Document:

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                                                                   Exhibit 10.10

                                December 1, 2000

Kellstrom Industries, Inc.
1100 International Parkway
Sunrise, Florida 33323

Gentlemen:

         Reference is made to that certain Lease dated December 1, 2000 (the
"Real Property Lease"), between Kellstrom Industries, Inc. ("Kellstrom") and
Aviation Sales Distribution Services Company ("ASDSC"), covering the real
property and improvements commonly known as 3702 Knapp Road, Pearland, Brazoria
County, Texas, and being more particularly described in the Real Property Lease
(the "Property").

         Prior to the execution of the Real Property Lease, Kellstrom, ASDSC and
Aviation Sales Company ("AVS"), the parent company of ASDSC, entered into that
certain Asset Purchase Agreement dated September 20, 2000 (as amended, the
"Asset Purchase Agreement"), pursuant to which ASDSC agreed to sell or lease to
Kellstrom substantially all of its assets, including the lease of the Property,
but specifically excluding ASDSC's aircraft spare parts inventory. In connection
with Kellstrom's lease of the Property and in addition to the agreements
contained in the Real Property Lease, both Kellstrom and ASDSC have agreed to
enter into this letter agreement (the "Letter Agreement") to memorialize certain
rights and options to extend the term of the Real Property Lease and to purchase
and sell the Property, all pursuant to the provisions contained herein.
Capitalized terms used herein but not otherwise defined herein shall have the
meanings given to them in the Real Property Lease or the Terms and Conditions
(as defined below).

         Accordingly, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Kellstrom and ASDSC hereby agree as
follows:

                  1. Notwithstanding anything to the contrary contained in the
         Real Property Lease, Kellstrom and ASDSC shall have the following
         rights and options (each, an "OPTION," and collectively, the
         "OPTIONS"):

                  (a)      From and after the expiration of the Term of the Real
                           Property Lease (including any extensions thereof
                           pursuant to the terms of the Real Property Lease or
                           pursuant to this Letter Agreement, as set forth
                           below), and for a period of sixty (60) days
                           thereafter, ASDSC shall have the right and option to
                           require Kellstrom to purchase the Property from ASDSC
                           subject to and in accordance with this Letter
                           Agreement and the terms and conditions attached
                           hereto as SCHEDULE 1 and incorporated herein by
                           reference (the "Terms and Conditions); and

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                  (b)      At any time during the Term of the Real Property
                           Lease and for a period of sixty (60) days after the
                           expiration or earlier termination of the Term of the
                           Real Property Lease (including any extensions thereof
                           pursuant to the terms of the Real Property Lease or
                           this Letter Agreement), Kellstrom shall have the
                           right and option to require ASDSC to sell the
                           Property subject to and in accordance with this
                           Letter Agreement and the Terms and Conditions.

         For purposes of computing the time in which either party may exercise
         the Option (but not for any other purpose under the Real Property
         Lease), the expiration of the Term of the Real Property Lease shall not
         be deemed to have occurred until both (i) the Termination Date has
         occurred in accordance with the Real Property Lease, as modified
         hereby, and (ii) the earlier of the Closing or twenty (20) days after
         either party hereto has notified the other party in accordance with
         Section 32(a) of the Real Property Lease that the Termination Date (as
         modified) has occurred.

                  2. In the event that either party desires to exercise its
         Option, such party (the "OBLIGATING PARTY") shall notify the other
         party (the "OBLIGATED PARTY") in accordance with Section 12 of the
         Terms and Conditions in writing of its exercise of its Option (an
         "EXERCISE NOTICE"). Following such notice, the Obligated Party shall
         complete the purchase and sale of the Property (the "CLOSING") within
         thirty (30) days after the date of the Exercise Notice (the "CLOSING
         DATE") at Kellstrom's offices, 3701 Flamingo Road, Miramar, Florida, or
         at such other location mutually acceptable to the parties.
         Notwithstanding the exercise of the Option, Kellstrom shall be
         obligated to continue making the applicable rental payments to ASDSC
         under the Real Property Lease until the Closing. In the event the
         Closing does not occur because of the action or inaction of Kellstrom,
         ASDSC shall be entitled to all remedies provided for in the Terms and
         Conditions, including, without limitation, the right of specific
         performance.

