proposed

advance of principal of the Notes, if applicable) will not exceed the

Subordinate Asset Base for Series 2002-1 and complies with the requirements

therefor set forth in the Indenture and this Supplement.

 

17

 

(e)                                  Conversion

Date.  The Conversion Date shall not

have occurred.

 

(f)                                    Security

Documents.  All UCC financing

statements and documents of similar import in other jurisdictions, including

the documents required to be filed pursuant to the Contribution and Sale

Agreement, and other documents reasonably requested by Series 2002-1

Noteholders shall have been filed with the applicable Governmental Authorities,

and all Evidence of Filing delivered by the Seller to the Issuer on such

Transfer Date pursuant to Section 2.03(c) of the Contribution and Sale

Agreement shall have been delivered to the Deal Agent and the Custodian.

 

(g)                                 Certificate

as to Engines.  A certificate from

the Servicer certifying that it is managing all of the Contributed Engines in

accordance with the Servicing Agreement shall have been delivered to the

Custodian.

 

(h)                                 Opinions

of Counsel.  The Custodian shall

have received Opinions of Counsel to the Issuer, other than counsel employed by

the Issuer, the Seller or the Servicer, as to the filing with the FAA of the Indenture

Trustee’s security interest in the Collateral, and the perfection and priority

of such security interest with respect to FAA matters in form and substance

satisfactory to the Series 2002-1 Noteholders.

 

(i)                                     Perfected

Security Interest.  The Custodian

and the Deal Agent shall have received evidence satisfactory to the Deal Agent

that the Indenture Trustee has (or upon funding, will have) a perfected, first

priority security interest in each Engine and related Lease Agreements that

will be the subject of such Loan; provided, however, that if the

applicable laws of any jurisdiction in which an Engine is required to be

registered does not provide for a means to obtain such a perfected, first

priority security interest, then the Issuer shall provide additional assurances

satisfactory to the Purchasers.

 

(j)                                     Appraisal.  The Custodian and the Deal Agent shall have

received an Appraisal in form, scope and for a value satisfactory to the Deal

Agent with respect to each Engine that will be the subject of such Loan.

 

(k)                                  Chattel

Paper.  Any original counterpart of

each Lease Agreement (other than the one held by the Lessee or filed with any

relevant Governmental Authority) that will be the subject of a Loan that

constitutes “chattel paper” for purposes of the UCC as in effect in the

jurisdiction whose law governs the Lease Agreement has been delivered in escrow

to the Issuer’s FAA Counsel on or prior to the effectiveness of such Lease

Agreement, and shall have been filed with the FAA on or before the date of such

Loan, provided, however, that FAA Counsel shall deliver such “chattel paper”

original counterpart to the Custodian within three (3) Business Days after

such filing.

 

(l)                                     Remittance

to Trust Account.  The Lessee under

each Lease Agreement that will be the subject of a Loan shall have been

directed to remit to the Trust Account all Scheduled Payments and other amounts

owing pursuant to such Lease Agreement.

 

(m)                               Lessee

Acknowledgment.  The Lessee under

the Lease Agreement relating to an Engine, if any, shall have received a

written agreement for Lessee’s signature, substantially in the form attached

hereto as Exhibit D.

 

18

 

(n)                                 Subclass

A-2 and B-2 Notes.  Solely with

respect to Loans proposed to be made under the Subclass A-2 Note Purchase

Agreement and the Subclass B-2 Note Purchase Agreement, the date of the

proposed advance is not on or after the Subclass A2/B2 Amortization

Commencement Date.

 

(o)                                 Maximum

Concentration by Engine Types.  Each

Engine shall have been manufactured by one of the manufacturers set forth under

the column titled “Manufacturer” on Exhibit C hereto and shall be one of

the engine types set forth opposite the name of such manufacturer under the

column titled “Engine Type” on Exhibit C hereto.  After giving effect to the transfer of

Engines on any Transfer Date, the sum of the Net Book Values of all Eligible

Engines (relating to Existing and Possible Loans) of the same engine type shall

not exceed an amount equal to the product of (i) the percentage set forth

opposite such engine type in the column entitled “Maximum Concentration” on Exhibit

C hereto and (ii) the Aggregate Net Book Value (relating to Existing and

Possible Loans) on such Transfer Date.

 

(p)                                 Maximum

Concentration for Single Lessee. 

After giving effect to the transfer of Engines and the related Lease

Agreements on any Transfer Date, the sum of the Net Book Values of all Eligible

Engines (relating to Existing and Possible Loans) that are or would be subject

to a Lease Agreement with a single Lessee (including Affiliates thereof) shall

not exceed an amount equal to the product of (i) the Single Lessee Percentage

and (ii) the Aggregate Net Book Value (relating to Existing and Possible

Loans).

 

(q)                                 Maximum

Concentration for any Three Lessees. 

After giving effect to the transfer of Engines and the related Lease

Agreements on any Transfer Date, the sum of the Net Book Values of all Eligible

Engines (relating to Existing and Possible Loans) that are or would be subject

to a Lease Agreement with the three (3) largest Lessees with respect to

aggregate Net Book Values (including Affiliates thereof) shall not exceed an

amount equal to the product of (i) the Three Lessee Percentage and (ii)

the Aggregate Net Book Value (relating to Existing and Possible Loans).

 

(r)                                    Maximum

Concentration by Geographic Region. 

After giving effect to the transfer of Engines and the related Lease

Agreements on any Transfer Date, the sum of the Net Book Values of all Engines

(relating to Existing and Possible Loans) that are or would be subject to a

Lease Agreement with Lessees having corporate headquarters located in the

geographic regions set forth in Schedule 1 shall not exceed an amount equal to

the product of (i) the percentage set forth opposite such geographic region

under the column entitled “Maximum Geographic Percentage” in the Geographic

Concentration Table in Schedule 1 and (ii) the Aggregate Net Book Value

(relating to Existing and Possible Loans).

 

(s)                                  Concentration

of Engines for Wide Body Aircraft. 

After giving effect to the transfer of all Engines which are transferred

on any Transfer Date, the sum of the Net Book Values of all Eligible Engines

designed to power Wide Body Aircraft shall not exceed an amount equal to the

product (A) the Wide Body Aircraft Percentage and (B) the Aggregate

Net Book Value.

 

19

 

(t)                                    On-Lease

Percentage.  After giving effect to

the transfer of Engines on any Transfer Date, the On-Lease Percentage of all

Eligible Engines (relating to Existing and Possible Loans) as of such Transfer

Date shall not be less than the Applicable Percentage.

 

(u)                                 Weighted

Average Lease Rate Factor.  After

giving effect to the transfer of Engines on any Transfer Date, the Weighted

Average Lease Rate Factor for all Eligible Engines (relating to Existing and

Possible Loans) shall not be less than the Weighted Average Lease Rate

Percentage.

 

(v)                                 One

Year Lease Expiry Concentration Percentage.  After giving effect to the transfer of Engines on any Transfer

Date, the One Year Lease Expiry Concentration Percentage for Eligible Engines

(relating to Existing and Possible Loans) on such Transfer Date shall not

exceed the Target One Year Lease Expiry Concentration Percentage.

 

(w)                               Two

Year Lease Expiry Concentration Percentage.  After giving effect to the transfer of Engines on any Transfer

Date, the Two Year Lease Expiry Concentration Percentage for Eligible Engines

(relating to Existing and Possible Loans) on such Transfer Date shall not

exceed the Target Two Year Lease Expiry Concentration Percentage.

 

(x)                                   Reserved.

 

(y)                                 Reserved.

 

(z)                                   Cargo-only

Carriers.  After giving effect to

the transfer of Engines on any Transfer Date, the percentage of Engines leased

to cargo-only carriers shall not exceed 15% of all Eligible Engines.

 

(aa)                            Owner

Trustee Documents.  With respect to

each Engine owned by an Owner Trustee, the Custodian shall have received from

such Owner Trustee within three (3) Business Days of the transfer of

such Engine to such Owner Trustee (i) a copy of the resolutions of the

Board of Directors of the Owner Trustee, in its individual capacity, certified

by the Secretary or an Assistant Secretary of the Owner Trustee, duly

authorizing the execution, delivery and performance by the Owner Trustee of each

of the Related Documents to which the Owner Trustee is or will be a party;

(ii) an incumbency certificate of Owner 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

opinion of counsel to the Owner Trustee with respect to the due authorization,

execution and delivery by the Owner Trustee of the Related Documents to which

it is or will be a party.

 

(bb)                          Custodial

Agreement.  The Issuer, the

Servicer, the Indenture Trustee and the Deal Agent shall have entered into a

Custodial Agreement in form and substance satisfactory to the Deal Agent with

the Custodian and, on or before the date of the applicable Loan, the Custodian

shall have confirmed to the Deal Agent in writing that the Custodian has

received the documents required by Schedule I (attached hereto as Exhibit

G) of such Custodial Agreement to be delivered on or before the date of

such applicable Loan.

 

Section 5.3                                   Deliveries.  The Issuer will timely file and deliver each

document which is required to be filed or delivered hereunder or under any

Related Document, or the filing or

 

20

 

delivery of which is listed as a condition to the making of any Loan in

Section 5.2 but which is permitted to be filed or delivered after the date

of such Loan, strictly within the time period set forth herein for such filing

or delivery.

