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Exhibit 10.21  

 
 

THIRD AMENDMENT TO
  NOTE PURCHASE AGREEMENT    
  

    THIS THIRD AMENDMENT TO NOTE PURCHASE AGREEMENT, dated as of February 7, 2001 (this "Third Amendment"), is entered into by and among WLFC FUNDING
CORPORATION, as issuer (the "Issuer"), WILLIS LEASE FINANCE CORPORATION, as servicer (the "Servicer"), VARIABLE FUNDING CAPITAL CORPORATION, as a purchaser ("VFCC"), the Investors, FIRST UNION
SECURITIES, INC. (f/k/a First Union Capital Markets Corp.), as deal agent (the "Deal Agent") and FIRST UNION NATIONAL BANK, as liquidity agent ("FUNB"). Capitalized terms used and not otherwise
defined herein are used as defined in the Agreement (as defined below). 

    WHEREAS,
the parties hereto entered into that certain Note Purchase Agreement, dated as February 11, 1999, as amended by the First Amendment, dated as of May 12, 1999,
and a Second Amendment, dated as of February 9, 2000 (the "Agreement"); and 

    WHEREAS,
the parties hereto desire to amend the Agreement in certain respects as provided herein; 

    NOW
THEREFORE, in consideration of the premises and the other mutual covenants contained herein, the parties hereto agree as follows: 

    SECTION
1.  Amendments.  

	(a)
	The
definition of "Commitment Termination Date" in Section 1.1 of the Agreement is hereby modified, amended and restated to read in its entirety as follows: 

"Commitment Termination Date: February 6, 2002 or such later date to which the Commitment Termination Date may be extended (if extended) in the
sole discretion of the Purchasers in accordance with the terms of Section 2.3(b)." 

	(2)
	The
following definition is hereby added in its entirety to Section 1.1 of the Agreement: 

"Third Amendment Date: The date on which the Third Amendment to the Agreement shall become effective." 

	(c)
	The
first sentence of Section 2.1 of the Agreement is hereby amended and restated to read in its entirety as follows: 

"On
the basis of the representations and warranties and subject to the terms and conditions herein set forth, the Issuer agrees to deliver to the Deal Agent on behalf of the Purchasers on the Third
Amendment Date, the Class A Note with a maximum principal amount of $180,000,000, which Class A Note shall be duly executed by the Issuer, duly authenticated by the Indenture Trustee and
registered in the name of the Deal Agent on behalf of the Purchasers." 

    SECTION
2.  Agreement in Full Force and Effect as Amended.  Except as specifically amended hereby, the
Agreement shall remain in full force and effect. All references to the agreement shall not constitute a novation of the Agreement, but shall constitute an amendment thereof. The parties hereto agree
to be bound by the terms and conditions of the Agreement, as amended by this Third Amendment, as though such terms and conditions were set forth herein. 

21

 

    SECTION 3.  Miscellaneous.  

    (a) This
Third Amendment may be executed in any number of counterparts, and by the different parties hereto on the same or separate counterparts, each of which shall be
deemed to be an original instrument but all of which together shall constitute one and the same agreement. 

    (b) The
descriptive headings of the various sections of this Third Amendment are inserted for convenience of reference only and shall not be deemed to affect the
meaning or construction of any of the provisions hereof. 

    (c) This
Third Amendment may not be amended or otherwise modified except as provided in the Agreement. 

    (d) THIS THIRD AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS.

[Remainder
of Page Intentionally left Blank] 

22

 

    IN WITNESS WHEREOF, the parties have caused this Third Amendment to the Agreement to be executed by their respective officers thereunto
duly authorized as, of the date first above written. 

	THE ISSUER:	 	WLFC FUNDING CORPORATION
	

 	
 	

By:	
 	

/s/ NICHOLAS J. NOVASIC   

	 	 	Title:	 	Chief Financial Officer
	

THE SERVICER:	
 	
WILLIS LEASE FINANCE CORPORATION
	

 	
 	

By:	
 	

/s/ NICHOLAS J. NOVASIC   

	 	 	Title:	 	Chief Financial Officer
	

THE INVESTOR:	
 	
FIRST UNION NATIONAL BANK
	

 	
 	

By:	
 	

/s/ BILL A. SHIRLEY   

	 	 	Title:	 	Senior Vice President
	

 	
 	

 	
 	

First Union National Bank

One First Union Center, TW-9

Charlotte, North Carolina 28288

Attention: Credit Administration

Facsimile No.: (704) 374-6355

Confirmation No.: (704) 374-4001
	

VFCC:	
 	
VARIABLE FUNDING CAPITAL CORPORATION
	

 	
 	

By:	
 	
FIRST UNION SECURITIES, INC.,

as attorney-in-fact
	

 	
 	

By:	
 	
DOUGLAS R. WILSON, SR.

