Document:

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                                                                   Exhibit 10.37

THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES ISSUABLE
UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (i) AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, (ii) TO THE
EXTENT APPLICABLE, RULE 144 UNDER SUCH ACT (OR ANY SIMILAR RULE UNDER SUCH ACT
RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF
SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL FOR THE ISSUER, THAT AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

THESE WARRANTS ARE SUBJECT TO CANCELLATION AND RESTRICTIONS ON TRANSFER AND
EXERCISE.

NO. W-A2                                               250,000 Series A Warrants

                                    WARRANTS
                  To Purchase 250,000 Shares of Common Stock of
                              Aviation Group, Inc.

      1. Grant of Warrant. THIS IS TO CERTIFY THAT, Global Leisure, Inc., or its
successors or assigns as registered holder of these Warrants (the "Holder"), is
hereby granted 250,000 Series A Warrants (the "Warrants"). The Holder is
entitled to exercise these Warrants to purchase from Aviation Group, Inc., a
Texas corporation (the "Company"), up to 250,000 shares of common stock of the
Company, par value U.S. $0.01 per share (the "Common Stock"), at any time on or
prior to the Expiration Date (as defined herein), subject to the conditions
described in Section 2 herein. This certificate is executed and delivered in
connection with the consummation of the merger (the "Merger") contemplated by
the Agreement and Plan of Merger dated as of March 17, 2000, as amended (the
"Merger Agreement"), among the Company, Global Leisure Travel, Inc., a
Washington corporation ("Global"), AVGP Sub, Inc., a Washington corporation
("New Sub") and the equity holders and debtholders of Global. The consideration
for the issuance of these Warrants is the transfer to the Company by the Holder
of certain indebtedness of Global.

      2. Exercise of Warrant. Each Warrant shall initially entitle the Holder of
such Warrant to purchase one (1) share of Common Stock upon the exercise
thereof, in accordance with the terms hereof, subject to modification and
adjustment as provided in Section 7. Each of the Warrants shall expire at the
"Expiration Date". The term "Expiration Date" shall mean the earlier of (i) 5:00
p.m. (Dallas, Texas time) on March 31, 2005, or (ii) 5:00 p.m. (Dallas, Texas
time) on the second anniversary of the date the shares of Common Stock issuable
upon the exercise of the Warrants are registered for resale under the Securities
Act of 1933, as amended; provided that if such date shall be a holiday or day on
which banks are authorized to close then 5:00 p.m. (Dallas, Texas time) from the
next following day which is not a holiday nor a day in which banks are
authorized to close. Upon notice to the Holder, the Company shall have the right
to extend the Expiration Date. The exercise price of each Warrant shall equal
(subject to
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adjustment as provided in Section 8) U.S. $5.00 per share of Common Stock
subject to the terms and conditions herein.

      In order to exercise this Warrant, in whole or in part, the Holder hereof
shall deliver to the Company at its principal office at 700 North Pearl Street,
Suite 2170, Dallas, Texas 75201, or at such other offices as shall be designated
by the Company, a written notice of such Holder's election to exercise this
Warrant. The notice shall specify the number of shares of Common Stock to be
purchased pursuant to such exercise. The notice shall also be accompanied by (i)
cash or a certified or cashier's check payable to the order of the Company, and
(ii) this Warrant. The payment shall be in an amount equal to the pro rata
portion of the aggregate purchase price for all shares of Common Stock to be
purchased pursuant to such exercise. Such notice may be in the form of the
Subscription appearing at the end of this Warrant. Upon receipt thereof, the
Company shall, as promptly as practicable, and in any event within five (5)
business days thereafter, execute or cause to be executed and delivered to such
Holder a certificate or certificates representing the aggregate number of full
shares of Common Stock issuable upon such exercise. The stock certificate or
certificates so delivered shall be registered in the name of such Holder, or
such other name as shall be designated in said notice. Holder acknowledges that
the stock certificate shall bear a restrictive legend comparable to that
appearing on the face of this Warrant, and any other legends required by
applicable law, the Merger Agreement and any shareholders' or similar agreement
to which such shares are subject. This Warrant shall be deemed to have been
exercised and such certificate or certificates shall be deemed to have been
issued, and such Holder or any other person so designated to be named therein
shall be deemed to have become a holder of record of such shares for all
purposes, as of the date said notice, together with said payment and this
Warrant, is received by the Company as aforesaid. If this Warrant shall have
been exercised in part, the Company shall, at the time of delivery of said
certificate or certificates, deliver to such Holder a new Warrant evidencing the
rights of such Holder to purchase the number of shares of Common Stock with
respect to which this Warrant shall not have been exercised or, at the request
of such Holder, appropriate notation may be made on this Warrant and the same
returned to such Holder. The new Warrant shall in all other respects be
identical with this Warrant.

      Notwithstanding anything contained herein to the contrary, none of these
Warrants shall be exercisable or transferable until both of the following
conditions are satisfied within two calendar years of the date of issuance
hereof, (i) the revenues of Global meet or exceed U.S. $80,000,000 for any
Measuring Period (as defined below), and (ii) Global generates net income during
any Measuring Period. Revenues and net income shall be measured based on
generally accepted accounting principles. Until both conditions are satisfied,
these Warrants shall be cancelable at the option of the Board of Directors of
the Company in the event that the Board determines in good faith that both of
the above conditions will not be met in the required time period. The term
"Measuring Period" shall mean any four consecutive fiscal quarters.

      Notwithstanding anything contained herein to the contrary, none of the
Warrants shall be exercisable until the Company has obtained the approval of its
shareholders to the issuance of the Warrants, as required by the rules of The
Nasdaq Stock Market, and until the Company has amended its articles of
incorporation to increase the authorized number of shares of Common Stock. The
Company shall use commercially reasonable efforts to obtain the approval of its
shareholders for the issuance of the Warrants and the amendment of its articles
of incorporation

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in connection with the solicitation of approval of its shareholders to the
merger of travelbyus.com ltd. with a subsidiary of the Company (the "Travelbyus
Merger").

      3. Payment of Taxes. The Company shall pay all documentary or similar
taxes and other governmental charges that may be imposed with respect to the
issuance of the Warrants or the issuance or delivery of any shares of Common
Stock upon exercise of the Warrants; provided, however, that the Company shall
not be required to pay any tax which may be payable in respect of any transfer
involved in the issuance and delivery of any such certificates in a name other
than that of the Holder and the Company shall not be required to issue or
deliver such certificates unless or until the person or persons requesting the
issuance thereof shall have paid to the Company the amount of such tax or shall
have established to the satisfaction of the Company that such tax has been paid.