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

 

To induce the corresponding

Series 2002-1 Noteholders to purchase the Subclass A-2 Notes and Subclass B-2

Notes and to induce the other Noteholders to consent to the amendment and

restatement of the Original Supplement, the Issuer hereby represents and

warrants to the Series 2002-1 Noteholders as of the Effective Date, and each

date on which a Loan is made (to the extent applicable to the Issuer generally

and to the assets added to the Collateral on such date on which a Loan is made,

unless otherwise specified) that:

 

Section 6.1                                   Existence.

 

Issuer is a limited

liability company duly organized, validly existing and in compliance under the

laws of the State of Delaware.  Issuer

is in good standing and is duly qualified to do business in each jurisdiction

where the failure to do so would have a material adverse effect upon the

Issuer.

 

Section 6.2                                   Authorization.

 

Issuer has the power and

is duly authorized to execute and deliver this Supplement and the other Series

2002-1 Transaction Documents to which it is a party, Issuer is and will

continue to be duly authorized to borrow monies hereunder, and Issuer is and

will continue to be authorized to perform its obligations under this Supplement

and under the other Series 2002-1 Transaction Documents.  The execution, delivery and performance by

Issuer of this Supplement and the other Series 2002-1 Transaction Documents to

which it is a party and the borrowings hereunder do not and will not require

any consent or approval of any Governmental Authority, stockholder or any other

Person which has not already been obtained.

 

Section 6.3                                   No

Conflict; Legal Compliance.

 

The execution, delivery

and performance of this Supplement and each of the other Series 2002-1

Transaction Documents and the execution, delivery and payment of the Series

2002-1 Notes will not: (a) contravene any provision of Issuer’s charter

documents or bylaws or other organizational documents; (b) contravene, conflict

with or violate any applicable law or regulation, or any order, writ, judgment,

injunction, decree, determination or award of any Governmental Authority; or

(c) materially violate or result in the breach of; or constitute a default

under any indenture or other loan or credit agreement, or other agreement or

instrument to which Issuer is a party or by which Issuer, or its property and

assets may be bound or affected.  Issuer

is not in material violation or breach of or default under any law, rule,

regulation, order, writ, judgment, injunction, decree, determination or award

or any contract, agreement, lease, license, indenture or other instrument to

which it is a party.

 

21

 

Section 6.4                                   Validity

and Binding Effect.

 

This Supplement is, and

each Series 2002-1 Transaction Document to which Issuer is a party, when duly executed

and delivered, will be, legal, valid and binding obligations of Issuer,

enforceable against Issuer in accordance with their respective terms, except as

enforceability may be limited by bankruptcy, insolvency or other similar laws

of general application affecting the enforcement of creditors’ rights or by

general principles of equity limiting the availability of equitable remedies.

 

Section 6.5                                   Financial

Statements.

 

Since December 30, 2001,

there has been no Material Adverse Change in the financial condition of the

Seller or the Servicer.

 

Section 6.6                                   Executive

Offices.

 

The current location of

Issuer’s chief executive office and principal place of business is located at

2320 Marinship Way, Suite 200, Sausalito, California 94965.  The Issuer does not have trade names or

doing business names.

 

Section 6.7                                   No

Agreements or Contracts.

 

The Issuer has not

transacted any business on or prior to the Closing Date.  The Issuer is not now and has not been a

party to any contract or agreement (whether written or oral), other than the

Series 2002-1 Transaction Documents and contracts or agreements incidental

thereto, including contracts or agreement for the sale of any Contributed

Assets or any Beneficial Interests, provided that such sale is permitted by the

Indenture.  Notwithstanding the

foregoing sentence, the Issuer may enter into any agreement(s) for disposition

of any Contributed Assets or a Beneficial Interest in an Owner Trust which owns

a Contributed Engine so long as such disposition is permitted by Sections

606(a), 612, 804 or 816 of the Indenture.

 

Section 6.8                                   Consents

and Approvals.

 

No approval,

authorization or consent of any trustee or holder of any Indebtedness or

obligation of Issuer or of any other Person under any material agreement,

contract, lease or license or similar document or instrument to which Issuer is

a party or by which Issuer is bound, is required to be obtained by Issuer in

order to make or consummate the transactions contemplated under the Series

2002-1 Transaction Documents.  All

consents and approvals of, filings and registrations with, and other actions in

respect of, all Governmental Authorities required to be obtained by Issuer in

order to make or consummate the transactions contemplated under the Series

2002-1 Transaction Documents have been, or prior to the time when required will

have been, obtained, given, filed or taken and are or will be in full force and

effect.

 

Section 6.9                                   Margin

Regulations.

 

Issuer does not own any

“margin security”, as that term is defined in Regulations G and U of the

Federal Reserve Board, and the proceeds of the Series 2002-1 Notes issued under

this Supplement will be used only for the purposes contemplated hereunder.  None of such proceeds

 

22

 

will be used, directly or indirectly, for the purpose of purchasing or

carrying any margin security, 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 loans under this

Supplement to be considered a “purpose credit” within the meaning of

Regulations T, U and X.  Issuer will not

take or permit any agent acting on its behalf to take any action which might

cause this Supplement or any document or instrument delivered pursuant hereto

to violate any regulation of the Federal Reserve Board.

 

Section 6.10                            Taxes.

 

All federal, state, local

and foreign tax returns, reports and statements required to be filed by Issuer

have been filed with the appropriate Governmental Authorities, and all Taxes

and other impositions shown thereon to be due and payable by Issuer have been

paid prior to the date on which any fine, penalty, interest or late charge may

be added thereto for nonpayment thereof, or any such fine, penalty, interest,

late charge or loss has been paid, or Issuer is contesting its liability

therefore in good faith and has fully reserved all such amounts according to

GAAP in the financial statements provided to the Noteholders pursuant to

Section 626 of the Indenture.  Issuer

has paid when due and payable all material charges upon the books of Issuer and

no Government Authority has asserted any Lien against Issuer with respect to

unpaid Taxes.  Proper and accurate

amounts have been withheld by Issuer and its Subsidiaries from its employees

for all periods in full and complete compliance with the tax, social security

and unemployment withholding provisions of applicable federal, state, local and

foreign law and such withholdings have been timely paid to the respective

Governmental Authorities.

 

Section 6.11                            Other

Regulations.

 

Issuer is not: (a) a

“public utility company” or a “holding company,” or an “affiliate” or a

“Subsidiary company” of a “holding company,” or an “affiliate” of such a “Subsidiary

company,” as such terms are defined in the Public Utility Holding Company Act

of 1935, as amended, or (b) an “investment company,” or an “affiliated person”

of; or a “promoter” or “principal underwriter” for, an “investment company,” as

such terms are defined in the Investment Company Act of 1940, as amended.  The issuance of the Notes hereunder and the

application of the proceeds and repayment thereof by Issuer and the performance

of the transactions contemplated by this Supplement and the other Series 2002-1

Transaction Documents will not violate any provision of the Investment Company

Act of 1940, as amended, or the Public Utility Holding Company Act of 1935, as

amended, or any rule, regulation or order issued by the Securities and Exchange

Commission thereunder.

 

Section 6.12                            Solvency

and Separateness.

 

The Issuer represents,

warrants and covenants to take the following actions to maintain its existence

separate and apart from any other Person:

 

(i)                                     maintain

books of account in accordance with GAAP and maintain its accounts, books and

records separate from any other person or entity;

 

(ii)           not commingle its funds or assets

with those of any other entity;

 

23

 

(iii)          hold its assets in its own name;

 

(iv)          conduct its business solely in its own

name;

 

(v)           pay its own liabilities out of its

own funds and assets;

 

(vi)          observe all corporate formalities;

 

(vii)         maintain an arms-length relationship

with its affiliates;

 

(viii)                        not assume

or guarantee or become obligated for the debts of any other entity or hold out

its credit as being available to satisfy the obligation of any other entity,

and will not permit any other person to assume or guarantee or become obligated

for its debts or hold out its credit as being available to satisfy the Issuer’s

obligations, except with respect to (A) obligations of the Seller under the

Guaranty and (B) obligations of the Seller to Lessees arising by operation of

law under Eligible Leases with respect to which the consent of such Lessees has

not been obtained prior to the transfer of such Eligible Leases to Issuer by

Seller pursuant to the Contribution and Sale Agreement

 

(ix)                                not

acquire obligations or securities of its stockholders;

 

(x)                                   allocate

fairly and reasonably overhead or other expenses that are properly shared with

any other person or entity, including without limitation, shared office space,

and use separate stationery, invoices and checks;

 

(xi)                                identify

and hold itself out as a separate and distinct entity under its own name and

not as a division or part of any other person or entity;

 

(xii)                             correct

any known misunderstanding regarding its separate identity;

 

(xiii)                          not make

loans to any person or entity;

 

(xiv)                         not

identify its stockholders, or any affiliates of any of them, as a division or

part of itself;

 

(xv)                            not

enter into, or be a party to, any transaction with its stockholders or their

affiliates, except in the ordinary course of its business and on terms which

are intrinsically fair and are no less favorable to it than would be obtained

in a comparable arms-length transaction with an unrelated third party;

 

(xvi)                         pay the

salaries of its own employees, if any, from its own funds;

 

(xvii)                      maintain

capital that is adequate for the business and undertakings of the Issuer;

 

(xviii)                   have one

director who shall not have been, at the time of his or her appointment or at

any time in the preceding five (5) years: (a) a direct or indirect legal or

 

24

 

beneficial stockholder of

the Issuer or any of its affiliates; (b) a creditor, supplier, employee,

officer, director, manager or contractor of the Issuer or any of its

affiliates; (c) a person who controls the Issuer or any of its affiliates;

or (d) a member of the immediate family of a person defined in (a), (b) or (c)

immediately above;

 

(xix)                           is not

insolvent under the Insolvency Law and will not be rendered insolvent by the

transactions contemplated by the Series 2002-1 Transaction Documents and after

giving effect to such transactions, the Issuer will not be left with an

unreasonably small amount of capital with which to engage in its business nor

will the Issuer have intended to incur, or believed that it has incurred, debts

beyond its ability to pay such debts as they mature.  The Issuer does not contemplate the commencement of insolvency,

bankruptcy, liquidation or consolidation proceedings or the appointment of a

receiver, liquidator, trustee or similar person in respect of the Issuer or any

of its assets.

