Document:

Prepared by MerrillDirect

WILLIS
LEASE FINANCE CORPORATION

AND SUBSIDIARIES

 

Exhibit 10.23

FOURTH
AMENDMENT TO

AMENDED AND RESTATED SERIES 1997-1

SUPPLEMENT

             THIS FOURTH AMENDMENT TO AMENDED
AND RESTATED SERIES 1997-1 SUPPLEMENT, dated as of May 31, 2001 (this “Fourth
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
Trustee”).  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,
a Second Amendment, dated as of February 9, 2000 and a Third
Amendment, dated as of February 7, 2001 (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.

             (a)             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 Fourth Amended and
Restated Guaranty dated as of May 31, 2001 made by the Guarantor in favor of
FUNB, together with its successors and assigns as the same is amended,
restated, supplemented and modified from time to time.

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

“Fourth Amendment Date” shall mean the date
on which the Fourth Amendment to this Supplement shall become effective.

             (c)             The
definition of “Revolving Credit Agreement” in Section 1.1 of the Supplement is
hereby amended and restated to read in its entirety as follows:

“Revolving
Credit Agreement”
means that certain Credit Agreement, dated as of May 1, 2001, as
amended, restated, supplemented or modified from time to time, among Willis
Lease Finance Corporation, a Delaware corporation, certain banking institutions
named therein, National City Bank, as administrative agent, and Fortis Bank, as
security agent and structuring agent.

             (d)             The
definition of “Class A Note Commitment” in Schedule 1 to the Supplement is
hereby amended and restated to read in its entirety as follows:

"Class
A Note Commitment" means
an amount not to exceed $190,000,000.00, 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.

             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 Fourth 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 Fourth Amendment, as
though such terms and conditions were set forth herein.

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

             Miscellaneous.

             (1)             This
Fourth 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.

             (2)             The
descriptive headings of the various sections of this Fourth 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.

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

             (4)             THIS FOURTH 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.

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

[Remainder of Page Intentionally Left
Blank]

 

             IN WITNESS WHEREOF, the
parties have caused this Fourth 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/ SCOTT TEPPER
	 	Name 
  Scott Tepper
	 	Title:
	 	 
	 	 
	 	THE BANK OF NEW YORK, as Securities
  Intermediary
	 	 
	 	 
	 	By: /S/ SCOTT TEPPER
	 	Name 
  Scott Tepper
	 	Title:
	 	 

Consented and
agreed to:

FIRST UNION
SECURITIES, INC.,

as the sole Noteholder on

behalf of the Purchasers

By:  /S/LEAH W. FOSTRICK

Title: Managing Director

 

Consented and
agreed to:

FORTIS BANK
[NEDERLAND] N.V.,

as Control Party

By:   /S/ PRG ZAMAN

Title:

By:   /S/ MPA ZONDAG

Title:

 

WILLIS LEASE FINANCE
CORPORATION

AND SUBSIDIARIES

Annex
I

to

Fourth Amendment to Amended and

Restated Series 1997-1 Supplement

             Conditions to Effectiveness of
Fourth Amendment.  The effectiveness
of the Fourth Amendment to Amended and Restated Series 1997-1 Supplement to
which this Annex I is attached is subject to the satisfaction of the following
conditions:

(1)         All of the respective representations
and warranties of the Issuer and of Willis Lease Finance Corporation (“WLFC”),
under the Related Documents to which they are a party shall be true and correct
in all material respects as of the date made, and no event shall have occurred
which, with notice or the passage of time, or both would constitute an Event of
Default under the Indenture or an Early Amortization Event under the Indenture
and each of such Related Documents shall have been duly authorized, executed
and delivered by the Issuer and WLFC respectively to the Deal Agent and shall
be in full force and effect;

(2)         In-house counsel of WLFC shall have
delivered to the Deal Agent its written opinion, dated the Fourth Amendment
Date in form and substance satisfactory to the Deal Agent and the Purchasers.

(3)         Gibson, Dunn & Crutcher LLP,
counsel for WLFC and the Issuer, shall have delivered to the Deal Agent its
opinion, dated the Fourth Amendment Date, in form and substance satisfactory to
the Deal Agent and the Purchasers;

(4)         The Issuer shall have furnished to the
Deal Agent on the Fourth Amendment Date a certificate, dated the Fourth
Amendment Date, signed by an authorized officer, to the effect that:

	 	(a)	The representations and warranties made by the
  Issuer in the Related  Documents to
  which it is a party are true and correct in all material respects on the
  Fourth Amendment Date;

	 	(b)	The Issuer has complied with all of the
  agreements and satisfied all the conditions on its part to be performed or
  satisfied on or prior to the Fourth Amendment Date pursuant to the terms of
  the Related Documents to which it is a party; and

	 	(c)	The written information supplied by the Issuer
  to the Purchasers (other than projections and other estimates), taken as a
  whole, did not contain any untrue statement of a material fact, and any
  estimates or projections so supplied to the Purchasers were based on
  assumptions which the Issuer believed to be reasonable (except as otherwise
  disclosed therein).

(5)         WLFC shall have furnished to the Deal
Agent on the Fourth Amendment Date a certificate, dated the Fourth Amendment
Date, signed by an authorized officer, to the effect that;

	 	(a)	The representations and warranties made by
  WLFC in the Related Documents to which it is a party are true and correct in
  all material respects on the Fourth Amendment Date;

	 	(b)	WLFC has complied with all of the agreements and
  satisfied all the conditions on its part to be performed or satisfied on or
  prior to the Fourth Amendment Date pursuant to the terms of the Related
  Documents to which it is a party; and

	 	(c)	The written factual information supplied by
  WLFC to the Purchasers (other than projections and other estimates), taken as
  a whole, did not contain any untrue statement of a material fact in light of
  the circumstances under which they were made, and any estimates or
  projections so supplied to the Purchasers were based on assumptions which
  WLFC believed to be reasonable (except as otherwise disclosed therein);
				

 

(6)         Any taxes, fees and other governmental
charges which are due and payable prior to the Fourth Amendment Date by WLFC or
the Issuer in connection with the execution, delivery and performance of the
Related Documents to which they are a party shall have been paid at or prior to
the Fourth Amendment Date, as the case may be;

(7)         No fact or conditions shall exist under
applicable law or applicable regulations thereunder or interpretations thereof
by any regulatory authority which in the Purchaser’s reasonable opinion would
make it illegal for the Issuer to issue and sell the Class A Note or for the
Issuer or any of the other parties thereto to perform their respective
obligations under any Related Documents;

(8)         The Issuer, WLFC, the Purchasers and
the Indenture Trustee shall each have received a fully executed counterpart
original and any required conformed copies of all Related Documents delivered
at or prior to the Fourth Amendment Date;

(9)         All corporate, trust and other
proceedings in connection with the sale of the Class A Note and the
transactions contemplated hereby and all documents and certificates incident
thereto shall be satisfactory in form and substance to the Purchasers, and the
Purchaser shall have received such other documents and certificates incident to
such transaction as the Purchasers shall reasonably request;

(10)       The Purchasers or the Deal Agent shall
have received the following, in each case in form and substance satisfactory to
them;

	 	(a)	a copy of resolutions of the Board of
  Directors of the Issuer, certified by the Secretary or an Assistant Secretary
  of the Issuer as of the Fourth Amendment Date, duly authorizing the issuance,
  sale and delivery of the Class A Note in the aggregate principal amount of
  $190,000,000 by the Issuer and the execution, delivery and performance by the
  Issuer of the Related Documents to which it is a party and any other
  documents executed by or on behalf of the Issuer in connection with the
  transactions contemplated hereby; and an incumbency certificate of the Issuer
  as to the person or persons executing and delivering each such documents;

	 	(b)	a copy of resolutions of the Board of
  Directors of WLFC, certified by the Secretary or an Assistant Secretary of
  WLFC as of the Effective Date, duly authorizing the execution, delivery and
  performance by WLFC of the Related Documents to which it is a party and any
  other documents executed by or on behalf of WLFC in connection with the
  transactions contemplated hereby; and an incumbency certificate of WLFC as to
  the person or persons executing and delivering each such document; and

	 	(c)	such other documents and evidence with respect
  to WLFC, the Issuer and the Indenture Trustee as the Purchasers may
  reasonably request in order to establish the corporate existence and good
  standing of each thereof, the proper taking of all appropriate corporate
  proceedings in connection with the transactions contemplated hereby and the
  compliance with the conditions set forth herein.

 

(11)       No action or proceeding shall have been
instituted nor shall any governmental action be threatened before any court or
government agency nor shall any order, judgment or decree have been issued or
proposed to be issued by any court or governmental agency to set aside,
restrain, enjoin or prevent the performance of the Contribution and Sale
Agreement, the Indenture, the other Related Documents or any of the other
agreements or the transactions contemplated hereby;

(12)       All actions, approvals, consents,
waivers, exemptions, variances, franchises, orders, permits, authorization,
rights and licenses required to be taken, given or obtained by or from any
Federal, state or other governmental authority or agency, or by or from any
trustee or holder of any indebtedness or obligation of WLFC or the Issuer, or
that are necessary or, in the opinion of the Purchasers, advisable in
connection with the transactions contemplated herein shall have been delivered
to the Purchasers; and

(13)       The Deal Agent and the Issuer shall
furnish to the Indenture Trustee jointly a written statement stating that all
conditions precedent to this Annex I have been met.Prepared by MerrillDirect

EXHIBIT 10.24

CREDIT
AGREEMENT*

dated
as of May 1, 2001

among

WILLIS
LEASE FINANCE CORPORATION,

as Borrower

and

CERTAIN
BANKING INSTITUTIONS NAMED HEREIN

with

NATIONAL
CITY BANK,

as Administrative Agent,

FORTIS
BANK [NEDERLAND] N.V.,

as Structuring Agent

and

FORTIS
BANK [NEDERLAND] N.V.,

as Security Agent

 

             *           Portions
of the material in this Exhibit have been redacted pursuant to a request for
confidential treatment, and the redacted material has been filed seperately
with the Securities and Exchenge Commission (the "Commission").  An asterix has been placed in the precise
places in this Agreement where we have redacted information, and the asterix is
keyed to a legend which states that the material has been omitted pursuant to a
request for confidential treatment.

TABLE OF CONTENTS

	SECTION 1.
      CERTAIN DEFINITIONS
	 	 
	1.1	Definitions
	 	 
	1.2	Accounting Terms
	 	 
	1.3	Construction
	 	 
	SECTION 2.     THE CREDIT
	 	 
	2.1	The Revolving Loans
	 	(a)	Revolving Loans; Revolving Loan Commitment
	 	(b)	Interest Rate Options
	 	(c)	Maximum Loans Outstanding
	 	(d)	Minimum Loan Amount
	 	(e)	Prepayment and Reborrowing
	 	(f)	Revolving Loan Commitment Percentages
	 	(g)	Several Obligations
	 	 	 
	2.2	The Revolving Credit Notes
	 	 
	2.3	[Reserved]
	 	 
	2.4	Funding Procedures
	 	(a)	Request for Advance
	 	(b)	Actions by the Administrative Agent
	 	(c)	Availability of Funds
	 	(d)	Funding Assumptions
	 	(e)	Proceeds of Loan Being Repaid
	 	 	 
	2.5	Facility Fee; Extension Fee
	 	 
	2.6	Reduction
  or Termination of Revolving Loan Commitments
	 	(a)	Voluntary
	 	(b)	Revolving Loan Commitment Termination
	 	 	 
	2.7	Mandatory Prepayments
	 	 
	2.8	[Reserved]
	 	 
	2.9	Payment of Additional
  Amount
	 	 
	2.10	Interest
	 	(a)	Base Rate Loans
	 	(b)	LIBO Rate Loans

 

	 	(c)	Conversion to Base Rate
	 	(d)	Renewals and Conversions
	 	(e)	Interim Payments At Base Rate
	 	(f)	Reinstatements
	 	 
	2.11	Voluntary Prepayments
	 	(a)	Base Rate Loans
	 	(b)	LIBO Rate Loans
	 	 
	2.12	Payments
	 	(a)	Accrued Interest
	 	(b)	Form of Payments, Application of Payments,
  Payment Administration, Etc.
	 	(c)	Demand Deposit Account
	 	(d)	Net Payments
	 	(e)	Commitment Fee
	 	 
	2.13	Change in
  Circumstances, Yield Protection
	 	(a)	Certain Regulatory Changes
	 	(b)	Capital Adequacy
	 	(c)	Ability to Determine LIBO Rate
	 	(d)	Yield Protection
	 	(e)	[Reserved]
	 	(f)	Notice of Events
	 	 
	2.14	Illegality
	 	 
	2.15	Discretion
  of each Bank as to Manner of Funding
	 	 
	2.16	Appraisals
	 	 
	SECTION 3.     REPRESENTATIONS AND WARRANTIES
	 
	3.1	Organization, Standing
	 	 
	3.2	Corporate
  Authority, Validity, Etc
	 	 
	3.3	Validity of Loan Documents
	 	 
	3.4	Litigation
	 	 
	3.5	ERISA
	 	 
	3.6	Financial Statements
	 	 
	3.7	No Material Adverse Change

 

	3.8	Not in Default,
  Judgments, Etc
	 	 
	3.9	Taxes
	 	 
	3.10	Permits, Licenses, Etc
	 	 
	3.11	No Materially
  Adverse Contracts, Etc
	 	 
	3.12	Compliance with Laws, Etc
	 	(a)	Compliance Generally
	 	(b)	Hazardous Wastes, Substances and Petroleum
  Products
	 	 	 
	3.13	Solvency
	 	 
	3.14	Subsidiaries, Etc
	 	 
	3.15	Title to Properties,
  Leases
	 	 
	3.16	Public
  Utility Holding Company; Investment Company
	 	 
	3.17	Margin
  Stock
	 	 
	3.18	Use of Proceeds
	 	 
	3.19	Depreciation Policies
	 	 
	3.20	Disclosure Generally
	 	 
	SECTION 4.     CONDITIONS PRECEDENT
	 	 
	4.1	All
  Loans
	 	(a)	Request For Advance
	 	(b)	Asset Base Certificate
	 	(c)	Guaranty
	 	(d)	Additional Documents
	 	(e)	Covenants; Representations
	 	(f)	Defaults
	 	(g)	Material Adverse Change
	 	(h)	Owner Trustee Documents
	 	 	 
	4.2	Conditions
  to Effectiveness of the Agreement
	 	(a)	Articles, Bylaws
	 	(b)	Evidence of Authorization
	 	(c)	Legal Opinions
	 	(d)	Incumbency
	 	(e)	Notes

 

	 	(f)	Documents
	 	(g)	Consents
	 	(h)	Other Agreements
	 	(i)	Security Interest
	 	(j)	Appraisals
	 	(k)	Financial Statements
	 	(l)	Litigation
	 	(m)	[Reserved]
	 	(n)	Fees
	 	(o)	Fees, Expenses
	 	(p)	Lien Searches
	 	(q)	Other Documents and Information
	 	(r)	Existing Facility
	 	(s)	Final Date for Effectiveness
	 	 	 
	SECTION 5.     AFFIRMATIVE COVENANTS
	 
	5.1	Financial Statements
  and Reports
	 	(a)	Annual Statements
	 	(b)	Quarterly Statements
	 	(c)	No Default
	 	(d)	ERISA
	 	(e)	Material Changes
	 	(f)	Other Information
	 	(g)	Asset Base Certificates; Monthly Lease Report
	 	(h)	Monthly Lease Portfolio and Receivables Report
	 	(i)	Maintenance of Current Depreciation Policies
	 	 	 
	5.2	Corporate Existence
	 	 
	5.3	ERISA
	 	 
	5.4	Compliance with Regulations
	 	 
	5.5	Conduct
  of Business; Permits and Approvals, Compliance with Laws
	 	 
	5.6	Maintenance of Properties
	 	 
	5.7	Maintenance of Insurance
	 	 
	5.8	Payment of Taxes, Etc
	 	 
	5.9	Notice of Events
	 	 
	5.10	Inspection Rights

 

	5.11	Generally
  Accepted Accounting Principles
	 	 
	5.12	Compliance with
  Material Contracts
	 	 
	5.13	Use of Proceeds
	 	 
	5.14	Further Assurances
	 	 
	5.15	Restricted Subsidiaries
	 	 
	5.16	Placards
	 	 
	5.17	Certain Subsidiaries
	 	 
	SECTION 6.     NEGATIVE COVENANTS
	 
	6.1	Consolidation and Merger
	 	 
	6.2	Liens
	 	 
	6.3	Guarantees
	 	 
	6.4	Margin
  Stock
	 	 
	6.5	Acquisitions and
  Investments
	 	 
	6.6	Transfer of
  Assets; Nature of Business
	 	 
	6.7	Accounting Change
	 	 
	6.8	Transactions
  with Affiliates of the Borrower
	 	 
	6.9	Indebtedness
	 	 
	6.10	Restricted Payments
	 	 
	6.11	Restriction
  on Amendment of this Agreement
	 	 
	6.12	Investments in
  Unrestricted Subsidiaries
	 	 
	6.13	No Adverse Selection
	 	 
	SECTION 7.     FINANCIAL COVENANTS
	 
	7.1	No
  Losses

 

	7.2	Minimum Tangible Net Worth
	 	 
	7.3	Leverage Ratio
	 	 
	7.4	Adjusted
  Total Debt to Adjusted Tangible Net Worth
	 	 
	7.5	Minimum Interest
  Coverage Ratio
	 	 
	7.6	Asset
  Base
	 	 
	SECTION 8.     DEFAULT
	 
	8.1	Events of Default
	 	(a)	Payments
	 	(b)	Covenants
	 	(c)	Representations, Warranties
	 	(d)	Bankruptcy
	 	(e)	Certain Other Defaults
	 	(f)	Judgments
	 	(g)	Attachments
	 	(h)	Change in Control of the Borrower
	 	(i)	Security Interests
	 	(j)	WLFC Funding Facility
	 	 	 
	SECTION 9.     COLLATERAL
	 
	9.1	Collateral
	 	 
	9.2	Security Documents
	 	 
	9.3	Release of Collateral
	 	 
	SECTION 10.     THE AGENTS
	 
	10.1	Appointment and
  Authorization
	 	 
	10.2	Duties and Obligations
	 	 
	10.3	The Agents as Banks
	 	 
	10.4	Independent Credit
  Decisions
	 	 
	10.5	Indemnification
	 	 
	10.6	Successor Agents

 

	10.7	Allocations
  Made By the Administrative Agent
	 	 
	SECTION 11.     MISCELLANEOUS
	 
	11.1	Waiver
	 	 
	11.2	Amendments
	 	 
	11.3	GOVERNING
  LAW
	 	 
	11.4	Participations and
  Assignments
	 	 
	11.5	Captions
	 	 
	11.6	Notices
	 	 
	11.7	Sharing
  of Collections, Proceeds and Set-Offs: Application of Payments
	 	 
	11.8	Expenses; Indemnification
	 	 
	11.9	Survival
  of Warranties and Certain Agreements
	 	 
	11.10	Severability
	 	 
	11.11	Banks’
  Obligations Several; Independent Nature of Banks’ Rights
	 	 
	11.12	No Fiduciary Relationship
	 	 
	11.13	CONSENT
  TO JURISDICTION AND SERVICE OF PROCESS
	 	 
	11.14	WAIVER OF JURY TRIAL
	 	 
	11.15	Counterparts; Effectiveness
	 	 
	11.16	Use of Defined Terms
	 	 
	11.17	Offsets
	 	 
	11.18	Entire Agreement
	 	 
	11.19	Confidentiality

 

	Exhibit A	–	Revolving Loan Commitments
	Exhibit B	–	Applicable Margin; Commitment Fee
	Exhibit C	–	Form of Revolving Credit Note
	Exhibit D	–	Form of Mortgage
	Exhibit E	–	Form of Asset Base Certificate
	Exhibit F	–	Form of Security Agreement
	Exhibit G	–	Form of Compliance Certificate
	Exhibit H	–	Depreciation Policies
	Exhibit I	–	Form of Owner Trustee Mortgage
	Exhibit J	–	Form of Subsidiary Guaranty
	Exhibit K	–	Form of Trust Agreement
	Exhibit L	–	Form of Beneficial Interest Pledge Agreement
	Exhibit M	–	Form of Owner Trustee Guarantee
	Exhibit N	–	Form of 
  Share Pledge Agreement
	Exhibit O	–	Form of WLFC (Ireland) Security Agreement
	Exhibit P	–	Form of Consent and Intercreditor Agreement
	 	 	 
	Schedule 1	–	Disclosure Schedule
	Schedule 2	–	Excepted Collateral
	Schedule 3	–	Existing Leases in Nonrecognition of Rights
  Jurisdictions
	Schedule 4	–	List of Permissible Airlines of Nonrecognition
  of Rights Jurisdictions
	Schedule 5	–	Geographic Limitations
	Schedule 6	–	Existing Engines, Equipment and Leases

             *           This
redacted material has been omitted pursuant to a request for confidential
treatment, and the material has been filed separately with the Commission.

 

CREDIT AGREEMENT

THIS CREDIT AGREEMENT, dated as of
May 1, 2001 (this “Agreement”), is entered
into by and among WILLIS LEASE FINANCE
CORPORATION, a Delaware corporation (successor by merger to
Willis Lease Finance Corporation, a California corporation) (“Willis” or the “Borrower”), the banking
institutions signatories hereto and named in Exhibit A attached hereto and
such other institutions that hereafter become a “Bank” pursuant to
Section 11.4 hereof (collectively the “Banks” and
individually a “Bank”), NATIONAL CITY BANK, as Administrative
Agent for the Banks under this Agreement (“Administrative
Agent,” which shall mean in its capacity as
administrative agent unless specifically stated otherwise), FORTIS BANK [NEDERLAND] N.V. (“Fortis”), as Structuring Agent (the “Structuring Agent”), and FORTIS BANK [NEDERLAND] N.V., as Security Agent
(the “Security Agent”).  The Administrative Agent, the Structuring
Agent and the Security Agent are sometimes hereinafter referred to collectively
as the “Agents”, and
individually as an “Agent.”

PRELIMINARY STATEMENT

WHEREAS, the Borrower
desires to have available to it a revolving credit facility (the “Credit Facility”) which will be used
for the purchase or refinance of Engines and Equipment (defined below), the
majority of which will be held for sale or for lease to unaffiliated persons
and for working capital and general corporate purposes.

WHEREAS, the Banks are
willing to establish such Credit Facility and make loans to the Borrower under
the terms and conditions hereinafter set forth.

NOW, THEREFORE, in
consideration of the premises and promises hereinafter set forth and intending
to be legally bound hereby, the parties hereto agree as follows:

SECTION 1.

CERTAIN DEFINITIONS

1.1        Definitions

             “Acceptable Manufacturer” shall mean CFM International,
General Electric, Pratt & Whitney, Rolls Royce, and International Aero
Engines.

             “Adjusted Tangible Net Worth” shall mean Tangible Net Worth
of the Willis Companies, less any stockholder’s equity in any Unrestricted
Subsidiaries where the Debt of such Unrestricted Subsidiary is nonrecourse to
the Borrower.

             “Adjusted Total Debt” shall mean all Debt of the Willis
Companies, less any Debt to the extent such Debt is nonrecourse to the
Borrower.

             “Administrative Agent” shall have the meaning set forth in
the Preamble to this Agreement, and shall also mean and include any successor
Administrative Agent appointed pursuant to Section 10.6 hereto.