      4. Restrictions On Transfer of Warrants. The Holder of a Warrant
Certificate, by its acceptance thereof, covenants and agrees that the Warrants
are being acquired as an investment and not with a view to the distribution
thereof. This Agreement is binding upon any Holder(s) of a Warrant Certificate
and their respective heirs, successors, and permitted assigns. The Holder may
transfer a Warrant, subject to any other limitations in the Agreement, provided
that the transferee agrees to be bound by the terms of this Agreement as if such
transferee were a Holder and, provided further, that the transfer is made
pursuant to an effective registration statement under the Securities Act or a
valid exemption from registration under the Securities Act of 1933, as amended
(the "Securities Act"). If requested by the Company, the Holder must also
furnish to the Company an opinion of counsel reasonably satisfactory to the
Company to such effect.

      Notwithstanding anything contained herein to the contrary, none of the
Warrants shall be transferable until both of the conditions specified in the
third paragraph of Section 2 are satisfied.

      Subject to the foregoing restrictions, the Warrants may be transferred by
the Holder hereof in person or by duly authorized attorney on the books of the
Company upon surrender of this Warrant at the principal offices of the Company,
together with the form of transfer authorization attached hereto duly executed.
The Company shall deem and treat the registered Holder of this Warrant at any
time as the absolute owner hereof for all purposes and shall not be affected by
any notice to the contrary. If this Warrant is transferred in part, the Company
shall at the time of surrender of this Warrant, issue to the transferee a
Warrant covering the number of shares of Common Stock transferred and to the
transferor a Warrant covering the number of shares not transferred.

      5. Exercise Price.

            5.1 Initial and Adjusted Exercise Price. Except as otherwise
provided in Section 7 hereof, the initial exercise price of each Warrant shall
be U.S. $5.00 per share of Common Stock. The adjusted exercise price shall be
the price which shall result from time to time from any and all adjustments of
the initial exercise price in accordance with the provisions of Section 7
hereof.

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            5.2 Exercise Price. The term "Exercise Price" herein shall mean the
initial exercise price or the adjusted exercise price, depending upon the
context.

      6. Registration Rights.

            6.1 Registration of Underlying Shares. The Company agrees to use
commercially reasonable efforts to cause the underlying shares of Common Stock
to be registered for resale by the Holders under the Securities Act in
connection with the consummation of the Travelbyus Merger. The Company shall use
its commercially reasonable efforts to cause any resale registration statement
to remain effective and current until the earlier of (a) all such securities
having been sold pursuant to such registration statement or (b) two years from
the date such securities were initially issued.

            6.2 Restrictive Legends. The Warrant Certificates, any certificates
representing the shares of Common Stock underlying the Warrants and any of the
other securities issuable upon exercise of the Warrants shall bear the following
restrictive legend:

                  The securities represented by this certificate have not been
                  registered under the Securities Act of 1933, as amended (the
                  "Act"), and may not be offered or sold except pursuant to (i)
                  an effective registration statement under the Act, (ii) to the
                  extent applicable, Rule 144 under the Act (or any similar rule
                  under such Act relating to the disposition of securities), or
                  (iii) an opinion of counsel, if such opinion shall be
                  reasonably satisfactory to counsel to the issuer, that an
                  exemption from registration under such Act is available.

      7. Adjustments to Exercise Price and Number of Shares.

            7.1 Adjustments for Change in Capital Stock. If at any time after
the date of this Agreement, the Company:

                  (a) pays a dividend or makes a distribution on its Common
            Stock exclusively in shares of its Common Stock;

                  (b) subdivides its outstanding shares of Common Stock into a
            greater number of shares;

                  (c) combines its outstanding shares of Common Stock into a
            smaller number of shares;

                  (d) pays a dividend or makes a distribution on its common
            stock in shares of its capital stock other than Common Stock; or

                  (e) issues by reclassification of its Common Stock any shares
            of its capital stock;

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then the Holders of the unexercised Warrants shall thereafter be entitled to
receive, upon the exercise of such Warrants, the same shares of Common Stock and
other securities that they would have owned or been entitled to receive
immediately after such event as if the Warrants had been exercised immediately
prior to such event. The adjustment pursuant to this Section 7.1 shall be made
successively each time that any event listed in this Section 7.1 above shall
occur. Upon each adjustment in the number of shares for which this Warrant is
exercisable pursuant to this Section 7.1, the Exercise Price for this Warrant
shall be adjusted to equal an amount per share of Common Stock equal to the
Exercise Price before such adjustment multiplied by a fraction, of which the
numerator is the number of shares of Common Stock for which the Warrant is
exercisable immediately before giving effect to such adjustment, and the
denominator of which is the number of shares of Common Stock for which the
Warrant is exercisable immediately after giving effect to such adjustment.

            7.2 Merger or Consolidation. In case of any consolidation of the
Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result
in any reclassification or change of the outstanding Common Stock), the
corporation formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental warrant agreement providing that the Holder of this
Warrant shall have the right thereafter (until the expiration of this Warrant)
to receive, upon exercise of this Warrant, the kind and amount of shares of
stock and other securities and property receivable upon such consolidation or
merger, by a holder of the number of shares of Common Stock of the Company for
which this Warrant might have been exercised immediately prior to such
consolidation, merger, sale or transfer. Such supplemental warrant agreement
shall provide for adjustments which shall be identical to the adjustments
provided in Section 7. The above provision of this subsection shall similarly
apply to successive consolidations or mergers.

            7.3 No Adjustment in Certain Cases. No adjustment of the Exercise
Price or number of shares of Common Stock shall be made:

                  (a) If the amount of such adjustment shall be less than two
            cents (U.S. $.02) per share, provided, however, that in such case
            any adjustment that would otherwise be required then to be made
            shall be carried forward and shall be made at the time of and
            together with the next subsequent adjustment which, together with
            any adjustment so carried forward, shall amount to at least two
            cents (U.S. $.02) per share; or

                  (b) If the Exercise Price would be less than the par value per
            share of Common Stock.

            7.4 Statement on Warrant Certificate. Irrespective of any
adjustments in the Exercise Price or the number or kind of shares purchasable
upon the exercise of the Warrants, this Warrant Certificate or certificates
thereafter issued may continue to express the same price and number and kind of
shares as are stated in this Warrant Certificate.

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            7.5 Definition of Common Stock. For the purpose of this Warrant, the
term "Common Stock" shall mean (i) the class of stock designated as Common Stock
in the Articles of Incorporation of the Company as amended as of the date
hereof, (ii) any other class of stock resulting from successive changes or
reclassifications of such Common Stock consisting solely of changes in par
value, or from par value to no par value, or from no par value to par value,
(iii) in the case of any consolidation or merger, the stock, securities or
property receivable on the exercise of this Warrant pursuant to Section 7.2
hereof, or (iv) in the case of any change in the outstanding shares of Common
Stock issuable upon exercise of this Warrant as a result of a subdivision or
combination, such shares of Common Stock as so changed.