 

Section 6.13                            No

Proceedings.

 

Each of the Issuer and

the Indenture Trustee hereby agrees that it will not institute against, or join

any other Person in instituting against Sheffield any bankruptcy,

reorganization, arrangement, insolvency or liquidation proceedings or other

similar proceedings under the laws of the United States or any other state of

the United States, so long as any Commercial Paper Notes shall be outstanding

and there shall not have elapsed one year and one day since the last day on

which any such Commercial Paper Notes shall have been outstanding.

 

Section 6.14                            Recourse

Against Certain Parties.

 

(a)                                  No

recourse under or with respect to any obligation, covenant or agreement

(including, without limitation, the payment of any fees or any other obligations)

of any of the Issuer, the Servicer, Sheffield, any Purchaser or the Deal Agent

as contained in the Series 2002-1 Transaction Documents or any other agreement,

instrument or document entered into by it pursuant hereto or in connection

herewith shall be had against any administrator of such party or any

incorporator, affiliate, stockholder, officer, employee or director of such

party or of any such administrator, as such, by the enforcement of any

assessment or by any legal or equitable proceeding, by virtue of any statute or

otherwise; it being expressly agreed and understood that the agreements

of such party contained in the Series 2002-1 Transaction Documents and all of

the other agreements, instruments and documents entered into by it pursuant

hereto or in connection herewith are, in each case, solely the corporate

obligations of such party, provided  that in the case of

Sheffield, such liabilities shall be paid only after the repayment in full of

all Commercial Paper Notes and all other liabilities contemplated in the

program documents with respect to Sheffield, and that no personal liability

whatsoever shall attach to or be incurred by any administrator of such party or

any incorporator, stockholder, affiliate, officer, employee or director of such

party or of any such administrator, as such, or any of them, under or by reason

of any of the obligations, covenants or agreements of such Purchaser contained

in the Series 2002-1 Transaction Documents or in any other such instrument,

document or agreement, or which are implied therefrom, and that any and all

personal liability of every such administrator of such party and each

incorporator, stockholder, affiliate, officer, employee or director of such

party or of any such administrator, or any of them, for breaches by such party

of any such obligations, covenants or agreements, which liability may arise

either at common law or in equity, by statute

 

25

 

or constitution, or otherwise, is hereby expressly waived as a

condition of; and in consideration for, the execution of the Series 2002-1

Transaction Documents.

 

(b)                                 Notwithstanding

anything contained in this Agreement or any other Series 2002-1 Transaction

Document, Sheffield shall have no obligation to pay any amount required to be

paid by it hereunder or in excess of any amount available to Sheffield after

paying or making provision for the payment of its Commercial Paper Notes.  All payment obligations of Sheffield hereunder

are contingent upon the availability of funds in excess of the amounts

necessary to pay Commercial Paper Notes; and each of the Issuer, the Deal Agent

and the Servicer agrees that they shall not have a claim under Section 101(5)

of the United States Bankruptcy Code if and to the extent that any such payment

obligation exceeds the amount available to Sheffield to pay such amounts after

paying or making provision for the payment of its Commercial Paper Notes.

 

(c)                                  The

provisions of this Section 6.14 shall survive the termination of this Agreement.

 

Section 6.15                            Survival

of Representations and Warranties.

 

So long as any of the

Notes shall be Outstanding and until payment and performance in full of the

Outstanding Obligations, the representations and warranties contained herein

shall have a continuing effect as having been true when made.

 

Section 6.16                            No

Event of Default or Early Amortization Event.

 

No Event of Default or

Early Amortization Event has occurred and is continuing.

 

Section 6.17                            Litigation

and Contingent Liabilities.

 

No claims, litigation,

arbitration proceedings or governmental proceedings by any Governmental

Authority are pending or threatened against or are affecting Issuer or any of

its Subsidiaries the results of which might interfere with the consummation of

any of the transactions contemplated by this Supplement or any document issued

or delivered in connection herewith.

 

Section 6.18                            Title;

Liens.

 

The Issuer has good,

legal and marketable title to its assets including the Collateral, and none of

such assets is subject to any Lien, except for the Lien created pursuant to the

Indenture.  The Issuer has not assigned,

conveyed, pledged or otherwise transferred to any other Person any of its

right, title or interest in the Collateral.

 

Section 6.19                            Subsidiaries.

 

At all times on or prior

to the Effective Date, the Issuer has had no subsidiaries other than WLFC

Funding (Ireland) Limited, a corporation organized under the law of the

Republic of Ireland.

 

26

 

Section 6.20                            No

Partnership.

 

The Issuer is not a

partner or joint venturer in any partnership or joint venture.

 

Section 6.21                            Pension

and Welfare Plans.

 

No accumulated funding

deficiency (as defined in Section 412 of the Code or Section 302 of ERISA) or

reportable event (within the meaning of Section 4043 of ERISA), has occurred

with respect to any Plan.  The present

value of all benefit liabilities under all Plans subject to Title IV of ERISA,

as defined in Section 4001(a)(16) of ERISA, exceeds the fair market value of

all assets of Plans subject to Title IV of ERISA (determined as of the most

recent valuation date for such Plan on the basis of assumptions prescribed by

the Pension Benefit Guaranty Corporation for the purpose of Section 4044 of

ERISA), by no more than $1.9 million. 

Neither Issuer nor any ERISA Affiliate is subject to any present or

potential withdrawal liability pursuant to Title IV of ERISA and no

multiemployer plan (within the meaning of Section 4001 (a)(3) of ERISA) to

which the Issuer or any ERISA Affiliate has an obligation to contribute or any

liability, is or is likely to be disqualified for tax purposes, in

reorganization within the meaning of Section 4241 of ERISA or Section 418 of

the Code) or is insolvent (as defined in Section 4245 of ERISA).  No liability (other than liability to make

periodic contributions to fund benefits) with respect to any Plan of Issuer, or

Plan subject to Title IV of ERISA of any ERISA Affiliate, has been, or is

expected to be, incurred by Issuer or an ERISA Affiliate, either directly or

indirectly.  All Plans of Issuer are in

material compliance with ERISA and the Code. 

No lien under Section 412 of the Code or 302(f) of ERISA or

requirement to provide security under the Code or ERISA has been or is

reasonably expected by Issuer to be imposed on its assets.  The Issuer does not have any obligation

under any collective bargaining agreement. 

As of the Effective Date, the Issuer is not an employee benefit plan

within the meaning of ERISA or a “plan” within the meaning of Section 4975 of

the Code and assets of the Issuer do not constitute “plan assets” within the

meaning of Section 2510.3-101 of the regulations of the Department of Labor.

 

Section 6.22                            Ownership

of Issuer.

 

On the Effective Date,

all of the issued and outstanding common shares of the Issuer are owned by

Willis Lease Finance Corporation.

 

Section 6.23                            Security

Interest.

 

The security interest in

the Collateral created pursuant to the Indenture and this Supplement has been

validly created, and no other action is required to be taken by any person in

order for the full benefit of the security interest created thereby to vest in

the Indenture Trustee in order to insure the first priority perfected security

interest of the Indenture Trustee (for the benefit of the Series 2002-1

Noteholders) in the Collateral.  Each

Lease Agreement is “chattel paper” (under the UCC, if the UCC is in effect in

the jurisdiction whose law governs the Lease Agreement).  All executed counterparts of each Lease

Agreement (other than the one held by the related Lessee or filed with any

relevant Governmental Authority) that constitutes “chattel paper” are in the

possession of the Custodian.

 

27

 

Section 6.24                            Eligible

Lease Agreements; Eligible Engines.

 

Each of the Lease

Agreements is an Eligible Lease and each Engine is an Eligible Engine or an

Excess Asset.

 

ARTICLE VII

EARLY AMORTIZATION EVENT

 

Section 7.1                                   Early

Amortization Event.