	 	 	Title:	 	Vice President
	

 	
 	

 	
 	

Variable Funding Capital Corporation

c/o First Union Securities, Inc.

One First Union Center, TW-9

Attention: Conduit Administration

Facsimile No.: (704) 383-6036

Confirmation No.: (704) 383-9343

23

 

	

                        with a copy to:	
 	

 	
 	

Lord Securities Corp.

2 Wall Street, 19th Floor

New York, New York

Attention: Vice President

Facsimile No.: (212) 346-9012

Confirmation No.: (212) 346-9008
	

THE DEAL AGENT:	
 	
FIRST UNION SECURITIES, INC.
	

 	
 	

By:	
 	

/s/ LEAH W. FORSTNER   

	 	 	Title:	 	Director
	

 	
 	

 	
 	

First Union Securities, Inc.

One First Union Center, TW-9

Charlotte, North Carolina 28288

Attention: Conduit Administration

Facsimile No.: (704) 383-6036

Telephone No.: (704) 383-9343
	

THE LIQUIDITY AGENT:	
 	
FIRST UNION NATIONAL BANK
	

 	
 	

By:	
 	

/s/ BILL A. SHIRLEY   

	 	 	Title:	 	Senior Vice President
	

 	
 	

 	
 	

First Union National Bank

One First Union Center, TW-9

Charlotte, North Carolina 28288

Attention; Credit Administration

Facsimile No.: (704) 374-6355

Telephone No.: (704) 374-4001

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THIRD AMENDMENT TO NOTE PURCHASE AGREEMENTPrepared by MERRILL CORPORATION

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Exhibit 10.22  

 
 

THIRD AMENDMENT TO
  AMENDED AND RESTATED SERIES 1997-1(*)
  SUPPLEMENT    
  

    THIS THIRD AMENDMENT TO AMENDED AND RESTATED SERIES 1997-1 SUPPLEMENT, dated as of February 7, 2001 (this "Third Amendment"), is entered
into by and among WLFC FUNDING CORPORATION, as issuer (the "Issuer") and THE BANK OF NEW YORK, as indenture trustee (the "Indenture"). Capitalized terms used and not otherwise defined herein are used
as defined in the Supplement (as defined below). 

    WHEREAS,
the parties hereto entered into that certain Amended and Restated Series 1997-1 Supplement, dated as of February 11, 1999, as amended by the First
Amendment, dated as of May 12, 1999 and a Second Amendment dated as of February 9, 2000 (the "Supplement"); and 

    WHEREAS,
the parties hereto desire to amend the Supplement in certain respects as provided herein; 

    NOW
THEREFORE, in consideration of the premises and the other mutual covenants contained herein, the parties hereto agree as follows: 

 Amendments.  

    (1) The
definition of "Conversion Date" in Section 1.1 of the Supplement is hereby amended and restated to read in its entirety as follows: 

"Conversion Date" means the Payment Date occurring on February 6, 2002; provided, however, that
such Conversion Date may be extended annually by the Issuer for one year periods if approved by all of the Holders of the Class A Notes. 

    (2) Clause (1)
of the definition of "Eligible Engine" in Section 1.1 of the Supplement is modified to read in its entirety as follows: 

"(1)  Eligible Lease. Each Engine is subject to an Eligible Lease on the related Transfer Date; provided
that an Engine shall not be required to be subject to an Eligible Lease on the related Transfer Date so long as, after giving effect to the transfer of all Engines which are transferred on any
Transfer Date, the On-Lease Percentage of all Eligible Engines as of such Transfer Date shall not be less than the Applicable Percentage." 

    (3) The
definition of "Guaranty" in Section 1.1 of the Supplement is hereby amended and restated to read in its entirety as follows: 

"Guaranty" means the Third Amended and Restated Guaranty dated as of February 7, 2001 made by the Guarantor in favor of FUNB, together with its
successors and assigns. 

	(*)
	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 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. 

25

 

    (4) The
definition of "Issuer Fee Letter" in Section 1.1 of the Supplement is hereby amended and restated to read in its entirety as follows: 

"Issuer Fee Letter" means the Second Amended and Restated Issuer Fee Letter, dated as of February 7, 2001, between the Issuer and the Deal Agent. 