            7.6 Notice of Adjustment. On the happening of an event requiring an
adjustment of the Exercise Price or the shares of Common Stock purchasable under
these Warrants, the Company shall promptly give written notice to the registered
Holder hereof stating the adjusted Exercise Price and the adjusted number and
kind of shares of Common Stock and other securities purchasable under these
Warrants resulting from the event and setting forth in reasonable detail the
method of calculation and the facts upon which the calculation is based. The
Board of Directors of the Company, acting in good faith, shall determine the
calculation.

      8. Loss or Mutilation. Upon receipt by the Company of evidence
satisfactory to it of the ownership of and loss, theft, destruction or
mutilation of this Warrant Certificate and (in case of loss, theft or
destruction) of indemnity satisfactory to it, and (in the case of mutilation)
upon surrender and cancellation thereof, the Company shall execute and deliver
to Holder a new Warrant Certificate of like tenor representing an equal
aggregate number of Warrants. Applicants for a substitute Warrant Certificate
shall comply with such other reasonable regulations and pay such other
reasonable charges as the Company may prescribe.

      9. Fractional Shares.

            9.1. Elimination of Fractional Interests. The Company shall not be
required to issue fractional shares of Common Stock upon the exercise of
Warrants. Warrants may only be exercised in such multiples as are required to
permit the issuance by the Company of one or more whole shares of Common Stock.
If one or more Warrants shall be presented for exercise in full at the same time
by the same Holder, the number of whole shares of Common Stock which shall be
issuable upon such exercise thereof shall be computed on the basis of the
aggregate number of shares of Common Stock purchasable on exercise of the
Warrants so presented. If any fraction of a share of Common Stock would, except
for the provisions provided herein, be issuable on the exercise of any Warrant
(or specified portion thereof), the Company shall pay an amount in cash equal to
such fraction multiplied by the then current Market Price of a share of Common
Stock, determined in accordance with Section 9.2 hereof.

            9.2. Definition of Market Price. As used herein, the phrase "Market
Price" at any date shall be deemed to be the last reported sale price, or, in
case no such reported sale takes place on such day, the average of the last
reported sale prices for the last three (3) trading days, in either case as
officially reported by the principal securities exchange on which the Common
Stock is listed or admitted to trading or by The Nasdaq Stock Market's National
Market or Smallcap Market ("Nasdaq"), or, if the Common Stock is not listed or
admitted to trading on

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any national securities exchange or quoted by Nasdaq, the average closing bid
price as furnished by the National Association of Securities Dealers, Inc.
("NASD") through Nasdaq or similar organization if Nasdaq is no longer reporting
such information, or if the Common Stock is not quoted by the NASD or such
similar organization, the fair market value of a share of Common Stock as
determined in good faith by resolution of the Board of Directors of the Company,
based on the best information available to it.

      10. Reservation and Listing of Securities. The Company shall at all times
reserve and keep available out of its authorized shares of Common Stock, solely
for the purpose of issuance upon the exercise of these Warrants, such number of
shares of Common Stock or other securities, properties or rights as shall be
issuable upon the exercise thereof. The Company covenants and agrees that, upon
exercise of the Warrants and payment of the Exercise Price therefor, all shares
of Common Stock and other securities issuable upon such exercise shall be duly
and validly issued, fully paid, non-assessable and not subject to the preemptive
rights of any stockholder.

      11. Notices to Warrant Holder. Nothing contained herein shall be construed
as conferring upon the Holder the right to vote or to consent or to receive
notice as a stockholder in respect of any meetings of stockholders for the
election of directors or any other matter, or as having any rights whatsoever as
a stockholder of the Company. If, however, at any time prior to the expiration
of these Warrants and their exercise, any of the following events shall occur:

            (a) the Company shall take a record of the holders of its shares of
      Common Stock for the purpose of entitling them to receive a dividend or
      distribution payable other than in cash, or a cash dividend or
      distribution payable other than out of current or retained earnings, as
      indicated by the accounting treatment of such dividend or distribution on
      the books of the Company; or

            (b) the Company shall offer to all the holders of its Common Stock
      any additional shares of capital stock of the Company or securities
      convertible into or exchangeable for shares of capital stock of the
      Company, or any option, right or warrant to subscribe therefor; or

            (c) a dissolution, liquidation or winding up of the Company (other
      than in connection with a consolidation or merger) or a sale of all or
      substantially all of its property, assets and business as an entirety
      shall be proposed;

then, in any one or more of such events, the Company shall give written notice
of such event to the Holder at least fifteen (15) days prior to the date fixed
as a record date or the date of closing the transfer books for the determination
of the stockholders entitled to such dividend, distribution, convertible or
exchangeable securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. Such notice shall specify
such record date or the date of closing the transfer book, as the case may be.
Failure to give such notice or any defect therein shall not affect the validity
of any action taken in connection with the declaration or payment of any such
dividend, or the issuance of any convertible or exchangeable

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securities, or subscription rights, options or warrants, or any proposed
dissolution, liquidation, winding up or sale.

      12. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been duly made and
sent when delivered, or three days after such is mailed by first class
registered or certified mail, postage prepaid:

            (a) If to the Holder, to the address of the Holder as shown on the
      books of the Company; or

            (b) If to the Company, to Aviation Group, Inc., 700 North Pearl
      Street, Suite 2170, Dallas, Texas 75201, Attention: President, or to such
      other address as the Company may designate by notice to the Holders.

      13. Submission to Jurisdiction. The Company and the Holder hereby agree
that any action, proceeding or claim against it arising out of, or relating in
any way to, this Agreement shall be brought and enforced in the courts of the
State of Texas or of the United States of America for the Northern District of
Texas, and irrevocably submit to such jurisdiction, which jurisdiction shall be
exclusive. The Company and the Holder hereby irrevocably waive any objection to
such exclusive jurisdiction or inconvenient forum. Any such process or summons
to be served upon any of the Company and the Holder (at the option of the party
bringing such action, proceeding or claim) may be served by transmitting a copy
thereof, by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 12 hereof. Such
mailing shall be deemed personal service and shall be legal and binding upon the
party so served in any action, proceeding or claim. The Company and the Holder
agree that the prevailing party(ies) in any such action or proceeding shall be
entitled to recover from the other party(ies) all of its/their reasonable legal
costs and expenses relating to such action or proceeding and/or incurred in
connection with the preparation therefor.

      14. Entire Agreement; Modification. This Warrant contains the entire
understanding between the parties hereto with respect to the subject matter
hereof and may not be modified or amended except by a writing duly signed by the
party against whom enforcement of the modification or amendment is sought.

      15. Severability. If any provision of this Warrant shall be held to be
invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provision of this Agreement.

      16. Benefits of this Agreement. Nothing in this Warrant shall be construed
to give to any person or corporation other than the Company and the Holder any
legal or equitable right, remedy or claim under this Agreement; and this
Agreement shall be for the sole benefit of the Company and the Holder.