                  3. ASDSC'S REPRESENTATIONS. ASDSC, as of the date hereof,
         represents and warrants to Kellstrom and agrees with Kellstrom as
         follows in connection with the Property:

                  (a)      The Other Contracts and any matters identified in the
                           Title Commitment are the only contracts, agreements
                           or encumbrances affecting the Property;

                  (b)      To the extent required, a certificate of occupancy
                           has been issued and is in effect for all improvements
                           on the Property. ASDSC has all licenses and permits
                           required to occupy and operate the Property. There
                           are no: (i) to ASDSC's knowledge, pending improvement
                           liens to be made by any governmental authority with
                           respect to the Property, (ii) violations of building
                           codes and/or zoning ordinances or other governmental
                           regulations with respect to the Property, (iii)
                           pending or, to ASDSC's knowledge, threatened lawsuits
                           with respect to the Property, (iv) pending or, to
                           ASDSC's knowledge, threatened condemnation
                           proceedings with respect to the Property, or (v)
                           defects or inadequacies in the Property

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                           which would adversely affect the insurability of the
                           Property or increase the cost thereof. All notices of
                           violations of law or municipal ordinances, orders or
                           requirements noted in or issued at any time prior to
                           Closing by a governmental entity, agency or authority
                           having jurisdiction over or affecting the Property
                           shall be complied with or cured by ASDSC at ASDSC's
                           expense prior to Closing;

                  (c)      To the best of ASDSC's knowledge, the Property has
                           direct, uninterrupted access for pedestrian and
                           vehicular traffic to a publicly dedicated road. ASDSC
                           has no notice or knowledge of any fact or condition
                           which would result in the termination or impairment
                           of any vehicular or pedestrian access to the
                           Property. ASDSC has no notice or knowledge of any
                           fact or condition which would result in the
                           discontinuation of water, sewage, electric,
                           telephone, drainage or other utilities or services to
                           the Property which are necessary and required for the
                           use and operation of the Property. All impact fees
                           have been completely and fully paid for by ASDSC.
                           There shall not be any additional fees imposed as a
                           result of ASDSC's conveyance of the Property to
                           Kellstrom and Kellstrom's subsequent use of the
                           Property;

                  (d)      ASDSC has no notice or knowledge of any condition
                           which would interfere with Kellstrom's use and
                           occupancy of the Property as it is presently used;

                  (e)      To ASDSC's knowledge, there are no latent defects in
                           the structural elements or roof of the improvements
                           on the Property and to the ASDSC's knowledge, all of
                           the structural elements and roof of the Property are
                           in good working order and condition and are not in
                           need of repair or replacement, ordinary wear and tear
                           and routine maintenance excepted;

                  (f)      ASDSC is vested with good, indefeasible and insurable
                           fee simple title to the Realty, subject only to the
                           Permitted Exceptions as provided herein, and there
                           are no encroachments across the boundary lines of the
                           Realty except as shown on that certain survey of the
                           Property dated September 25, 2000, and prepared by
                           C.L. Davis (the "Survey"). ASDSC is vested with good
                           and marketable title to all fixtures, equipment,
                           furnishings and items of personal property referred
                           to in SECTION 1 above free of all financing and other
                           liens or encumbrances;

                  (g)      ASDSC is now in compliance with and shall comply
                           prior to Closing with all laws, rules, regulations,
                           and ordinances of all governmental authorities having
                           jurisdiction over the Property;

                  (h)      Prior to Closing, no portion of the Property or any
                           interest therein shall be further (after the date
                           hereof) alienated, encumbered, conveyed or otherwise
                           transferred;

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                  (i)      This Letter Agreement and the consummation of the
                           transaction contemplated hereby do not and will not
                           contravene any provision of any existing law or
                           regulation, order, decree, writ, injunction or
                           recorded restriction;

                  (j)      ASDSC is not a "foreign person" within the meaning of
                           the United States tax laws and to which reference is
                           made in Internal Revenue Code Section 1445(b)(2). At
                           Closing, ASDSC shall deliver to Kellstrom an
                           affidavit to such effect, and also stating ASDSC's
                           employer identification number and the State within
                           the United States under which ASDSC was organized and
                           exists. ASDSC acknowledges and agrees that Kellstrom
                           shall be entitled to fully comply with Internal
                           Revenue code Section 1445 and all related sections
                           and regulations, as same may be modified and amended
                           from time to time, and ASDSC shall act in accordance
                           with all reasonable requirements of Kellstrom to
                           effect such full compliance by Kellstrom;