 

With respect to the

Series 2002-1 Notes, as of any date of determination, the existence of any one

of the following events or conditions shall constitute an Early Amortization

Event:

 

(i)                                     An

“event of default” under any Related Document (including an Event of Default)

shall have occurred and then be continuing;

 

(ii)                                  A

Servicer Default shall have occurred and then be continuing;

 

(iii)                               The

Aggregate Note Principal Balance of any Series exceeds the Asset Base for such

Series on any Payment Date (after giving effect to any payments of principal on

such Payment Date) and such excess continues for a period of 10 consecutive

days without being cured;

 

(iv)                              The

EBIT Ratio of Issuer shall be less than the Target EBIT Ratio;

 

(v)                                 Prior

to the date on which the Term Securitization is consummated, the Asset Base

shall be less than or equal to $60,000,000, or, as of the close of business on

the date on which the Term Securitization is consummated, either the Asset Base

or the total Outstanding Obligations for Series 2002-1 shall be greater than

$0;

 

(vi)                              The

occurrence of any other Early Amortization Event as specified in the Indenture;

 

(vii)                           Outstanding

Obligations exceed 90% of the aggregate Appraised Values of each Eligible

Engine and such excess continues for a period of 10 consecutive days without

being cured;

 

(viii)                        The

Quarterly Utilization Rate is less than 75%.

 

(ix)                                The

failure to pay in full on any Payment Date (a) interest accrued on the Notes,

(b) the Class A Minimum Principal Payment Amount and the Class B Minimum

Principal Payment Amount, (c) after the Conversion Date, the Class A Note

Distributable Amortization Amount and the Class B Note Distributable

Amortization Amount, and (d) after the Subclass A2/B2 Amortization

Commencement Date and before the Conversion Date, the Subclass A-2 Amortization

Amount and Subclass B-2 Amortization Amount.

 

28

 

ARTICLE

VIII

MISCELLANEOUS PROVISIONS

 

Section 8.1                                   Ratification

of Indenture.

 

As supplemented by this

Supplement, the Indenture is in all respects ratified and confirmed and the Indenture

as so supplemented by this Supplement shall be read, taken and construed as one

and the same instrument.

 

Section 8.2                                   Counterparts.

 

This Supplement may be

executed in two or more counterparts, and by different parties on separate

counterparts, each of which shall be an original, but all of which shall

constitute one and the same Instrument.

 

Section 8.3                                   Governing

Law.

 

THIS SUPPLEMENT SHALL BE CONSTRUED IN

ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS

CONFLICTS OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE

PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section

8.4                                   Amendments.

 

With the written consent

of the Control Parties of the Series 2002-1 Notes, this Supplement may be amended

and the provisions hereof waived by the Issuer and the Indenture Trustee.

 

Section 8.5                                   Effect

on Original Supplement.

 

The Issuer and the

Indenture Trustee hereby agree that on the Effective Date (i) the terms

and provisions of the Original Supplement shall be and hereby are amended and

restated in their entirety by the terms and provisions of this Supplement and

(ii) the execution and delivery of this Supplement shall not constitute or

effect or be deemed to constitute or effect a novation, refinancing, discharge,

extinguishment or refunding of any of the “Outstanding Obligations” (as defined

in the Original Indenture).

 

[Remainder of Page

Intentionally Left Blank]

 

29

 

IN WITNESS WHEREOF, the

Issuer and the Indenture Trustee have caused this Supplement to be duly

executed and delivered by their respective officers thereunto duly authorized,

all as of the day and year first above written.

 

	

   

  	

  WILLIS ENGINE FUNDING

  LLC, as issuer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

  /s/ MONICA J. BURKE

  
	

   

  	

  Name:

  	

   

  	

  Monica J. Burke

  
	

   

  	

  Title:

  	

   

  	

  Chief Financial Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  THE BANK OF NEW YORK,

  as indenture trustee

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

  /s/ SCOTT J. TEPPER

  
	

   

  	

  Name:

  	

   

  	

  Scott J. Tepper

  
	

   

  	

  Title:

  	

   

  	

  Assistant Vice

  President

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  THE BANK OF NEW YORK,

  as securities

  intermediary

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

  /s/ SCOTT J. TEPPER

  
	

   

  	

  Name:

  	

   

  	

  Scott J. Tepper

  
	

   

  	

  Title:

  	

   

  	

  Assistant Vice

  President

  
						

 

J-2-1

 

SCHEDULE 1

 

Section 1:                                       Definitions

 

“Africa/Middle East/Emerging Europe”

means the following countries: Czech Republic, Hungary, Poland, Bahrain,

Israel, Jordan, Morocco, Qatar, Slovakia, South Africa and Turkey.

 

“Applicable Percentage” means

               

percent (    %).*

 

“Depreciation Percentage”

means

               

percent (    %).*

 

“Developed Asia/Pacific Rim”

means the following countries: Australia, Egypt, Fiji, Hong Kong, Japan, New

Zealand, Saudi Arabia, Singapore and Taiwan.

 

“Developed Europe” means the

following countries: Austria, Belgium, Denmark, Finland, France, Germany,

Greece, Iceland, Ireland, Italy, Malta, Norway, Portugal, Spain, Sweden,

Switzerland, The Netherlands and the United Kingdom.

 

“Emerging Asia” means the

following countries: China, India, Indonesia, Korea, Malaysia, Papua New

Guinea, Philippines, Sri Lanka and Thailand.

 

“Emerging Latin/South America”

means the following countries: Argentina, Aruba, Bolivia, Brazil, British West

Indies, Costa Rica, Chile, Columbia, Jamaica, Mexico and Peru.

 

“Emerging Market” means

Emerging Latin/South America, Emerging Asia and Emerging Africa/Middle

East/Europe.

 

“Minimum Servicing Fee Percentage”

means     % per annum.*

 

“Servicing Fee” means for any

Payment Date an amount equal to the product of (x)

       percent (    %) and

(y) the aggregate amount of Engine Revenues with respect to the Series 2002-1

Engines during the immediately preceding Collection Period; provided  however,

that if an Early Amortization Event has occurred and is continuing such fee

shall mean for any Payment Date an amount equal to the product of (x)

          percent

(    %) and (y) the aggregate amount of Engine Revenues

with respect to the Series 2002-1 Engines during the immediately preceding

Collection Period.*

 

“Single Lessee Percentage”

means

             

percent (    %); provided, however, that with respect to

any lessee which is located in an Emerging Market, the Single Lessee Percentage

shall mean         percent

(     %).*

 

“Target EBIT Ratio” means

1.20:1.0.

 

*                                         This

redacted material has been omitted pursuant to a request for confidential

treatment, and the material has been filed separately with the Commission.

 

S1-1

 

“Target

On-Lease Percentage”

means

               

percent (    %).*

 

“Target One Year Lease Expiry

Concentration Percentage” means

               

percent (    %).*

 

“Target Two Year Lease Expiry

Concentration Percentage” means

               

percent (    %).*

 

“Three Lessee

Percentage” means

               

percent (    %).*

 

“Weighted Average Lease Rate Percentage”

means one percent (1.0%).

 

“Wide Body

Aircraft Percentage”

means

               

percent (    %).*

 

Section 2:                                         Certain

Additional Terms.

 

Administrative Agent Fee.  The Issuer shall pay on each quarterly

Payment Date, beginning with the third Payment Date, an Administrative Agent

Fee to the Administrative Agent an amount equal to the product of (x)

    %, (y) one-fourth and (2) the Aggregate Note Principal

Balance.  Such Administrative Agent Fee

shall be payable on each quarterly Payment Date from amounts then on deposit in

the Series 2002-1 Series Account in accordance with Section 3.02 of the

Supplement.*

 

Interest Rate Hedge Agreements.  Beginning on September 12, 2002, the Issuer

at all times shall have Interest Rate Hedge Agreements in effect, each of which

has an aggregate notional amount of not less than 50% of the Outstanding

Obligations of the, Series 2002-1 Notes.

 

Section 3:                                        Geographic

Concentration Table.

 

“Section 3: Geographic

Concentration Table”

 

	

  Geographic Region

  	

   

  	

  Maximum

  Geographic Percentage

  	

   

  
	

  Africa/Middle

  East/Emerging Europe

  	

   

  	

   

  	

  %*

  
	

  Emerging

  Asia

  	

   

  	

   

  	

  %*

  
	

  China(1)

  	

   

  	

   

  	

  %*

  
	

  Developed

  Asia/Pacific Rim

  	

   

  	

   

  	

  %*

  
	

  Developed

  Europe

  	

   

  	

   

  	

  %*

  
	

  North

  America

  	

   

  	

   

  	

  %*

  
	

  Emerging

  Latin/South America

  	

   

  	

   

  	

  %*

  
	

  Total

  Emerging Markets

  	

   

  	

   

  	

  %*

  

 

(1) People’s Republic of China, excluding Hong Kong.

 

*                                         This

redacted material has been omitted pursuant to a request for confidential

treatment, and the material has been filed separately with the Commission.