    (5) The
following definition is hereby added in its entirety to Section 1.1 of the Supplement: 

"Revolving Credit Agreement" means that certain Amended and Restated Credit Agreement, dated as of February 10, 2000, as amended and supplemented
from time to time, entered into by and among Willis Lease Finance Corporation, a Delaware corporation (successor by merger to Willis Lease Finance Corporation, a California corporation), the banking
institutions signatories thereto and named in Exhibit A attached thereto and such other institutions that become a "Bank" pursuant to Section 11.4 thereof, First Union National Bank, a national
banking association, as Co-Arranger and as Administrative Agent for the Banks under the Revolving Credit Agreement, Banc of America Securities LLC, (formerly NationsBanc Montgomery
Securities LLC) as Co-Arranger and Syndication Agent, and Bank of America, N.A., (formerly NationsBank, N.A.) a national banking association, as Appraisal Agent. 

    (6) The
following definition is hereby added in its entirety to Section 1.1 of the Supplement: 

"SRT" means SR Technics Switzerland, a Swiss corporation. 

    (7) The
following definition is hereby added in its entirety to Section 1.1 of the Supplement: 

"Third Amendment Date" shall mean the date on which the Third Amendment to this Supplement shall become effective. 

    (8) Section 4.7
of the Supplement is hereby amended and restated to read in its entirety as follows: 

"Section 4.7  Lessee Acknowledgment.

    Within
90 days of the Closing Date or 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 C." 

    (9) Section 5.2(m)
of the Supplement is hereby amended and restated to read in its entirety as follows: 

"Lessee Acknowledgment. The Lessee under the Lease Agreement relating to an Engine, if any, shall have received a written agreement for such Lessee's
signature, substantially in the form attached hereto as Exhibit C." 

   (10) Section 5.2(n)
of the Supplement is hereby deleted in its entirety. 

   (11) Section 5.2(s)
of the Supplement is hereby amended and restated to read in its entirety as follows: 

"Concentration of Engines for Wide Body Aircraft. After giving effect to the transfer of all Engines which are transferred on any Transfer Date, 

	(i)
	the
sum of the Net Book Values of all Eligible Engines designed to power Wide Body Aircraft (excluding such Eligible Engines which are
on-lease to SRT) shall not exceed an amount equal to the product of (A) the Wide Body Aircraft Percentage and (B) the Aggregate Net Book Value and 

26

 

	(ii)
	the
sum of the Net Book Values of all Eligible Engines designed to power Wide Body Aircraft (including such Eligible Engines which are
on-lease to SRT) shall not exceed the product of (A)       percent (  %)(*) and (B) the Aggregate Net Book Value." 

   (12) Section 5.2(x) of
the Supplement is hereby deleted in its entirety. 

   (13) Section 5.2(y)
of the Supplement is hereby amended and restated to read in its entirety as follows: 

"PW4000 Engines. No PW4000 Series engine with a 94" fan (PW4052-PW4062) (or Beneficial Interest in any Owner Trust which owns such Engine)
may be transferred on any Transfer Date if such Engine has more than 800 cycles since the last high pressure compressor maintenance." 

   (14) Section 7.1(8)
of the Supplement is hereby amended and restated to read in its entirety as follows: 

	(8)
	Outstandings
exceed(*) of the aggregate Appraised Values of each Eligible Engine. 

   (15) Exhibit C
to the Supplement is deleted and Exhibit C to this Third Amendment is substituted in place thereof. 

   (16) Schedule 1
to the Supplement is deleted and Schedule 1 to this Third Amendment is substituted in place thereof. 

    Supplement in Full Force and Effect as Amended.  Except as specifically amended hereby, the Supplement shall remain in
full force and effect. All references to the Supplement shall be deemed to mean the Supplement as modified hereby. This Third Amendment shall not constitute a novation of the Supplement, but shall
constitute an amendment thereof. The parties hereto agree to be bound by the terms and conditions of the Supplement, as amended by this Third Amendment, as though such terms and conditions were set
forth herein. 

    Effectiveness of Third Amendment.  This Third Amendment shall become effective on the date (the "Third Amendment Date")
when all conditions set forth in Annex I hereto have been met. 

 Miscellaneous.  

    (17) This
Third Amendment may be executed in any number of counterparts, and by the different parties hereto on the same or separate counterparts, each of which shall
be deemed to be an original instrument but all of which together shall constitute one and the same agreement. 

    (18) The
descriptive headings of the various sections of this Third Amendment are inserted for convenience of reference only and shall not be deemed to affect the
meaning or construction of any of the provisions hereof. 

    (19) This
Third Amendment may not be amended or otherwise modified except as provided in the Supplement. 