                  (k)      To the extent in ASDSC's or ASDSC's agent's or
                           contractor's possession, ASDSC shall provide
                           Kellstrom with (i) all environmental audits,
                           assessments or occupational health studies undertaken
                           during the prior five years by any Governmental
                           Authority, ASDSC or its agents or representatives, or
                           any third party, relating to or affecting the
                           Property; (ii) all ground water, soil, air or
                           asbestos monitoring undertaken by ASDSC or its agents
                           or representatives or undertaken by any Governmental
                           Authority or any third party, relating to or
                           affecting the Property; (iii) all written
                           communications between ASDSC, on the one hand, and
                           any Governmental Authority, on the other hand,
                           arising under or relative to Environmental Laws,
                           including, but not limited to, all notices issued to
                           ASDSC and pertaining to the Property; and (iv) all
                           outstanding citations issued under OSHA, or similar
                           state or local statutes, laws, ordinances, codes,
                           rules, regulations, orders, rulings or decrees,
                           relating to or affecting the Property. For purposes
                           hereof, "Environmental Laws" means all federal,
                           state, regional or local statutes, laws rules,
                           regulations, codes, ordinances, orders or licenses,
                           whether currently in existence or hereafter enacted,
                           any of which govern or relate to pollution,
                           protection of the environment, public health and
                           safety, air emissions, water discharges, waste
                           disposal, hazardous or toxic substances, solid or
                           hazardous waste, occupational, health and safety;

                  (l)      ASDSC has no knowledge of any, and there is no basis
                           for any, pending or threatened litigation which would
                           affect any of the Property;

                  (m)      There are no commissions, or compensation agreements
                           of any kind due in connection with the Property, and
                           any commissions or compensation by reason of
                           agreements entered into by ASDSC or ASDSC's
                           predecessors in connection with the Property shall be
                           paid by ASDSC; and

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                  (n)      The Property constitutes all of the real property
                           owned and used by ASDSC in connection with the
                           operation of the improvements constituting a portion
                           of the Property, and ASDSC has entered into no
                           agreement giving the ASDSC the right to acquire
                           additional real property for use in connection with
                           the Property.

                  KELLSTROM ACKNOWLEDGES, UNDERSTANDS AND AGREES THAT KELLSTROM
                  WILL BE AND IS BEING GIVEN THE OPPORTUNITY TO MAKE FULL AND
                  COMPLETE INSPECTIONS OF THE PROPERTY TO KELLSTROM'S
                  SATISFACTION AS PROVIDED FOR HEREIN. KELLSTROM IS RELYING
                  SOLELY ON KELLSTROM'S OWN INVESTIGATIONS OF THE PROPERTY AND
                  NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY ASDSC, OR
                  ANY AGENT, REPRESENTATIVE OR OTHER PARTY ACTING ON BEHALF OF
                  ASDSC. EXCEPT AS TO THE REPRESENTATIONS AND WARRANTIES SET
                  FORTH HEREIN, IT IS THE UNDERSTANDING AND INTENTION OF THE
                  PARTIES THAT THE SALE OF THE PROPERTY FROM ASDSC TO KELLSTROM
                  IS MADE ON AN "AS IS, WHERE IS" BASIS AND WITH ALL FAULTS.
                  ACCORDINGLY, EXCEPT AS EXPRESSLY PROVIDED FOR HEREIN,
                  KELLSTROM ACKNOWLEDGES THAT ASDSC HAS NOT MADE, DOES NOT MAKE,
                  AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS,
                  WARRANTIES, PROMISES, AGREEMENTS OR GUARANTIES OF ANY KIND OR
                  CHARACTER WHATSOEVER, EXPRESS OR IMPLIED, ORAL OR WRITTEN,
                  RELATING TO, CONCERNING OR WITH RESPECT TO (I) THE VALUE,
                  NATURE, QUALITY OR CONDITION OF THE PROPERTY, (II) THE
                  COMPLIANCE OF OR BY THE PROPERTY WITH ANY LAWS, RULES,
                  REGULATIONS, STATUTES OR ORDINANCES OF ANY APPLICABLE
                  GOVERNMENTAL AUTHORITY OR BODY, (III) THE LIABILITY,
                  MERCHANTABILITY, MARKETABILITY, OR PROFITABILITY, SUITABILITY
                  OR FITNESS FOR A PARTICULAR USE OR PURPOSE OF THE PROPERTY, OR
                  (IV) ANY OTHER MATTER WITH RESPECT TO THE PROPERTY.
                  SPECIFICALLY, KELLSTROM ACKNOWLEDGES THAT, EXCEPT AS OTHERWISE
                  EXPRESSLY SET OUT HEREIN AND THE ASSET PURCHASE AGREEMENT,
                  ASDSC HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND
                  DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES REGARDING
                  COMPLIANCE OF THE PROPERTY WITH ANY ENVIRONMENTAL PROTECTION
                  OR LAND USE LAWS, RULES OR REGULATIONS, ORDERS OR
                  REQUIREMENTS. KELLSTROM REPRESENTS TO ASDSC THAT KELLSTROM
                  SHALL RELY SOLELY UPON ITS OWN INVESTIGATIONS, INSPECTIONS AND
                  STUDIES OF THE PROPERTY, AND NOT ON ANY INFORMATION PROVIDED
                  OR TO BE PROVIDED BY ASDSC, ASDSC'S AGENTS OR CONTRACTORS OR
                  OTHERWISE GENERATED FROM THIRD PARTY SOURCES. ASDSC SHALL NOT
                  BE LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL

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                  OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION
                  PERTAINING TO THE PROPERTY OR THE OPERATION THEREOF FURNISHED
                  BY ANY PARTY PURPORTING TO ACT ON BEHALF OF ASDSC. THE
                  STATEMENTS AND DISCLAIMERS MADE UNDER THIS PARAGRAPH SHALL
                  EXPRESSLY SURVIVE THE CLOSING.

                  4. The parties hereby agree as follows with respect to the
         extension of the Term of the Real Property Lease:

                  (a)      The term of the Real Property Lease may be extended
                           by Kellstrom for up to six-one month periods in the
                           event and for so long as Kellstrom does not have
                           sufficient Availability (as defined in the Senior
                           Loan Agreement, hereafter defined) under the terms of
                           the Senior Loan Agreement to permit the purchase of
                           the Property in accordance with this Letter
                           Agreement.

                  (b)      For purposes hereof, the term "Senior Loan Agreement"
                           means that certain Amended and Restated Loan and
                           Security Agreement dated as of December 14, 1998
                           among Kellstrom and certain subsidiaries of
                           Kellstrom, as borrowers, and Bank of America, N.A.,
                           certain other lenders and other parties thereto, as
                           amended through the date hereof.

                  (c)      In the event Kellstrom desires to extend the Real
                           Property Lease beyond the initial twelve (12) month
                           term contained therein, Kellstrom may do so for one
                           month at a time upon providing notice to ASDSC at
                           least five (5) days prior to what would otherwise be
                           the Termination Date, along with a schedule certified
                           by the Chief Financial Officer of Kellstrom setting
                           forth the Availability of Kellstrom under the Senior
                           Loan Agreement.

                  (d)      During each month after the initial twelve (12) month
                           Term in which the Real Property Lease continues,
                           Kellstrom agrees to pay to ASDSC Rent for the
                           Property in an amount equal to $20,329.81 per month.

                  (e)      If Kellstrom shall elect to purchase the Property
                           from ASDSC pursuant to this Letter Agreement, then,
                           notwithstanding the provisions of the Real Property
                           Lease to the contrary, following the expiration of
                           the Term, the Real Property Lease shall not be
                           considered terminated and all provisions of the Real
                           Property Lease shall remain in full force and effect
                           until the Property has been purchased pursuant to
                           this Letter Agreement and all payments due under the
                           Real Property Lease (other than Minimum Rental
                           accruing after the date of such purchase) have been
                           received in full by ASDSC.

                  (f)      Upon the occurrence of an event of default under the
                           Real Property Lease by Kellstrom, ASDSC may at its
                           option trigger the Option under this Letter
                           Agreement.

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                  (g)      The definition of the word "Term" contained in the
                           Real Property Lease shall take into consideration any
                           of the six-one month extensions that are utilized in
                           accordance with this Letter Agreement.