      17. Successors. This Warrant and the rights evidenced hereby shall be
binding upon and inure to the benefit of the Company, the Holder and their
respective successors and assigns hereunder.

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      18. APPLICABLE LAW. THIS WARRANT HAS BEEN EXECUTED, DELIVERED AND ACCEPTED
BY THE PARTIES IN DALLAS, TEXAS AND SHALL BE DEEMED TO HAVE BEEN MADE IN DALLAS,
TEXAS, AND SHALL BE INTERPRETED AND THE RIGHTS OF THE PARTIES DETERMINED IN
ACCORDANCE WITH THE LAWS OF THE UNITED STATES APPLICABLE THERETO AND THE
INTERNAL LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO CONFLICTS OF LAWS
PROVISIONS APPLICABLE TO AN AGREEMENT EXECUTED, DELIVERED AND PERFORMED IN SUCH
STATE.

      19. Headings. Headings of the paragraphs in this Warrant are for
convenience and reference only and shall not, for any purpose, be deemed a part
of this Warrant.

      [Remainder of page intentionally left blank; signature page follows.]

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      IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed, as of May 11th, 2000.

                                    AVIATION GROUP, INC.

                                    By: /s/ Richard L. Morgan
                                        -------------------------------
                                    Name: Richard L. Morgan
                                    Title: Executive Vice President
<PAGE>

                                SUBSCRIPTION FORM

                 (To be executed only upon exercise of Warrant)

      The undersigned registered owner of this Warrant irrevocably exercises
this Warrant for and purchases ______________ shares of Common Stock of Aviation
Group, Inc. purchasable with this Warrant, and herewith makes payment therefor,
all at the price and on the terms and conditions specified in this Warrant and
requests that certificates for the shares of Common Stock hereby purchased (and
any securities or other property issuable upon such exercise) be issued in the
name of and delivered to whose address is , and if such shares of Common Stock
shall not include all of the shares of Common Stock issuable as provided in this
Warrant, that a new Warrant of like tenor and date for the balance of the shares
of Common Stock issuable thereunder to be delivered to the undersigned.

      DATED:  __________, _____.

                                    _______________________________________
                                    Name of Warrant Holder

                                    By: ___________________________________

                                    Title: ________________________________

                                    Address: ______________________________
                                             ______________________________
                                             ______________________________
<PAGE>

                                 ASSIGNMENT FORM

      FOR VALUE RECEIVED, the undersigned registered owner of this Warrant
hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the undersigned under this Warrant, with respect to the number of
shares of Common Stock set forth below:

Name & Address of Assignee                         No. of Shares of Common Stock

and does hereby irrevocably constitute and appoint as Attorney _________________
to register such transfer on the books of Aviation Group, Inc. maintained for
the purpose, with full power of substitution in the premises.

      DATED:  _________________, _____.

                                    _______________________________________
                                    Name of Warrant Holder

                                    By: ___________________________________

                                    Title: ________________________________

NOTICE: The signature to this assignment must correspond with the name as
        written upon the face of the within Warrant in every particular,
        without alteration or enlargement or any change whatever.

                           ACKNOWLEDGMENT BY ASSIGNEE

      The undersigned Assignee hereby acknowledges receipt of the Warrant and
agrees to be bound by its terms.

                                        ___________________________________

                                    By: ___________________________________

                                    Title: ________________________________<PAGE>

                                                                   EXHIBIT 10.40

                               PURCHASE AGREEMENT

  (SW Pelham Fund, L.P. Offer to Purchase Promissory Note of Aviation Group,
  Inc., guaranteed by travelbyus.com Ltd., and Series D Warrants of Aviation
                                 Group, Inc.)

A completed and originally executed copy of this Purchase Agreement is being
delivered to Aviation Group, Inc. 500 N. Pearl Street, Suite 2170, Dallas, Texas
75201.

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

Note Issuers:     Aviation Group, Inc.

Guarantor:        travelbyus.com Ltd.

Warrant Issuer:   Aviation Group, Inc.

Issue:          One Unit consisting of (i) a promissory note in the original
principal amount of $3,000,000 from Aviation Group, Inc. (the "Note"), and (ii)
Series D Warrants to purchase shares of Common Stock of Aviation Group, Inc. at
U.S. $2.125 per share (the "Warrants"). The "Unit" consists of the Note and
225,000 Warrants. The obligations of the issuer of the Unit shall be
unconditionally guaranteed by travelbyus.com Ltd.

Number of Units:                    1

Total Subscription Price:           U.S. $3,000,000

Name and Address of Purchaser:      SW Pelham Fund, L.P.
                                    242 Trumbull Street
                                    8th Floor
                                    Hartford, Connecticut 06103
<PAGE>

                               PURCHASE AGREEMENT

As of May 4, 2000

Aviation Group, Inc.
500 N. Pearl Street
Suite 2170
Dallas, Texas 75201

Dear Sirs/Madame:

Re:     Sale of Promissory Note of Aviation Group, Inc., guaranteed by
        travelbyus.com Ltd., and Warrants of Aviation Group, Inc.

        The undersigned (the "Purchaser") hereby confirms its irrevocable offer
(the "Offering") to purchase, subject to the terms and conditions set forth
herein, one unit (the "Unit") consisting of (i) a promissory note in the
original principal amount of U.S. $3,000,000 from Aviation Group, Inc. (the
"Note"), and (ii) 225,000 Series D Warrants to purchase shares of Common Stock
at $2.125 per share (the "Warrants") of Aviation Group, Inc., a Texas
corporation (the "Corporation"). The obligations of the Corporation under the
Note shall be unconditionally guaranteed by travelbyus.com Ltd. ("TBU"). The
purchase price is U.S.$3,000,000 for one Unit. The Note and the 225,000 Warrants
may not be transferred other than as a Unit unless and until the arrangement of
a subsidiary of the Corporation with TBU is consummated substantially on the
terms and conditions set forth in the Arrangement Agreement dated May 3, 2000, a
copy of which have been provided to the Purchaser (the "Arrangement"), and,
after consummation of the Arrangement, the Warrants will be detachable and
separately transferable from the Note. Each of the Corporation and TBU
acknowledges and agrees that the prospect of the consummation of the Arrangement
is a material inducement to the Purchaser and the Purchaser would not purchase
the Unit if the Arrangement were not to take place. In consideration of the
foregoing, as an inducement for the Purchaser to purchase the Unit hereunder and
standing to materially benefit from the Purchaser's purchase of the Unit, TBU
has agreed to guaranty the Corporation's obligations pursuant to a guaranty of
even date herewith substantially in the form of Exhibit I hereto (the
"Guaranty"). Without TBU's delivery of the Guaranty each of the Corporation and
TBU acknowledges that the Purchaser would not purchase the Unit hereunder.