 

S1-2

 

SCHEDULE 2

to Series 2002-1 Supplement

“Initial List of Engine and Lease Agreements”

(consisting of 23 pages)

 

Engines

 

One (1) General Electric

model CF6-80C2D1F aircraft engine bearing manufacturer’s serial number 704638

 

One (1) Pratt &

Whitney model PW2037 aircraft engine bearing manufacturer’s serial number

716430

 

One (1) Pratt &

Whitney model JT8D-219 aircraft engine bearing manufacturer’s serial number

728173

 

One (1) General Electric

CF6-50C2 aircraft engine bearing manufacturer’s serial number 455805

 

One (1) Pratt &

Whitney JT8D-219 aircraft engine bearing manufacturer’s serial number 716779

 

One (1) Pratt &

Whitney JT8D-217C/219 aircraft engine bearing manufacturer’s serial number

718210

 

One (1) CFM International

CFM56-3B2 aircraft engine bearing manufacturer’s serial number 725183

 

One (1) CFM International

CFM56-3C1 aircraft engine bearing manufacturer’s serial number 725522

 

One (1) CFM International

CFM56-5A aircraft engine bearing manufacturer’s serial number 733141

 

One (1) CFM International

model CFM56-5A3 aircraft engine bearing manufacturer’s serial number 733186

 

One (1) CFM International

CFM56-5C aircraft engine bearing manufacturer’s serial number 741551

 

One (1) CFM International

CFM56-5B4/P aircraft engine bearing manufacturer’s serial number 779194

 

One (1) CFM International

CFM56-5B1/B2 aircraft engine bearing manufacturer’s serial number 779484

 

One (1) CFM International

CFM56-5B3-P aircraft engine bearing manufacturer’s serial number 779542

 

One (1) CFM International

CFM56-7 aircraft engine bearing manufacturer’s serial number 874243

 

One (1) General Electric

CF6-50C2 aircraft engine bearing manufacturer’s serial number 528113

 

S2-1

 

One (1) Pratt &

Whitney JT8D-219 aircraft engine bearing manufacturer’s serial number 718035

 

One (1) Pratt &

Whitney JT8D-219 aircraft engine bearing manufacturer’s serial number 718064

 

One (1) Pratt &

Whitney JT8D-217C/219 aircraft engine bearing manufacturer’s serial number

718262

 

One (1) CFM International

CFM56-3B2 aircraft engine bearing manufacturer’s serial number 721877

 

One (1) Pratt &

Whitney PW2037 aircraft engine bearing manufacturer’s serial number 727057

 

One (1) Pratt &

Whitney PW4062-3 aircraft engine bearing manufacturer’s serial number 727340

 

One (1) Pratt &

Whitney PW4062-3 aircraft engine bearing manufacturer’s serial number 727393

 

One (1) Pratt &

Whitney JT8D-219 aircraft engine bearing manufacturer’s serial number 728154

 

One (1) CFM International

model CFM 56-5A3 aircraft engine bearing manufacturer’s serial number 731570

 

One (1) CFM International

CFM56-5A3 aircraft engine bearing manufacturer’s serial number 731813

 

One (1) CFM International

CFM56-5A3 aircraft engine bearing manufacturer’s serial number 733163

 

One (1) CFM International

CFM56-5A3 aircraft engine bearing manufacturer’s serial number 733172

 

One (1) Pratt &

Whitney PW4168A aircraft engine bearing manufacturer’s serial number 733438

 

One (1) Pratt &

Whitney PW4168A aircraft engine bearing manufacturer’s serial number 733471

 

One (1) CFM International

CFM56-5C3F aircraft engine bearing manufacturer’s serial number 740342

 

One (1) CFM International

CFM56-5C3F aircraft engine bearing manufacturer’s serial number 741414

 

One (1) CFM International

CFM56-3C1 aircraft engine bearing manufacturer’s serial number 858327

 

One (1) CFM International

CFM56-3C1 aircraft engine bearing manufacturer’s serial number 858788

 

One (1) CFM International

CFM56-3B2 aircraft engine bearing manufacturer’s serial number 858789

 

S2-2

 

One (1) CFM International

CFM56-3C1 aircraft engine bearing manufacturer’s serial number 858839

 

One (1) Pratt &

Whitney PW4090 aircraft engine bearing manufacturer’s serial number 222108

 

One (1) Pratt &

Whitney PW4060-3 aircraft engine bearing manufacturer’s serial number 724721

 

One (1) CFM International model CFM56-5A3

aircraft engine bearing manufacturer’s serial number 733175

 

One (1) IAE model

V2528-D5 aircraft engine bearing manufacturer’s serial number V20001

 

One (1) IAE model

V2528-D5  aircraft engine bearing

manufacturer’s serial number V20267

 

One (1) CFM International

model CFM56-5B aircraft engine bearing manufacturer’s serial number 575283

 

Leases

 

Engine

725183

 

Aircraft Engine

Lease Agreement dated as of June 30, 1999 (the “TAP Lease”) between Willis

Lease Finance Corporation (“Willis”) as lessor, and Transportes Aereos

Portugueses, S.A., as lessee, with the following attached thereto: (i) General

Terms Engine Lease Agreement dated as of June 30, 1999, and (ii) Engine

Transfer Certificate dated as of June 30, 1999 between Willis, as seller, and

WLFC Funding Corporation, as issuer, which TAP Lease and attachments were

recorded by the FAA on July 6, 1999 and assigned Conveyance No. YY025858, as

amended by Letter Amendment dated as of June 29, 2001, which was recorded by

the FAA on September 25, 2001 and assigned Conveyance No. FF32960, as amended

by Letter Amendment dated as of September 28, 2001, which was recorded by the

FAA on October 11, 2001 and assigned Conveyance No. ZZ025584, as further

amended by Letter Amendment dated as of December 29, 2001, which was recorded

by the FAA on May 1, 2002 and assigned Conveyance No. I070020.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following document, which was filed for recording with the

Federal Aviation Administration on this date, but has not yet been recorded, a

true and correct copy of which is attached hereto: Contribution and Sale

Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignment, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

S2-3

 

Engine

718210

 

Aircraft Engine

Lease Agreement dated as of October 30, 1997 between Terandon Leasing

Corporation (“Terandon”), as lessor, and SPANAIR, as lessee, with General Terms

Engine Lease Agreement dated as of October 30, 1997 attached thereto, which was

recorded by the FAA on December 15, 1995, and assigned Conveyance No.II010037,

as assigned and assumed by Assignment and Assumption Agreement and Bill of Sale

dated as of December 19, 1997 between Terandon, as assignor, and Willis Lease

Finance Corporation (“Willis”), as assignee, which was recorded by the FAA on

January 27, 1998 and assigned Conveyance No. EE015339, as assigned and assumed

under that certain Engine Transfer Certificate dated as of December 19, 1997

between Willis, as seller, and WLFC Funding Corporation, as issuer, which was

recorded by the FAA on January 27, 1998 and assigned Conveyance No. EE015340.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following document, which was filed for recording with the

Federal Aviation Administration on this date, but has not yet been recorded, a

true and correct copy of which is attached hereto: Contribution and Sale

Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignment, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

874243

 

Aircraft Engine

Lease Agreement dated as of April 29, 1998 (the “Shanghai Lease”) between

Willis Lease Finance Corporation (“Willis”) as lessor, and Shanghai Airlines,

as lessee, with the following attached thereto: (i) General Terms Engine Lease

Agreement dated as of April 29, 1998, and (ii) Engine Transfer Certificate

dated as of April 29, 1998 between Willis, as seller, and WLFC Funding

Corporation, as issuer, which Shanghai Lease and attachments were recorded by

the FAA on June 11, 1998 and assigned Conveyance No. MM015772 (the Engine

Transfer Certificate was recorded separately by the FAA on June 11, 1998 and

assigned Conveyance No. MM015773).

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following document, which was filed for recording with

the Federal Aviation Administration on this date, but has not yet been

recorded, a true and correct copy of which is attached hereto: Contribution and

Sale Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis Lease

Finance Corporation, as assignor, and Willis Engine Funding LLC, as assignee,

attached thereto (by virtue of the foregoing assignment, Willis Engine Funding

LLC is the current lessor under the above-described engine lease).

 

S2-4

 

Engine

455805

 

Aircraft Engine

Lease Agreement dated as of May 14, 1998 (the “MTU Lease”), between AAR

Aircraft & Engine Group, Inc. (“AAR”), as lessor, and MTU Maintenance GmbH

(“MTU”) as lessee, with the following attached thereto: (i) Engine Delivery

Receipt dated May 27, 1998, (ii) General Terms Engine Lease Agreement dated as

of March 8, 1996, (iii) Novation Agreement dated as of May 21, 1998 among AAR,

as assignor/seller, Kellstrom Commercial Aircraft, Inc. (“Kellstrom”), as

assignee/buyer, and MTU, as lessee, (iv) Assignment and Assumption of Lease and

Purchase and Sale of Engine Agreement dated as of March 25, 1999 between

Kellstrom, as assignor, and Willis Lease Finance Corporation (“Willis”), as

assignee, and (v) Engine Transfer Certificate dated April 6, 1999 between

Willis, as assignor, and WLFC Funding Corporation, as assignee, which MTU Lease

and attachments were recorded by the FAA on May 11, 1999 and assigned

Conveyance No. II014063.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following document, which was filed for recording with the

Federal Aviation Administration on this date, but has not yet been recorded, a

true and correct copy of which is attached hereto: Contribution and Sale

Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignment, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

779194

 

Aircraft Engine

Lease Agreement dated as of June 19, 1998 between Willis Lease Finance

Corporation (“Willis”), as lessor, and Air Jamaica Limited, as lessee, with

General Terms Engine Lease Agreement dated as of June 19, 1998, attached

thereto, which was recorded by the FAA on August 5, 1998, and assigned

Conveyance No. KK22899, as amended by Letter Amendment dated January 25, 1999,

which was recorded by the FAA on September 9, 1999, and assigned Conveyance No.