         Kellstrom may assign its rights under this Letter Agreement including
(i) Kellstrom's right to exercise its Option, and (ii) any exercised Option,
provided that no such assignment shall release Kellstrom from any of its
obligations hereunder. ASDSC may collaterally assign any or all of its rights
under this Letter Agreement to and for the benefit of (i) its senior revolving
credit lenders and their agent (collectively, "Senior Lenders"), and (ii) the
holder of the Supplemental Term Loan Note (as defined in the Senior Lenders'
Credit Agreement) and its agent; provided that no such assignment shall release
ASDSC from its obligations hereunder or create any obligation on the part of the
Senior Lenders or the holder of the Supplemental Term Loan Note in respect
hereof.

         Please confirm your acknowledgment, agreement and acceptance of the
foregoing by signing where indicated below.

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                                AVIATION SALES DISTRIBUTION

                                SERVICES COMPANY

                                By: /s/ Benito Quevedo
                                    --------------------------------------------
                                      Benito Quevedo, President

Acknowledged, Agreed and Accepted:

KELLSTROM INDUSTRIES, INC.

By: /s/ Zivi R. Nedivi
    ----------------------------------------
       Zivi R. Nedivi
       President and Chief Executive Officer

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                                   SCHEDULE 1

                              TERMS AND CONDITIONS

         Following the exercise of any Option in accordance with the terms of
the Letter Agreement, the following Terms and Conditions shall, along with the
terms and conditions set forth in the Letter Agreement, control in connection
with the purchase and sale of the Property:

         1. PURCHASE AND SALE. ASDSC will sell to Kellstrom and Kellstrom will
purchase from ASDSC those certain parcels of real property located in Pearland,
Brazoria County, Texas including the land and all buildings, structures and
other improvements situated thereon, as more particularly described in EXHIBIT
"A" attached hereto (the "Realty"), together with the following:

                  (a)      All strips and gores of land lying adjacent to the
                           Realty and owned by ASDSC, together with all
                           easements, privileges, rights-of-way, riparian and
                           other water rights, lands underlying any adjacent
                           streets or roads, and appurtenances pertaining to or
                           accruing to the benefit of the Realty;

                  (b)      All of ASDSC's right, title and interest in and to
                           furniture, fixtures, equipment, machinery and
                           personal property used in connection with the
                           operation of the Realty whether or not located on the
                           Realty, including, without limitation, all
                           attachments, appliances, fittings, fixtures and other
                           equipment (the "Equipment");

                  (c)      To the extent assignable, ASDSC's right, title and
                           interest in and to any and all plans, drawings,
                           renderings, applications to governmental authorities
                           and all other work product made or produced in
                           connection with the Realty or any future development
                           thereof (the "Plans");

                  (d)      To the extent assignable, all licenses and contract
                           rights pertaining to the ownership and/or operation
                           of the Realty; and

                  (e)      All other similar assets and properties (whether
                           personal or real property) owned by ASDSC which are
                           used or held for use in connection with the Realty.

The personal property items and fixtures referred to in SECTIONS 1(a) through
1(e) inclusive are hereinafter sometimes collectively called the "Included
Personal Property". The Realty and the Included Personal Property are
hereinafter collectively called the "Property".

         2. PURCHASE PRICE. The purchase price (the "Purchase Price") to be paid
by Kellstrom to ASDSC for the Property is One Million Six Hundred Twenty Six
Thousand Three Hundred Eighty Five and No/100 Dollars ($1,626,385.00).

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         3. TERMS OF PAYMENT. At Closing, Kellstrom shall pay the Purchase
Price, subject to adjustments as provided herein, to ASDSC by wire transfer.