             “Affiliate” shall mean, with respect to any Person, any
other Person:  (i) which directly
or indirectly controls, or is controlled by, or is under common control with
such Person; (ii) which directly or indirectly beneficially owns or holds
ten percent (10%) or more of any class of voting stock of such Person; or
(iii) ten percent (10%) or more of whose voting stock is directly or
indirectly beneficially owned or held by such Person.  The term “control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract, or otherwise.

             “Aggregate Revolving Loan Commitment” shall have the
meaning set forth in Section 2.1(a).

             “Agreement” shall mean this Credit Agreement, as amended,
supplemented, modified, replaced, substituted for or restated from time to time
and all exhibits and schedules attached hereto.

             “Applicable Margin.” 
With respect to Base Rate Loans and LIBO Rate Loans, the term “Applicable Margin” shall have the meaning
set forth on Exhibit B hereto.

             “Asset Base” shall mean the amount equal to the sum of:

             (a)         ___% of the Net Book Value of Eligible
Engines which are not Off-Lease for a period of more than 180 consecutive
days; plus*

             (b)        ___% of the Net Book Value of all the
Eligible Engines which are Off-Lease for a period of more than 180 consecutive
days; plus*

             (c)         ___% of the Net Book Value of the
Eligible Equipment which is not Off-Lease for a period of more than
180 consecutive days; plus*

             (d)        ___% of the Net Book Value of the
Eligible Equipment which is Off-Lease for a period of more than 180 but less
than 365 consecutive days but only to the extent the Eligible Equipment consists
of (i) Stage II  engines
outfitted with hushkits, (ii) turboprop engines and (iii) Parts
Packages.*

If an Eligible
Engine or an item of Eligible Equipment is subject to a Lease, the Eligible
Engine or item of Eligible Equipment will be included in the Asset Base only if
such Lease is an Eligible Lease.  The
Asset Base shall also be subject to the following concentration limits:

             (i)          No more than ___% of the Asset Base
shall consist of Eligible Engines and Eligible Equipment subject to Leases
which mature within any 12-month period (determined on a rolling 12-month
basis);*

             (ii)         No more than ___% of the Asset Base
shall consist of Eligible Engines and Eligible Equipment which are Off-Lease;*

             (iii)        No more than ___% of the Asset Base
shall consist of Eligible Engines and Eligible Equipment subject to Leases to a
single lessee;*

             (iv)       No more than ___% of the Asset Base shall
consist of Eligible Engines and Eligible Equipment subject to Leases to the
Three Primary Lessees;*

             (v)        No more than ___% of the Asset Base
shall consist of Eligible Engines and Eligible Equipment (other than Parts
Packages) manufactured by the same Acceptable Manufacturer and of the same make
and model;*

             (vi)       No more than ___% of the Asset Base shall
consist of Eligible Equipment constituting Stage II engines not outfitted
with hushkits and turboprop engines;*

             (vii)      No more than ___% (which percentage, for
the avoidance of doubt, shall include the Eligible Equipment subject to the
___% limitation set forth in clause (vi) above) of the Asset Base shall
consist of Eligible Equipment constituting Stage II engines and turboprop
engines;*

             (viii)     No more than ___% of the Asset Base shall
consist of Eligible Engines and Eligible Equipment used on a single make and
model of narrow-body aircraft;*

             (ix)        No more than ___% of the Asset Base
shall consist of Eligible Engines and Eligible Equipment used on a single make
and model of wide-body aircraft;*

             (x)         No more than ___% of the Asset Base
shall consist of Eligible Engines and Eligible Equipment used on wide-body
aircraft;*

             (xi)        No more than the lesser of (a) ___%
of the Aggregate Revolving Loan Commitment or (b) ___% of the Net Book
Value of the Eligible Engines and Eligible Equipment included in the Asset Base
shall consist of Eligible Parts Packages (based on Net Book Value); and*

             (xii)       No more than ___% of the Asset Base shall
consist of Eligible Engines and Eligible Equipment subject to Leases with
lessees domiciled or principally located in Nonrecognition of Rights
Jurisdictions, provided, however, that any concentration in excess of ___%
solely due to the Leases set forth in Schedule 3 hereto or due to the
removal by the Majority Banks of a lessee (or in the case of a Lease to WLFC
(Ireland) Limited, a sublessee) listed in Schedule 4 hereto shall be
included in the Asset Base but, in no event, shall the Borrower be entitled to
include in the Asset Base additional Leases with Lessees domiciled or
principally located in Nonrecognition of Rights Jurisdictions during any period
in which this proviso shall be applicable; and*

             (xiii)      No more than the percentage of the Net
Book Value of the Eligible Engines and Eligible Equipment subject to Leases
included in the Asset Base set forth in Schedule 5 attached hereto for a
particular country or geographic region shall in the aggregate be with lessees
domiciled or principally located in such countries or geographic regions.

Notwithstanding
the foregoing,

(A)       If (a) any Engine, any item of
Equipment or any Lease of any Engine or any item of Equipment shall fail to
constitute an “Eligible Engine” or item of “Eligible Equipment” or “Eligible
Lease,” as the case may be, or (b) the Security Agent shall not receive a
perfected, first priority security interest in an Engine or an item of
Equipment (as and to the extent contemplated in Section 9.1) subject to
Permitted Liens, the Security Agent, in its sole discretion, may nevertheless
include such Engine, such item of Equipment or Lease in the Asset Base,
provided that at no time will the aggregate amount of the Asset Base comprised
of such non-eligible Engines, non-eligible items of Equipment, non-eligible
Leases and such Engines or Equipment regarding which the security interest is
not fully perfected exceed $__________. 
Promptly following a determination by the Security Agent to include in
the Asset Base such non-eligible Engines, non-eligible items of Equipment,
non-eligible Leases, or such Engines or Equipment regarding which the security
interest is not fully perfected (which determination may be made prospectively),
the Security Agent will notify the Banks of its decision and the basis therefor
and request that the Banks either confirm or reject such determination.  If the Required Banks confirm such
determination in writing within ten days from delivery of the notice, such
Engine, item of Equipment or Lease shall be deemed to be an “Eligible Engine,”
an item of “Eligible Equipment” or an “Eligible Lease”, as the case may be, and
will no longer count towards the $__________ limit for non-eligible Engines,
items of non-eligible Equipment, non-eligible Leases and Engines and
non-eligible Equipment regarding which the security interest is not fully
perfected.  If Banks sufficient to
constitute the Required Banks fail to confirm such determination in writing within
ten days from delivery of the notice, such determination by the Security Agent
will be deemed not approved by the Required Banks, unless or until
otherwise approved by the Required Banks in writing and such Engine, item of
Equipment or Lease shall continue to count towards the $__________ limit and
shall continue to be included in the Asset Base.*

(B)        If more than ___% (determined in the
aggregate) of (a) the Engines and Equipment included in the Asset Base,
and (b) the engines and equipment subject to the WLFC Funding Facility is
Off-Lease, then Stage III Engines which have been Off-Lease for more than
12 consecutive months shall not constitute “Eligible Engines;” and*

(C)        All of the Engines, Equipment and Leases
listed on Schedule 6 shall be deemed to constitute Eligible Engines,
Eligible Equipment or Eligible Leases and shall be deemed to meet the
Eligibility Criteria.

             “Asset Base Certificate” shall mean a certificate in
substantially the form attached hereto as Exhibit E hereto which shall be
signed by the chief financial officer, chief administrative officer or chief
executive officer of the Borrower.

             “Base Rate” shall mean the higher of (x) the Prime
Rate, and (y) the Federal Funds Rate plus _____ per annum.  Any change in such interest rate shall be
effective on the date of such change.*

             “Base Rate Loan” shall mean a Loan, or any portion thereof,
made at the Base Rate plus the Applicable Margin pursuant to a Request for
Advance made under Section 2.4 herein or as otherwise provided in
Section 2.10 or in any other provision hereof or in any other Loan
Document.

             “Beneficial Interest” shall mean a beneficial interest in a
trust which owns one or more Engines or items of Equipment.

             “Beneficial Interest Pledge Agreement” shall mean a
Beneficial Interest Pledge and Security Agreement substantially in form and
substance attached hereto as Exhibit L.

             “Business Day” shall mean any day other than a Saturday,
Sunday, or other day on which commercial banks in Rotterdam, The Netherlands,
San Francisco, California, U.S.A. or Cleveland, Ohio, U.S.A. are authorized or
required to close under the laws of either The Netherlands, the State of
California, or the State of Ohio and, if the applicable day relates to a LIBO
Rate Loan, or notice with respect to a LIBO Rate Loan, a day on which dealings
in Dollar deposits are also carried on in the London interbank market and banks
are open for business in London (“London
Business Day”).

             “Capitalized Lease” shall mean all lease obligations of any
Person for any property (whether real, personal or mixed) which have been or
should be capitalized on the books of the lessee in accordance with Generally
Accepted Accounting Principles.

             “Capitalized Lease Obligations” with respect to any Person,
shall mean the aggregate amount which, in accordance with GAAP, is required to
be reported as a liability on the balance sheet of such Person at such time in
respect of such Person’s interest as lessee under a Capitalized Lease.

             “Change of Control” shall mean, with respect to the Borrower,
any action occurring or set of circumstances existing that would result in any
Person or group (other than Charles F. Willis IV, his trusts, family
limited partnerships or heirs and other than any member of the SwissAir Group
pursuant to the exercise of options outstanding on the date of this Agreement)
beneficially owning (as defined in Rule 13(d)–3 promulgated under
the Securities Exchange Act of 1934, as amended), directly or indirectly, an
amount of the outstanding capital stock of the Borrower entitling such Person
or group to 30% or more of the voting power of all the outstanding capital
stock of the Borrower.  The percentage
of voting power shall be determined based on the number of votes a holder of
capital stock can cast in the election of directors, compared to the total
number of votes that all shareholders can cast in such election.

             “Closing Date” shall mean the date on which the Credit
Agreement shall become effective as determined in accordance with
Section 4.2.

             “Code” shall mean the Internal Revenue Code of 1986, as
amended from time to time, and all rules and regulations with respect thereto
in effect from time to time.

             “Collateral” shall mean, collectively, the “Collateral” (as such term is defined in the
Security Agreement), the “Collateral”
(as such term is defined in the Beneficial Interest Pledge Agreements executed,
delivered and outstanding from time to time), “Collateral” (as such term is defined in the Mortgage), “Collateral” (as such term is defined in the
Owner Trustee Mortgages executed, delivered and outstanding from time to time),
the “Pledged Collateral” (as such
term is defined in the Master Share Pledge Agreement), and the “Assigned Property” (as such term is defined
in the WLFC (Ireland) Limited Lease Security Assignments.

             “Commitment Fee” shall mean the commitment fee payable by
the Borrower pursuant to Section 2.12(e).

             “Compliance Certificate” shall mean a certificate in
substantially the form attached hereto as Exhibit G which shall be signed
by the chief financial officer, chief administrative officer or chief executive
officer of Borrower.

             “Consent and Intercreditor Agreement” shall mean that
certain Consent and Intercreditor Agreement among the Security Agent, the
Administrative Agent, the Borrower, First Union Securities, Inc., as deal
agent, Variable Funding Capital Corporation, as control party, First Union
National Bank, as liquidity agent, and Fortis Bank [Nederland] N.V., as control
party, in the form attached hereto as Exhibit P.

             “Contribution Agreement” shall have the meaning ascribed
thereto in the definition of “WLFC Funding Facility”, as amended, waived,
restated and supplemented from time to time.

             “Debt” shall mean, as to any Person at any time (without
duplication) and, for the Borrower, determined on a consolidated basis:  (i) all obligations of such Person for
borrowed money; (ii) all obligations of such Person evidenced by bonds,
notes, debentures, or other similar instruments; (iii) all obligations of
such Person to pay the deferred purchase price of property or services, except
trade accounts payable of such Person arising in the ordinary course of
business which are not past due by more than ninety days unless such trade
accounts payable are being contested in good faith by appropriate proceedings;
(iv) all Capitalized Lease Obligations of such Person; (v) all
obligations of such Person under guaranties, letters of credit, endorsements
(other than for collection or deposit in the ordinary course of business),
assumptions or other contingent obligations, in respect of, or to purchase or
otherwise acquire, any obligation or indebtedness of any other Person, or any
other obligation, contingent or otherwise, of such Person directly or
indirectly protecting the holder of any obligation or indebtedness of any other
Person, contingent or otherwise, against loss (whether by partnership
arrangements, agreements to keep-well, to purchase assets, goods, securities,
or services, to take-or-pay or otherwise); (vi) all obligations of any
other Person secured by a Lien existing on property owned by such Person,
whether or not the obligations secured thereby have been assumed by such Person
or are non-recourse to the credit of such Person; (vii) all reimbursement
obligations of such Person (whether contingent or otherwise) in respect of
letters of credit, bankers’ acceptances, surety or other bonds and similar
instruments; (viii) the net present value of Operating Leases for engines,
aircraft and parts packages, using a 10% discount rate; and (ix) all obligations
with respect to deposits or maintenance reserves to the extent not supported by
cash reserved specifically therefor.

             “Debt Service” shall mean actual payments of principal on
Debt and Capitalized Lease Obligations (including any Debt or Capitalized Lease
Obligations paid from the sale of Engines or Equipment during the period), plus
interest expense incurred during the period.

             “Default Rate” on any Loan shall mean two percent
(2.0%) per annum above the interest rate then applicable to each Loan or
portion thereof.

             “Dollars” shall mean
the lawful currency of the United States of America.

             “EBIT” shall mean the sum of (i) Net Income less any
extraordinary gain or loss included in the calculation thereof, plus
(ii) amounts deducted for interest expense and income taxes.

             “Eligibility Criteria” shall mean the applicable criteria
set forth below to be used to determine whether Engines, Equipment and Leases
are eligible for inclusion in the Asset Base.

             The Eligibility Criteria for
Engines are as follows:  __________*

             The Eligibility Criteria for
Equipment (other than Parts Packages) are as follows:  __________*

             The Eligibility Criteria for Parts
Packages are as follows:  __________*

             The Eligibility Criteria for Leases
are as follows:  __________*

             “Eligible Engines” shall mean Engines which meet all of the
Eligibility Criteria for Engines.

             “Eligible Equipment” shall mean Equipment which meets all
of the Eligibility Criteria applicable thereto.

             “Eligible Lease” shall mean a Lease of an Engine or an item
of Equipment which meets all of the Eligibility Criteria for Leases and in
which __________*

             “Eligible Parts Packages” shall mean Parts Packages which
meet all of the Eligibility Criteria for Parts Packages.

             “Engine” shall mean any Stage III engine owned by Borrower
or an Owner Trustee (acting pursuant to a Trust Agreement) designed or suitable
for use to propel an aircraft, whether or not subject to a Lease.

             “Environmental Control Statutes” shall mean each and every
applicable federal, state, county or municipal environmental statute,
ordinance, rule, regulation, order, directive or requirement, together with all
successor statutes, ordinances, rules, regulations, orders, directives or
requirements, of any Governmental Authority, including without limitation laws
in any way related to Hazardous Substances.

             “Equipment” shall mean all Stage II engines (whether
or not outfitted with hushkits), turboprop engines, and Parts Packages owned by
Borrower or an Owner Trustee (acting pursuant to a Trust Agreement), whether or
not such items are subject to a Lease.

             “ERISA” shall mean the Employee Retirement Income Security
Act of 1974, as it may be amended from time to time.

             “ERISA Affiliate” shall mean any corporation which is a
member of the same controlled group of corporations as the Borrower within the
meaning of Section 414(b) of the Code, or any trade or business which is
under common control with the Borrower within the meaning of
Section 414(c) of the Code.

             “Event of Default” shall have the meaning set forth in Section 8.1.

             “Excepted Collateral” shall have the meaning set forth in
Section 8.1(i).

             “Existing Debt” shall mean the existing Debt (excluding
guarantees) of the Borrower or any of its Restricted Subsidiaries to certain
Persons described on Schedule 1 to this Agreement.

             “Existing Lease Transactions” shall mean those Leases of
any Engine or any item of Equipment, which Leases shall, as of the Closing
Date, be included in the Asset Base.

             “Extension Fee” shall mean the extension fee payable by the
Borrower pursuant to Section 2.5.

             “Facility Fee” shall mean the facility fee payable by the
Borrower pursuant to Section 2.5.

             “Fair Market Value” shall mean with respect to an Engine or
item of Equipment, an amount as determined by an appraiser to be the amount that
would be obtained in an arm’s-length cash transaction between willing, able and
knowledgeable parties, acting prudently, with an absence of duress and with a
reasonable time period available for marketing, adjusted to account for the
maintenance status of such Engine or item of Equipment (which shall reflect any
existing maintenance reserves).  In
determining such value, it will be assumed that (i) no value will be
attributed to lease payments made under the related Lease and (ii) no
value shall be attributed to any security deposit under the related Lease.  The appraiser shall be retained by the
Security Agent and shall be reasonably acceptable to the Borrower (with
reasonable appraisal fees to be paid by the Borrower).

             “FAR” means the Federal Aviation Regulations issued by the
Federal Aviation Administration as in effect from time to time.

             “Federal Funds Rate” shall mean the daily rate of interest
announced from time to time by the Board of Governors of the Federal Reserve
System in publication H.15 as the “Federal Funds Rate,” or if such
publication is unavailable, such rate as is available to the Administrative
Agent on such day.

             “Fiscal Quarter” shall mean a fiscal quarter of the
Borrower, which shall be any quarterly period ending on March 31, June 30,
September 30 or December 31 of any year.

             “Fiscal Year” shall mean a fiscal year of the Borrower,
which shall end on the last day of December.

             “Funding Corp. Guaranty” shall have the meaning ascribed
thereto in the definition of “WLFC Funding Facility”, as amended, waived,
restated and supplemented from time to time.

             “Generally Accepted Accounting Principles” or “GAAP” shall mean generally accepted
accounting principles as in effect from time to time in the United States of
America, consistently applied.

             “Governmental Authority” shall mean any federal, state,
county or municipal government, or any department, agency, bureau or other
similar type body obtaining authority therefrom or created pursuant to any
laws, including, without limitation, Environmental Control Statutes.

             “Guarantors” shall mean all present and future Restricted
Subsidiaries.

             “Guaranty” shall mean (i) the Subsidiary Guaranty
executed by each Guarantor, and (ii) any Subsidiary Guaranty in the form
and substance attached hereto as Exhibit J to be executed by a Guarantor.

             “Hazardous Substances” shall mean without limitation, any
regulated substance, toxic substance, hazardous substance, hazardous waste,
pollution, pollutant or contaminant, as defined or referred to in the Resource
Conservation and Recovery Act, as amended, 15 U.S.C., § 2601 et
seq.; the Comprehensive Environmental Response, Compensation and Liability
Act, 33 U.S.C. § 1251 et seq.; the federal underground storage
tank law, Subtitle I of the Resource Conservation and Recovery Act, as
amended, P.L. 98–616, 42 U.S.C. § 6901 et seq.;
together with any amendments thereto, regulations promulgated thereunder and
all substitutions thereof, as well as words of similar purport or meaning
referred to in any other federal, state, county or municipal environmental
statute, ordinance, rule or regulation.

             “Indebtedness for Borrowed Money” shall mean (i) all
indebtedness, liabilities, and obligations, now existing or hereafter arising,
for money borrowed by the Borrower or its Restricted Subsidiaries, whether or
not evidenced by any note, indenture, or agreement (including, without
limitation, the Notes and any indebtedness for money borrowed from an Affiliate
of the Borrower) and (ii) all indebtedness of others for money borrowed (including
indebtedness of an Affiliate of the Borrower) with respect to which the
Borrower or its Restricted Subsidiaries have become liable by way of a
guarantee or indemnity.

             “Intangible Assets” shall mean all assets which would be
classified as intangible assets under GAAP consistently applied, including,
without limitation, goodwill (whether representing the excess of cost over book
value of assets acquired or otherwise), patents, trademarks, trade names,
copyrights, franchises, and deferred charges (including, without limitation,
unamortized debt discount and expense, organization costs, and research and
development costs).  For purposes of
this definition, prepayments of taxes, license fees and other expenses shall
not be deemed Intangible Assets.

             “Interest Coverage Ratio” shall mean the ratio of EBIT of
the Willis Companies plus rent expenses of the Willis Companies to interest
expense of the Willis Companies plus rent expenses of the Willis Companies.

             “Interest Period” shall mean a period commencing on the
date of a LIBO Rate Loan or with respect to a LIBO Rate Loan being renewed, the
last day of the preceding Interest Period and ending one, two, three or six
months thereafter, as requested by the Borrower at the time of its Request for
Advance; provided also that (i) an Interest Period which would otherwise
expire on a day which is not a London Business Day shall be extended to the
next succeeding London Business Day unless such London Business Day falls in
another calendar month, in which case such Interest Period shall end on the
next preceding London Business Day, (ii) any Interest Period which begins
on the last London Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of
such Interest Period) shall, subject to the next succeeding clause, end on the
last London Business Day of a calendar month; and (iii) no Interest Period
shall end later than the Revolving Loan Termination Date.

             “Investment” in any Person shall mean, without duplication,
(i) the acquisition (whether for cash, property, services or securities or
otherwise) of capital stock, bonds, notes, debentures, partnership or other
ownership interests or other securities of such Person; (ii) any deposit
with, or advance, loan or other extension of credit to, such Person (other than
any such deposit, advance, loan or extension of credit having a term not
exceeding 90 days representing the purchase price of inventory or supplies
purchased in the ordinary course of business) or guarantee or assumption of, or
other contingent obligation with respect to, Indebtedness for Borrowed Money or
other liability of such Person (other than unsecured (except for a pledge of
Shares (as defined in the Share Pledge Agreement) and records related to such
Shares of any Unrestricted Subsidiary) guaranties of the obligations of
Restricted or Unrestricted Subsidiaries); (iii) any transfer or
contribution of assets to an Unrestricted Subsidiary to the extent that the net
book value of such assets is not paid in full at the time of transfer; and
(iv) any amount that may, pursuant to the terms of such investment, be
required to be paid, deposited, advanced, lent or extended to or guaranteed
(other than the guaranties described above) or assumed on behalf of such
Person.

             “Lease” shall mean a written operating lease agreement
assigned to or entered into between Borrower or an Owner Trustee (acting
pursuant to a Trust Agreement), as lessor, and a third party (including WLFC
(Ireland) Limited and any member of the SwissAir Group) as lessee, pursuant to
which Borrower or such Owner Trustee, as applicable, leases to the third party
for a fixed period of time one or more Engines or items of Equipment.

             “Leverage Ratio” shall mean the ratio of all Debt of the
Willis Companies to their Tangible Net Worth calculated based on the most
recent financial statements furnished to the Banks in accordance herewith.

             “LIBO Rate” shall mean the arithmetic average of the rates
of interest per annum (rounded upwards, if necessary to the next 1/16 of 1%) at
which the Administrative Agent, individually, is offered deposits of United
States Dollars by leading banks in the interbank eurodollar or eurocurrency
market on or about eleven o’clock (11:00) a.m., London time, two London
Business Days prior to the commencement of the requested Interest Period in an
amount substantially equal to the outstanding principal amount of the LIBO Rate
Loan requested for a maturity of comparable duration to the Interest Period;
provided, however that if for any such period or comparable period, the
Administrative Agent is not offered deposits of United States Dollars by
leading banks as described above, the LIBO Rate in respect of such period shall
mean the rate per annum (rounded upwards, if necessary to the next 1/16 of 1%)
for deposits in United States Dollars for a period equal or comparable to such
period which appears on Page 3750 on the Dow Jones Telerate Service (the
“Telerate Page 3750”) (or such other page as may replace such Telerate
Page 3750 for the purpose of displaying London interbank offered rates for
United States Dollar deposits), on or about eleven o’clock (11:00) a.m.,
London time, two (2) London Business Days prior to the commencement of the
requested Interest Period in an amount substantially equal to the outstanding
principal amount of the LIBO Rate Loan requested for a maturity of comparable
duration to the Interest Period; provided further, that if for any such period
or comparable period no such rate appears on the Telerate Page 3750 (or
such other page as may replace such Telerate Page 3750 for the purpose of
displaying London interbank offered rates for United States Dollar deposits),
the LIBO Rate in respect of such period shall be the arithmetic mean, as
determined by the Administrative Agent, of the rates per annum (rounded
upwards, if necessary to the next 1/16 of 1%) appearing on the Reuters Screen
“LIBO” page in respect of amounts denominated in Dollars, on or about eleven
o’clock (11:00) a.m., London time, two (2) London Business Days prior to
the commencement of the requested Interest Period in an amount substantially
equal to the outstanding principal amount of the LIBO Rate Loan requested for a
maturity of comparable duration to the Interest Period.