MM018466, as assigned and assumed under that certain Engine Transfer

Certificate dated as of August 27, 1999 between Willis, as seller, and WLFC

Funding Corporation, as issuer, which was recorded by the FAA on August 31,

1999 and assigned Conveyance No. II015208.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following document, which was filed for recording with

the Federal Aviation Administration on this date, but has not yet been

recorded, a true and correct copy of which is attached hereto: Contribution and

Sale Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignment, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

S2-5

 

Engine

779484

 

Aircraft Engine

Lease Agreement dated as of December 22, 1998 between Willis Lease Finance

Corporation (“Willis”), as lessor, and Flying Colours Airlines Limited (now JMC

Airlines Ltd.), as lessee, with General Terms Engine Lease Agreement dated as

of December 21, 1998 attached thereto, which was recorded by the FAA on January

4, 1999 and assigned Conveyance No. ZZ018400, as assigned and assumed by Engine

Transfer Certificate dated as of January 15, 1999 between Willis, as seller,

and WLFC Funding Corporation, as issuer, which was recorded by the FAA on May

10, 1999 and assigned Conveyance No. II014049.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following document, which was filed for recording with the

Federal Aviation Administration on this date, but has not yet been recorded, a

true and correct copy of which is attached hereto: Contribution and Sale

Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignment, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

733141

 

Engine Lease

Agreement dated as of August 21, 1998 (shown in the FAA records as dated August

31, 1998) between Willis Lease Finance Corporation (“Willis”), as lessor, and

Compagnie Nationale Air France, now Société Air France, as lessee, which was

recorded by the FAA on September 1, 1998 and assigned Conveyance No. T058245,

as assigned and assumed by that certain Engine Transfer Certificate dated as of

September 4, 1998 between Willis, as seller, and WLFC Funding Corporation, as

issuer, which was recorded by the FAA on November 5, 1998, and assigned

Conveyance No. SS010988, as amended by Amendment No. 1 dated August 18, 2000,

which was recorded by the FAA on October 25, 2000 and assigned Conveyance No.

T064666, and as further amended by Amendment No. 2 dated March 1, 2002, which

was recorded by the FAA on May 20, 2002 and assigned Conveyance No. M000687.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following document, which was filed for recording with

the Federal Aviation Administration on this date, but has not yet been

recorded, a true and correct copy of which is attached hereto: Contribution and

Sale Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignment, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

S2-6

 

Engine

725522

 

Aircraft Engine

Lease Agreement dated as of September 9, 1997 between Willis Lease Finance

Corporation (“Willis”), as lessor, and Jet Airways (India) Ltd., as lessee,

with General Terms Engine Lease Agreement dated as of July 1, 1997 attached

thereto, which was recorded by the FAA on December 5, 1997 and assigned

Conveyance No. Z02548, as assigned and assumed by Engine Transfer Certificate

dated as of December 19, 1997 between Willis, as seller, and WLFC Funding

Corporation, as issuer, which was recorded by the FAA on January 27, 1998 and

assigned Conveyance No. EE015340.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following document, which was filed for recording with

the Federal Aviation Administration on this date, but has not yet been

recorded, a true and correct copy of which is attached hereto: Contribution and

Sale Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignment, Willis

Engine Funding LLC is the current lessor under the above-described engine lease).

 

Engine

779542

 

Aircraft Engine

Lease Agreement dated as of July 29, 1998 between Willis Lease Finance

Corporation (“Willis”), as lessor, and Air 2000 Limited, as lessee, with

General Terms Engine Lease Agreement dated as of December 9, 1996 attached thereto,

which was recorded by the FAA on August 21, 1998 and assigned Conveyance No.

PP010544, as amended by Letter Amendment dated April 16, 1999, with Novation

Agreement dated April 16, 1999 among Willis, as assignor, WLFC Funding

Corporation, as assignee, and Air 2000 Limited attached, which was recorded by

the FAA on May 18, 1999 and assigned Conveyance No. K21295, as amended by Lease

Amendment dated September 17, 1999, which was recorded by the FAA on November

10, 1999 and assigned Conveyance No. JJ31856, and as further amended by Lease

Amendment dated March 30, 2000, which was recorded by the FAA on May 2, 2000

and assigned Conveyance No. SS014493.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following document, which was filed for recording with

the Federal Aviation Administration on this date, but has not yet been

recorded, a true and correct copy of which is attached hereto: Contribution and

Sale Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis Lease

Finance Corporation, as assignor, and Willis Engine Funding LLC, as assignee,

attached thereto (by virtue of the foregoing assignment, Willis Engine Funding

LLC is the current lessor under the above-described engine lease).

 

S2-7

 

Engine

716779

 

Aircraft Engine

Lease Agreement dated as of October 17, 2001 between WLFC Funding Corporation,

as lessor, and Vanguard Airlines, as lessee, with General Terms Engine Lease

Agreement dated as of October 17, 2001 attached thereto, which was recorded by

the FAA on November 5, 2001 and assigned Conveyance No. XX019451.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following document, which was filed for recording with

the Federal Aviation Administration on this date, but has not yet been

recorded, a true and correct copy of which is attached hereto: Contribution and

Sale Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignment, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

741551

 

Aircraft Engine

Lease Agreement dated as of May 14, 1998 (the “Virgin Lease”) between Willis

Lease Finance Corporation (“Willis”) as lessor, and Virgin Atlantic Airways

Ltd., as lessee, with the following attached thereto: (i) General Terms Engine

Lease Agreement dated as of May 14, 1998, and (ii) Engine Transfer Certificate

dated as of May 14, 1998 between Willis, as seller, and WLFC Funding

Corporation, as issuer, which Virgin Lease and attachments were recorded by the

FAA on June 16, 1998 and assigned Conveyance No. EE016577 (the Engine Transfer

Certificate was recorded separately by the FAA on June 16, 1998 and assigned

Conveyance No. EE016578).

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following document, which was filed for recording with

the Federal Aviation Administration on this date, but has not yet been

recorded, a true and correct copy of which is attached hereto: Contribution and

Sale Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignment, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

222108

 

Aircraft Engine

Lease Agreement dated as of December 1, 2000 between Willis Lease Finance

Corporation (“Willis”), as lessor, and WLFC (Ireland) Limited (“WLFCI”), as

lessee, with General Terms Engine Lease Agreement dated as of November 29, 2000

attached thereto, which was recorded by the FAA on January 26, 2001 and assigned

Conveyance No. TT014464, as assigned by Assignment and Bill of Sale dated

as of May 31, 2001 between Willis, as assignor, and Wells Fargo Bank Northwest,

National Association, as owner trustee, as

 

S2-8

 

assignee, which

was recorded by the FAA on June 13, 2001 and assigned Conveyance No. JJ37092,

as assigned and assumed by Deed of Novation dated June 6, 2002 among WLFCI, as

assignor, WLFC Funding (Ireland) Limited, as assignee, and the owner trustee,

which was recorded by the FAA on June 18, 2002 and assigned Conveyance No.

NN023493.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignments, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

Engine

718035

 

Engine Lease

Agreement dated January 7, 1992 (the “Avianca Lease”) between GPA Group plc

(“GPA”), as lessor, and Aerovias Nacionales de Colombia S.A. Avianca

(“Avianca”), as lessee, with the following attached thereto: (i) Engine Lease

Assignment, Assumption and Amendment Agreement dated September 30, 1997 between

GPA as assignor, T-10 Inc. as assignee, and Avianca as lessee, and (ii) Second

Engine Lease Assignment, Assumption and Amendment Agreement dated August 2,

2001 among T-10 Inc. as assignor, Wells Fargo Bank Northwest, National

Association, as owner trustee, as assignee, and Avianca as lessee; which

Avianca Lease and attachments were recorded by the FAA on January 25, 2002 and

assigned Conveyance No. W000315.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

S2-9

 

Engine

718064

 

Engine Lease

Agreement dated January 7, 1992 (the “Avianca Lease”) between GPA Group plc

(“GPA”), as lessor, and Aerovias Nacionales de Colombia S.A. Avianca

(“Avianca”), as lessee, with the following attached thereto: (i) Engine Lease

Assignment, Assumption and Amendment Agreement dated September 30, 1997 between

GPA as assignor, T-10 Inc. as assignee, and Avianca as lessee, and (ii) Second

Engine Lease Assignment, Assumption and Amendment Agreement dated August 2,

2001 among T-10 Inc. as assignor, Wells Fargo Bank Northwest, National

Association, as owner trustee, as assignee, and Avianca as lessee; which

Avianca Lease and attachments were recorded by the FAA on January 25, 2002 and

assigned Conveyance No. W000317.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by virtue

of the foregoing assignments, Willis Engine Funding LLC is the current lessor

under the above-described engine lease).