1.      Purchase of the Unit

        The Purchaser hereby agrees to purchase the Unit at an aggregate
purchase price of U.S.$3,000,000.
<PAGE>

2.      Acceptance of Offer to Purchase

        The offer to purchase a Unit on the terms herein set forth is evidenced
by the execution of this purchase agreement (this "Agreement") by the Purchaser
and is subject to acceptance or rejection by the Corporation and TBU in whole,
but not in part. Confirmation of acceptance or rejection of the offer herein
contained will be forwarded to the Purchaser by the Corporation promptly after
the acceptance or rejection of such offer.

3.      Conditions of Closing

        The sale and delivery of the Unit to the Purchaser is conditional upon:

        (a)     such sale being exempt from the registration and qualification
requirements under all applicable securities laws and regulations;

        (b)     the representations and warranties made by the Corporation and
TBU in paragraph 7 hereof being true and correct in all respect at the time of
Closing (as defined below);

        (c)     the receipt by the Purchaser of evidence of the corporate
authorization by the Corporation of the transactions contemplated hereby;

        (d)     the execution and delivery by each of the Purchaser and the
Corporation of a registration rights agreement in mutually acceptable form
embodying those certain registration rights described in the Summary of Terms
attached hereto as Schedule A (the "Summary of Terms");

        (e)     execution of a counterpart signature page to this Agreement by
the Purchaser, the Corporation and execution and delivery by TBU of the Guaranty
to the Purchaser;

        (f)     payment by the Corporation to the Purchaser of a closing fee in
the amount of U.S. $60,000; and

        (g)     payment by the Purchaser to the Corporation of the aggregate
purchase price of U.S. $3,000,000 and delivery by the Corporation to the
Purchaser of a duly and fully executed Note and the Warrants comprising the
Unit.

4.      Closing

        Delivery of and payment for the Unit (the "Closing") will be completed
at the offices of the Corporation: Aviation Group, Inc., 700 N. Pearl Street,
Suite 2170, Dallas, Texas 75201 on such date (the "Closing Date") as may be
agreed upon by the Corporation, TBU and the Purchaser, but in any event no later
than May 8, 2000, unless otherwise agreed in writing by each of the parties
hereto.

                                       2
<PAGE>

        Certificates representing the Warrants and an original Note in the
principal amount of U.S. $3,000,000 and a fully executed Guaranty will be
available for delivery at Closing upon payment of the aggregate purchase price
therefor. It is a condition of Closing that all documents required to be
delivered and signed in accordance with this Agreement be received, and all of
the conditions set forth in paragraph 3 be satisfied or waived in writing, on or
prior to the Closing Date.

5.      Registration Exemptions

        The Purchaser acknowledges and agrees that the sale and delivery of the
Unit is conditional upon such sale being exempt from the requirement to file a
registration statement or upon the issuance of such orders, consents or
approvals as may be required to permit such sale without the requirement of
filing a registration statement. The Purchaser acknowledges and agrees that the
Corporation may be required to provide applicable securities regulatory
authorities with a list setting forth the identity of the beneficial purchaser
of the Unit and to certify as to the Purchaser's status as an accredited
investor as defined in Regulation D.

6.      Representations and Warranties of the Purchaser

        The Purchaser hereby represents, warrants and covenants on its own
behalf to the Corporation and TBU (which representations, warranties and
covenants shall survive the Closing) that:

                (a)     the Purchaser is authorized to consummate the purchase
                of the Unit;

                (b)     the Purchaser understands that the Unit has not been
                and will not be registered under the U.S. Securities Act of
                1933, as amended (the "Securities Act") or any applicable state
                securities laws, and that the offering contemplated hereby is
                being made in reliance on an exemption from registration
                provided by Regulation D under the Securities Act;

                (c)     the Purchaser has had access to such information, if
                any, concerning the Corporation as it has considered necessary
                in connection with its investment decision to invest in the
                Unit;

                (d)     the Purchaser is a partnership created in or
                organized under the laws of any state of the United States;

                (e)     the Purchaser confirms that it is an "accredited
                investor" as defined in Rule 501(a) of Regulation D ("Accredited
                Investor") and the Purchaser will hold the Unit for its own
                account or for the account of an Accredited Investor as to which
                it exercises sole investment discretion, and not with a view to
                any resale, distribution or other disposition of the Unit in
                violation of the United States securities laws and that the
                Purchaser has such knowledge and experience in financial and
                business matters as to be capable of evaluating the merits and

                                       3
<PAGE>

                risks of its investment in the Unit and it is able to bear the
                economic risks of such investment;

                (f)     the Purchaser acknowledges that it has not purchased
                the Unit as a result of any general solicitation or general
                advertising (as those terms are used in Regulation D under the
                Securities Act), including advertisement, articles, notices or
                other communications published in any newspaper, magazine or
                similar media or broadcast over radio or television, or any
                seminar or meeting whose attendees have been invited by general
                solicitation or general advertising;

                (g)     the Purchaser agrees that if it decides to offer,
                sell or otherwise transfer the Unit, or the Note or Warrants
                constituting the Unit, it will not offer, sell or otherwise
                transfer any of such securities, directly or indirectly, unless:

                        (i)     the sale is to the Corporation;

                        (ii)    a purchaser's letter containing representations,
                                warranties and agreements substantially similar
                                to those contained in this Agreement and
                                satisfactory to the Corporation, is executed by
                                the purchaser and delivered to the Corporation
                                prior to the sale;

                        (iii)   the sale has been properly registered under the
                                Securities Act and applicable state laws; or

                        (iv)    the sale is made pursuant to an exemption from
                                registration under the Securities Act and
                                applicable state laws;

                (h)     the Purchaser understands and acknowledges that upon
                the original issuance of the Unit and until such time as is no
                longer required under applicable requirements of the Securities
                Act or applicable state laws, all certificates representing the
                Warrants, and all certificates issued in exchange therefor or in
                substitution thereof, shall bear, on the face of such
                certificates, the following legend (or a substantially similar
                legend):

                "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
                ANY STATE AND ARE BEING OFFERED AND SOLD IN RELIANCE ON
                EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND
                SUCH LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR
                ASSIGNED UNLESS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
                OR EXEMPTION THREFROM."

                (i)     the Purchaser understands and acknowledges that the
                Note and the Warrants comprising the Unit are not separately
                transferable from one another

                                       4
<PAGE>

                unless and until the consummation of the Arrangement and
                thereafter the Warrants and the Note shall be separately
                transferable by it, subject to any other restrictions on
                transfer;

                (j)     the Purchaser consents to the Corporation making a
                notation on its records or giving instructions to any transfer
                agent of the Note or Warrants in order to implement the
                restrictions on transfer set forth and described herein; and

                (k)     the Purchaser acknowledges that it has been
                represented by legal counsel and has received and carefully read
                the Summary of Terms attached hereto and understands and
                acknowledges that an investment in the Unit is highly
                speculative and involves a high degree of risk, that no federal
                or state agency has passed upon the Unit or the Summary of Terms
                or made any finding or determination as to the fairness of this
                investment, and that the Purchaser is not entitled to cancel,
                terminate or revoke this Agreement or any of the powers
                conferred herein accept as otherwise permitted under applicable
                law.