         4. TITLE AND SURVEY.

                  (a)      Within fifteen (15) business days after the Exercise
                           Notice, ASDSC shall cause Commonwealth Land Title
                           Company, 5847 San Felipe, Suite 4000, Houston, Texas,
                           Attn: Paige Dunlap (the "Title Company"), to deliver
                           to Kellstrom, at ASDSC's expense, a current owner's
                           title insurance commitment (the "Commitment") naming
                           Kellstrom as the intended insured, which shall show
                           ASDSC to be vested with and ASDSC shall convey to
                           Kellstrom, good, marketable and insurable fee simple
                           title to the Realty, free and clear of all liens and
                           encumbrances, except the following (the "Permitted
                           Exceptions"):

                           (i)      Ad valorem real estate taxes for 2000 and
                                    subsequent years, which at the time of
                                    Closing shall not yet be due and payable;

                           (ii)     All matters shown on Schedule B, Item 9 of
                                    the Commonwealth Land Title Insurance
                                    Company Commitment with an effective date of
                                    October 8, 2000 and G.F. No. 0084136 (the
                                    "October Commitment");

                           (iii)    Matters set forth in this Letter Agreement;

                           (iv)     Matters to be satisfied by ASDSC at or
                                    before the Closing of this transaction; and

                           (v)      Any other matters acceptable to Kellstrom.

                  (b)      Within fifteen (15) business days after the Exercise
                           Notice, Kellstrom may obtain, at Kellstrom's expense,
                           an update of the Survey of the Realty (the "Updated
                           Survey").

         The Commitment to be delivered by the Title Company to Kellstrom shall
show title to the Realty to be vested in ASDSC subject only to the Permitted
Exceptions. If Kellstrom finds title to be defective (but only to the extent not
disclosed in the October Commitment) or if the Updated Survey discloses any
encroachment in the Realty or that improvements located on the Realty encroach
on setback lines, easements, lands of others or violate any restrictions,
provisions of this Letter Agreement or applicable governmental regulations (and
provided that the Title Company cannot provide affirmative insurance as to such
items; and provided further that such items were not disclosed on the Survey,
Kellstrom shall, within ten (10) days after Kellstrom's receipt of the
Commitment and Updated Survey, notify ASDSC in writing specifying the defect(s)
and ASDSC shall cause such defects to be cured by the Closing Date or at
Closing, including the bringing of lawsuits if necessary. ASDSC agrees to remove
by

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payment, bonding, or otherwise any lien against the Property capable of removal
by the payment of money or bonding. ASDSC shall execute appropriate documents at
Closing as required for "gap coverage" by the title insurer to the extent the
title insurer can provide such gap coverage.

         5. DELIVERIES. Within fifteen (15) business days after the Exercise
Notice, ASDSC shall deliver to Kellstrom or Kellstrom's agents, or make
available to Kellstrom or Kellstrom's agents at the office of ASDSC, true,
correct and complete copies of the following (collectively the "Documentation"),
but only to the extent such Documentation is in ASDSC's or ASDSC's agent's
possession or control:

                  (a)      All contracts, arrangements, license agreements,
                           concession, easements, service arrangements,
                           management agreements, brokerage agreements, and any
                           and all other contracts or agreements, whether
                           written or oral, if any, which are unrecorded in the
                           public records of the Counties in which the Realty
                           are located, and which may affect the Property, or
                           the use thereof from and after the Closing Date (the
                           "Other Contracts");

                  (b)      All certificates of occupancy, permits, licenses,
                           authorizations or approvals (other than those which
                           are no longer in effect) in the custody of ASDSC
                           which were issued by any governmental body or agency
                           having jurisdiction over the Property and/or by any
                           utility company or authority, and which in any way
                           are related to the ownership, operation and/or use of
                           the Property (the "Licenses");

                  (c)      All bills issued for the years 1999 and 2000 for real
                           estate and/or personal property taxes and any
                           subsequently issued notices pertaining to such real
                           estate taxes or assessments or personal property
                           taxes applicable to the Property, and evidence that
                           those which are due and payable have been paid in
                           full;

                  (d)      All warranties and guarantees of every kind and
                           nature pertaining to the Property, or any portion
                           thereof, if any, including, but not limited to, the
                           roof warranty(ies), the heating, ventilating and air
                           conditioning warranty(ies), warranty(ies) relating to
                           wood boring infestation and the general contractor's
                           warranty(ies) (the "Warranties") which are in ASDSC's
                           possession or control; and

                  (e)      Any environmental studies, reports and notices
                           relating to the environmental condition of the
                           Property within ASDSC's possession or control or
                           within the possession or control of any of ASDSC's
                           employees or agents;

         6. KELLSTROM'S CONDITIONS PRECEDENT. Without limiting any of the rights
of Kellstrom elsewhere provided for herein, it is agreed that the obligations of
Kellstrom hereunder shall be subject to the fulfillment of each of the
conditions set forth below:

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<PAGE>   12

                  (a)      The warranties and representations made by ASDSC
                           herein and in the Letter Agreement shall be true,
                           correct and complete in all respects from and after
                           the date of the Letter Agreement through the Closing
                           Date.