    (20) THIS THIRD AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS.

    (21) First
Union Securities, Inc. certifies by acknowledgment hereof that it is the sole Noteholder. 

[Remainder
of Page Intentionally Left Blank] 

27

 

    IN WITNESS WHEREOF, the parties have caused this Third Amendment to the Amended and Restated Series 1997-1
Supplement to be executed by their respective officers thereunto duly authorized, as of the date first above written. 

	 	 	WLFC FUNDING CORPORATION
	

 	
 	

By:	
 	

/s/ Nicholas J. Novasic

	 	 	Name:	 	Nicholas J. Novasic
	 	 	Title:	 	Chief Financial Officer
	

 	
 	

THE BANK OF NEW YORK, as Indenture Trustee
	

 	
 	

By:	
 	

/s/ Mauro Palladino

	 	 	Name	 	Mauro Palladino
	 	 	Title:	 	Vice President
	

 	
 	

THE BANK OF NEW YORK, as Securities Intermediary
	

 	
 	

By:	
 	

/s/ Mauro Palladino

	 	 	Name:	 	Mauro Palladino
	 	 	Title:	 	Vice President

	Consented and agreed to:	 	 
	

FIRST UNION SECURITIES, INC.,	
 	

 
	 	 	as the sole Noteholder on

behalf of the Purchasers	 	 
	

By:	
 	

/s/ Leah W. Torstrick
	
 	

 
	Name:	 	Leah W. Torstrick	 	 
	Title:	 	Director	 	 

28

 
 
 

SCHEDULE 1    
  

Section 1: Definitions  

    "Applicable Percentage" means            percent (  %)(*). 

    "Class A Note Commitment" means an amount not to exceed $180,000,000.00, subject to the terms and conditions set forth herein,
100% of which is to be allocated between VFCC and the Investors (as defined in the Class A Note Purchase Agreement) as determined at any time by the Deal Agent in its sole discretion; provided,
however, that at no time shall the Class A Note Principal Balance exceed the Asset Base for this Series 1997-1. 

"Developed
Asia/Pacific Rim" means the following countries: Australia, Fiji, Hong Kong, Japan, New Zealand, 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
Africa/Middle East/Europe" means the following countries: Hungary, Poland, Bahrain, Israel, Qatar, South Africa and Turkey. 

"Emerging
Asia" means the following countries: China, Indonesia, Korea, Malaysia, Philippines and Thailand. 

"Emerging
Latin/South America" means the following countries: Argentina, Aruba, Brazil, Chile, Columbia, Jamaica and Mexico. 

"Emerging
Market" means Emerging Latin/South America, Emerging Asia and Emerging Africa/Middle East/Europe. 

    "Servicing Fee" means for any Payment Date an amount equal to the product of (x) five percent (5%) and (y) the aggregate
amount of Engine Revenues with respect to the Series 1997-1 Engines during the immediately preceding Collection Period. 

    "Single Lessee Percentage" means            percent (  %)(*); provided,
however that with respect to SRT as lessee, the Single Lessee Percentage shall mean            percent (  %)(*); provided,
further, 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. 

    "Target One Year Lease Expiry Concentration Percentage" means            percent (  %)(*). 

    "Target Two Year Lease Expiry Concentration Percentage" means            percent (  %)(*). 

    "Three Lessee Percentage" means            percent (  %)(*); provided,
however that if at any time when SRT is one of the three largest lessees with respect to aggregate Net Book Values then Three Lessee Percentage shall mean            
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 Deal Agent an amount equal to the product of (x) .075%, (y) one-fourth and (2) the Class A Note
Principal Balance. Such Administrative Agent 

29

 

Fee shall be payable on each quarterly Payment Date from amounts then on deposit in the Series 1997-1 Series Account in accordance with Section 3.02 of the Supplement. 

    Interest Rate Hedge Agreements.  Beginning on March 31, 1999, 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 1997-1 Notes. 

Section 3: Geographic Concentration Table.(*) 

    "Section 3:
Geographic Concentration Table" 

	Geographic Region
 
	 	Maximum Geographic Percentage

	Emerging Africa/Middle East/Europe	 	      %
	Emerging Asia	 	      %
	China	 	      %
	Developed Asia/Pacific Rim	 	      %
	Developed Europe	 	      %
	North America	 	      %
	Emerging Latin/South America	 	      %
	Emerging Markets	 	      %

30

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THIRD AMENDMENT TO AMENDED AND RESTATED SERIES 1997-1(*) SUPPLEMENT

SCHEDULE 1

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