7.      Representations and Warranties of the Corporation and TBU

        Each of the Corporation and TBU jointly and severally represents and
warrants to the Purchaser as of that date first above listed and the Closing
Date as follows:

                (a)     Each of the Corporation, TBU and their respective
subsidiaries is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation with the requisite
corporate power and authority to carry on its business as currently being
conducted and to own, lease and operate the properties currently owned, leased
and operated by it. Each of the Corporation and TBU has all requisite corporate
power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby, and the execution, delivery and performance of
this Agreement, the Note, the Warrants and the Guaranty have been duly
authorized and approved by each of the Corporation and TBU; provided, that, the
issuance of the Warrants is subject to further approval by the stockholders of
the Corporation. The authorized and issued share capital of each of the
Corporation and TBU is, as of the dates indicated thereon, as set forth in the
capitalization charts provided to the Purchaser. Such charts also set forth the
authorized and issued shares of each of such party's subsidiaries.

        (b)     The Corporation has filed all forms, reports and documents
(including prospectuses, offering memoranda and filing statements) with the
United States Securities and Exchange Commission (the "SEC") and The Nasdaq
Stock Market, Inc. ("Nasdaq") required to be filed by it pursuant to all
applicable laws (collectively, the "Corporation Securities Reports"). As of
their respective dates, the Corporation Securities Reports complied in all
material respects with all applicable laws and regulations and did not contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or

                                       5
<PAGE>

necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The financial statements (including any
related notes) of the Corporation included in the Corporation Securities Reports
complied in all material respects with applicable accounting requirements and
with all applicable laws, were prepared in conformity with United States
generally accepted accounting principles applied on a consistent basis (except
as otherwise stated in the financial statements) and present fairly the
consolidated financial position, results of operations, shareholders' equity,
liabilities (contingent or otherwise) and cash flows, as the case may be, of the
Corporation and its consolidated subsidiaries as of the dates and for the
periods indicated, subject, in the case of unaudited interim financial
statements to: (i) the absence of certain notes thereto; and (ii) normal
year-end audit adjustments. Each of the representations and warranties made by
the Corporation and AVGP SUB, Inc., its wholly-owned subsidiary, in that certain
Agreement and Plan of Merger dated as of March 17, 2000 by and among the
Corporation, AVGP SUB, Inc., Global Leisure Travel, Inc. and the other parties
identified on Schedules I and II thereto (the "Global Merger Agreement")
relating to the Corporation or AVGP SUB, Inc. was accurate and complete in all
material respects as of the date thereof and does not contain a
misrepresentation (as defined in the Securities Act (Ontario)) as of such date.
Each of the representations and warranties made by the Corporation and Aviation
Group Canada Ltd., its wholly-owned subsidiary, in that certain Arrangement
Agreement dated May 3, 2000 by and among the Corporation, TBU and Aviation Group
Canada Ltd. in connection with the Arrangement (the "TBU Arrangement Agreement")
relating to the Corporation or Aviation Group Canada Ltd. is accurate and
complete in all material respects as of the date thereof and does not contain a
misrepresentation (as defined in the Securities Act (Ontario)) as of such date.

        (c)     TBU has timely filed all forms, reports and documents (including
prospectuses, offering memoranda and filing statements) with The Toronto Stock
Exchange and the Ontario Securities Commission and each other applicable
Canadian provincial securities regulators required to be filed by it pursuant to
all applicable laws (collectively, the "TBU Securities Reports"). As of their
respective dates, the TBU Securities Reports complied in all material respects
with all applicable laws and regulations and did not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial
statements (including any related notes) of TBU included in the TBU Securities
Reports complied in all material respects with applicable accounting
requirements and with all applicable laws, were prepared in conformity with
Canadian generally accepted accounting principles applied on a consistent basis
(except as otherwise stated in the financial statements) and present fairly the
consolidated financial position, results of operations, shareholders' equity,
liabilities (contingent or otherwise) and cash flows, as the case may be, of TBU
and its consolidated subsidiaries as of the dates and for the periods indicated,
subject, in the case of unaudited interim financial statements to: (i) the
absence of certain notes thereto; and (ii) normal year-end audit adjustments.
Each of the representations and warranties made by TBU in the TBU Arrangement
Agreement relating to TBU and its subsidiaries will be accurate and complete in
all material respects as of the date thereof and will not contain a
misrepresentation (as defined in the Securities Act (Ontario)) as of such date.

                                       6
<PAGE>

        (d)     All information, reports and other documents and data with
respect to the Corporation, TBU and their respective subsidiaries furnished to
the Purchaser were complete and accurate in all material respects at the time
they were furnished, and have been appropriately supplemented by further reports
and other information to provide the Purchaser with true and accurate knowledge
of all the material information which in the reasonable opinion of the
Corporation and TBU is required to evaluate the merits and risks of an
investment in the Units, the Corporation and TBU. Neither this Agreement nor any
other document furnished to the Purchaser in connection herewith contains any
untrue statement of a material fact or omits to state a material fact necessary
to make the statements contained herein and therein not false or misleading.

8.      Covenants of the Corporation and TBU

        (a)     Each of the Corporation and TBU will use its best efforts to
consummate the Arrangement and will operate the business of the Corporation
after the Arrangement generally in accordance with the business plan described
in TBU's 1999 Annual Report.

        (b)     Each of the Corporation and TBU will use its best efforts to
obtain all necessary approvals required to give effect to the transactions
contemplated hereby.

        (c)     The Corporation will use the net proceeds from the sale of the
Unit under this Agreement solely to partially finance one or more of the five
acquisitions by TBU or the Corporation described in a certain letter dated as of
April 12, 2000 from Bill Kerby, an officer of the Corporation and TBU, to Venita
Fields, an officer of the Purchaser, on substantially the terms described in
said letter, or for such other purposes as the Purchaser may agree to in
writing. The net proceeds will be loaned by the Corporation to TBU, if TBU makes
any of the Acquisitions, to the extent necessary to fund such Acquisition. The
loan will be on the same terms as set forth in the Note and secured by a pledge
and grant of a security interest in the assets, stock, equity interests or other
securities acquired by TBU in such business. TBU will execute a note, security
agreement and necessary financing statements in mutually agreeable form and
substance in consideration for the Corporation's advance of the net proceeds for
any Acquisitions.

        (d)     Within ten (10) days of the Closing, TBU will provided evidence
satisfactory to the Purchaser of the corporate authorization by TBU of the
transactions contemplated hereby and by the Guaranty.