             “LIBO Rate Loan” shall mean a Loan bearing interest at the
LIBO Rate plus the Applicable Margin.

             “Lien” shall mean any lien, mortgage, security interest,
chattel mortgage, pledge or other encumbrance (statutory or otherwise) of any
kind securing satisfaction of an obligation, including any agreement to give
any of the foregoing, any conditional sales or other title retention agreement,
any lease in the nature thereof, and the filing of or the agreement to give any
financing statement under the Uniform Commercial Code of any jurisdiction or
similar evidence of any encumbrance, whether within or outside the United
States of America.

             “Loan” or “Loans”
shall mean the Revolving Loan or Loans.

             “Loan Documents” shall mean this Agreement, the Notes, the
Mortgage, the Security Agreement, each Guaranty, each Owner Trustee Mortgage,
each Owner Trustee Guarantee, each Beneficial Interest Pledge Agreement, the
Share Pledge Agreement, each WLFC (Ireland) Document, the Consent and
Intercreditor Agreement and all other documents directly related or incidental
to said documents, the Loans or the Collateral.

             “Majority Banks” shall mean the Banks holding Loans and
Revolving Loan Commitments representing more than 50% of the aggregate amount
of Loans and Revolving Loan Commitments under this Credit Facility.

             “Material Adverse Change” shall mean any event or condition
which, in the reasonable determination of the Majority Banks, would result in a
material adverse change in the financial condition, business, properties or
profits of the Borrower or which gives reasonable grounds to conclude that the
Borrower would likely not be able to perform or observe (in the normal course)
its obligations under the Loan Documents to which it is a party, including but
not limited to the Notes.

             “Material Adverse Effect” shall mean a material adverse
effect on (i) the financial condition, business, properties, or profits of
the Borrower, (ii) the ability of the Borrower to perform its obligations
under this Agreement, the Notes and the other Loan Documents, or (iii) the
legality, validity or enforceability of this Agreement or the Notes or the
rights and remedies of the holders of the Loans.

             “Monthly Lease Portfolio and Receivables Report” shall mean
a report in summary form of the status of accounts receivable in respect of all
Leases which are part of the Collateral in form and substance reasonably
satisfactory to the Administrative Agent.

             “Mortgage” shall mean the Mortgage and Security Agreement
by Borrower in favor of the Security Agent in substantially the form attached
hereto as Exhibit D, as amended and supplemented from time to time.

             “Multiemployer Plan” shall mean a multiemployer plan as
defined in ERISA Section 4001(a)(3), which covers employees of the
Borrower or any ERISA Affiliate.

             “Net Book Value” of an Engine or an item of Equipment shall
be calculated as the lesser of: 
(i) the cost to Borrower of such Engine or item of Equipment or
(ii) such Engine’s or item of Equipment’s Fair Market Value.  In any event, the Net Book Value will be reduced
utilizing depreciation methods consistent with current practice and Generally
Accepted Accounting Principles.

             “Net Income” shall mean net income of the Willis Companies
after taxes, determined in accordance with GAAP.

             “Net Worth” shall mean, at any particular time, all
amounts, in conformity with GAAP, that would be included as stockholder’s
equity on a consolidated balance sheet of the Willis Companies excluding other
comprehensive income or loss resulting from the implementation of SFAS 133.

             “Nonrecognition of Rights Jurisdictions” shall mean, in
connection with each Lease involving a lessee (or, in the case of a Lease to
WLFC (Ireland) Limited, involving a sublessee) domiciled or principally located
in a non-U.S. jurisdiction, any non-U.S. jurisdiction of such domicile or
location unless (a) the Borrower shall have obtained a legal opinion in
form and substance reasonably satisfactory to the Security Agent from local
counsel in such jurisdiction (a copy of which shall have been provided to the Security
Agent) to the effect that under and in accordance with applicable local law, an
aircraft engine, upon its installation on an aircraft, should remain the
property of the Owner Trustee and not become an accession to such aircraft
(thereby vesting a superior right to title in the owner of such aircraft) or
(b) the Borrower or the applicable Owner Trustee shall have become a party
to or otherwise obtained the benefit of recognition of rights arrangements
sufficient to protect its interests as reasonably determined by the Security
Agent or (c) the lessee (or, in the case of a Lease to WLFC (Ireland)
Limited, the sublessee) under such Lease (or sublease) is a lessee (or in the
case of a Lease to WLFC (Ireland) Limited, a sublessee) listed in Schedule 4
hereto; provided, however, that a lessee (or in the case of a Lease to WLFC
(Ireland) Limited, a sublessee) may be added or removed from Schedule 4
upon the determination of the Majority Banks (such determination to be made in
their sole discretion), with such addition or removal to become effective for
all purposes of this agreement upon written notice to the Borrower.  Upon the removal of a lessee (or in the case
of a Lease to WLFC (Ireland) Limited, a sublessee) from Schedule 4 hereto,
any existing Lease (or sublease) with such lessee (or in the case of a Lease to
WLFC (Ireland) Limited, a sublessee) shall be applied to paragraph (xii)
of the definition of Asset Base.

             “Note” or “Notes”
shall mean Revolving Credit Note or Notes.

             “Obligations” shall mean all now existing or hereafter
arising debts, obligations, covenants, and duties of payment or performance of
every kind, matured or unmatured, direct or contingent, owing, arising, due, or
payable to the Banks or the Administrative Agent or the Security Agent by the
Borrower or any Owner Trustee arising out of this Agreement or any other Loan
Document, including, without limitation, all obligations to repay principal of
and interest on the Loans and all obligations related to any interest rate swap
agreement, interest rate cap agreement, interest collar agreement, interest
rate hedging agreement, interest rate floor agreement or other similar
agreement or arrangement related to the foregoing, and to pay interest, fees,
costs, charges, expenses, professional fees, and all sums chargeable to the
Borrower or any Owner Trustee or for which the Borrower or any Owner Trustee is
liable as indemnitor under the Loan Documents, whether or not evidenced by any
note or other instrument.

             “Off-Lease” shall mean, at the time of determination, not
subject to a Lease.

             “Operating Lease” shall mean, with respect to any Person,
the aggregate amount which, in accordance with GAAP, is not required to be
reported as a liability on the balance sheet of such Person at such time in respect
of such Person’s interest as lessee under an operating lease.

             “Other Indebtedness” shall mean Indebtedness for Borrowed
Money (i) with a final maturity not less than the final maturity of this
Credit Facility; (ii) with an average life no less than the remaining
average life of this Credit Facility; (iii) with terms, covenants and
conditions no more restrictive than those in this Agreement; and (iv) with
respect to which the initial advance rates on the assets financed with such
Indebtedness for Borrowed Money are not less than those under this Credit
Facility.

             “Owner Trustee” shall mean Wells Fargo Bank Northwest,
National Association (formerly known as First Security Bank, National
Association) or another bank or trust company reasonably satisfactory to the
Security Agent acting as trustee under a Trust Agreement.

             “Owner Trustee Guarantee” shall mean an Owner Trustee
Guaranty in the form and substance attached hereto as Exhibit M.

             “Owner Trustee Mortgage” shall mean an Owner Trustee
Mortgage and Security Agreement substantially in the form attached hereto as
Exhibit I.

             “Parts” shall mean components of an aircraft or an Engine
or any systems within an aircraft or an Engine that have either been removed
from an aircraft or an Engine or have not yet been incorporated into an
aircraft or an Engine.

             “Parts Packages” shall mean a grouping of Parts owned by
Borrower or an Owner Trustee (acting pursuant to a Trust Agreement) which are
to be sold or leased by Borrower or such Owner Trustee (acting pursuant to a
Trust Agreement) to a third party.

             “PBGC” shall mean the Pension Benefit Guaranty Corporation
and any successor thereto.

             “Pension Plan” shall mean, at any time, any Plan (including
a Multiemployer Plan), the funding requirements of which (under Section 302
of ERISA or Section 412 of the Code) are, or at any time within the six
years immediately preceding the time in question, were in whole or in part, the
responsibility of the Borrower or any ERISA Affiliate of the Borrower.

             “Permitted Liens” shall mean (i) any Liens for current
taxes, assessments and other governmental charges not yet due and payable or
being contested in good faith by the Borrower (or by a lessee) by appropriate
proceedings and for which adequate reserves have been established by the
Borrower as reflected in the Borrower’s financial statements (or by the lessee
as reflected in such lessee’s financial statements); (ii) any mechanic’s,
materialman’s, carrier’s, warehousemen’s or similar Liens for sums not yet due
or being contested in good faith by the Borrower (or by a lessee) by
appropriate proceedings and for which adequate reserves have been established
by the Borrower as reflected in the Borrower’s financial statements (or by the
lessee as reflected in such lessee’s financial statements);
(iii) easements, rights-of-way, restrictions and other similar
encumbrances on the real property or fixtures of the Borrower incurred in the
ordinary course of business which individually or in the aggregate are not
substantial in amount and which do not in any case materially detract from the
value or marketability of the property subject thereto or interfere with the
ordinary conduct of the business of the Borrower; (iv) Liens (other than
Liens imposed on any property of the Borrower pursuant to ERISA or
Section 412 of the Code) incurred or deposits made in the ordinary course
of business, including Liens in connection with workers’ compensation,
unemployment insurance and other types of social security and Liens to secure
performance of tenders, statutory obligations, surety and appeal bonds (in the
case of appeal bonds such Lien shall not secure any reimbursement or indemnity
obligation in an amount greater than $2,500,000), bids, leases that are not
Capitalized Leases, performance bonds, sales contracts and other similar
obligations, in each case, not incurred in connection with the obtaining of
credit or the payment of a deferred purchase price, and which do not, in the
aggregate, result in a Material Adverse Effect;(v) Liens, if any, existing
on the Closing Date and listed in Schedule 1 hereto; (vi) Liens in
favor of Fortis, as Security Agent, in the Collateral as contemplated by this
Agreement and the other Loan Documents; (vii) the rights of a lessee or
sublessee to utilize the Collateral pursuant to the terms of a Lease;
(viii) Liens securing Other Indebtedness (but such Liens shall be limited
to the assets of the Borrower being financed with the proceeds of such Other
Indebtedness); (ix) purchase money Liens securing Debt not to exceed $500,000
in the aggregate, as permitted under Section 6.9(c) hereof; (x) Liens
against the Shares (as defined in the Security Agreement) and records relating
to such Shares of Unrestricted Subsidiaries as contemplated by
Section 6.9(i) hereof; (xi) Liens consisting solely of U.C.C.
financing statements that reflect the sale of accounts and chattel paper by the
Borrower to an Unrestricted Subsidiary; (xii) Liens arising from the
following types of liabilities of a lessee or any other operator of an Engine
or item of Equipment, so long as such liabilities are either not yet due or are
being contested in good faith through appropriate proceedings that do not give
rise to any reasonable likelihood of the sale, forfeiture or other loss of such
Engine or item of Equipment, title thereto or the Security Agent’s security
interest therein or of criminal or unindemnified civil liability on the part of
Borrower, any Bank or any Agent and with respect to which the lessee maintains
adequate reserves (in the reasonable judgment of Borrower):  (A) fees or charges of any airport or
air navigation authority, (B) judgments, or (C) salvage or other
rights of insurers; (xiii) Liens permitted in accordance with
Section 8.1(i) hereof; (xiv) Liens on “Contributed Assets” as defined
in the Contribution Agreement; and (xv) Liens evidenced by UCC financing
statements which are expressly permitted under the terms of this Credit
Agreement and the other Loan Documents.

             “Person” shall mean any individual, corporation,
partnership, joint venture, association, company, business trust or entity, or
other entity of whatever nature.

             “Plan” shall mean an employee benefit plan as defined in
Section 3(3) of ERISA, other than a Multiemployer Plan, whether formal or
informal and whether legally binding or not.

             “Potential Default” shall mean an event, condition or
circumstance that with the giving of notice or lapse of time or both would
become an Event of Default.

             “Prime Rate” shall mean, for any day, the prime commercial
lending rate of the Administrative Agent, as established from time to time at
its head office.  The “Prime Rate” is a
reference rate and is not necessarily the best rate offered by the
Administrative Agent to any one of its customers.

             “Prohibited Transaction” shall mean a transaction that is
prohibited under Section 4975 of the Code or Section 406 of ERISA and
not exempt under Section 4975 of the Code or Section 4.08 of ERISA.

             “Regulation” shall mean any statute, law, ordinance,
regulation, order or rule of any United States of America or foreign, federal,
state, local or other government or governmental body, including, without
limitation, those covering or related to banking, financial transactions,
securities, public utilities, environmental control, energy, safety, health,
transportation, bribery, record keeping, zoning, antidiscrimination, antitrust,
wages and hours, employee benefits, and price and wage control matters.

             “Regulation D” shall mean Regulation D of the
Board of Governors of the Federal Reserve System, as it may be amended from
time to time.

             “Regulatory Change” shall mean any change after the date of
this Agreement in any Regulation (including Regulation D) or the adoption
or making after such date of any interpretations, directives or requests of or
under any Regulation (whether or not having the force of law) by any court or
governmental or monetary authority charged with the interpretation or
administration thereof applying to a class of banks including any one of the
Banks but excluding any foreign office of any Bank.

             “Release” shall mean without limitation, the presence,
leaking, leaching, pouring, emptying, discharging, spilling, using, generating,
manufacturing, refining, transporting, treating, or storing of Hazardous
Substances at, into, onto, from or about the property or the threat thereof,
regardless of whether the result of an intentional or unintentional action or
omission, and which is in violation of applicable law.

             “Reportable Event” shall mean, with respect to a Pension
Plan:  (i) Any of the events set
forth in Sections 4043(b) (other than a reportable event as to which the
provision of 30 days’ notice to the PBGC is waived under applicable
regulations) or 4063(a) of ERISA or the regulations thereunder,
(ii) an event requiring the Borrower or any ERISA Affiliate to provide
security to a Pension Plan under Section 401(a)(29) of the Code and
(iii) any failure by the Borrower or any ERISA Affiliate to make payments
required by Section 412(m) of the Code.

             “Request for Advance” shall have the meaning set forth in
Section 2.4.

             “Required Banks” shall mean the Administrative Agent and
the Banks holding Loans and Revolving Loan Commitments representing at least
two-thirds (2/3) of the aggregate amount of Loans and Revolving Loan
Commitments under this Credit Facility.

             “Restricted Subsidiary” shall mean any Subsidiary, direct
or indirect, of the Borrower that is not an Unrestricted Subsidiary.  Without limiting the foregoing, and
notwithstanding anything to the contrary contained in this Agreement or any
other Loan Document, each of (i) T–4 Inc., (ii) T–7 Inc.,
(iii) T–8 Inc., (iv) T–10 Inc., (v) WLFC (Ireland)
Limited, (vi) WLFC Engine Pooling Company and (vii) Terandon Leasing
Corporation shall constitute a “Restricted Subsidiary.”

             “Revolving Loan” shall have the meaning set forth in
Section 2.1.

             “Revolving Loan Commitment” shall have the meaning set
forth in Section 2.1.

             “Revolving Loan Commitment Percentage” shall mean with
respect to each Bank the percentage set forth in column (2) opposite its
name in Exhibit A hereto.

             “Revolving Loan Termination Date” shall have the meaning
set forth in Section 2.1.

             “Revolving Credit Note” or “Revolving Credit Notes” shall have the meaning set forth
in Section 2.2.

             “Security Agent” shall have the meaning set forth in the
Preamble to this Agreement, and shall also mean and include any successor
Security Agent appointed pursuant to Section 10.6 hereto.

             “Security Agreement” shall mean the Security Agreement
between the Borrower and the Security Agent in substantially the form attached
hereto as Exhibit F, as amended and supplemented from time to time.

             “Share Pledge Agreement” shall mean the Master Share Pledge
Agreement in substantially the form attached hereto as Exhibit N.

             “Solvent” shall mean, with respect to any Person, that the
aggregate present fair saleable value of such Person’s assets is in excess of
the total amount of its probable liabilities on its existing debts as they
become absolute and matured, such Person has not incurred debts beyond its
foreseeable ability to pay such debts as they mature, and such Person has
capital adequate to conduct the business in which it is presently engaged or in
which is about to engage.

             “Stage II” as it relates to any aircraft or engine,
shall mean any aircraft or engine which, at the time of its manufacture, was
noncompliant with the noise regulations set forth in FAR Part 36.

             “Stage III” as it relates to any aircraft or engine,
shall mean any aircraft or engine which, at the time of its manufacture, was
compliant with the noise regulations set forth in FAR Part 36.

             “Structuring Agent” shall have the meaning set forth in the
Preamble to this Agreement, and shall also mean and include any successor
Structuring Agent appointed pursuant to Section 10.6 hereto.

             “Subsidiary” shall mean a corporation or other entity the
shares of stock or other equity interests of which having ordinary voting power
(other than stock or other equity interests having such power only by reason of
the happening of a contingency) to elect a majority of the board of directors
or other managers of such corporation are at the time owned, or the management
of which is otherwise controlled, directly or indirectly through one or more
intermediaries or both, by the Borrower.

             “SwissAir Group” shall mean SwissAir Group, a Swiss
corporation, and its Affiliates, including without limitation (but in each case
only so long as such Person is an Affiliate of SwissAir Group), FlightTechnics,
LLC, Flightlease AG, SRT Group America, Inc., SR Technics Group, and
SR Technics Switzerland f/k/a SR Technics AG.

             “Tangible Net Worth” shall mean Net Worth minus Intangible
Assets.

             “Termination Event” shall mean, with respect to a Pension
Plan:  (i) a Reportable Event,
(ii) the termination of a Pension Plan, or the filing of a notice of
intent to terminate a Pension Plan, or the treatment of a Pension Plan
amendment as a termination under Section 4041(c) of ERISA, (iii) the
institution of proceedings to terminate a Pension Plan under Section 4042
of ERISA or (iv) the appointment of a trustee to administer any Pension
Plan under Section 4042 of ERISA.

             “Three Primary Lessees” shall mean the three lessees under
Leases which, at the time of determination, have leased (whether under one or
more Leases) the highest percentages, based on Net Book Value, of all Eligible
Engines and Eligible Equipment.

             “Trust Agreement” shall mean a Trust Agreement in the form
and substance attached hereto as Exhibit K, to be executed by each Owner
Trustee having the Borrower as the sole beneficiary.

             “Unfunded Pension Liabilities” shall mean, with respect to
any Pension Plan at any time, the amount determined by taking the accumulated
benefit obligation, as disclosed in accordance with Statement of Accounting
Standards No. 87, over the fair market value of Pension Plan assets.

             “Unrecognized Retiree Welfare Liability” shall mean, with
respect to any Plan that provides post-retirement benefits other than pension
benefits, the amount of the accumulated post-retirement benefit obligation, as
determined in accordance with Statement of Financial Accounting Standards
No. 106, as of the most recent valuation date.  Prior to the date such statement is applicable to the Borrower,
such amount of the obligation shall be based on an estimate made in good faith.

             “Unrestricted Subsidiary” shall mean WLFC Funding
Corporation or any other Subsidiary of Borrower established to facilitate
securitizations and any Subsidiary of the Borrower designated as an
unrestricted subsidiary by the Borrower. 
In no event shall WLFC (Ireland) Limited be designated as an
Unrestricted Subsidiary.

             “Willis Companies” shall mean the Borrower and its
consolidated Subsidiaries.

             “WLFC Funding Facility” shall mean the transactions
contemplated by (i) that certain Indenture dated as of September 1,
1997 between WLFC Funding Corporation and the Bank of New York, as indenture
trustee (the “Indenture”), as
supplemented by (ii) that certain amended and restated Supplement dated as
of February 11, 1999 (the “Supplement”),
(iii) that certain Note Purchase Agreement dated as of February 11,
1999 (the “Note Purchase Agreement”),
by and among WLFC Funding Corporation, Borrower, Variable Funding Capital
Corporation, the investors named therein, First Union Securities, Inc. (f/k/a
First Union Capital Markets Corp.), and First Union National Bank,
(iv) that certain amended and restated Contribution and Sale Agreement
between WLFC Funding Corporation and Borrower dated as of January 29, 2001
(the “Contribution Agreement”),
(v) that certain Servicing Agreement between Borrower and WLFC Funding
Corporation dated as of September 1, 1997 (the “Servicing Agreement”), (vi) that certain Third Amended
and Restated Guaranty dated as of February 7, 2001 (the “Funding Corp. Guaranty”) made by Borrower
in favor of First Union Securities, Inc. (f/k/a First Union Capital Markets
Corp.) and (vii) certain other documents and agreements ancillary thereto;
in each of cases (i), (ii), (iii), (iv), (v), (vi), and (vii), as amended,
waived, restated and supplemented from time to time (including without
limitation any such amendments, waivers, restatements and supplements effective
on or prior to the date hereof).

             “WLFC (Ireland) Documents” shall mean each Lease, sublease
and all other documents directly related or incidental to the Loans or the
Collateral entered into by WLFC (Ireland) Limited.

             “WLFC (Ireland) Limited Security Assignments” shall mean
those certain Lease Security Assignments between WLFC (Ireland) Limited, as
Assignor, and Fortis Bank [Nederland] N.V., as Security Agent.

1.2        Accounting Terms. 
All accounting terms not specifically defined herein shall be construed
in accordance with Generally Accepted Accounting Principles consistent with
those applied in the preparation of the financial statements referred to in
Section 3.6, and all financial data submitted pursuant to this Agreement
shall be prepared in accordance with such principles.

1.3        Construction. 
Words and defined terms importing the plural include the singular and
visa versa.

SECTION 2.