 

Engine

858327

 

Aircraft Engine

Lease Agreement dated as of August 1, 2002 between Wells Fargo Bank Northwest,

National Association, as owner trustee, as lessor, and Frontier Airlines, Inc.,

as lessee, with General Terms Engine Lease Agreement dated as of August 1, 2002

attached thereto, which was recorded by the FAA on August 28, 2002 and assigned

Conveyance No. XX021974.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignments, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

S2-10

 

Engine

740342

 

Aircraft Engine

Lease Agreement dated as of May 3, 2001 between Wells Fargo Bank Northwest, National

Association, formerly First Security Bank, National Association, as owner

trustee, as lessor, and Gulf Air Company G.S.C., as lessee, with General Terms

Engine Lease Agreement dated March 28, 2001 attached thereto, which was

recorded by the FAA on May  7, 2001 and assigned Conveyance No. Q67587.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

Engine

741414

 

Aircraft Engine

Lease Agreement dated as of May 3, 2001 between Wells Fargo Bank Northwest, National

Association, formerly First Security Bank, National Association, as owner

trustee, as lessor, and Gulf Air Company G.S.C., as lessee, with General Terms

Engine Lease Agreement dated March 28, 2001 attached thereto, which was

recorded by the FAA on May  7, 2001 and assigned Conveyance No. Q67589.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

Engine

721877

 

Aircraft Engine

Lease Agreement dated as of May 21, 2002 between Wells Fargo Bank Northwest, National

Association, as owner trustee, as lessor, and Hainan Airlines, as

 

S2-11

 

lessee, with

General Terms Engine Lease Agreement dated May 21, 2002 attached thereto, which

was recorded by the FAA on May 31, 2002 and assigned Conveyance No. K034326.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

Engine

858839

 

Aircraft Engine

Lease Agreement dated as of May 21, 2002 between Wells Fargo Bank Northwest, National

Association, as owner trustee, as lessor, and Hainan Airlines, as lessee, with

General Terms Engine Lease Agreement dated May 21, 2002 attached thereto, which

was recorded by the FAA on May 31, 2002 and assigned Conveyance No. K034324.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

Engine

727393

 

Aircraft Engine

Lease Agreement dated as of April 13, 2002 between Wells Fargo Bank Northwest,

National Association, as owner trustee, as lessor, and Hawaiian Airlines, Inc.,

as lessee, with General Terms Engine Lease Agreement dated as of April 13, 2002

attached thereto, which was recorded by the FAA on April 17, 2002 and assigned

Conveyance No. S118700.

 

S2-12

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignments, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

Engine

731813

 

Aircraft Engine

Lease Agreement dated as of December 19, 2001 between Wells Fargo Bank

Northwest, National Association, as owner trustee, as lessor, and International

Lease Finance Corporation, as lessee, with General Terms Engine Lease Agreement

dated as of December 18, 2001 attached thereto, which was recorded by the FAA

on December 21, 2001 and assigned Conveyance No. K032713, as amended by Letter

Amendment dated April 19, 2002, which was recorded by the FAA on May 20, 2002

and assigned Conveyance No. II0025289, as amended by Letter Amendment dated as

of July 15, 2002, which was recorded by the FAA on August 2, 2002 and assigned

Conveyance No. ZZ027761.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignments, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

Engine

727340

 

Aircraft Engine

Lease Agreement dated as of November 7, 2001 between Wells Fargo Bank

Northwest, National Association, as owner trustee, as lessor, and Lan Chile

S.A., as lessee, with General Terms Engine Lease Agreement dated November 7,

2001 attached thereto, which was recorded by the FAA on December 5, 2001 and

assigned Conveyance No. UU032267.

 

S2-13

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but solely

as owner trustee, as assignor, and WLFC Funding Corporation, as assignee, and

(ii) Contribution and Sale Agreement dated as of September 12, 2002 between

Willis Lease Finance Corporation (as successor by merger to WLFC Funding

Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

Engine

528113

 

Aircraft Engine

Lease Agreement dated as of January 21, 2000 between Willis Lease Finance

Corporation (“Willis”), as lessor, and MNG Havayollari Ve Tasimacilik Anonim

Sirketi, as lessee, with General Terms Engine Lease Agreement dated as of

January 21, 2000 attached thereto, which was recorded by the FAA on February

25, 2000 and assigned Conveyance No. QQ020822, as assigned by Assignment and

Bill of Sale dated as of March 24, 2000 between Willis, as assignor, and First

Security Bank, National Association, now Wells Fargo Bank Northwest, National

Association, as owner trustee, as assignee, which was recorded by the FAA on

June 27, 2000 and assigned Conveyance No. XX015520, as amended by Letter

Amendment dated May 2, 2000, which was recorded by the FAA on May 23, 2000 and

assigned Conveyance No. K25712, as amended by Letter Amendment dated July 22,

2000, which was recorded by the FAA on August 3, 2000 and assigned Conveyance

No. C39536, and as further amended by Letter Amendment dated December 20, 2001,

which was recorded by the FAA on December 31, 2001 and assigned Conveyance No.

BB036299.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

S2-14

 

Engine

858788

 

Aircraft Engine

Lease Agreement dated as of March 16, 1998 (the “Rio-Sul Lease”) between Willis

Lease Finance Corporation (“Willis”), as lessor, and Rio-Sul Servicos Aereos

Regionais S.A., as lessee, with the following attached thereto: (i) General

Terms Engine Lease Agreement dated as of February 27, 1998, and (ii) Engine

Transfer Certificate dated as of March 16, 1998, between Willis, as seller, and

WLFC Funding Corporation, as issuer, which Rio-Sul Lease and attachments were

recorded by the FAA on March 31, 1998 and assigned Conveyance No. H93122, as

assigned by Assignment and Bill of Sale dated as of June 12, 2002 between WLFC

Funding Corporation, as assignor, and Wells Fargo Bank Northwest, National

Association, as owner trustee, as assignee, which was recorded by the FAA on

July 23, 2002 and assigned Conveyance No. W000961.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignments, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

Engine

858789

 

Aircraft Engine

Lease Agreement dated as of March 16, 1998 (the “Rio-Sul Lease”) between Willis

Lease Finance Corporation (“Willis”), as lessor, and Rio-Sul Servicos Aereos

Regionais S.A. (“Rio-Sul”), as lessee, with the following attached thereto: (i)

General Terms Engine Lease Agreement dated as of February 27, 1998, and (ii)

Engine Transfer Certificate dated as of March 16, 1998 between Willis, as

seller, and WLFC Funding Corporation, as issuer, which Rio-Sul Lease and

attachments were recorded by the FAA on March 31, 1998 and assigned Conveyance

No. H93123, as assigned and assumed by Assignment and Bill of Sale dated

as of June 12, 2002 between WLFC Funding Corporation, as assignor, and Wells

Fargo Bank Northwest, National Association, as owner trustee, as assignee,

which was recorded by the FAA on July 23, 2002 and assigned Conveyance No.

W000964.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding

 

S2-15

 

Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignments, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

727057

 

Aircraft Engine

Lease Agreement dated as of June 18, 1998 between Willis Lease Finance

Corporation (“Willis”), as lessor, and Shanghai Airlines, as lessee, with

General Terms Engine Lease Agreement dated as of April 29, 1998 attached

thereto, which was recorded by the FAA on August 5, 1998 and assigned

Conveyance No. KK22897, as assigned by Assignment and Bill of Sale dated as of

May 22, 2001 between Willis, as assignor, and Wells Fargo Bank Northwest,

National Association, as owner trustee, as assignee, with Joinder and Amendment

Agreement dated May 22, 2000 attached thereto, which was recorded by the FAA on

June 14, 2001 and assigned Conveyance No. KK028508.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

Engine

733163

 

Aircraft Engine

Lease Agreement dated as of March 22, 2002 between Wells Fargo Bank Northwest,

National Association, as owner trustee, as lessor, and Snecma Services S.A., as

lessee, with General Terms Engine Lease Agreement dated March 22, 2002 attached

thereto, which was recorded by the FAA on April 9, 2002 and assigned Conveyance

No. JJ40857.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First Transfer

Master Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this

date, between Wells Fargo Bank Northwest, National Association, not individual

but solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine

 

S2-16

 

and Beneficial Interest Transfer Certificate dated this date between

Willis Lease Finance Corporation, as assignor, and Willis Engine Funding LLC,

as assignee, attached thereto (by virtue of the foregoing assignments, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

728154

 

Aircraft Engine

Lease Agreement dated as of March 7, 2001 between First Security Bank, National

Association, now Wells Fargo Bank Northwest, National Association, as owner

trustee, as lessor, and Spanair S.A., as lessee, with General Terms Engine

Lease Agreement dated March 7, 2001 attached thereto, which was recorded by the

FAA on March 22, 2001 and assigned Conveyance No. H101539.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as issuer/assignee,

with Engine and Beneficial Interest Transfer Certificate dated this date

between Willis Lease Finance Corporation, as assignor, and Willis Engine

Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

Engine

733438

 

Aircraft Engine

Lease Agreement dated as of November 29, 2000 between First Security Bank,

National Association, now Wells Fargo Bank Northwest, National Association, as

owner trustee, as lessor, and SR Technics AG, as lessee, with General Terms

Engine Lease Agreement dated November 29, 2000 attached thereto, which was

recorded by the FAA on February 1, 2001 and assigned Conveyance No. HK020200.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by

 

S2-17

 

virtue of the foregoing assignments, Willis Engine Funding LLC is the

current lessor under the above-described engine lease).