        (e)     Within ten (10) days after receipt thereof, the Corporation will
provided the Purchaser with a true, correct and complete copy of the fairness
opinion to be issued CIBC World Markets Corp. in connection with the
Arrangement.

9.      Guaranty of Obligations of the Corporation by TBU

        The obligations of the Corporation hereunder and pursuant to the Note
are subject to the unconditional guaranty of TBU as provided and set forth in
the Guaranty.

                                       7
<PAGE>

10.     Parties Reliance Upon Representations, Warranties and Covenants

        (a)     The Purchaser acknowledges and agrees that the representations,
warranties, covenants, acknowledgments and agreements made by it herein are made
with the intention that they may be relied upon by the Corporation and TBU in
determining the Purchaser's eligibility to purchase the Unit under relevant
securities laws and regulations. The Purchaser further agrees that by accepting
the Unit it shall be representing and warranting that the foregoing
representations, warranties, covenants, acknowledgments and agreements apply
with the same force and effect as if they had been made by the Purchaser at the
time of Closing. The Purchaser hereby undertakes to notify the Corporation and
TBU at the address set forth on the cover page of this Agreement immediately of
any change in any representation, warranty, covenant or other information
relating to it set forth herein which takes place prior to the Closing. The
representations, warranties and covenants of the Purchaser contained herein
shall survive the Closing of the transactions contemplated hereby and will
continue in full force and effect notwithstanding any subsequent disposition by
the Purchaser or any such beneficial purchaser of the Units. The Purchaser shall
indemnify and hold harmless the Corporation and TBU and their counsel for any
loss, costs or damages any of them may suffer as a result of any
misrepresentation made by it.

        (b)     Each of the Corporation and TBU acknowledges and agrees that the
representations, warranties, covenants, acknowledgments and agreements made by
it herein and by TBU in the Guaranty are made with the intention that they may
be relied upon by the Purchaser. Each of the Corporation and TBU further agrees
that by accepting the purchase of the Unit hereunder that it shall be
representing and warranting that the foregoing representations, warranties,
covenants, acknowledgments and agreements apply with the same force and effect
as if they had been made by at the time of Closing and without regard to any
investigation made by the Purchaser. Each of the Corporation and TBU hereby
undertake to notify the Purchaser at 242 Trumbull Street, 8th Floor, Hartford,
Connecticut 06103 of any change in any representation, warranty, covenant or
other information relating to such party set forth herein which takes place
prior to the Closing. The representations, warranties and covenants of the
Corporation and TBU contained herein and in the Guaranty, as applicable, shall
survive the Closing of the transactions contemplated hereby and will continue in
full force and effect thereafter. Each of the Corporation and TBU shall jointly
and severally indemnify and hold harmless the Purchaser, each director, officer,
employee, agent and affiliate of the Purchaser and Purchaser's counsel for any
loss, costs or damages any of them may suffer as a result of any
misrepresentation made by the Corporation or TBU or as a result of the breach of
any covenant or warranty made by the Corporation or TBU for the benefit of the
Purchaser.

11.     Purchaser Acknowledgments

        The Purchaser hereby acknowledges and agrees (which acknowledgement and
agreement shall survive the Closing) on its own behalf that:

                                       8
<PAGE>

        (a)     the Purchaser's ability to transfer the Unit may be limited,
                among other things, by applicable securities laws. The Purchaser
                hereby further agrees that it will comply with all relevant
                securities laws concerning any resale of the Unit, or the Note,
                the Guaranty and Warrants comprising the Unit, and will consult
                with its own legal advisers with respect to complying with all
                applicable restrictions and requirements applying to any such
                resale.

        (b)     the Purchaser is responsible for obtaining such legal advice as
                it considers appropriate in connection with the execution,
                delivery and performance by it of this Agreement and the
                transactions contemplated under this Agreement; and

        (c)     the Purchaser irrevocably authorizes the Corporation and TBU to
                produce this Agreement or a copy hereof to any interested party
                in any administrative or legal proceeding or official inquiry
                with respect to the matters covered hereby.

12.     Facsimile and Counterpart Subscription

        Each of the parties hereto shall be entitled to rely on delivery by
facsimile or an executed copy of this Agreement and acceptance by the
Corporation and TBU of that delivery (as evidenced by the signature of each such
party on a counterpart signature page hereto delivered to Purchaser or
Purchaser's counsel) shall be legally effective to create a valid and binding
agreement between the Purchaser, the Corporation and TBU in accordance with the
terms of this Agreement. In addition, this Agreement may be executed in
counterparts, each of which shall be deemed to be an original and all of which
shall constitute one and the same document.

13.     Payment of Expenses

        The Corporation agrees to pay all out-of-pocket expenses incurred by the
Purchaser (including any fees and disbursements of any special counsel retained
by the Purchaser) not to exceed U.S. $30,000 relating to the purchase of the
Unit by the Purchaser.

14.     Governing Law

        This Agreement is governed by the laws of the State of Connecticut and
the federal laws of the United States applicable therein, without regard to
principles of conflicts of law. Each of the parties hereto, in their respective
personal capacity, hereby irrevocably submit to the non-exclusive jurisdiction
of the federal courts located in the State of Connecticut and each Connecticut
State Court with respect to any matters arising out of this Agreement.

15.     Assignment

        The terms and provisions of this Agreement shall be binding upon and
ensure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors

                                       9
<PAGE>

and assigns; Provided that this Agreement shall not be assignable by any party
hereto without the prior written consent of the other parties hereto.

16.     Time of the Essence

        Time shall be of the essence hereof.

17.     Currency

        All references herein to monetary amounts are references to lawful money
of the United States.

18.     Headings

        The headings contained herein are for convenience only and shall not
affect the meaning or interpretation hereof.

19.     Survival

        This Agreement, including, without limitation, the representations,
warranties and covenants contained herein, shall survive the Closing and
continue in full force and effect and be binding upon each of the parties hereto
notwithstanding the completion of the purchase of the Unit by the Purchaser
pursuant hereto, the completion of the Offering, any subsequent disposition by
the Purchaser of the Unit, the Note or Warrants comprising the Unit, the
Guaranty or any investigation made by the Purchaser.

20.     Entire Agreement

        This Agreement (including any schedules and exhibits hereto and the
agreements contemplated hereby) constitutes the only agreement between the
parties with respect to the subject matter hereof and shall supersede any and
all prior negotiations and understandings and there are no representations,
covenants or other agreements relating to the subject matter hereof except as
stated or referred to herein or therein. This Agreement may only be amended or
modified in any respect by written instrument executed by each of the parties
hereto.

                                  * * * * *

                                       10
<PAGE>

                If the foregoing is acceptable to the Corporation and TBU, each
shall so indicate by executing a counterpart signature page hereto where
indicated below and delivering a signed copy thereof to the Purchaser.

                             Yours very truly,

                             SW PELHAM FUND, L.P.