THE CREDIT

2.1        The Revolving Loans.

             (a)         Revolving Loans; Revolving Loan
Commitment.  Subject to the terms
and conditions herein set forth and in reliance upon the representations,
warranties and covenants contained herein, each Bank agrees, severally and not
jointly, to make revolving credit loans (collectively, the “Revolving Loans” and, individually, a “Revolving Loan”) to the Borrower during the
period beginning on the Closing Date and ending on May 31, 2004 or on the
earlier date of termination in full, pursuant to Section 2.6,
Section 2.7 or Section 8.1 hereof, of the obligations of such Bank
under this Section 2.1 (May 31, 2004 or such earlier date of
termination or if the Revolving Loan Commitment is renewed the anniversary date
thereof being herein called the “Revolving
Loan Termination Date”) in amounts not to exceed at any time
outstanding, in the aggregate, the commitment amount set forth in
column (1) opposite the name of such Bank on Exhibit A hereto (each
such amount, as the same may be reduced pursuant to Section 2.6 hereof or
increased pursuant to the last sentence of this Section 2.1(a) being
hereinafter called such Bank’s “Revolving
Loan Commitment”). 
Subsequent to the execution of this Agreement and prior to the Closing
Date, a Bank may increase its Revolving Loan Commitment.  Any such increase shall be noted in
column (1) opposite the name of the relevant Bank on Exhibit A hereto
and the Banks’ Revolving Loan Commitment Percentages shall be adjusted to
reflect such increased Revolving Loan Commitment.  The Banks’ collective commitment to make Revolving Loans under
this Credit Facility shall be the “Aggregate
Revolving Loan Commitment”. 
All Revolving Loans shall be made by the Banks simultaneously and pro
rata in accordance with their respective Revolving Loan Commitments.  All Revolving Loans shall be made to the
Borrower at the office of the Administrative Agent in Cleveland, Ohio located
at 1900 East Ninth Street.  The
Revolving Loan Commitment may be renewed annually at the Borrower’s request and
the sole discretion of the Banks. 
Notwithstanding the foregoing, the Aggregate Revolving Loan Commitment
may be increased to not more than two hundred million Dollars ($200,000,000)
within 90 days after the Closing Date through the acceptance of (x) new
Revolving Loan Commitments from financial institutions which are not “Banks” on
the Closing Date and are acceptable to both the Borrower and the Structuring
Agent and/or (y) an increased Revolving Loan Commitment from any Bank(s)
(and, in such event, Exhibit A hereto shall be amended accordingly).

             (b)        Interest Rate Options.  Revolving Loans shall bear interest at
(i) the Base Rate plus the Applicable Margin for Revolving Loans, or
(ii) the LIBO Rate plus the Applicable Margin for Revolving Loans, provided
that, in the case of LIBO Rate Loans (a) not more than five such Loans may
be outstanding at any one time, and (b) no LIBO Rate Loan may have an
Interest Period extending beyond the Revolving Loan Termination Date.

             (c)         Maximum Loans Outstanding.  The Borrower shall not be entitled to any
new Revolving Loan if, after giving effect to such Loan, the unpaid amount of
the then- outstanding Loans would exceed the lesser of (i) the
then-current Aggregate Revolving Loan Commitment or (ii) the then-current
Asset Base as stated in the most recent Asset Base Certificate furnished to the
Banks as provided herein.

             (d)        Minimum Loan Amount.  Except for Loans which exhaust the full
remaining amount of the Aggregate Revolving Loan Commitment and conversions
which result in the conversion of all Loans subject to a particular interest
rate option, each of which may be in lesser amounts, (i) each LIBO Rate
Loan when made (and each conversion of Base Rate Loans into LIBO Rate Loans)
shall be in an amount at least equal to $3,000,000 or, if greater, then in such
minimum amount plus $100,000 multiples, and (ii) each Base Rate Loan when
made (and each conversion of LIBO Rate Loans into Base Rate Loans) shall be in
an amount at least equal to $150,000.

             (e)         Prepayment and Reborrowing.  Prior to the Revolving Loan Termination Date
and within the limits of the Aggregate Revolving Loan Commitment and the Asset
Base, the Borrower may borrow, prepay and reborrow Revolving Loans.  All Revolving Loans shall mature and be due
and payable on the Revolving Loan Termination Date.

             (f)         Revolving Loan Commitment
Percentages.  The obligation of each
Bank to make a Revolving Loan to the Borrower at any time shall be limited to
its percentage (the “Revolving Loan
Commitment Percentage”) as set forth in column (2) opposite its
name on Exhibit A hereto multiplied by the aggregate principal amount of
the Revolving Loan requested.  The
principal amounts of the respective Revolving Loans made by the Banks on the occasion
of each borrowing shall be pro rata in accordance with their respective
Revolving Loan Commitment Percentages. 
No Bank shall be required or permitted to make any Loan if, immediately
after giving effect to such Loan, and the application of the proceeds of a Loan
to the extent applied to the repayment of the Loans, the sum of such Bank’s
Loans outstanding would exceed such Bank’s Revolving Loan Commitment.

             (g)        Several Obligations.  The failure of any one or more Banks to make
Revolving Loans in accordance with its or their obligations shall not relieve
the other Banks of their several obligations hereunder, but in no event shall
the aggregate amount at any one time outstanding which any Bank shall be
required to lend hereunder exceed its Revolving Loan Commitment.

2.2        The Revolving Credit Notes.  The Revolving Loans made by each Bank shall
be evidenced by a single promissory note of the Borrower (each such promissory
note as it may be amended, extended, modified or renewed, a “Revolving Credit Note” and, together, the “Revolving Credit Notes”) in principal face
amount equal to such Bank’s Revolving Loan Commitment, payable to the order of
such Bank and otherwise in the form attached hereto as Exhibit C.  The Revolving Credit Notes shall be dated
the Closing Date, shall bear interest at the rate per annum and be payable as
to principal and interest in accordance with the terms hereof.  Each outstanding Revolving Loan shall be due
and payable as set forth in Section 2.1 hereof unless the maturity of said
Loans is accelerated as provided in Section 2.6 or Section 8.1
hereof.  Notwithstanding the stated
amount of any Revolving Credit Note, the liability of the Borrower under each
Revolving Credit Note shall be limited at all times to the outstanding
principal amount of the Revolving Loans by each Bank evidenced thereby, plus
all interest accrued thereon and the amount of all costs and expenses then
payable hereunder, as established by each such Bank’s books and records, which
books and records shall be conclusive absent manifest error.

2.3        [Reserved].

2.4        Funding Procedures.

             (a)         Request for Advance.  Each request for a Revolving Loan or the
conversion or renewal of an interest rate with respect to a Loan shall be made
not later than 2:00 p.m. Eastern prevailing time on a Business Day by
delivery to the Administrative Agent of a written request signed by the
Borrower or, in the alternative, a telephone request followed promptly by
written confirmation of the request (a “Request
for Advance”), specifying the date and amount of the Loan to be
made, converted or renewed, selecting the interest rate option applicable
thereto, and in the case of LIBO Rate Loans, specifying the Interest Period
applicable to such Loans.  The form of
request to be used in connection with the making, conversion or renewal of
Loans shall be that form provided to the Borrower by the Administrative
Agent.  Each request shall be received
not less than one Business Day prior to the date of the proposed borrowing,
conversion or renewal in the case of Base Rate Loans and three London Business
Days prior to the date of the proposed borrowing, conversion or renewal in the
case of LIBO Rate Loans.  No request
shall be effective until actually received in writing by the Administrative
Agent.  The Borrower may not request
more than three advances per week.  Each
Request for Advance shall be for Loans at a single interest rate option.

             (b)        Actions by the Administrative Agent.  Upon receipt of a Request for Advance and if
the conditions precedent provided herein shall be satisfied at the time of such
request, the Administrative Agent promptly shall notify each Bank of such
request and of such Bank’s ratable share of such Loan.  Upon receipt by the Administrative Agent of
a Request for Advance, the request shall not be revocable by the Borrower.

             (c)         Availability of Funds.  Not later than 1:00 p.m. Eastern
prevailing time on the date of each Loan, each Bank shall make available
(except as provided in clause (d) below) its ratable share of such Loan,
in immediately available Dollars, to the Administrative Agent at the address
set forth opposite its name on the signature page hereof or at such
account in London as the Administrative Agent shall specify to the Borrower and
the Banks.  Unless the Administrative
Agent knows that any applicable condition specified herein has not been
satisfied, it will make the funds so received from the Banks immediately
available to the Borrower on the date of each Loan by a credit to the account
of the Borrower at the Administrative Agent’s aforesaid address.

             (d)        Funding Assumptions.  Unless the Administrative Agent shall have
been notified by any Bank at least one Business Day prior to the date of the
making, conversion or renewal of any LIBO Rate Loan, or by 3:00 p.m.
Eastern prevailing time on the date a Base Rate Loan is requested, that such
Bank does not intend to make available to the Administrative Agent, such Bank’s
portion of the total amount of the Loan to be made, converted or renewed on
such date, the Administrative Agent may assume that such Bank has made such amount
available to the Administrative Agent on the date of the Loan and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower a corresponding amount.  If
and to the extent such Bank shall not have so made such funds available to the
Administrative Agent, such Bank agrees to repay the Administrative Agent
forthwith on demand such corresponding amount together with interest thereon,
for each day from the date such amount is made available to the Borrower until
the date such amount is repaid to the Administrative Agent, at the Federal
Funds Rate plus 50 basis points for three Business Days, and thereafter at the
Base Rate.  If such Bank shall repay to
the Administrative Agent such corresponding amount, such amounts so repaid
shall constitute such Bank’s Loan for purposes of this Agreement.  If such Bank does not repay such
corresponding amount forthwith upon the Administrative Agent’s demand therefor,
the Administrative Agent shall promptly notify the Borrower, and the Borrower
shall immediately pay such corresponding amount to the Administrative Agent,
without any prepayment penalty or premium, but with interest on the amount
repaid, for each day from the date such amount is made available to the
Borrower until the date such amount is repaid to the Administrative Agent, at
the rate of interest applicable at the time to such Loan.  Nothing herein shall be deemed to relieve
any Bank of its obligation to fulfill its Revolving Loan Commitment hereunder
or to prejudice any rights which the Borrower may have against any Bank as a
result of any default by such Bank hereunder.

             (e)         Proceeds of Loan Being Repaid.  If the Banks make a Loan on a day on which
all or any part of an outstanding Loan from the Banks is to be repaid, each
Bank shall apply the proceeds of its new Loan towards Borrower’s obligations to
make such Bank’s proportionate share of such repayment and only an amount equal
to the difference (if any) between the amount being borrowed and the amount
being repaid shall be made available by such Bank to the Administrative Agent
as provided in clause (c).

2.5        Facility Fee; Extension Fee.  The Borrower agrees to pay to the
Administrative Agent the Facility Fee and the Extension Fee, in each case in
the amounts and as described on Exhibit A.

2.6        Reduction or Termination of Revolving
Loan Commitments.

             (a)         Voluntary.  The Borrower may at any time, on not less
than one Business Day’s written notice to the Administrative Agent, terminate
or permanently reduce the Aggregate Revolving Loan Commitment pro rata among
the Banks, provided that any reduction shall be in the minimum amount of
$1,000,000 or a multiple thereof and that no such reduction shall cause the
principal amount of Loans outstanding to exceed the reduced Aggregate Revolving
Loan Commitment or the Asset Base, whichever is less.

             (b)        Revolving Loan Commitment Termination.  In the event the Aggregate Revolving Loan
Commitment is terminated, the Revolving Loan Termination Date shall be
accelerated to the date of such termination and Borrower shall, simultaneously
with such termination, repay the Revolving Loans in accordance with
Section 2.12.

2.7        Mandatory Prepayments.  Subject to the terms set out in
Section 7.6 hereof, if the aggregate principal amount of Loans outstanding
under this Credit Facility at any time exceed the total Asset Base, the
Borrower shall make immediate prepayments to reduce such outstanding Loans to
an amount not to exceed the Asset Base.

2.8        [Reserved].

2.9        Payment of Additional Amount.  If any principal of a LIBO Rate Loan shall
be repaid (whether upon mandatory or voluntary prepayment, reduction of the
Aggregate Revolving Loan Commitment after acceleration or for any other reason)
or converted to a Base Rate Loan prior to the last day of the Interest Period
applicable to such LIBO Rate Loan or if the Borrower fails for any reason to
borrow a LIBO Rate Loan after giving irrevocable notice pursuant to
Section 2.4, it shall pay to each Bank, in addition to the principal and
interest then to be paid, such additional amounts as may be necessary to
compensate each Bank for all direct and indirect costs and losses (including
losses resulting from redeployment of prepaid or unborrowed funds at rates
lower than the cost of such funds to such Bank, and including lost profits
incurred or sustained by such Bank) as a result of such repayment or failure to
borrow (the “Additional Amount”).  The Additional Amount (which each Bank shall
take reasonable measures to minimize) shall be specified in a written notice or
certificate delivered to the Borrower by the Administrative Agent in the form
provided by each Bank sustaining such costs or losses.  Such notice or certificate shall contain a
calculation in reasonable detail of the Additional Amount to be compensated and
shall be conclusive as to the facts and the amounts stated therein, absent
manifest error.

2.10      Interest.

             (a)         Base Rate Loans.  Each Base Rate Loan shall bear interest on
the unpaid principal balance thereof from day to day at a rate per annum which
at all times shall be equal to the Base Rate plus the Applicable Margin.  Interest on Base Rate Loans shall be
computed on the basis of a year of 360 days, for the actual days elapsed.

             (b)        LIBO Rate Loans.  Each LIBO Rate Loan shall bear interest on
the unpaid principal amount thereof at the LIBO Rate plus the Applicable
Margin.  Interest on LIBO Rate Loans
shall be computed on the basis of a year of 360 days, for the actual days
elapsed.

             (c)         Conversion to Base Rate.  Unless the Borrower shall have elected in accordance
with the provisions of Section 2.4 or this Section 2.10 that LIBO
Rate apply to the one, two, three or six-month period immediately succeeding a
particular Interest Period, upon the termination of such Interest Period the
applicable Loan shall bear interest at the Base Rate plus the Applicable Margin
until such time as the Borrower elects to request a new LIBO Rate Loan for a
subsequent Interest Period.

             (d)        Renewals and Conversions.  The Borrower shall have the right to convert
Base Rate Loans into LIBO Rate Loans, and vice versa, and to renew LIBO Rate
Loans from time to time, provided that: 
(i) the Borrower shall give the Administrative Agent notice of each
permitted conversion or renewal; (ii) LIBO Rate Loans may be converted or
renewed only as of the last day of the applicable Interest Period for such
Loans; (iii) without the consent of the Majority Banks, no Base Rate Loan
may be converted into a LIBO Rate Loan, and no Interest Period may be renewed
if on the proposed date of conversion an Event of Default or Potential Default
exists or would thereby occur.  The
Administrative Agent shall use its best efforts to notify the Borrower and the
Banks of the effectiveness of such conversion or renewal, and the new interest
rate to which the converted or renewed Loan is subject, as soon as practicable
after the conversion; provided, however, that any failure to give such notice
shall not affect the Borrower’s obligations or the Banks’ rights and remedies
hereunder in any way whatsoever.

             (e)         Interim Payments At Base Rate.  If at any time the Borrower requests that
the LIBO Rate plus the Applicable Margin be applicable to a Loan for a
particular Interest Period and a payment of principal is due within such period
(other than on the last day of such Interest Period), only that portion of that
Loan equal to the outstanding principal amount of the Loan less the principal
installment due during such period shall bear interest at the LIBO Rate plus
the Applicable Margin for such Interest Period.  The portion of that Loan equal to the principal installment due
during such period shall bear interest at the Base Rate plus the Applicable
Margin.

             (f)         Reinstatements.  The liability of the Borrower under this
Section 2.10 shall continue to be effective or be automatically
reinstated, as the case may be, if at any time payment, in whole or in part, of
any of the payments to the Banks is rescinded or must otherwise be restored or
returned upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any other Person, or upon or as a result of
the appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to the Borrower or any other Person or any substantial part
of its property, or otherwise, all as though such payment had not been made.

2.11      Voluntary Prepayments.

             (a)         Base Rate Loans.  On one Business Day’s notice to the
Administrative Agent, the Borrower may, without penalty, at its option, prepay
any Base Rate Loan in whole at any time or in part from time to time, provided
that each partial prepayment shall be in the minimum principal amount of
$150,000 or, if greater, then in multiples thereof and, if less than $150,000
shall be outstanding, in principal amount equal to amount remaining outstanding.  Notwithstanding the foregoing, prepayments
may be made in connection with the release of Collateral as provided in
Section 9.3, which prepayments shall not be subject to the proviso
contained in the previous sentence.

             (b)        LIBO Rate Loans.  On one London Business Day’s notice to the
Administrative Agent, the Borrower may, without penalty, at its option, prepay
any LIBO Rate Loan in whole at any time or in part from time to time, provided
that each partial prepayment shall be in the minimum principal amount of
$1,000,000 or, if greater, then in multiples of $100,000 and, if less than
$1,000,000 shall be outstanding, in principal amount equal to the amount
remaining outstanding (not withstanding the foregoing, prepayments may be made
in connection with the release of Collateral as provided in Section 9.3,
which prepayments shall not be subject to the foregoing proviso), provided
that if it shall prepay a LIBO Rate Loan prior to the last day of the
applicable Interest Period, or shall fail to borrow any LIBO Rate Loan on the
date such Loan is to be made, it shall pay to each Bank, in addition to the
principal and interest then to be paid in the case of a prepayment, on such
date of prepayment, the Additional Amount incurred or sustained by such Bank as
a result of such prepayment or failure to borrow as provided in
Section 2.9.

2.12      Payments.

             (a)         Accrued Interest.  Accrued interest on all Base Rate Loans
shall be due and payable in arrears on the last Business Day of each calendar
month.  Interest on LIBO Rate Loans
shall be payable in arrears on the last day of the applicable Interest Period, provided
that if an Interest Period in respect of a LIBO Rate Loan exceeds three months,
accrued interest shall be payable on the three-month anniversary of such LIBO Rate
Loan.  Each Revolving Loan shall mature
as provided in Section 2.1.

             (b)        Form of Payments, Application of
Payments, Payment Administration, Etc. 
Subject to the provisions of Section 11.7(b) hereto, all payments
of principal, interest, fees, or other amounts payable by the Borrower
hereunder shall be applied to the Loans in such order and to such extent as
shall be specified by the Borrower by written notice to the Administrative
Agent at the time of such payment or prepayment.  Such payments shall be remitted in Dollars to the Administrative
Agent on behalf of the Banks at the address set forth opposite its name on the
signature page hereof or at such office or account as the Administrative Agent
shall specify to the Borrower, in immediately available funds not later than
2:00 p.m. Eastern prevailing time on the day when due.  Whenever any payment is stated as due on a
day which is not a Business Day, the maturity of such payment shall, except as
otherwise provided in the definition of “Interest Period,” be extended to the
next succeeding Business Day and interest and commitment fees shall continue to
accrue during such extension.  The
Borrower authorizes the Administrative Agent to deduct from any account of the Borrower
maintained at the Administrative Agent or over which the Administrative Agent
has control any amount payable under this Agreement, the Notes or any other
Loan Document which is not paid in a timely manner.  The Administrative Agent’s failure to deliver any bill, statement
or invoice with respect to amounts due under this Section or under any
Loan Document shall not affect the Borrower’s obligation to pay any installment
of principal, interest or any other amount under this Agreement when due and
payable.

             (c)         Demand Deposit Account.  The Borrower shall maintain at least one
demand deposit account with the Administrative Agent for purposes of this
Agreement.  The Borrower authorizes the
Administrative Agent to deposit into said account all amounts to be advanced to
the Borrower hereunder.  Further, the
Borrower authorizes the Administrative Agent (but the Administrative Agent
shall not be obligated) to deduct from said account, or any other account
maintained by the Borrower at the Administrative Agent, any amount payable
hereunder on or after the date upon which it is due and payable.  Such authorization shall include but not be
limited to amounts payable with respect to principal, interest, fees and
expenses.

             (d)        Net Payments.  All payments made to the Banks by the
Borrower hereunder, under any Note or under any other Loan Document will be
made without set-off, counterclaim or other defense.

             (e)         Commitment Fee.  Borrower agrees to pay to the Administrative
Agent for the account of each Bank as compensation for the Aggregate Revolving
Loan Commitment a fee based on the average daily unused committed amount of the
Credit Facility (the “Commitment Fee”)
computed as indicated on the chart set forth on Exhibit B hereto, based on
the then applicable Leverage Ratio of the Borrower.  The Commitment Fee shall be payable quarterly in arrears on the
first day of each January, April, July and October, commencing July 1,
2001 (for the three month period or portion thereof ended on the preceding
day), and on the Revolving Loan Termination Date.  The Commitment Fee shall be calculated on the basis of the actual
number of days elapsed in a 360-day year. 
The Administrative Agent shall promptly distribute to the Banks their
respective portions of the Commitment Fee.

2.13      Change in Circumstances, Yield Protection.

             (a)         Certain Regulatory Changes.  If any Regulatory Change or compliance by
any Bank with any request made after the date of this Agreement by the Board of
Governors of the Federal Reserve System or by any Federal Reserve Bank or other
central bank or fiscal, monetary or similar authority (in each case whether or
not having the force of law) shall (i) impose, modify or make applicable
any reserve, special deposit, Federal Deposit Insurance Corporation premium or
similar requirement or imposition against assets held by, or deposits in or for
the account of, or loans made by, or any other acquisition of funds for loans
or advances by, any Bank; (ii) impose on any Bank any other condition
regarding the Notes; (iii) subject any Bank to, or cause the withdrawal or
termination of any previously granted exemption with respect to, any tax
(including any withholding tax but not including any income tax not currently
causing any Bank to be subject to withholding) or any other levy, impost, duty,
charge, fee or deduction on or from any payments due from the Borrower; or
(iv) change the basis of taxation of payments from the Borrower to any
Bank (other than by reason of a change in the method of taxation of any Bank’s
net income); and the result of any of the foregoing events is to increase the
cost to any Bank of making or maintaining any Loan or to reduce the amount of
principal, interest or fees to be received by any Bank hereunder in respect of
any Loan, the Administrative Agent will immediately so notify the Borrower.  If any Bank determines in good faith that
the effects of the change resulting in such increased cost or reduced amount
cannot reasonably be avoided or the cost thereof mitigated, then upon notice by
the Administrative Agent to the Borrower, the Borrower shall pay to such Bank
on each interest payment date of the Loans, such additional amount as shall be
necessary to compensate that Bank for such increased cost or reduced amount.

             (b)        Capital Adequacy.  If any Bank shall determine that any
Regulation regarding capital adequacy or the adoption of any Regulation
regarding capital adequacy, which Regulation is applicable to banks (or their
holding companies) generally and not such Bank (or its holding company)
specifically, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by such Bank (or its holding company) with any such request or directive
regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency, has the effect of reducing the
rate of return on such Bank’s capital as a consequence of its obligations
hereunder to a level below that which such Bank could have achieved but for
such adoption, change or compliance (taking into consideration such Bank’s
policies with respect to capital adequacy) by an amount deemed by such Bank to
be material, the Borrower shall promptly pay to the Administrative Agent for
the account of such Bank, upon the demand of such Bank, such additional amount
or amounts as will compensate such Bank for such reduction.

             (c)         Ability to Determine LIBO Rate.  If the Administrative Agent shall determine
(which determination will be made after consultation with any Bank requesting
same and shall be, in the absence of fraud or manifest error, conclusive and
binding upon all parties hereto) that by reason of abnormal circumstances
affecting the interbank eurodollar or applicable eurocurrency market adequate
and reasonable means do not exist for ascertaining the LIBO Rate to be
applicable to the requested LIBO Rate Loan or that eurodollar or eurocurrency
funds in amounts sufficient to fund all the LIBO Rate Loans are not obtainable
on reasonable terms, the Administrative Agent shall give notice of such
inability or determination by telephone to the Borrower and to each Bank at
least two Business Days prior to the date of the proposed Loan and thereupon
the obligations of the Banks to make, convert other Loans to, or renew such
LIBO Rate Loan shall be excused, subject, however, to the right of the Borrower
at any time thereafter to submit another request.

             (d)        Yield Protection.  Determination by a Bank for purposes hereof
of the effect of any Regulatory Change or other change or circumstance referred
to in this Section 2.13 on its costs of making or maintaining Loans or on
amounts receivable by it in respect of the Loans and of the additional amounts
required to compensate such Bank in respect of any additional costs, shall be
made in good faith and shall be evidenced by a certificate, signed by an
officer of such Bank and delivered to the Borrower, as to the fact and amount
of the increased cost incurred by or the reduced amount accruing to such Bank
owing to such event or events.  Such
certificate shall be prepared in reasonable detail and shall be conclusive as
to the facts and amounts stated therein, absent manifest error.  The Borrower shall pay such Bank the amount
shown as due at the times required herein.