 

Engine

733471

 

Aircraft Engine

Lease Agreement dated as of November 29, 2000 between First Security Bank,

National Association, now Wells Fargo Bank Northwest, National Association, as

owner trustee, as lessor, and SR Technics AG, as lessee, with General Terms

Engine Lease Agreement dated November 29, 2000 attached thereto, which was

recorded by the FAA on May 7, 2001 and assigned Conveyance No. H101988.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignments, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

Engine

733172

 

Aircraft Engine

Lease Agreement dated as of September 2, 2002 between Wells Fargo Bank

Northwest, National Association, as owner trustee, as lessor, and Gulf Aircraft

Maintenance Company, as lessee, with General Terms Engine Lease Agreement dated

as of August 12, 2002 attached thereto, which was recorded by the FAA on

September 6, 2002 and assigned Conveyance No. J001573.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [WLFC] dated this date,

between Wells Fargo Bank Northwest, National Association, not individual but

solely as owner trustee, as assignor, and WLFC Funding Corporation, as

assignee, and (ii) Contribution and Sale Agreement dated as of September 12,

2002 between Willis Lease Finance Corporation (as successor by merger to WLFC

Funding Corporation), as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

S2-18

 

Engine

718262

 

Aircraft Engine

Lease Agreement dated as of July 23, 2002 between Wells Fargo Bank Northwest,

National Association, as owner trustee, as lessor, and Vanguard Airlines, as

lessee, with General Terms Engine Lease Agreement dated July 23, 2002 attached

thereto, which was recorded by the FAA on August 9, 2002 and assigned Conveyance

No. CC016158.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignments, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

Engine

724721

 

Aircraft Engine

Lease Agreement dated as of November 29, 2000 between Willis Lease Finance

Corporation (“Willis”), as lessor, and WLFC (Ireland) Limited (“WLFCI”), as

lessee, with General Terms Engine Lease Agreement dated as of November 29, 2000

attached thereto, which was recorded by the FAA on January 5, 2001 and assigned

Conveyance No. YY030445, as assigned by Assignment and Bill of Sale dated

as of May 31, 2001 between Willis, as assignor, and Wells Fargo Bank Northwest,

National Association, as owner trustee, as assignee, which was recorded by the

FAA on June 14, 2001 and assigned Conveyance No. JJ37144, as assigned by Deed

of Novation dated June 6, 2002 among WLFCI, as assignor, WLFC Funding (Ireland)

Limited, as assignee, and the owner trustee, which was recorded by the FAA on

June 27, 2002 and assigned Conveyance No. TT016885.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignments, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

S2-19

 

Engine

733186

 

Aircraft Engine

Lease Agreement dated as of March 9, 2001 (the “SNECMA Lease”) between WLFC

Funding Corporation, as lessor, and SNECMA Services S.A. (“SNECMA”), as lessee,

with the following attached thereto: 

(i) General Terms Engine Lease Agreement dated September 11, 1999

between Willis Lease Finance Corporation (“Willis”), as lessor, and SNECMA, as

lessee, (ii) Assignment dated as of March 9, 2001 between Willis, as assignor,

and WLFC Funding Corporation, as assignee, which SNECMA Lease and attachments

were recorded by the FAA on April 20, 2001 and assigned Conveyance No. L73991,

as amended by Letter Amendment dated January 7, 2002 between WLFC Funding

Corporation, as lessor, and SNECMA, as lessee, which was recorded by the FAA on

February 2, 2002 and assigned Conveyance No. T068730.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed pursuant

to the following document, which was filed for recording with the Federal

Aviation Administration on this date, but has not yet been recorded, a true and

correct copy of which is attached hereto: Contribution and Sale Agreement dated

as of September 12, 2002 between Willis Lease Finance Corporation (as successor

by merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignment, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

Engine

731570

 

Aircraft Engine

Lease Agreement dated as of August 26, 2002 between Wells Fargo Bank Northwest,

National Association, as owner trustee, as lessor, and Gulf Aircraft

Maintenance Company, as lessee, with General Terms Engine Lease Agreement dated

August 12, 2002 attached thereto, which was recorded by the FAA on August 28,

2002 and assigned Conveyance No. XX021984.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation (as successor by

merger to WLFC Funding Corporation), as seller/assignor, and Willis Engine

Funding LLC, as issuer/assignee, with Engine and Beneficial Interest Transfer

Certificate dated this date between Willis Lease Finance Corporation, as

assignor, and Willis Engine Funding LLC, as assignee, attached thereto (by

virtue of the foregoing assignments, Willis Engine Funding LLC is the current

lessor under the above-described engine lease).

 

S2-20

 

Engine

716430

 

Aircraft Engine

Lease Agreement dated July 19, 2001 (the “TWA Lease”) between Kellstrom

Industries, Inc., as lessor, and TWA Airlines LLC (“TWA”), as lessee, with the

following attached thereto:  (i) Engine

Lease General Terms Agreement dated as of June 28, 2001, and (ii) Assignment

and Assumption of Lease and Purchase and Sale of Engine Agreement dated as of

July 31, 2001 among Kellstrom Industries, Inc., as assignor, Willis Lease

Finance Corporation, as beneficiary, and Wells Fargo Bank Northwest, National

Association, as owner trustee, as assignee, which TWA Lease and attachments

were recorded by the FAA on October 1, 2001 and assigned Conveyance No. L75041.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [Willis]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and Willis Lease Finance

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation, as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignments, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

733175

 

Aircraft Engine

Lease Agreement dated as of December 1, 2000 between Willis Lease Finance

Corporation, as lessor, and WLFC (Ireland) Limited, as lessee, with General

Terms Engine Lease Agreement dated as of November 29, 2000 attached thereto,

which was recorded by the FAA on February 26, 2001 and assigned Conveyance No.

I067517, as amended by Letter Amendment dated May 23, 2001 which was recorded

by the FAA on July 5, 2001 and assigned Conveyance No. HK021663, as

assigned and assumed by Assignment and Bill of Sale dated as of December 21,

2001 between Willis Lease Finance Corporation, as assignor, and Wells Fargo

Bank Northwest, National Association, as owner trustee, as assignee, which was

recorded by the FAA on January 28, 2002 and assigned Conveyance No. FF33661,

and as further assigned and assumed by Deed of Novation dated June 6, 2002

among WLFC (Ireland) Limited as assignor, WLFC Funding (Ireland) Limited as

assignee, and Wells Fargo Bank Northwest, National Association, as lessor,

which was recorded by the FAA on June 18, 2002 and assigned Conveyance No.

NN023496.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [WLFC]

dated this date, between Wells Fargo Bank Northwest,

 

S2-21

 

National Association, not individual but solely as owner trustee, as

assignor, and WLFC Funding Corporation, as assignee, and (ii) Contribution and

Sale Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation (as successor by merger to WLFC Funding Corporation), as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignments, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

704638

 

Aircraft Engine

Lease Agreement dated as of March 16, 1998 between Willis Lease Finance

Corporation, as lessor, and “VARIG”, S.A. (Viacao Aerea Rio-Grandense), as

lessee, with General Terms Engine Lease Agreement dated as of February 27, 1998

attached thereto, which was recorded by the FAA on June 30, 1998 and assigned

Conveyance No. H94205, as assigned and assumed by Assignment and Bill of

Sale dated as of December 4, 2001 between Willis Lease Finance Corporation, as

assignor, and Wells Fargo Bank Northwest, National Association, as owner

trustee, as assignee, which was recorded by the FAA on January 11, 2002 and

assigned Conveyance No. I069446.

 

The foregoing

engine lease, as assigned, assumed and/or amended, has been assigned and

assumed pursuant to the following documents, which were filed for recording

with the Federal Aviation Administration on this date, but have not yet been

recorded, true and correct copies of which are attached hereto: (i) First

Transfer Master Assignment and Assumption Agreement and Bill of Sale [Willis]

dated this date, between Wells Fargo Bank Northwest, National Association, not

individual but solely as owner trustee, as assignor, and WLFC Funding

Corporation, as assignee, and (ii) Contribution and Sale Agreement dated as of

September 12, 2002 between Willis Lease Finance Corporation, as

seller/assignor, and Willis Engine Funding LLC, as issuer/assignee, with Engine

and Beneficial Interest Transfer Certificate dated this date between Willis

Lease Finance Corporation, as assignor, and Willis Engine Funding LLC, as

assignee, attached thereto (by virtue of the foregoing assignments, Willis

Engine Funding LLC is the current lessor under the above-described engine

lease).

 

Engine

728173

 

Aircraft Engine

Lease Agreement dated as of November 16, 2001 between Wells Fargo Bank

Northwest, National Association, as owner trustee, as lessor, and Spirit

Airlines, Inc., as lessee, with General Terms Engine Lease Agreement dated

November 4, 2001 attached thereto, which was recorded by the FAA on December 4,

2001 and assigned Conveyance No. SS017842.

 

The foregoing engine

lease, as assigned, assumed and/or amended, has been assigned and assumed

pursuant to the following documents, which were filed for recording with the

Federal Aviation Administration on this date, but have not yet been recorded,

true and correct copies of which are attached hereto: (i) First Transfer Master

Assignment and Assumption Agreement and Bill of Sale [Willis] dated this date,

between Wells Fargo Bank Northwest,

 

S2-22

 

National Association, not individual but solely as owner trustee, as

assignor, and WLFC Funding Corporation, as assignee, and (ii) Contribution and

Sale Agreement dated as of September 12, 2002 between Willis Lease Finance

Corporation, as seller/assignor, and Willis Engine Funding LLC, as

issuer/assignee, with Engine and Beneficial Interest Transfer Certificate dated

this date between Willis Lease Finance Corporation, as assignor, and Willis

Engine Funding LLC, as assignee, attached thereto (by virtue of the foregoing

assignments, Willis Engine Funding LLC is the current lessor under the

above-described engine lease).

 

Engine

20001

 

None

 

Engine

20267

 

None

 

Engine

575283

 

None

 

S2-23

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