                             By: Pelham Capital Management, LLC,
                                 its General Partner

                             By: Smith Whiley Investment Management, Inc., its
                                 Manager

                             By: /s/    VENITA E. FIELDS
                                 --------------------------------------------
                                 Name:  Venita E. Fields
                                 Title: Managing Director

                                       11
<PAGE>

                Each of the undersigned accepts the foregoing and agrees to be
bound by the terms and conditions herein set out and, without limitation, agrees
that the Purchaser may rely upon the covenants, acknowledgments, agreements,
representations and warranties contained herein.

Accepted and Agreed:

      AVIATION GROUP, INC.

      By:    /s/ RICHARD L. MORGAN
             -------------------------------
      Name:  Richard L. Morgan

      Title: Executive Vice President

      Date:  As of May 4, 2000

      TRAVELBYBUS.COM LTD.

      By:    /s/ BILL KERBY
             -------------------------------
      Name:  Bill Kerby

      Title: CEO

      Date:  As of May 4, 2000

                                       12
<PAGE>

                                  SCHEDULE A

                             AVIATION GROUP, INC.
                              PROMISSORY NOTE AND
                               SERIES D WARRANTS
                                 GUARANTEED BY
                              TRAVELBYUS.COM LTD.
                               SUMMARY OF TERMS

Note Issuer:          Aviation Group, Inc., a Texas corporation (the
                      "Corporation")

Guarantor:            travelbyus.com Ltd., an Ontario corporation ("TBU")

Warrant Issuer:       The Corporation

Purchaser:            SW Pelham Fund, L. P. or its transferees (the "Purchaser")

Securities:           One Unit, consisting of one $3,000,000 promissory note
                      from the Corporation (the "Note") with a detachable
                      warrant to purchase 225,000 shares of Common Stock of the
                      Corporation (a "Warrant"). The Note and Warrants are
                      referred to collectively herein as the "Securities."

Principal Amount:     U.S. $3,000,000

Ownership:            See the Pro Forma Capitalization Schedule attached hereto
                      as Exhibit A.

Use of Proceeds:      To finance a portion of the acquisition price of the five
                      proposed acquisitions by TBU or the Corporation described
                      in the letter dated April 12, 2000 from Bill Kerby to
                      Venita Fields and such other uses as the Purchaser may
                      approve from time to time in writing (the "Acquisitions").

Closing:              As soon as practicable, but no later than May 8, 2000 (the
                      "Closing").

Closing Fee:          2.0% of the committed amount, payable at Closing.

Note:

Interest Payments:    Each holder will be entitled to receive quarterly interest
                      payments at an annual rate equal to 12% of the outstanding
                      principal amount of the Note.
<PAGE>

Maturity:             The Note shall be repayable at the option of the holder
                      if: (i) a registration statement on Form S-4 has not been
                      filed with the U.S. Securities and Exchange Commission
                      ("SEC") on or before June 1, 2000, with respect to the
                      proposed arrangement between the Corporation, Aviation
                      Group Canada Ltd., a wholly-owned subsidiary of the
                      Corporation and TBU, on substantially the terms and
                      conditions in the Arrangement Agreement dated May 3, 2000
                      among such parties, a copy of which has been furnished to
                      counsel to the Purchaser (the "Arrangement"); (ii) the
                      closing of the Arrangement and one or more of the
                      Acquisitions and the approval by the Corporation's
                      shareholders of the issuance of the Warrants in accordance
                      with the rules and regulations of The Nasdaq Stock Market
                      have not all taken place on or before September 30, 2000;
                      or (iii) Bill Kerby ceases to be the Chief Executive
                      Officer of the Corporation and its subsidiaries and
                      actively involved in the management and operation thereof.
                      The Note shall be payable in full on February 28, 2001.

Warrants:

Shares:               225,000 shares of the Corporation's Common Stock.

Exercise price:       $2.125 a share, with cashless exercise permitted in the
                      event that the shares issuable upon the exercise of the
                      Warrants are not registered by September 30, 2000.

Exercise Period:      The Warrants will be exercisable from the date of issuance
                      until the earlier of (i) May 8, 2005, and (ii) the second
                      anniversary of the effective date of the registration
                      statement under the U.S. Securities Act of 1933, as
                      amended (the "Securities Act"), with respect to the resale
                      of the underlying Common Stock, subject to receipt of
                      approval of the Corporation's shareholders to the issuance
                      of the Warrants as required by the rules and regulations
                      of The Nasdaq Stock Market.

Redemption:           None.

Registration:         The Corporation will agree to use its best efforts to
                      cause the underlying shares of Common Stock to be
                      registered for resale by the holders under the Securities
                      Act promptly following the registration of the securities
                      to be issued in connection with the Arrangement, but in no
                      event later than September 30, 2000, and to cause such
                      resale registration statement to remain effective and
                      current until the earlier of the date that (i) all of such
                      underlying shares of Common Stock have been sold pursuant
                      to the registration statement, or (ii) the second
                      anniversary of the effective date of such registration
                      statement.

                                       2
<PAGE>

Form:                 The Warrants shall be in the form attached hereto as
                      Exhibit B.

Guaranty:             The obligations of the Corporation shall be
                      unconditionally guaranteed by TBU pursuant to a guaranty
                      agreement in form satisfactory to the Purchaser.

Miscellaneous:

Expenses:             The Corporation will pay all out-of pocket expenses
                      incurred by the Purchaser in connection with the purchase
                      of the Securities by the Purchaser, including legal fees
                      and expenses, not to exceed U.S. $30,000.

Closing Conditions:   Funding is conditioned upon the following: (i) receipt and
                      satisfactory review of the arrangement documents between
                      the Corporation and TBU; (ii) review of the materials
                      presented to the Corporation in connection with the
                      fairness opinion of CIBC World Markets Corp.; and (iii)
                      completion of the Purchaser's due diligence investigation.

Registration
Rights:               The Purchaser and the Corporation shall enter into an
                      agreement providing for the registration of shares of
                      Common Stock issuable upon exercise of the Warrant Shares
                      upon the following terms:

                                Immediate Registration: The shares issuable upon
                                exercise of the Warrants will be registered
                                promptly following the registration of the
                                securities to be issued in connection with the
                                Arrangement and in any event no later than
                                September 30, 2000, unless the Purchaser agrees
                                in writing to a later date.

                                Piggyback Registration: All registrations of the
                                Issuer subject to the right of the Issuer and
                                its underwriters in good faith to reduce the
                                number of shares proposed to be registered
                                pro-rata among all participating shareholders in
                                view of market conditions.

                      The Corporation shall bear registration expenses
                      (exclusive of underwriting discounts and commissions) of
                      all such registrations (including the expense of a single
                      counsel to the selling shareholders).

                                       3
<PAGE>

                                    EXHIBIT I

                                FORM OF GUARANTY

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