             (e)         [Reserved].

             (f)         Notice of Events.  The affected Bank will notify the Borrower
of any event occurring after the date of this Agreement that will entitle such
Bank to compensation pursuant to this Section as promptly as practicable after
it obtains knowledge thereof and determines to request such compensation.  Said notice shall be in writing, shall
specify the applicable Section or Sections of this Agreement to which it
relates and shall set forth the amount or amounts then payable pursuant to this
Section.

2.14      Illegality.  Notwithstanding any other provision in this
Agreement, if the adoption of any applicable Regulation, or any change therein,
or any change in the interpretation or administration thereof by any
governmental authority, central bank, or comparable agency charged with the
interpretation or administration thereof, or compliance by any Bank with any
request or directive (whether or not having the force of law) of any such
authority, central bank, or comparable agency shall make it unlawful or
impossible for any Bank to (a) maintain its Revolving Loan Commitment,
then upon notice to the Borrower by the Administrative Agent, its Revolving
Loan Commitment shall terminate; or (b) maintain or fund its LIBO Rate
Loans, then upon notice to the Borrower of such event, the Borrower’s
outstanding LIBO Rate Loans shall be converted into Base Rate Loans.

2.15      Discretion of each Bank as to Manner of
Funding.  Notwithstanding any provision of this
Agreement to the contrary, each Bank shall be entitled to fund and maintain its
funding of all or any part of its Loans in any manner it sees fit, it being
understood, however, that for the purposes of this Agreement all determinations
hereunder shall be made as if each Bank had actually funded and maintained each
LIBO Rate Loan during each Interest Period for such Loan through the purchase
of deposits in the relevant interbank market having a maturity corresponding to
such Interest Period and bearing an interest rate equal to the LIBO Rate for
such Interest Period; provided, however, that Borrower shall not be required to
compensate such Bank for any Additional Amount (as described in
Section 2.9) unless such Bank actually incurs or sustains or suffers the loss
of such amount (provided further, however, that nothing contained in this
Section 2.15 shall be deemed to limit or otherwise affect Borrower’s
obligations under Section 2.9).

2.16      Appraisals. 
Within 20 days following the receipt by the Banks of the Asset Base
Certificate covering the last month of a Fiscal Quarter, the Majority Banks may
request that an appraisal be conducted with respect to Eligible Engines or
Eligible Equipment (other than Parts Packages) added to the Asset Base during
the Fiscal Quarter just ended.  In
addition, not more than once per each Fiscal Year, (i) the Majority Banks
may request that an appraisal be conducted with respect to all Eligible Engines
and Eligible Equipment (other than Parts Packages) included in the Asset Base,
and (ii) the Banks may request that an appraisal be conducted with respect
to any Engine or item of Equipment Off-Lease for more than 365 consecutive
days.  Each such appraisal shall be a
“desktop appraisal” (unless a Potential Default or an Event of Default then exists)
and shall be conducted by an appraiser retained by the Security Agent on behalf
of the Banks, and the cost of each such appraisal will be paid by the Borrower.

SECTION 3.

REPRESENTATIONS AND WARRANTIES

             The Borrower represents and
warrants to the Banks that:

3.1        Organization, Standing. 
It (a) is a corporation duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation,
(b) has the corporate power and authority necessary to own its assets,
carry on its business and enter into and perform its obligations hereunder, and
under each Loan Document to which it is a party, and (c) is qualified to
do business and is in good standing in each jurisdiction where the nature of
its business or the ownership of its properties requires such qualification,
except where the failure to be so qualified would not have a Material Adverse
Effect.

3.2        Corporate Authority, Validity, Etc. 
The making and performance of the Loan Documents to which it is a party
are within its power and authority and have been duly authorized by all
necessary corporate action.  The making
and performance of the Loan Documents do not and under present law will not
require any consent or approval not obtained of any of its shareholders, or any
other Person (including, without limitation, any Governmental Authority), do
not and under present law will not violate any law, rule, regulation order,
writ, judgment, injunction, decree, determination or award, do not violate any
provision of its charter or by–laws, do not and will not result in any
breach of any material agreement, lease or instrument to which it is a party,
by which it is bound or to which any of its assets are or may be subject, and
do not and will not give rise to any Lien upon any of its assets except the
Lien in favor of the Security Agent contemplated hereby.  The number of shares and classes of the
capital stock of the Borrower and the ownership thereof are accurately set
forth on Schedule 1 attached hereto; all such shares are validly issued,
fully paid and non-assessable, and the issuance and sale thereof are in
compliance with all applicable federal and state securities and other
applicable laws.  Further, the Borrower
is not in default under any such agreement, lease or instrument except to the
extent such default reasonably could not have a Material Adverse Effect.  No authorizations, approvals or consents of,
and no filings or registrations with, any Governmental Authority are necessary
for the execution, delivery or performance by the Borrower of any Loan Document
to which it is a party or for the validity or enforceability thereof, except
any filings or registrations expressly contemplated by the Loan Documents.

3.3        Validity of Loan Documents.  The Loan Documents to which Borrower is a
party, when executed and delivered by Borrower, will have been duly executed
and delivered by the Borrower and constitute legal, valid, and binding
obligations of the Borrower, enforceable in accordance with their respective
terms.

3.4        Litigation.  Except as disclosed on Schedule 1, there are no actions,
suits or proceedings pending or, to the Borrower’s knowledge, threatened
against or affecting the Borrower or any of its assets before any court, government
agency, or other tribunal which if adversely determined reasonably could have a
Material Adverse Effect.  If there is
any disclosure on Schedule 1, the status (including the tribunal, the
nature of the claim and the amount in controversy) of each such litigation
matter as of the date of this Agreement is set forth in Schedule 1.

3.5        ERISA. 
(a) The Borrower and each ERISA Affiliate is in compliance in all
material respects with all applicable provisions of ERISA and the regulations
promulgated thereunder; and, neither Borrower, nor any ERISA Affiliate
maintains or contributes to or has maintained or contributed to any
multiemployer plan (as defined in Section 4001 of ERISA) under which the
Borrower or any ERISA Affiliate could have any withdrawal liability;
(b) neither the Borrower nor any ERISA Affiliate, sponsors or maintains
any Plan under which there is an accumulated funding deficiency within the
meaning of Section 412 of the Code, whether or not waived; (c) the
aggregate liability for accrued benefits and other ancillary benefits under
each Plan that is or will be sponsored or maintained by the Borrower or any
ERISA Affiliate (determined on the basis of the actuarial assumptions
prescribed for valuing benefits under terminating single-employer defined
benefit plans under Title IV of ERISA) does not exceed the aggregate fair
market value of the assets under each such defined benefit pension Plan;
(d) the aggregate liability of the Borrower and each ERISA Affiliate
arising out of or relating to a failure of any Plan to comply with the provisions
of ERISA or the Code, will not have a Material Adverse Effect; and
(e) there does not exist any unfunded liability (determined on the basis
of actuarial assumptions utilized by the actuary for the plan in preparing the
most recent Annual Report) of the Borrower or any ERISA Affiliate under any
plan, program or arrangement providing post-retirement life or health benefits.

3.6        Financial Statements. 
The consolidated financial statements of Borrower as of and for the
Fiscal Year ending December 31, 2000, consisting
of a balance sheet, a statement of operations, a statement of shareholders’
equity, a statement of cash flows and accompanying footnotes furnished to the
Banks in connection herewith, present fairly, in all material respects, the
financial position, results of operations and operating statistics of the
Borrower as of the dates and for the periods referred to, in conformity with
GAAP.  Except as set forth on
Schedule 1 hereto, there are no material liabilities, fixed or contingent,
which are not reflected in such financial statements, the accompanying
footnotes, or the Borrower’s Form 10K filed for the period ending
December 31, 2000, other than liabilities which are not required to be
reflected in such financial statements.

3.7        No Material Adverse Change.  Since December 31, 2000, there has been
no Material Adverse Change.

3.8        Not in Default, Judgments, Etc. 
No Event of Default or Potential Default under any Loan Document has
occurred and is continuing.  The
Borrower has satisfied all judgments (other than judgments which do not
constitute an Event of Default under Section 8.1(f)), and is not in
default under any order, writ, injunction, or decree of any court, arbitrator,
or federal, state, municipal, or other governmental authority, commission,
board bureau, agency, or instrumentality, domestic or foreign.

3.9        Taxes. 
The Borrower has filed all federal, state, local and foreign tax returns
and reports which it is required by law to file and as to which its failure to
file would have a Material Adverse Effect, and has paid all taxes, including
wage taxes, assessments, withholdings and other governmental charges which are
presently due and payable, other than those being contested in good faith by
appropriate proceedings, if any, and disclosed on Schedule 1.  The tax charges, accruals and reserves on
the books of the Borrower are adequate to pay all such taxes that have accrued
but are not presently due and payable.

3.10      Permits, Licenses, Etc. 
The Borrower possesses all permits, licenses, franchises, trademarks,
trade names, copyrights and patents necessary to the conduct of its business as
presently conducted or as presently proposed to be conducted, except where the
failure to possess the same would not have a Material Adverse Effect.

3.11      No Materially Adverse Contracts, Etc.  To the best of its knowledge, the Borrower
is not subject to any charter, corporate or other legal restriction, or any
judgment, decree, order, rule or regulation which in the judgment of its
directors or officers has or is expected in the future to have a Material
Adverse Effect.  The Borrower is not a
party to any contract or agreement which in the judgment of its directors or
officers has or is expected to have any Material Adverse Effect, except as
otherwise reflected in adequate reserves.

3.12      Compliance with Laws, Etc.

             (a)         Compliance Generally. 
The Borrower is in compliance in all material respects with all
Regulations applicable to its business (including obtaining all authorizations,
consents, approvals, orders, licenses, exemptions from, and making all filings
or registrations or qualifications with, any court or governmental department,
public body or authority, commission, board, bureau, agency, or
instrumentality), the noncompliance with which reasonably would likely have a
Material Adverse Effect.

             (b)        Hazardous Wastes, Substances and
Petroleum Products.  The Borrower received all permits and filed
all notifications necessary to carry on its business; and is in compliance in
all material respects with all Environmental Control Statutes.  The Borrower has not given any written or
oral notice, nor has it failed to give required notice, to the Environmental
Protection Agency (“EPA”) or any
state or local agency with regard to any actual or imminently threatened
Release of Hazardous Substances on properties owned, leased or operated by it
or used in connection with the conduct of its business and operations.  The Borrower has not received notice that it
is potentially responsible for costs of clean-up or remediation of any actual
or imminently threatened Release of Hazardous Substances pursuant to any
Environmental Control Statute.  To the
best of the Borrower’s knowledge, no real property owned or leased by it is in
violation of any Environmental Laws and no Hazardous Substances are present on
said real property in violation of applicable law.  The Borrower has not received any notice to the effect that it
has been identified in any litigation, administrative proceedings or investigation
as a potentially responsible party for any liability under any Environmental
Laws.  In the event that the Borrower
becomes aware of any information indicating that either (i) any real
property owned or leased by the Borrower is in violation of any Environmental
Laws or any Hazardous Substances are present on said real property in violation
of applicable law, or (ii) the Borrower has been identified in any
litigation, administrative proceedings or investigation as a potentially
responsible party for liability under any Environmental Laws, then the Borrower
shall update its representations, in accordance with the requirements of
Section 3.20, and the Banks shall not be required to make further Loans
under this Credit Facility until the Borrower establishes adequate reserves (in
the reasonable judgment of the Majority Banks) for any liability (including
cleanup costs) and deliver revised financial statements to the Banks showing
such reserves; provided, however, that no reserve shall be required for
any such liabilities to the extent that they aggregate to less than $1,000,000.

3.13      Solvency. 
The Borrower is, and after giving effect to the transactions
contemplated hereby, will be, Solvent.

3.14      Subsidiaries, Etc. 
The Borrower does not have any Subsidiaries, except as set forth in
Schedule 1 hereto and except for Subsidiaries established to facilitate
securitizations.  Set forth in
Schedule 1 hereto is a complete and correct list, as of the date of this
Agreement, of all Investments held by the Borrower in any joint venture or
other Person except Investments expressly permitted hereby.  With respect to Subsidiaries established
after the Closing Date to facilitate securitizations, the Borrower shall not be
obligated to update Schedule 1 to reflect such Subsidiary, but shall
notify the Banks pursuant to Section 5.17 of the establishment of such
Subsidiary.

3.15      Title to Properties, Leases.  The Borrower has good and marketable title
to all assets and properties reflected as being owned by it in its financial
statements as well as to all assets and properties acquired since said date
(except property disposed of since said date in the ordinary course of
business).  Except for the Liens
existing on the Closing Date as set forth in Schedule 1 hereto and any other
Permitted Liens, there are no Liens on any of such assets or properties.  It has the right to, and does, enjoy
peaceful and undisturbed possession under all material leases under which it is
leasing property as a lessee.  All such
leases are valid, subsisting and in full force and effect, and none of such
leases is in default, except where such default, either individually or in the
aggregate, could not have a Material Adverse Effect.

3.16      Public Utility Holding Company;
Investment Company.  The Borrower is not a “public utility
company” or a “holding company,” or a “subsidiary company” of a “holding
company,” or an “affiliate” of a “holding company” or of a “subsidiary company”
of a “holding company,” as such terms are defined in the Public Utility Holding
Company Act of 1935, as amended; or a “public utility” within the meaning of
the Federal Power Act, as amended. 
Further, the Borrower is not an “investment company” or an “affiliated
person” of an “investment company” or a company “controlled” by an “investment
company” as such terms are defined in the Investment Company Act of 1940, as
amended.

3.17      Margin Stock. 
The Borrower is not and will not be engaged principally or as one of its
important activities in the business of extending credit for the purpose of
purchasing or carrying or trading in any margin stocks or margin securities
(within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System as amended from time to time).  It will not use or permit any proceeds of the Loans to be used,
either directly or indirectly, for the purpose, whether immediate, incidental
or ultimate, of buying or carrying margin stocks or margin securities.

3.18      Use of Proceeds. 
The Borrower will use the proceeds of any Loan to be made pursuant
hereto for the purchase, financing and refinancing of Engines and Equipment as
contemplated herein, as well as for working capital and general corporate
purposes.

3.19      Depreciation Policies.  The Borrower’s depreciation policies with
respect to the Engines and the Equipment are as set forth on Exhibit H.  These policies have been in effect
substantially without change since January 1, 1997.

3.20      Disclosure Generally. 
The representations and statements made by the Borrower or on its behalf
in connection with this Credit Facility and the Loans, including
representations and statements in each of the Loan Documents, do not and will
not contain any untrue statement of a material fact or omit to state a material
fact or any fact necessary to make the representations made not materially
misleading.  No written information,
exhibit, report, brochure or financial statement furnished by the Borrower to
the Banks in connection with this Credit Facility, the Loans, or any Loan
Document contains or will contain any material misstatement of fact or omit to
state a material fact or any fact necessary to make the statements contained
therein not misleading.  Notwithstanding
anything to the contrary in this Agreement, the Disclosure Schedule
(Schedule 1) to this Agreement shall be promptly updated by the Borrower
whenever necessary to reflect events that have occurred which would make the
latest Disclosure Schedule delivered by the Borrower to the Banks inaccurate or
misleading; provided, however, that no updating of the Disclosure
Schedule shall operate to: 
(i) cure a breach of a representation or warranty previously made
by the Borrower or any Guarantor; (ii) modify any of the covenants or
obligations of the Borrower or any Guarantor under this Agreement or any other
Loan Document (including any affirmative covenants, negative covenants or
financial covenants); (iii) prevent the occurrence of the disclosed event
from constituting a Potential Default or Event of Default if the occurrence of
such event otherwise constitutes a Potential Default or Event of Default under
this Agreement or any other Loan Document; or (iv) expand the definitions
of “Existing Debt” or “Permitted Liens” allowed under this Agreement.

SECTION 4.

CONDITIONS PRECEDENT

4.1        All Loans. 
The obligation of each Bank to make any Loan is conditioned upon the
following:

             (a)         Request For Advance.  The Borrower shall have delivered and the
Administrative Agent shall have received a Request for Advance, in such form as
the Administrative Agent may request from time to time.

             (b)        Asset Base Certificate.  The Borrower shall have delivered and the
Banks shall have received an Asset Base Certificate dated the date of the Loan
requested under this Agreement.

             (c)         Guaranty.  Each Restricted Subsidiary shall have duly
authorized, executed and delivered a Guaranty in the form of Exhibit J
hereto, and such Guaranty shall be in full force and effect.

             (d)        Additional Documents.  With respect to each Lease (other than an
Existing Lease Transaction or a Lease to WLFC (Ireland) Limited) to a lessee
domiciled or principally located in a non-U.S. jurisdiction which is to be
included in the Asset Base, the Security Agent shall have received (x) the
documentation (including, without limitation, the Owner Trustee Guarantees,
Owner Trustee Mortgages, Trust Agreements and Beneficial Interest Pledge
Agreements) set forth in the definition of “Eligible Lease,” and (y) if
the Lease is to proceed on the basis that the limitation expressed in
subclause (xii) of the definition of “Asset Base” is inapplicable because
the lessee’s domicile or principal location is excluded from the definition of
Nonrecognition of Rights Jurisdiction, evidence in each instance in form and
substance reasonably satisfactory to the Security Agent of the basis upon which
such domicile or principal location is to be excluded from the definition of
“Nonrecognition of Rights Jurisdictions”. 
With respect to each Lease (other than an Existing Lease Transaction) to
WLFC (Ireland) Limited in which the sublessee is domiciled or principally
located in a non-U.S. jurisdiction, and which is to be included in the Asset
Base, the Security Agent shall have received, if the sublease is to proceed on
the basis that the limitation expressed in subclause (xii) of the
definition of “Asset Base” is inapplicable because the lessee’s domicile or
principal location is excluded from the definition of Nonrecognition of Rights
Jurisdiction, evidence in each instance in form and substance reasonably
satisfactory to the Security Agent of the basis upon which such domicile or
principal location is to be excluded from the definition of “Nonrecognition of
Rights Jurisdictions”.

             (e)         Covenants; Representations.  The Borrower, the Guarantors and each Owner
Trustee shall be in compliance with all covenants, agreements and conditions in
each Loan Document and each representation and warranty contained in each Loan
Document and made by the Borrower, a Guarantor or an Owner Trustee shall be
true with the same effect as if such representation or warranty had been made
on the date such Loan is made or issued, except to the extent such
representation or warranty relates to a specific prior date.

             (f)         Defaults.  Immediately prior to and after giving effect
to such transaction, no Event of Default or Potential Default shall exist.

             (g)        Material Adverse Change.  Since December 31, 2000, there shall
not have been any Material Adverse Change.

             (h)        Owner Trustee Documents.  The Administrative Agent shall have received
(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 Loan Documents to which the
Owner Trustee is or will be a party and (ii) an incumbency certificate of
Owner Trustee, as to the persons authorized to execute and deliver the Loan
Documents to which it is or will be a party and the signatures of such person
or persons.

4.2        Conditions to Effectiveness of the
Agreement.  The effectiveness of this Credit Agreement
as to each Bank is conditioned upon the following:

             (a)         Articles, Bylaws.  The Administrative Agent shall have received
copies of the Articles or Certificate of Incorporation and Bylaws of the
Borrower certified by its Corporate Secretary or Secretary; together with
Certificate of Good Standing from any jurisdiction where the nature of its
business or the ownership of its properties requires such qualification except
where the failure to be so qualified would not have a Material Adverse Effect.

             (b)        Evidence of Authorization.  The Administrative Agent shall have received
copies certified by the Secretary or Assistant Secretary of the Borrower or any
other appropriate official (in the case of a Person other than the Borrower) of
all corporate or other action taken by each Person other than the Banks who is
a party to any Loan Document to authorize its execution and delivery and
performance of the Loan Documents and to authorize the Loans, together with
such other related papers as the Administrative Agent shall reasonably require.

             (c)         Legal Opinions.  The Administrative Agent shall have received
a favorable written legal opinion (i) from counsel to the Borrower dated
the Closing Date in form and substance satisfactory, and from counsel
reasonably acceptable, to the Banks which shall be addressed to the Banks and
(ii) from counsel to the Owner Trustee dated the Closing Date in form and
substance satisfactory, and from counsel reasonably acceptable, to the Banks
which shall be addressed to the Banks with respect to due authorization,
execution and delivery by the Owner Trustee of the Loan Documents to which it
is a party; provided, however that if another bank or trust company serves as
Owner Trustee (other than as the result of a succession by merger) under the
Loan Documents it shall be required to provide such an opinion prior to serving
as Owner Trustee.

             (d)        Incumbency.  The Administrative Agent shall have received
a certificate signed by the secretary or assistant secretary of the Borrower,
together with the true signature of the officer or officers authorized to
execute and deliver the Loan Documents and certificates thereunder, upon which
the Banks shall be entitled to rely conclusively until they shall have received
a further certificate of the secretary or assistant secretary of the Borrower
amending the prior certificate and submitting the signature of the officer or
officers named in the new certificate as being authorized to execute and
deliver Loan Documents and certificates thereunder.

             (e)         Notes.  Each Bank shall have received its Revolving Credit Note dated the
Closing Date duly executed, completed and issued in accordance herewith.

             (f)         Documents.  The Administrative Agent and the Security
Agent, as the case may be, shall have received all certificates, instruments
and other documents then required to be delivered to the Administrative Agent
or the Security Agent pursuant to any Loan Documents, in each instance in form
and substance reasonably satisfactory to it.

             (g)        Consents.  The Borrower shall have provided to each
Bank evidence satisfactory to the Banks that all governmental, shareholder and
third party consents and approvals necessary in connection with the
transactions contemplated hereby have been obtained and remain in effect.

             (h)        Other Agreements.  The Borrower, WLFC (Ireland) Limited, and
each Owner Trustee as applicable shall have executed and delivered each other
Loan Document required hereunder including, without limitation, the Security
Agreement, the Share Pledge Agreement, the Mortgage, the Owner Trustee
Mortgage(s), the Beneficial Interest Pledge Agreements and the WLFC (Ireland)
Limited Security Assignments.

             (i)          Security Interest.  The Borrower shall furnish evidence
satisfactory to the Banks that the Security Agent holds a perfected,
first-priority lien against all Collateral subject to the provisos set forth in
Section 9.1 and the exceptions contained in Section 8.1(i) or in any
other Loan Document.  Without limiting
the generality of the foregoing, all filings with the United States Patent and
Trademark Office necessary or desirable to perfect the Security Agent’s Lien on
all patents and trademarks of the Borrower shall have been completed (and the
Security Agent shall have received evidence satisfactory to it of such
completion).

             (j)          Appraisals.  The Security Agent shall have received asset
appraisals regarding the Engine and Equipment portfolio, in form and substance
reasonably satisfactory to the Security Agent.

             (k)         Financial Statements.  The Agents shall have received the
consolidated financial statements of the Willis Companies for the Fiscal Year
ended December 31, 2000, including balance sheets, income and cash-flow
statements, audited by independent public accountants of recognized national
standing, and prepared in conformity with GAAP.

             (l)          Litigation.  There shall be no actions, suits,
investigations or proceedings pending or threatened in any court or before any
arbitrator or Governmental Authority that could have a Material Adverse Effect.

             (m)        [Reserved].

             (n)        Fees.  The Borrower shall have paid to the Administrative Agent the
applicable Facility Fee and the applicable Extension Fee.  Promptly after receipt of the Facility Fee
and the Extension Fee, the Administrative Agent shall distribute to the Banks
their respective portions of the Facility Fee and the Extension Fee (in each
case in the amounts described on Exhibit A).

             (o)        Fees, Expenses.  The Borrower shall simultaneously pay or
shall have paid all fees (in addition to those described in
Section 4.2(n)) and expenses, if any, due hereunder or under any other
Loan Document.

             (p)        Lien Searches.  The Borrower shall have provided or caused
to be provided to the Administrative Agent a certified lien search for the
State of Delaware and the State of California, and the counties of Marin and
San Diego therein, indicating that there are no Liens (other than Permitted
Liens) on any property or assets of the Borrower or on any income or profits
therefrom.

             (q)        Other Documents and Information.  The Agents and the Banks shall have received
copies of all other documents and information as they shall have reasonably
requested, each in form and substance satisfactory to the Agents and the Banks.

             (r)         Existing Facility.  The Obligations (as defined in that certain
Amended and Restated Credit Agreement dated as of February 10, 2000, among
the Borrower, Willis Aeronautical Services, Inc. and certain banking
institutions named therein (the “Existing
Facility”), other than Obligations in the nature of indemnity
payments not yet due and owing, shall have been paid in full (or shall be paid
simultaneously with the making of the first Loan hereunder), and the Security
Agent shall have received evidence reasonably satisfactory to it of such
payment.

             (s)         Final Date for Effectiveness.  The parties hereto agree that if the Closing
Date has not occurred on or prior to July 10, 2001, this Agreement shall
thereafter be deemed null and void and without effect and the Banks shall be
under no obligation whatsoever to advance any portion of their respective
Revolving Loan Commitments, provided, however, that the Borrower’s obligations
under Section 11.8 shall survive after such date as shall those of the
parties under Section 11.19.

             The parties hereto acknowledge that
the Closing Date may occur subsequent to the date of this Agreement.  Without limiting the provisions of
Section 3.20 or Section 4.1(g), the Security Agent and the
Administration Agent may, in their discretion, permit the Borrower to update
Schedule 1, Schedule 6 or both of them prior to the Closing Date.

SECTION 5.

AFFIRMATIVE COVENANTS

             The Borrower covenants and agrees
that, without the prior written consent of Majority Banks, from and after the
date hereof and so long as the Revolving Loan Commitments are in effect or any
Obligation remains unpaid or outstanding, it will:

5.1        Financial Statements and Reports.  Furnish to the Banks the following financial
information:

             (a)         Annual Statements.  No later than ninety (90) days after the end
of each Fiscal Year, the consolidated and consolidating balance sheet of the
Willis Companies as of the end of such year and the prior year in comparative
form, and related statements of operations, shareholders’ equity, and cash
flows for such Fiscal Year and the prior Fiscal Year in comparative form.  The financial statements shall be in
reasonable detail with appropriate notes, and shall be prepared in accordance
with GAAP.  The consolidated annual
financial statements shall be certified (without any qualification or exception)
by KPMG LLP or other independent public accountants reasonably acceptable to
the Majority Banks.  Such financial
statements shall be accompanied by a report of such independent certified
public accountants stating that, in the opinion of such accountants, such
financial statements present fairly, in all material respects, the financial
position, and the results of operations and the cash flows of the Willis
Companies for the period then ended in conformity with GAAP, except for
inconsistencies resulting from changes in accounting principles and methods
agreed to by such accountants and specified in such report, and that, in the
case of such financial statements, the examination by such accountants of such
financial statements has been made in accordance with generally accepted
auditing standards and accordingly included examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements and
assessing the accounting principles used and significant estimates made, as
well as evaluating the overall financial statement presentation.  Each financial statement provided under this
subsection (a) shall be accompanied by a certificate signed by such
accountants either stating that during the course of their examination nothing
came to their attention which would cause them to believe that any event has
occurred and is continuing which constitutes an Event of Default or Potential
Default, or describing each such event. 
In addition to the annual financial statements, the Borrower shall,
promptly upon receipt thereof, furnish to the Banks a copy of the portion of
each other report or management letter submitted to its board of directors by
its independent accountants in connection with any annual, interim or special
audit made by them of the financial records of the Borrower in which the
Borrower’s accountants give any comment critical of the valuation of, or
controls or procedures related to, the Collateral.

             (b)        Quarterly Statements.  No later than forty-five (45) calendar
days after the end of each Fiscal Quarter of each Fiscal Year, the consolidated
and consolidating balance sheet and related statements of operations,
shareholders’ equity and cash flows of the Willis Companies for such quarterly
period and for the period from the beginning of such fiscal year to the end of
such Fiscal Quarter and a corresponding financial statement for the same
periods in the preceding Fiscal Year certified by the chief financial officer,
chief administrative officer or  chief
executive officer of the Willis Companies as having been prepared in accordance
with GAAP (subject to changes resulting from audits, year-end adjustments, and
the absence of footnotes).  Such
quarterly statement shall be accompanied by a Compliance Certificate in the
form attached hereto as Exhibit G or such other form as the Administrative
Agent shall reasonably request.

             (c)         No Default.  Within forty-five (45) calendar days after
the end of each of the first three Fiscal Quarters of each Fiscal Year and
within ninety (90) calendar days after the end of each Fiscal Year, a
certificate signed by the chief financial officer, chief administrative officer
or chief executive officer of the Willis Companies certifying that, to the best
of such officer’s knowledge, after due inquiry, (i) the Borrower has
complied with all covenants, agreements and conditions in each Loan Document
and that each representation and warranty contained in each Loan Document is
true and correct with the same effect as though each such representation and
warranty had been made on the date of such certificate (except (A) to the
extent such representation or warranty relates to a specific prior date, in
which case the representation shall be updated by the Borrower to reflect any
changes occurring since that prior date, or (B) to the extent that any
events have occurred that require a change to the Disclosure Schedule, in which
case an updated Disclosure Schedule will be delivered by the Borrower in
accordance with the requirements of Section 3.20 hereof), and (ii) no
event has occurred and is continuing which constitutes an Event of Default or
Potential Default, or describing each such event and the remedial steps being
taken by the Borrower, as applicable.

             (d)        ERISA.  All reports and forms filed with respect to all Plans, except as
filed in the normal course of business and that would not result in an adverse
action to be taken under ERISA, and details of related information of a
Reportable Event, promptly following each filing.

             (e)         Material Changes.  Notification to the Administrative Agent and
each other Bank of any litigation, administrative proceeding, investigation,
business development, or change in financial condition which could reasonably
have a Material Adverse Effect, promptly following its discovery.

             (f)         Other Information.  Promptly, upon request by the Security
Agent, the Administrative Agent or any of the Banks, from time to time (which
may be on a monthly or other basis), the Borrower shall provide such other
information and reports regarding its operations, business affairs, prospects
and financial condition as the Security Agent, the Administrative Agent or any
Bank may reasonably request.

             (g)        Asset Base Certificates; Monthly
Lease Report.  In the event the
Borrower shall not have delivered an Asset Base Certificate to the Banks during
any calendar month, it will deliver to the Banks, no later than 15 days
after the end of such calendar month as of the last day of such calendar month,
an Asset Base Certificate.  As part of
the Asset Base Certificate, the Borrower shall deliver to the Banks a report
setting forth the Eligible Engines and Eligible Equipment that are subject to
an Eligible Lease.  The Asset Base
Certificate shall also include a list of all Engines and Equipment acquired by
the Borrower since the date of the last Asset Base Certificate delivered to the
Banks.  The Asset Base Certificate shall
also include any changes to the information contained in Section 1 of
Schedule 1 to the Security Agreement.

             (h)        Monthly Lease Portfolio and Receivables
Report.  As soon as practicable and
in any event within 15 days after the end of each calendar month, the
Borrower shall deliver to the Banks a Lease portfolio listing and Lease
receivables aging report (in form and substance reasonably satisfactory to the
Administrative Agent).

             (i)          Maintenance of Current Depreciation
Policies.  The Borrower shall
maintain its method of depreciating its assets substantially consistent with
past practices as set forth in Exhibit H and will promptly notify the
Banks of any deviation from such practices.

5.2        Corporate Existence. 
Preserve its corporate existence and all material franchises, licenses,
patents, copyrights, trademarks and trade names consistent with good business
practice; and maintain, keep, and preserve all of its properties (tangible and
intangible) necessary or useful in the conduct of its business in good working
order and condition, ordinary wear and tear excepted.

5.3        ERISA. 
Comply in all material respects with the provisions of ERISA to the
extent applicable to any Plan maintained for the employees of the Borrower or
any ERISA Affiliate; do or cause to be done all such acts and things that are
required to maintain the qualified status of each Plan and tax exempt status of
each trust forming part of such Plan; not incur any material accumulated
funding deficiency (within the meaning of ERISA and the regulations promulgated
thereunder), or any material liability to the PBGC (as established by ERISA);
not permit any event to occur as described in Section 4042 of ERISA or
which may result in the imposition of a lien on its properties or assets;
notify the Banks in writing promptly after it has come to the attention of
senior management of the Borrower of the assertion or threat of any Reportable
Event or other event described in Section 4042 of ERISA (relating to the
soundness of a Plan) or the PBGC’s ability to assert a material liability
against the Borrower or impose a lien on its, or any ERISA Affiliates’,
properties or assets; and refrain from engaging in any Prohibited Transactions
or actions causing possible liability under Section 5.02 of ERISA.

5.4        Compliance with Regulations.  Comply in all material respects with all
Regulations applicable to its business, the noncompliance with which reasonably
could have a Material Adverse Effect.

5.5        Conduct of Business; Permits and
Approvals, Compliance with Laws.  Continue to engage in an efficient and
economical manner in a business of the same general type as conducted by it on
the date of this Agreement; maintain in full force and effect, its franchises,
and all licenses, patents, trademarks, trade names, contracts, permits,
approvals and other rights necessary to the profitable conduct of its business.

5.6        Maintenance of Properties.  The Borrower will maintain or cause to be
maintained in good repair, working order and condition all properties used or
useful in its business and make all reasonable and necessary renewals,
replacements, additions, betterments and improvements thereof and thereto, so
that the business carried on in connection therewith may be conducted in the
ordinary course at all times.

5.7        Maintenance of Insurance.  Maintain insurance with financially sound
and reputable insurance companies or associations in such amounts and covering
such risks as are usually carried by companies engaged in the same or a similar
business and similarly situated, which insurance may provide for reasonable
deductibility from coverage thereof.

5.8        Payment of Taxes, Etc. 
Promptly pay and discharge (a) all taxes, assessments, and
governmental charges or levies imposed upon it or upon its income and profits,
upon any of its property, real, personal or mixed, or upon any part thereof,
before the same shall become in default; and (b) all lawful claims for
labor, materials and supplies or otherwise, which, if unpaid, might become a
lien or charge upon such property or any part thereof; provided,
however, that so long as the Borrower first notifies the Administrative Agent
of its intention to do so, it shall not be required to pay and discharge any
such tax, assessment, charge, levy or claim so long as the failure to so pay or
discharge does not constitute or result in an Event of Default or a Potential
Default hereunder and so long as no foreclosure or other similar proceedings
shall have been commenced against such property or any part thereof and so long
as the validity thereof shall be contested in good faith by appropriate
proceedings diligently pursued and it shall have set aside on its books
adequate reserves with respect thereto.

5.9        Notice of Events. 
Promptly upon discovery of any of the following events, the Borrower
shall provide telephone notice to the Security Agent and the Administrative
Agent (confirmed within three (3) calendar days by written notice from the
Borrower to each Bank) describing the event and all action the Borrower propose
to take with respect thereto:

             (a)         an Event of Default or Potential
Default under this Agreement or any other Loan Document;

             (b)        any default or event of default under a
contract or contracts and the default or event of default involves payments by
the Borrower in an aggregate amount equal to or in excess of $1,000,000;

             (c)         a default or event of default under or
as defined in any evidence of or agreements for Indebtedness for Borrowed Money
under which the Borrower’s liability is equal to or in excess of $1,000,000,
singularly or in the aggregate, whether or not an event of default thereunder
has been declared by any party to such agreement or any event which, upon the
lapse of time or the giving of notice or both, would become an event of default
under any such agreement or instrument or would permit any party to any such
instrument or agreement to terminate or suspend any commitment to lend to the
Borrower or to declare or to cause any such indebtedness to be accelerated or
payable before it would otherwise be due;

             (d)        the institution of, any material adverse
determination in, or the entry of any default judgment or order or stipulated
judgment or order in, any suit, action, arbitration, administrative proceeding,
criminal prosecution or governmental investigation against the Borrower in
which the amount in controversy is in excess of $1,000,000, singularly or in
the aggregate;

             (e)         any change in any Regulation,
including, without limitation, changes in tax laws and regulations, which would
have a Material Adverse Effect; or

             (f)         any “Event of Default” or “Servicer
Event of Default” (in each case as defined in the WLFC Funding Facility) under
the WLFC Funding Facility.

5.10      Inspection Rights. 
At any time during regular business hours and upon reasonable notice,
Borrower shall permit the Security Agent or any authorized officer, employee,
agent, or representative of the Security Agent to examine and make abstracts
from the records and books of account of the Borrower, wherever located, and to
visit the properties of the Borrower; and to discuss the affairs, finances, and
accounts of the Borrower with its Chairman, President, any executive vice
president, its chief financial officer, treasurer, controller or independent
accountants.  In conducting each such
examination, visit or discussion (each an “inspection”),
the Security Agent and each of its officers, employees, agents and
representatives shall take all reasonable action to minimize any disruption to
the normal operations of the Borrower. 
If no Event of Default or Potential Default shall be in existence, the
Security Agent shall limit such inspection of each of the foregoing to once each
calendar year.  If an inspection shall
be made during the continuance of a Potential Default or an Event of Default,
the Borrower shall reimburse the Security Agent for its reasonable
out-of-pocket expense of such inspection. 
If an inspection shall be made when no Event of Default or Potential
Default shall be in existence, the Borrower shall reimburse the Security Agent
for its reasonable out-of-pocket expense of such inspection up to $20,000 in
the aggregate, any such expenses in excess of that amount shall be chargeable
pro rata to each Bank, in accordance with its 
respective Revolving Loan Commitment. 
At all times, it is understood and agreed by the Borrower that all
expenses in connection with any such inspection which may be incurred by the
Borrower, any officers and employees thereof and the attorneys and independent
certified public accountants therefor shall be expenses payable by the Borrower
and shall not be expenses of the Banks or any of them.

5.11      Generally Accepted Accounting
Principles.  Maintain books and
records at all times in accordance with Generally Accepted Accounting
Principles.

5.12      Compliance with Material Contracts.  The Borrower will comply in all material
respects with all obligations, terms, conditions and covenants, as applicable,
in all instruments and agreements to which it is a party or by which it is
bound or any of its properties is affected and in respect of which the failure
to comply reasonably could have a Material Adverse Effect.

5.13      Use of Proceeds. 
The Borrower will use the proceeds of any Loan to be made pursuant
hereto for the purchase or refinancing of Engines and Equipment as contemplated
herein, as well as for working capital and general corporate purposes.

5.14      Further Assurances. 
Do such further acts and things and execute and deliver to the Banks
such additional assignments, agreements, powers and instruments, as any Bank
may reasonably require or reasonably deem advisable to carry into effect the
purposes of this Agreement or to better assure and confirm unto each Bank its
rights, powers and remedies hereunder.

5.15      Restricted Subsidiaries.  Upon the creation of any Restricted
Subsidiary, or the redesignation of any Unrestricted Subsidiary as a Restricted
Subsidiary, such Restricted Subsidiary shall duly authorize, execute and
deliver a Guaranty in the form of Exhibit J hereto.

5.16      Placards. 
The Borrower shall use its best efforts to cause each lessee under a
Lease relating to each Eligible Engine or item of Eligible Equipment (other
than Parts Packages and turboprop engines), to affix to and maintain on the
Eligible Engine or item of Eligible Equipment (other than Parts Packages and
turboprop engines) subject to such Lease a placard satisfactory to the Security
Agent bearing an inscription substantially in the form of “THIS ENGINE IS OWNED
BY WILLIS LEASE FINANCE CORPORATION, OR AN AFFILIATE, AND IS SUBJECT TO A FIRST
PRIORITY SECURITY INTEREST IN FAVOR OF ONE OR MORE FINANCIAL INSTITUTIONS” or
such other inscription as the Security Agent from time to time may reasonably
request.  The Borrower shall, on a
quarterly basis, provide to the Security Agent a list of those Eligible Engines
or items of Equipment (other than Parts Packages and turboprop engines) subject
to a Lease on which no such placard is affixed.

5.17      Certain Subsidiaries. 
Within five days after the establishment of a Subsidiary to facilitate
securitizations, the Borrower shall notify the Banks (which notice shall be in
writing and specify the name and jurisdiction of organization of such
Subsidiary) of such establishment.

SECTION 6.

NEGATIVE COVENANTS

             The Borrower covenants and agrees
that, without the prior written consent of the Majority Banks, from and after
the date hereof and so long as any Revolving Loan Commitments are in effect or
any Obligation remains unpaid or outstanding, it will not:

6.1        Consolidation and Merger.  Merge or consolidate with or into any
corporation except, if (a) no Potential Default or Event of Default shall
have occurred and be continuing either immediately prior to or upon the
consummation of such transaction, and (b) the Borrower is the surviving
entity.  The Borrower will promptly
notify the Banks of any merger or consolidation involving the Borrower.

6.2        Liens. 
Create, assume or permit to exist any Lien on any of its property or
assets (including, without limitation, the Collateral), whether now owned or
hereafter acquired, or upon any income or profits therefrom, except Permitted
Liens, or allow or permit to exist any Lien (other than Permitted Liens) on any
Collateral owned by an Owner Trustee. 
Without limiting the foregoing, the Borrower, at the Borrower’s expense,
shall, or shall cause the relevant Owner Trustee to, promptly discharge any
such Lien, except Permitted Liens.

6.3        Guarantees.  Guarantee or otherwise in any way become or
be responsible for indebtedness or obligations (including working capital
maintenance, take-or-pay contracts) of any unconsolidated Person, contingently
or otherwise. Notwithstanding the preceding sentence, the Borrower may
guarantee indebtedness or obligations of unconsolidated Affiliates of the
Borrower in amounts not to exceed $15,000,000 in the aggregate in the ordinary
course of business with the prior written consent of the Majority Banks, such
consent not to be unreasonably withheld provided, however, that if at any time
WLFC Funding Corporation becomes an unconsolidated Affiliate of the Borrower,
the Funding Corp. Guaranty (as defined in connection with the definition of
WLFC Funding Facility above) shall not be deemed to violate the provisions of
this Section 6.3.

6.4        Margin Stock. 
Use or permit any proceeds of the Loans to be used, either directly or
indirectly, for the purpose, whether immediate, incidental or ultimate, of
buying or carrying margin stock within the meaning of Regulation U of The
Board of Governors of the Federal Reserve System, as amended from time to time.

6.5        Acquisitions and Investments.  If an Event of Default or a Potential
Default exists or would exist immediately thereafter: purchase or otherwise
acquire (including, without limitation, by way of share exchange) any part or
amount of the capital stock or assets of, or make any Investments in any other
Person; or enter into any new business activities or ventures not directly
related to its present business; or create any Subsidiary, except (a) it
may acquire and hold stock, obligations or securities received in settlement of
debts owing to it created in the ordinary course of business, and (b) it
may make and own (i) Investments in certificates of deposit or time deposits
having maturities in each case not exceeding one year from the date of issuance
thereof and issued by any Bank, or any FDIC-insured commercial bank
incorporated in the United States or any state thereof having a combined
capital and surplus of not less than $150,000,000, (ii) Investments in
marketable direct obligations issued or unconditionally guaranteed by the
United States of America, any agency thereof, or backed by the full faith and
credit of the United States of America, in each case maturing within one year
from the date of issuance or acquisition thereof, (iii) Investments in
commercial paper issued by a corporation incorporated in the United States or
any State thereof maturing no more than one year from the date of issuance
thereof and, at the time of acquisition, having a rating of A–1 (or
better) by Standard & Poor’s Corporation or P–1 (or better) by
Moody’s Investors Service, Inc., and (iv) Investments in money market
mutual funds all of the assets of which are invested in cash or investments
described in the immediately preceding clauses (i), (ii) and (iii).

6.6        Transfer of Assets; Nature of Business.  The Borrower and its Restricted Subsidiaries
may not sell, transfer, lease or dispose of assets constituting in the
aggregate more than twenty percent (20%) of the net book value of their
combined assets during any twelve- month period without the prior written
consent of the Majority Banks, such consent not to be unreasonably
withheld.  Notwithstanding the above,
but in accordance with the provisions of Section 5(a) of the Security
Agreement:  (a) the Borrower may or
may cause an Owner Trustee to lease Engines and Equipment in the ordinary
course of business, (b) the Borrower may or may cause an Owner Trustee to
sell, transfer or otherwise dispose of Engines and Equipment subject to a Lease
(including, without limitation, related assets such as security deposits and
maintenance reserves, as applicable), or assign a Beneficial Interest, in the
ordinary course of business, for its then fair market value; (c) the
Borrower may or may cause an Owner Trustee to sell, transfer or otherwise
dispose of Engines and Equipment that are declared a total loss or destroyed or
that suffer damage that is not economically repairable (or assign any
Beneficial Interest relating to any such Engine or item of Equipment), for
their then fair market value; (d) the Borrower may or may cause an Owner
Trustee to sell, transfer, assign, lease, re-lease or otherwise dispose of any
Engine or Equipment with respect to which the relevant Lease has expired or is
expiring (or assign any Beneficial Interest relating to any such Engine or item
of Equipment) if such sale or disposition is in the ordinary course of its
business, for its then fair market value; (e) the Borrower may or may
cause an Owner Trustee to transfer Contributed Assets (as such term is defined
in the Contribution Agreement) or similar assets to WLFC Funding Corporation or
to any other Subsidiary of the Borrower (in each case as such term is defined
in any other contribution or similar agreement entered into in connection with
a similar securitization transaction); (f) the Borrower may or may cause
an Owner Trustee to transfer Engines or Equipment in connection with
nonrecourse or partial recourse financing otherwise permitted hereunder
(including, without limitation, Section 6.9) of Leases and related Engines
and Equipment; (g) the Borrower may or may cause an Owner Trustee to sell
Parts to non-Affiliates of the Borrower in the ordinary course of business; and
(h) the Borrower may or may cause an Owner Trustee to sell Engines,
Equipment, Leases or related assets (or assign any Beneficial Interest relating
thereto) to a Restricted Subsidiary for not less than their net book value at
the time of transfer.  The Borrower may
not discontinue, liquidate or change in any material respect any substantial
part of its operations or business.

6.7        Accounting Change. 
Without the prior written approval of the Majority Banks, make or permit
any material change in financial accounting policies or financial reporting
practices, except as required by Generally Accepted Accounting Principles or
regulations of the Securities and Exchange Commission, if applicable.  Notwithstanding the foregoing, without the
prior written approval of all of the Banks, the Borrower shall not make or
permit any material change in financial accounting policies or financial
reporting practices as they relate to, or in connection with, any current or
future securitizations, except as required by GAAP or regulations of the Securities
and Exchange Commission, if applicable (and in such case, the Borrower shall
promptly notify the Administrative Agent of the need for such change).

6.8        Transactions with Affiliates of the
Borrower.  Enter into any material transaction
(including, without limitation, the purchase, sale or exchange of property, the
rendering of any services or the payment of management fees) with any Affiliate
of the Borrower, except transactions in the ordinary course of, and pursuant to
the reasonable requirements of, its business, and in good faith and upon
commercially reasonable terms and except for transactions with any member of
the SwissAir Group and except for securitization transactions contemplated by
the WLFC Funding Facility and any similar securitization transactions entered
into from time to time by Subsidiaries of the Borrower.

6.9        Indebtedness. 
Unless approved in writing by the Majority Banks, the Borrower shall
not, and shall not permit its Restricted Subsidiaries to, create, enter into,
or allow to exist any Debt other than (a) obligations incurred under this
Credit Facility; (b) Existing Debt, not to exceed in the aggregate
$65,000,000, provided that there shall be no extensions, renewals or
further advances under any Existing Debt unless they are permitted by this
Section 6.9, part (e); (c) Debt, not to exceed $500,000 in the
aggregate, in connection with the purchase of miscellaneous assets and secured
solely by the assets so acquired; (d) unsecured Debt, not to exceed
$1,000,000 in the aggregate; (e) Other Indebtedness; (f) guarantees
permitted under Section 6.3; (g) Operating Leases; (h) unsecured
(except for a pledge of Shares (as defined in the Security Agreement) and
records related to such Shares of any Unrestricted Subsidiary) guaranties of the
obligations of Restricted and Unrestricted Subsidiaries (including, without
limitation, the Funding Corp. Guaranty); (i) a pledge of Shares (as
defined in the Share Pledge Agreement) and records related to such Shares of
any Unrestricted Subsidiary and a pledge of Shares of T-7, a California
corporation, and T-10, a California corporation, to secure the obligations of
such Restricted Subsidiaries to Heller Financial, Inc. and FINOVA Capital
Corporation, respectively; and (j) the Funding Corp. Guaranty (or similar
guaranty issued by Borrower in connection with a similar securitization
vehicle).  Without limiting the
foregoing, the Borrower shall not incur any Debt relating to the financing or
refinancing of Eligible Engines other than Debt consisting of the guaranties
and pledges described in clauses (f), (h), (i) and (j) of this Section;
provided that (subject to Section 6.13 below) this restriction shall not
apply to the financing or refinancing of engines which Borrower is unable to
finance under this Credit Facility.

6.10      Restricted Payments.

             (a)         Make or pay any redemptions,
repurchases, dividends or distributions of any kind with respect to its capital
stock.

             (b)        Redeem or prepay any Debt other than
under this Credit Facility provided, however, that the Borrower shall be
permitted to redeem, prepay, or refinance existing Debt if such redemption,
prepayment, or refinancing (i) is in the ordinary course of the Borrower’s
business, and (ii) no Potential Default or Event of Default exists prior to
or after such refinancing.

6.11      Restriction on Amendment of this
Agreement.  Other than as contemplated by the WLFC
Funding Facility, enter into or otherwise become subject to or suffer to exist
any agreement which would require it to obtain the consent of any other Person
as a condition to the ability of the Banks and the Borrower to amend or
otherwise modify this Agreement.

6.12      Investments in Unrestricted Subsidiaries.  Except for Borrower’s investment in WLFC
Funding Corporation or any other Subsidiary of Borrower established to
facilitate securitizations, make or maintain any Investments in Unrestricted
Subsidiaries which exceed in the aggregate 15% of Net Worth of the Borrower.

6.13      No Adverse Selection. 
No adverse selection procedures shall be used by Borrower as between the
credit facility established by this Agreement and any other credit facility to
which Borrower is a party (including, without limitation, the WLFC Funding
Facility) in selecting any Engine or item of Equipment for inclusion in the
Asset Base.

SECTION 7.

FINANCIAL COVENANTS

             The Borrower covenants and agrees
that, without the prior written consent of the Majority Banks, from and after
the date hereof and so long as any Revolving Loan Commitments are in effect or
any Obligation remains unpaid or outstanding:

7.1        No Losses. 
From and after the Closing Date, the Willis Companies shall not at any
time suffer a net loss for the then two (2) most recently ended consecutive
Fiscal Quarters.

7.2        Minimum Tangible Net Worth.  Tangible Net Worth of the Willis Companies
will not at any time be less than the sum of: 
(i) $_______, plus (ii) if positive, _______% of the
cumulative Net Income of the Willis Companies for each fiscal quarter earned
from and after the Closing Date (without any deduction for net losses for any
fiscal quarter); plus (iii) _______% of the net proceeds received by
Borrower from the issuance of common stock or preferred stock of Borrower after
January 1, 2001.*

7.3        Leverage Ratio. 
From and after the Closing Date, the Leverage Ratio will not exceed
________ as of the end of any Fiscal Quarter.*

7.4        Adjusted Total Debt to
Adjusted Tangible Net Worth. 
From and after the Closing Date, the ratio of Adjusted Total Debt to
Adjusted Tangible Net Worth will not exceed ________, as of the end of any
Fiscal Quarter.*

7.5        Minimum Interest Coverage Ratio.  From and after the Closing Date, the
Interest Coverage Ratio of the Willis Companies (measured at the end of each
Fiscal Quarter on a rolling four-quarter basis) will not be less than _________.*

7.6        Asset Base. 
The aggregate principal amount of Loans outstanding shall not at any
time exceed the Asset Base or the Aggregate Revolving Loan Commitment,
whichever is less; provided, however, that this covenant shall not be
deemed breached if, at the time such aggregate amount exceeds said level,
within four Business Days after the earlier of the date the Borrower first has
knowledge of such excess or the date of the next Asset Base Certificate
disclosing the existence of such excess, a prepayment of Loans shall be
made.  The Borrower shall not be
entitled to utilize this mechanism to avoid a breach of this covenant more than
two (2) times during any twelve-month period.

SECTION 8.

DEFAULT

8.1        Events of Default. 
The Borrower shall be in default if any one or more of the following
events (each an “Event of Default”)
occurs:

             (a)         Payments.  The Borrower fails to pay the principal due
on any Note when due and payable (whether at maturity, by notice of intention
to prepay, or otherwise); or fails to pay interest or any other amount payable
hereunder or under any other Loan Document within three Business Days after the
date such interest or other amount is due and payable.

             (b)        Covenants.  The Borrower, any of the Guarantors or any
Owner Trustee, as applicable, fails to observe or perform:  (i) any term, condition or covenant set
forth in Sections 5.1(a), 5.1(b), 5.1(c), 5.1(g), 5.1(h) or 5.1(i),
Section 5.2, Section 5.7, Section 5.9, Section 5.10,
Section 5.14, Sections 6.1 through 6.12 or Sections 7.1 through
7.6 herein, as and when required; or (ii) any term, condition or covenant
contained in this Agreement or any other Loan Document, other than any Event of
Default set forth in any other subsection of this Section 8.1, and other
than as set forth in (i) above, as and when required and such failure
shall continue unremedied for a period of 10 Business Days after the earlier of
(1) actual knowledge of any executive officer of the Borrower or
(2) written notice thereof by the Administrative Agent to the Borrower.

             (c)         Representations, Warranties.  Any representation or warranty made or
deemed to be made by the Borrower, any of the Guarantors or any Owner Trustee,
as applicable, herein or in any Loan Document or in any exhibit, schedule,
report or certificate delivered pursuant hereto or thereto shall prove to have
been false, misleading or incorrect in any material respect when made or deemed
to have been made.

             (d)        Bankruptcy.  The Borrower or any of the Guarantors
(except T–10 Inc., in the case of dissolution or liquidation and other
than WLFC (Ireland) Limited) is dissolved or liquidated, makes an assignment
for the benefit of creditors, files a petition in bankruptcy, is adjudicated
insolvent or bankrupt, petitions or applies to any tribunal for any receiver or
trustee, commences any proceeding relating to itself under any bankruptcy,
reorganization, readjustment of debt, dissolution or liquidation law or statute
of any jurisdiction, has commenced against it any such proceeding which remains
undismissed for a period of sixty (60) days, or indicates its consent to,
approval of or acquiescence in any such proceeding, or any receiver of or
trustee for the Borrower or any substantial part of its property is appointed,
or if any such receivership or trusteeship to continues undischarged for a
period of sixty (60) days.

             (e)         Certain Other Defaults.  The Borrower or any Restricted Subsidiary
shall fail to pay when due any Indebtedness for Borrowed Money which singularly
or in the aggregate exceeds $1,000,000, and such failure shall continue beyond
any applicable cure period, or the Borrower or a Restricted Subsidiary shall
suffer to exist any default or event of default in the performance or
observance, subject to any applicable grace period, of any agreement, term,
condition or covenant with respect to any agreement or document relating to
Indebtedness for Borrowed Money if the effect of such default is to permit,
with the giving of notice or passage of time or both, the holders thereof, or
any trustee or agent for said holders, to terminate or suspend any commitment
(which is equal to or in excess of $1,000,000) to lend money or to cause or
declare any portion of any borrowings thereunder to become due and payable
prior to the date on which it would otherwise be due and payable, provided
that during any applicable cure period the Bank’s obligations hereunder to make
further Loans shall be suspended.

             (f)         Judgments.  Any judgments against the Borrower or any of
the Guarantors or against the assets of the Borrower or any of the Guarantors
or property for amounts in excess of $1,000,000 in the aggregate remain unpaid,
unstayed on appeal, undischarged, unbonded and undismissed for a period of
thirty (30) days.

             (g)        Attachments.  Any assets of the Borrower or of any of the
Guarantors shall be subject to attachments, levies or garnishments for amounts
in excess of $1,000,000 in the aggregate which have not been dissolved or
satisfied within twenty (20) days after service of notice thereof to the
Borrower or the Guarantors.

             (h)        Change in Control of the Borrower.  Any Change of Control of the Borrower should
occur.

             (i)          Security Interests.  Except for security interests (a) in
Collateral listed on Schedule 2 hereto; (b) in Engines and Equipment
which the Security Agent determines to include in the Asset Base as part of the
$__________ basket for unperfected Collateral or which is specifically approved
in writing by the Required Banks notwithstanding that the Security Agent will
not receive a perfected first priority security interest therein; (c) in
Collateral as to which the Security Agent fails to file a UCC continuation
statement; and (d) in Collateral other than Engines and Equipment as to
which perfection is effected by any means other than by filing a UCC–1
financing statement (the Collateral described in (a), (b), and (d) above is
hereinafter referred to as the “Excepted
Collateral”), any security interest created pursuant to any Loan
Document shall cease to be in full force and effect or shall cease in any
material respect to give the Security Agent the Liens, rights, powers and
privileges purported to be created thereby (including, without limitation, a
perfected security interest in, and Lien on, all of the Collateral but subject,
in the case of any Lease to a lessee domiciled or principally located in a
non-U.S. jurisdiction, to the provisos set forth in Section 9.1), superior
to and prior to the rights of all third Persons, and subject to no other Liens
(except as permitted by Section 6.2 and, insofar as the issue of accession
may be deemed to affect such rights or to create any such Lien, except to the
extent that the lessee (or, in the case of a Lease to WLFC (Ireland) Limited,
the sublessee) of the Collateral is domiciled or principally located in a
jurisdiction that satisfies one of the criteria for exclusion from the
definition of “Nonrecognition of Rights Jurisdictions” and except to the extent
that the Collateral is included in the Asset Base pursuant to clause (xii)
of the definition thereof).*

             (j)          WLFC Funding Facility.  A “Servicer Event of Default” (as defined in
the WLFC Funding Facility) (other than a Servicer Event of Default specified in
Section 7.01(xv) of the Servicing Agreement) shall have occurred under the
WLFC Funding Facility.

             THEN and in every such event other than that specified
in Section 8.1(d), the Administrative Agent may, or at the written request
of the Majority Banks shall, immediately terminate the Aggregate Revolving Loan
Commitment by notice in writing to the Borrower and immediately declare any and
all Notes, including without limitation accrued interest, to be, and they shall
thereupon forthwith become due and payable without presentment, demand, or
notice of any kind, all of which are hereby expressly waived by the Borrower.  Upon the occurrence of any event specified
in Section 8.1(d), the Aggregate Revolving Loan Commitment shall
automatically terminate and the Notes, including without limitation accrued
interest, shall immediately be due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived
by the Borrower.  Any date on which the
Notes and such other Obligations are declared due and payable pursuant to this
Section 8.1 shall be the Revolving Loan Termination Date for purposes of
this Agreement.  From and after the date
an Event of Default shall have occurred and for so long as an Event of Default
shall be continuing, the Loans shall bear interest at the Default Rate.

SECTION 9.

COLLATERAL

9.1        Collateral.  Except as otherwise specifically set forth
herein (including but not limited to the exceptions contained in
Section 8.1(i)) or in any other Loan Document, the Borrower covenants and
agrees that any Obligations made and outstanding and their repayment at all
times shall be secured by a first priority perfected security interest in all
of the Collateral, provided that in the case of any Owner Trustee which shall
have executed an Owner Trustee Guarantee, Borrower shall not be required to
take any additional steps to create or perfect any security interest in the
related Lease, Engines or Equipment under the laws of the jurisdiction where
the lessee under such Lease is domiciled or principally located, and provided
further that with respect to any Existing Lease Transaction involving a lessee
(or, in the case of a Lease to WLFC (Ireland) Limited, involving a sublessee)
domiciled or principally located in a non-U.S. jurisdiction, Borrower’s
obligations hereunder shall be limited to those filings, recordings and/or
other actions taken and documentation delivered (or contemplated to be taken or
delivered in the future including, without limitation, as a result of any
change in law) in connection with such Existing Lease Transaction on or prior
to the Closing Date.

9.2        Security Documents. 
As security for the punctual payment in full of all Notes (including all
payments of principal, and interest and other costs contemplated hereby) the
Borrower shall execute and deliver to the Security Agent the Security
Agreement, the Mortgage, the Share Pledge Agreement and such other documents as
may be necessary to constitute and evidence and perfect a security interest in
the Collateral (other than the Excepted Collateral); provided, however,
that if a Potential Default or Event of Default exists, the Security Agent may
require the Borrower to take all action possible to further legally perfect the
security interest in the Collateral except as otherwise provided in the
provisos to Section 9.1 of this Agreement or elsewhere in the Loan Documents
but including Excepted Collateral.

9.3        Release of Collateral. 
The Borrower shall be entitled to remove and request the Security Agent
to release certain items of Collateral in accordance with the provisions of
Section 5(a) of the Security Agreement, Section 6.09 of the Mortgage,
Section 22 of the applicable Beneficial Pledge Agreement,
Section 6.09 of the applicable Owner Trustee Mortgage, Section 3.3 of
the WLFC (Ireland) Limited Security Assignments and, with respect to the
Funding Corporation Collateral (as such term is defined in the Consent and
Intercreditor Agreement) or any other debt or equity interest in any direct or
indirect Subsidiary of the Borrower, the terms of the Consent and Intercreditor
Agreement.  The Security Agent will
cooperate with the Borrower in effecting any such release.

SECTION 10.

THE AGENTS

10.1      Appointment and Authorization.  Each Bank hereby irrevocably appoints and
authorizes National City Bank as the Administrative Agent, Fortis as the
Structuring Agent and Fortis as the Security Agent to take such action on each
Bank’s behalf and to exercise such powers under this Agreement and the Loan
Documents as are specifically delegated to the Agents by the terms hereof or
thereof, together with such other powers as are reasonably incidental
thereto.  No other agents or co-agents
of the Banks under this Credit Facility may be appointed without the prior
written consent of the Borrower and each Person then serving as an Agent.  The relationship between each Agent and each
Bank has no fiduciary aspects, and each Agent’s duties hereunder are
acknowledged to be only ministerial and not involving the exercise of
discretion on its part.  Nothing in this
Agreement or any Loan Document shall be construed to impose on any Agent any
duties or responsibilities other than those for which express provision is made
herein or therein.  In performing their
duties and functions under this Article 10, the Agents do not assume and
shall not be deemed to have assumed, and hereby expressly disclaim, any obligation
with or for the Borrower.  As to matters
not expressly provided for in this Agreement or any Loan Document, the Agents
shall not be required to exercise any discretion or to take any action or
communicate any notice, but shall be fully protected in so acting or refraining
from acting upon the instructions of the Majority Banks and their respective
successors and assigns; provided, however, that in no event shall any
Agent be required to take any action which exposes it to personal liability or
which is contrary to this Agreement, any Loan Document or applicable law, and
each Agent shall be fully justified in failing or refusing to take any action
hereunder unless it shall first be specifically indemnified to its satisfaction
by the Banks against any and all liability and expense which may be incurred by
it by reason of taking or omitting to take any such action.  If an indemnity furnished to any Agent for
any purpose shall, in its reasonable opinion, be insufficient or become
impaired, such Agent may call for additional indemnity from the Banks and not
commence or cease to do the acts for which such indemnity is requested until
such additional indemnity is furnished.

10.2      Duties and Obligations.  In performing its functions and duties
hereunder on behalf of the Banks, each Agent shall exercise the same care and
skill as it would exercise in dealing with loans for its own account.  No Agent, nor any of any Agent’s directors,
officers, employees or other agents shall be liable for any action taken or omitted
to be taken by it or them under or in connection with this Agreement or any
Loan Document except for its or their own gross negligence or willful
misconduct.  Without limiting the
generality of the foregoing, each Agent (a) may consult with legal counsel
and other experts selected by it and shall not be liable for any action taken
or omitted to be taken by it in good faith and in accordance with the advice of
such experts; (b) makes no representation or warranty to any Bank as to,
and shall not be responsible to any Bank for, any recital, statement,
representation or warranty made in or in connection with this Agreement, any
Loan Document or in any written or oral statement (including a financial or
other such statement), instrument or other document delivered in connection
herewith or therewith or furnished to any Bank by or on behalf of the Borrower;
(c) shall have no duty to ascertain or inquire into the Borrower’s
performance or observance of any of the covenants or conditions contained
herein or to inspect any of the property (including the books and records) of
the Borrower or inquire into the use of the proceeds of the Revolving Loans or
to inquire into the existence or possible existence of any Event of Default or
Potential Default; (d) shall not be responsible to any Bank for the due
execution, legality, validity, enforceability, effectiveness, genuineness,
sufficiency, collectibility or value of this Agreement or any other Loan
Document or any instrument or document executed or issued pursuant hereto or in
connection herewith, except to the extent that such may be dependent on the due
authorization and execution by the Agent itself; (e) except as expressly
provided herein in respect of information and data furnished to any Agent for
distribution to the Banks, shall have no duty or responsibility, either
initially or on a continuing basis, to provide to any Bank any credit or other
information with respect to the Borrower, whether coming into its possession
before the making of the Loans or at any time or times thereafter; and
(f) shall incur no liability under or in respect of this Agreement or any
other Loan Document for, and shall be entitled to rely and act upon, any
notice, consent, certificate or other instrument or writing (which may be by
facsimile (telecopier), telegram, cable, or other electronic means) believed by
it to be genuine and correct and to have been signed or sent by the proper
party or parties.

 

10.3      The Agents as Banks. 
With respect to its Revolving Loan Commitment and the Loans made and to
be made by it, each Agent shall have the same rights and powers under this
Agreement and all other Loan Documents as the other Banks and may exercise the
same as if it were not an Agent.  The
terms “Bank” and “Banks” as used herein shall, unless otherwise expressly
indicated, include National City Bank and Fortis in their individual
capacity.  National City Bank and any
successor Administrative Agent, and Fortis and any successor Security Agent or
Structuring Agent, which is a commercial bank, and their respective Affiliates,
may accept deposits from, lend money to, act as trustee under indentures of and
generally engage in any kind of business with, the Borrower and its Affiliates
from time to time, all as if such entity were not the Administrative Agent,
Structuring Agent or Security Agent hereunder and without any duty to account
therefor to any Bank.

10.4      Independent Credit Decisions.  Each Bank acknowledges to the Agents that it
has, independently and without reliance upon the Agents or any other Bank, and
based upon such documents and information as it has deemed appropriate, made
its own independent credit analysis and decision to enter into this
Agreement.  Each Bank also acknowledges
that it will, independently or through other advisers and representatives but
without reliance upon the Agents or any other Bank, and based upon such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or refraining from taking any action under
this Agreement or any Loan Document.

10.5      Indemnification.  The Banks agree to indemnify each Agent (to
the extent not previously reimbursed by the Borrower), ratably in proportion to
each Bank’s Revolving Loan Commitment Percentage, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses and disbursements of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against National City Bank (and its
successors) in its capacity as Administrative Agent, or against Fortis (and its
successors) in its capacity as Security Agent or Structuring Agent, in any way
relating to or arising out of this Agreement or any Loan Document or any action
taken or omitted to be taken by National City Bank (and its successors) in its
capacity as Administrative Agent, or Fortis (and its successors) in its
capacity as Security Agent or Structuring Agent, hereunder or under any Loan
Document; provided that none of the Banks shall be liable to an Agent
for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from such
Agent’s gross negligence or willful misconduct.  Without limiting the generality of the foregoing, each Bank
agrees to reimburse the Agents, promptly on demand, for such Bank’s ratable
share (based upon the aforesaid apportionment) of any out-of-pocket expenses
(including counsel fees and disbursements) incurred by such Agent in connection
with the preparation, execution, administration or enforcement of, or the
preservation of any rights under, this Agreement and the Loan Documents to the
extent that such Agent is not reimbursed for such expenses by the Borrower.

10.6      Successor Agents. 
Any Agent may resign at any time by giving 30 days’ written notice of
such resignation to the Banks and the Borrower, such resignation to be
effective only upon the appointment of a successor Agent as hereinafter
provided.  Upon any such notice of
resignation, the Banks shall jointly appoint a successor Agent upon written
notice to the Borrower and the withdrawing Agent, and provided that no
Potential Default or Event of Default exists, the Borrower shall have the right
to consent to such appointment (which consent shall not be unreasonably
withheld or delayed).  If no successor
Agent shall have been jointly appointed by such Banks (and, if required,
consented to by the Borrower) and shall have accepted such appointment within
thirty (30) days after the withdrawing Agent shall have given notice of
resignation, the Administrative Agent (unless it is the withdrawing Agent, in
which event the Bank or Banks having the largest Revolving Loan Commitment
Percentage) may, upon notice to the Borrower and the Banks, appoint a successor
Agent.  Upon its acceptance of any
appointment as Agent hereunder, the successor Agent shall succeed to and become
vested with all the rights, powers, privileges and duties of its predecessor,
and the withdrawing Agent shall be discharged from its duties and obligations
as Agent under this Agreement and the Loan Documents.  After an Agent’s resignation hereunder, the provisions hereof
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Agent under this Agreement and the Loan Documents.

10.7      Allocations Made By the Administrative
Agent.  As between the Administrative Agent and the
Banks, unless a Bank objecting to a determination or allocation made by the
Administrative Agent pursuant to this Agreement delivers to the Administrative
Agent written notice of such objection within one hundred twenty (120) days
after the date any distribution was made by the Administrative Agent, such
determination or allocation shall be conclusive on such one hundred twentieth
day and only those items expressly objected to in such notice shall be deemed
disputed by such Bank.  The
Administrative Agent shall not have any duty to inquire as to the application
by the Banks of any amounts distributed to them.

SECTION 11.

MISCELLANEOUS

11.1      Waiver. 
No failure or delay on the part of any Agent or any Bank or any holder
of any Note in exercising any right, power or remedy under any Loan Document
shall operate as a waiver thereof; nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy under any Loan
Document.  The remedies provided under
the Loan Documents are cumulative and not exclusive of any remedies provided by
law.

11.2      Amendments. 
No amendment, modification, termination, renewal or waiver of any Loan
Document or any provision thereof nor any consent to any departure by the
Borrower therefrom shall be effective unless the same shall have been approved
by the Majority Banks, be in writing and be signed by National City Bank, as
Administrative Agent on behalf of the Banks, and then any such waiver or
consent shall be effective only in the instance and for the specific purpose
for which given, provided, however, that unanimous written consent of
all of the Banks shall be required for:

(a) subject to Section 2.1(a), any
increase in the amount of the Aggregate Revolving Loan Commitment; (b) any
reduction in principal, interest, or fees payable by the Borrower under this
Credit Facility; (c) any extension of the Revolving Loan Termination Date;
(d) any extension of the due date for payment of any principal, interest
or fees to be collected on behalf of the Banks; (e) any release of all or
substantially all of the Collateral  (provided,
however, that the Security Agent, acting alone, shall be entitled to release
less than all or substantially all of the Collateral pursuant to
Section 9.3); or (f) the release of any Guarantor.  In addition to the foregoing, no modification
to the definition of “Asset Base” shall be made without the written consent
of  the Required Banks and none of the
voting rights established under this Section 11.2 shall be modified
without the written consent of that number of Banks which would have been
required to take the action to which such voting rights apply.  No notice to or demand on the Borrower shall
entitle the Borrower to any other or further notice or demand in similar or
other circumstances.  No amendment or
modification affecting the role of any Agent or Agents shall be effective
unless it has been approved in writing by such Agent or Agents, as
applicable.  In the event there exists
one (1) dissenting Bank (the “Dissenting
Bank”), the Borrower shall have the right to prepay the outstanding
principal, interest then due and owing and Additional Amount (as set forth in
Section 2.9) calculated with respect to the Revolving Loan made by the
Dissenting Bank.  At such time as the
prepayment is made the Dissenting Bank shall cease to be a Bank for purposes of
this Credit Agreement and the Aggregate Revolving Loan Commitment shall be
adjusted accordingly to reflect (i) the removal of the Dissenting Bank’s
Revolving Loan Commitment and, if applicable, (ii) the increase by a Bank
or Banks of their Revolving Loan Commitments or the addition of a new bank as a
Bank under the Credit Agreement.

11.3      GOVERNING LAW. 
THE LOAN DOCUMENTS AND ALL RIGHTS AND OBLIGATIONS OF THE PARTIES
THEREUNDER SHALL BE GOVERNED BY AND BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CALIFORNIA OR
FEDERAL PRINCIPLES OF CONFLICT OF LAWS.

11.4      Participations and Assignments.  The Borrower hereby acknowledges and agrees
that so long as a Bank is not in default of its obligations under this
Agreement, such Bank may at any time, with the consent (which consent shall not
be unreasonably withheld) of the Borrower and the Structuring Agent:  (a) grant participations in all or any
portion of its Revolving Loan Commitment or any portion of its Note(s) or of
its right, title and interest therein or in or to this Agreement (collectively,
“Participations”) to any other
lending office of such Bank or to any other bank, lending institution or other
entity which has the requisite sophistication to evaluate the merits and risks
of investments in Participations (“Participants”);
provided, however, that: 
(i) all amounts payable by the Borrower hereunder shall be
determined as if such Bank had not granted such Participation; (ii) such
Bank shall act as agent for all Participants; and (iii) any agreement
pursuant to which such Bank may grant a Participation:  (x) shall provide that such Bank shall
retain the sole right and responsibility to enforce the obligations of the
Borrower hereunder including, without limitation, the right to approve any
amendment, modification or waiver of any provisions of this Agreement;
(y) such participation agreement may provide that such Bank will not agree
to any modification, amendment or waiver of this Agreement without the consent
of the Participant if such modification, amendment or waiver would reduce the
principal of or rate of interest on any Loan or postpone the date fixed for any
payment of principal of or interest on any Loan or release (in whole or in part)
any Guarantor or all or substantially all of the Collateral; and (z) shall
not relieve such Bank from its obligations, which shall remain absolute, to
make Loans hereunder; and (b) assign any of its Loans and its Revolving
Loan Commitment. Upon execution and delivery by the assignee to the Borrower of
an instrument in writing pursuant to which such assignee agrees to become a
“Bank” hereunder having the Revolving Loan Commitment and Loans specified in
such instrument, and upon consent thereto by the Borrower and the Structuring
Agent, to the extent required above, the assignee shall have, to the extent of
such assignment (unless otherwise provided in such assignment with the consent
of the Borrower), the obligations, rights and benefits of a Bank hereunder
holding the Revolving Loan Commitment and Loans (or portions thereof) assigned
to it, and such Bank shall, to the extent of such assignment, be released from
the Revolving Loan Commitment (or portion(s) thereof) so assigned.  An assignment fee of $5,000 shall be paid by
the assigning Bank to the Administrative Agent upon consummation of any
assignment, including an assignment from one Bank to another Bank.  No assignments will be permitted by a Bank
at a time when such Bank is in default of its obligations under this
Agreement.  Notwithstanding anything to
the contrary in this Section 11.4, the Borrower shall not have the right
to approve any assignment or Participation by a Bank if a Potential Default or
an Event of Default then exists.

 

11.5      Captions. 
Captions in the Loan Documents are included for convenience of reference
only and shall not constitute a part of any Loan Document for any other
purpose.

11.6      Notices. 
All notices, requests, demands, directions, declarations and other
communications between the Banks and the Borrower provided for in any Loan
Document shall, except as otherwise expressly provided, be mailed by registered
or certified mail, return receipt requested, or telegraphed, or faxed, or
delivered in hand or by a recognized overnight courier to the applicable party
at its address indicated opposite its name on the signature pages hereto.  The foregoing shall be effective and deemed
received three days after being deposited in the mails, postage prepaid,
addressed as aforesaid and shall whenever sent by telegram, telegraph or
facsimile (provided the transmitting facsimile machine provides written
confirmation that the transmission was successfully completed) or delivered in
hand or by a nationally recognized overnight courier be effective when
received.  Any party may change its
address by a communication in accordance herewith.

11.7      Sharing of Collections, Proceeds and
Set-Offs: Application of Payments.

             (a)         If any Bank, by exercising any right of
set-off, counterclaim or foreclosure, receives payment of principal or interest
or other amount due on any Note which is greater than the percentage share of
such Bank (determined as set forth below), the Bank receiving such
proportionately greater payment shall purchase such participations in the Loans
held by the other Banks, and such other adjustments shall be made as may be
required, so that all such payments shall be shared by the Banks on the basis
of their percentage shares; provided that if all or any portion of such
proportionately greater payment of such indebtedness is thereafter recovered
from, or must otherwise be restored by, such purchasing Bank, the purchase
shall be rescinded and the purchase price restored to the extent of such
recovery, but without interest being paid by such purchasing Bank.  The percentage share of each Bank shall be
based on the portion of the outstanding Loans of such Bank (prior to receiving
any payment for which an adjustment must be made under this Section) in relation
to the aggregate outstanding Loans of all the Banks.  The Borrower agrees, to the fullest extent it may effectively do
so under applicable law, that any holder of a participation in a Loan or
reimbursement obligation, whether or not acquired pursuant to the foregoing
arrangements, may exercise rights of set-off or counterclaim and other rights
with respect to such participation as fully as if such holder of a
participation were a direct creditor of the Borrower in the amount of such
participation.  If under any applicable
bankruptcy, insolvency or other similar law, any Bank receives a secured claim
in lieu of a set-off to which this Section would apply, such Bank shall, to the
extent practicable, exercise its rights in respect of such secured claim in a
manner consistent with the rights of the Banks entitled under this Section to
share in the benefits of any recovery on such secured claim.

             (b)        If an Event of Default or Potential
Default shall have occurred and be continuing the Agents, each Bank and the
Borrower agree that all payments on account of the Obligations shall be applied
by the Administrative Agent and the Banks as follows:

             First,
to any Agent, for any fees then due and payable to it under this Agreement or
any other Loan Document until such fees are paid in full;

             Second,
to any Agent, for any fees, costs or expenses (including expenses described in
Section 11.8) incurred by such Agent under any of the Loan Documents, then
due and payable and not reimbursed by the Borrower or the Banks until such
fees, costs and expenses are paid in full;

             Third,
to the Banks for their respective shares of all costs, expenses and fees then
due and payable from the Borrower until such costs, expenses and fees are paid
in full;

             Fourth,
to the Banks for their percentage shares of all interest then due and payable
from the Borrower until such interest is paid in full, which percentage shares
shall be calculated by determining each Bank’s percentage share of the amounts
allocated in (a) above determined as set forth in said clause (a);

             Fifth,
to the Banks for their percentage shares of the principal amount of the
Obligations then due and payable from the Borrower until such principal is paid
in full, which percentage shares shall be calculated by determining each Bank’s
percentage share of the amounts allocated in (a) above determined as set forth
in said clause (a); and

             Sixth,
if any amounts remain after satisfying the amounts specified in clauses First
through Fifth above, the balance, if any, shall be remitted to the
Borrower.

11.8      Expenses; Indemnification.  The Borrower will from time to time
reimburse the Agents promptly following demand for all reasonable out-of-pocket
expenses (including the reasonable fees and expenses of their legal counsel) in
connection with (a) the preparation of the Loan Documents, (b) the
making of any Loans, and (c) the administration of the Loan
Documents.  The Borrower also will from
to time reimburse the Agents and each Bank for all out-of-pocket expenses
(including reasonable fees and expenses of their legal counsel) in connection
with the enforcement of the Loan Documents. 
In addition to the payment of the foregoing expenses, the Borrower
hereby agree to indemnify, defend, protect and hold National City Bank, as
Administrative Agent, Fortis, as Security Agent, and Fortis, as Structuring
Agent, each Bank and any holder of any Note and the officers, directors,
employees, agents, Affiliates and attorneys of the Agents, each Bank and such
holder (collectively, the “Indemnitees”)
harmless from and against any and all liabilities, obligations, losses,
damages, claims, penalties, actions, judgments, suits, costs, expenses and
disbursements of any kind or nature, including reasonable fees and expenses of
legal counsel, which may be imposed on, incurred by, or asserted against such
Indemnitee by the Borrower or other third parties and arise out of or relate to
this Agreement or the other Loan Documents or any other matter whatsoever
related to the transactions contemplated by or referred to in this Agreement or
the other Loan Documents (including, without limitation, any Loan, any
Revolving Loan Commitment or the Borrower’s use of the proceeds of any Loan); provided,
however, that the Borrower shall have no obligation to an Indemnitee hereunder
to the extent that the liability incurred by such Indemnitee has been
determined by a court of competent jurisdiction to be the result of gross
negligence or willful misconduct of such Indemnitee.

11.9      Survival of Warranties and Certain
Agreements.  All agreements, representations and warranties
expressly made herein shall survive the execution and delivery of this
Agreement, the making of the Loans hereunder and the execution and delivery of
the Notes.  Notwithstanding anything in
this Agreement or implied by law to the contrary, the agreements of the
Borrower set forth in Section 11.8 shall survive the payment of the Loans
and the termination of this Agreement and continue for the benefit of the
Indemnitees, notwithstanding the failure of the transactions contemplated
hereby to be consummated.  This
Agreement shall remain in full force and effect until the repayment in full of
all amounts owed by the Borrower under the Notes or any other Loan Document.

11.10    Severability. 
The invalidity, illegality or unenforceability in any jurisdiction of any
provision in or obligation under this Agreement, any Note or other Loan
Document shall not affect or impair the validity, legality or enforceability of
the remaining provisions or obligations under this Agreement, the Notes or
other Loan Documents or of such provision or obligation in any other
jurisdiction.

11.11    Banks’ Obligations Several; Independent
Nature of Banks’ Rights.  The obligation of each Bank hereunder is
several and not joint and no Bank shall be the agent of any other (except to
the extent any Agent is authorized to act as such hereunder).  No Bank shall be responsible for the
obligation or commitment of any other Bank hereunder.  In the event that any Bank at any time should fail to make a Loan
as herein provided, the other Banks, or any of them as may then be agreed upon,
at their sole option, may make the Loan that was to have been made by the Bank
so failing to make such Loan.  Nothing
contained in any Loan Document and no action taken by any Agent or any Bank
pursuant hereto or thereto shall be deemed to constitute the Banks to be a
partnership, an association, a joint venture or any other kind of entity.  The amounts payable at any time hereunder to
each Bank shall be a separate and independent debt, and, subject to the terms
of this Agreement, each Bank shall be entitled to protect and enforce its
rights arising out of this Agreement and it shall not be necessary for any
other Bank to be joined as an additional party in any proceeding for such
purpose.

11.12    No Fiduciary Relationship.  No provision in this Agreement or in any of
the other Loan Documents and no course of dealing between the parties shall be
deemed to create any fiduciary duty by any Bank to the Borrower.

11.13    CONSENT TO JURISDICTION AND SERVICE OF
PROCESS.  EACH OF THE BORROWER, THE AGENTS, AND THE
BANKS HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED
WITHIN THE CITY OF SAN FRANCISCO, CALIFORNIA AND IRREVOCABLY AGREES THAT, ANY
ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THE NOTES, THIS AGREEMENT
OR THE OTHER LOAN DOCUMENTS MAY BE LITIGATED IN SUCH COURTS.  EACH PARTY TO THIS AGREEMENT ACCEPTS FOR
ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY,
THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF
FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT
RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT, ANY NOTE, OR SUCH OTHER
LOAN DOCUMENT.

11.14    WAIVER OF JURY TRIAL. 
THE BORROWER, THE AGENTS, AND THE BANKS EACH HEREBY WAIVES ITS
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT, ANY OF THE LOAN DOCUMENTS, OR ANY DEALINGS
BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE
LENDER/BORROWER RELATIONSHIP ESTABLISHED HEREBY.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF
ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER OF THIS TRANSACTION, INCLUDING WITHOUT LIMITATION, CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS.  THE BORROWER, THE AGENTS, AND THE BANKS EACH
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO THE TRANSACTION, THAT
EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT
EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS.  THE BORROWER, THE AGENTS, AND THE BANKS EACH
FURTHER WARRANTS AND REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER WITH ITS
LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, AND THE WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS, MODIFICATIONS, REPLACEMENTS OR
RESTATEMENTS TO THIS AGREEMENT, THE LOAN DOCUMENTS, OR TO ANY OTHER DOCUMENTS
OR AGREEMENTS RELATING TO THE LOANS.  IN
THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT
TO A TRIAL BY THE COURT.

11.15    Counterparts; Effectiveness.  This Agreement and any amendment hereto or
waiver hereof may be signed in any number of counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument.  This
Agreement and any amendments hereto or waivers hereof shall become effective
when the Administrative Agent shall have received signed counterparts or notice
by fax of the signature page that the counterpart has been signed and is being
delivered to it or facsimile that such counterparts have been signed by all the
parties hereto or thereto.

11.16    Use of Defined Terms. 
All words used herein in the singular or plural shall be deemed to have
been used in the plural or singular where the context or construction so
requires.  Any defined term used in the
singular preceded by “any” shall be taken to indicate any number of the members
of the relevant class.

11.17    Offsets. 
Nothing in this Agreement shall be deemed a waiver or prohibition of any
Bank’s right of banker’s lien or offset.

11.18    Entire Agreement. 
This Agreement, the Notes issued hereunder and the other Loan Documents
constitute the entire understanding of the parties hereto as of the date hereof
with respect to the subject matter hereof and thereof and supersede any prior
agreements, written or oral, with respect hereto or thereto.

11.19    Confidentiality. 
In handling any written information specifically marked “confidential”
prior to its delivery to any Bank by the Borrower, each of the Agents and the
Banks shall exercise the same degree of care that it exercises with respect to
its own proprietary information of the same type to maintain the
confidentiality of any non-public information thereby received or received
pursuant to this Agreement or any other Loan Documents except that disclosure
of such information may be made (a) to the agents, employees, subsidiaries
or Affiliates of such Person in connection with this Agreement or any other
Loan Document, (b) to prospective participants or assignees of the Loans, provided
that they have agreed to be bound by the provisions of this Section 11.19,
(c) as required by law, regulation, rule or order, subpoena, judicial
order or similar order, and (d) as may be required in connection with the
examination, audit or similar investigation of such Person.  Confidential information shall not include
information that either (x) is in the public domain, or becomes a part of
the public domain after disclosure to such Person through no fault of such
Person or (y) is disclosed to such Person by a third party, provided such
Person does not have knowledge that such third party is prohibited from
disclosing such information.

*         
*          *

IN WITNESS WHEREOF, the parties
hereto have each caused this Agreement to be duly executed by their duly
authorized representatives as of the date first above written.

	 	WILLIS LEASE FINANCE CORPORATION
	 	 	 
	 	 	 
	 	By	/s/ NICHOLAS J. NOVASIC
	 	 	

	 	 	Name: Nicholas J.
  Novasic
	 	 	Title:  Chief Financial Officer

 

Notices To:

2320 Marinship Way

Suite 300

Sausalito, CA  94965

Fax No. (415) 331–5167

Attention:  General Counsel

 

	 	FORTIS BANK [NEDERLAND] N.V.

  (as Structuring Agent)
	 	 	 
	 	 	 
	 	By	/s/ M.P.A. ZONDAG
	 	 	

	 	 	/s/ P.R.G. ZAMAN
	 	 	

	 	 	Name: M.P.A. Zondag
	 	 	Name: P.R.G. Zaman

Notices To:

Fortis Bank [Nederland] N.V.

Coolsingel 93

3012 AE Rotterdam

The Netherlands

Attention:  Maarten H. Schipper

Telephone:  31 10 401 9522

Facsimile:  31 10 401 9529

With a copy to:

Vedder, Price, Kaufman & Kammholz

Attention:  Dean N. Gerber

222 North LaSalle Street

Suite 2600

Chicago, Illinois 60601

Telephone:  312–609–7500

Facsimile:  312–609–5005

 

	 	FORTIS BANK [NEDERLAND] N.V.

  (as Security Agent)
	 
	 	 	 
	 	 	 
	 	By	/s/ M.P.A. ZONDAG
	 	 	

	 	 	/s/ P.R.G. ZAMAN
	 	 	

	 	 	Name: M.P.A. Zondag
	 	 	Name: P.R.G. Zaman

Notices To:

Fortis Bank [Nederland] N.V.

Coolsingel 93

3012 AE Rotterdam

The Netherlands

Attention:  Maarten H. Schipper

Telephone:  31 10 401 9522

Facsimile:  31 10 401 9529

With a copy to:

Vedder, Price, Kaufman &
Kammholz

Attention:  Dean N. Gerber

222 North LaSalle Street

Suite 2600

Chicago, Illinois 60601

Telephone:  312-609–7500

Facsimile:  312–609–5005

 

 

	 	FORTIS BANK [NEDERLAND] N.V.
	 	 
	 	 
	 	By	/s/ M.P.A. ZONDAG
	 	 	

	 	 	/s/ P.R.G. ZAMAN
	 	 	

	 	 	Name: M.P.A. Zondag
	 	 	Name: P.R.G. Zaman

Notices To:

Fortis Bank [Nederland] N.V.

Coolsingel 93

3012 AE Rotterdam

The Netherlands

Attention:  Maarten H. Schipper

Telephone:  31 10 401 9522

Facsimile:  31 10 401 9529         

With a copy to:

Vedder, Price, Kaufman & Kammholz

Attention:  Dean N. Gerber

222 North LaSalle Street

Suite 2600

Chicago, Illinois 60601

Telephone:  312-609–7500

Facsimile:  312–609–5005

 

	 	NATIONAL CITY BANK, as Administrative Agent
	 	 	 
	 	 	 
	 	By	/s/ CHRISTOS KYTZIDIS
	 	 	

	 	 	Name: Christos Kytzidis
	 	 	Title: 
  Vice President

 

Notices To:

National City Bank

Attention: Christos Kytzidis, Vice President

Specialized Banking Group

One South Broad

13th Floor, Locator 01-5997

Philadelphia, PA 19107

Telephone:  267–256–4092

Facsimile:  267–256–4001

With a copy to:

National City Bank

Attention:  Larry Brown

Agent Services Group

1900 East Ninth Street

Locator 2083

Cleveland, OH 44114

 

 

	 	NATIONAL CITY BANK
	 	 
	 	 
	 	By	/s/ CHRISTOS KYTZIDIS
	 	 	

	 	 	Name: Christos Kytzidis
	 	 	Title: Vice President

 

Notices To:

National City Bank

Attention: Christos Kytzidis, Vice President

Specialized Banking Group

One South Broad

13th Floor, Locator 01-5997

Philadelphia, PA 19107

Telephone:  267–256–4092

Facsimile:  267–256–4001

With a copy to:

National City Bank

Attention:  Larry Brown

Agent Services Group

1900 East Ninth Street

Locator 2083

Cleveland, OH 44114

 

	 	CITY NATIONAL BANK
	 	 
	 	 
	 	By	/s/ STEVE SLOAN
	 	 	

	 	 	Name: Steve Sloan
	 	 	Title: Senior Vice President

Notices To:

Henry Yung, Vice President

City National Bank-San Francisco CBC

351 California Street, Mezzanine Level

San Francisco, CA 94104

Phone: 415-576-3909

Facsimile: 415-576-3996

With a copy to:

Steven K. Sloan, Senior Vice President

City National Bank

400 N. Roxbury Drive, 3rd Floor

Beverly Hills, CA 90210

Phone: 310-888-6140

Facsimile:  310–888–6564

 

 

	 	FIRST UNION NATIONAL BANK
	 	 
	 	 
	 	By	/s/ BILL A. SHIRLEY
	 	 	

	 	 	Name: Bill A. Shirley
	 	 	Title: Senior Vice President

Notices To:

First Union National Bank

One First Union Center, TW-9

301 South College Street

Charlotte, NC 28289

Attention: Conduit Administration

Phone: 704-383-9687

Facsimile: 704-374-3254

 

	 	EUROPEAN AMERICAN BANK
	 	 
	 	 
	 	By	/s/ ANTHONY NOCERA
	 	 	

	 	 	Name: Anthony Nocera
	 	 	Title: Vice President

Notices To:

European American Bank

400 Oak Street

Garden City, NY 11530

Attention: Anthony Nocera, Vice President

Phone: 516-357-1206

Facsimile: 516-357-1784

E-mail: anthony.nocera@eab.com

 

	 	BANCO POPULAR NORTH AMERICA
	 	 
	 	 
	 	By	/s/ JOSEPH FRADELOS
	 	 	

	 	 	Name: Joseph Fradelos
	 	 	Title: Assistant Vice President

Notices To:

Banco Popular North America

7 West 51st Street

New York, NY 10019

Attention: Joe Fradelos

Middle Market Lending Group

Phone: 212-445-1800

Facsimile: 212-588-3532

 

	 	CALIFORNIA BANK & TRUST
	 	 
	 	 
	 	By	/s/ J. MICHAEL SULLIVAN
	 	 	

	 	 	Name: J. Michael Sullivan
	 	 	Title: Vice President
	 	 	 
	 	 	/s/ THOMAS C. PATON
	 	 	

	 	 	By: Thomas C. Paton, Jr.
	 	 	Its: Senior Vice President & Manager

Notices To:

J. Michael Sullivan

Vice President

California Bank & Trust

South Bay Corporate Banking Office

1690 South El Camino Real

San Mateo, CA 94402

Phone: 650-294-2026

Facsimile: 650-294-2029

and:

Loan Administrator

California Bank & Trust

San Francisco Corporate Banking Office

465 California Street, 1st Floor

San Francisco, CA 94104

Telephone:  415–875–1441

Facsimile:  415–875–1457

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]