                  (b)      ASDSC shall have timely performed all covenants,
                           undertakings and obligations and complied with all
                           conditions required hereunder to be performed or
                           complied with by ASDSC.

                  (c)      ASDSC shall have delivered and made available to
                           Kellstrom all closing documents required by SECTION
                           14 hereof.

         In the event any of the conditions precedent set forth in this
subsection are not fulfilled as of Closing, then Kellstrom shall have the option
of waiving the unfulfilled conditions or canceling the Option without any
further liability.

         7. ASDSC'S CONDITIONS PRECEDENT. Without limiting any of the rights of
ASDSC elsewhere provided for herein, it is agreed that the obligations of ASDSC
hereunder shall be subject to Kellstrom having timely performed all covenants,
undertakings and obligations and complied with all conditions required hereunder
to be performed or complied with by Kellstrom.

         8. DEFAULT PROVISIONS. In the event Kellstrom defaults under this
Letter Agreement, ASDSC shall have all remedies allowed to ASDSC under the Asset
Purchase Agreement. If ASDSC defaults, Kellstrom shall have all remedies allowed
to Kellstrom under the Asset Purchase Agreement, and shall also have the right
to seek specific performance of this Letter Agreement in connection with
enforcing its rights under the Asset Purchase Agreement.

         9. CLOSING COSTS. Kellstrom shall pay for the costs of all of its tests
and inspections, the cost of any owner's policy of title insurance issued in
connection with Kellstrom's purchase of the Property, the Survey and the cost of
recording of the Deed. ASDSC shall pay the amounts necessary to clear the
Property of monetary liens and encumbrances that are not Permitted Exceptions.
Each party shall bear its own attorney's fees relating to this transaction. All
certified, confirmed, or ratified and pending liens for governmental
improvements shall be paid in full by ASDSC.

         10. CLOSING. The Closing shall take place as provided in the Letter
Agreement. In any and all events, Kellstrom and ASDSC shall have right to waive
in writing any one or every condition precedent or contingency set forth herein
and compel the conveyance of title.

         At Closing, ASDSC shall execute and deliver to Kellstrom the following
closing documents:

                  (a)      a Special Warranty Deed (the "Deed"), fully executed
                           and acknowledged by ASDSC, conveying to Kellstrom
                           good, marketable and insurable fee simple title to
                           the Property free and clear of all liens,

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<PAGE>   13

                           encumbrances, restrictions covenants and other
                           matters, except the Permitted Exceptions;

                  (b)      an appropriate bills paid affidavit;

                  (c)      an affidavit of exclusive possession;

                  (d)      a non-foreign affidavit;

                  (e)      an appropriate bill of sale with warranty of title
                           for all personal property included in this
                           transaction;

                  (f)      appropriate assignments of all deposits, licenses,
                           easements, rights-of-way, contract rights, guarantees
                           and warranties, intangible rights and other property
                           and rights included in this transaction, together
                           with all original Warranties;

                  (g)      proof of payment of all real estate and personal
                           property taxes assessed against the Property through
                           2000;

                  (h)      all original Licenses and certificates, if any;

                  (i)      Affidavits required by the Title Company in order to
                           cure any defect in or objection or exception to
                           title, in such form and containing such statement as
                           may be required by such Title Company to cure any
                           defect and eliminate all objections and exceptions
                           except the Permitted Exceptions;

                  (j)      At Closing, ASDSC shall deliver to Kellstrom all
                           keys, combinations for any other locks and all
                           instruments of access to the Property;

                  (k)      Such other documents as are required by this Letter
                           Agreement to be delivered to Kellstrom at Closing.

         At Closing, ASDSC and Kellstrom shall each execute counterpart closing
statements.

         11. BROKERAGE. The parties each represent and warrant to the other that
no realtor has been involved in the transfer of the Property. If a claim for
brokerage commissions or finder's fees in connection with this transaction is
made by any broker, salesman or finder claiming to have dealt through or on
behalf of one of the parties hereto, such party shall indemnify, defend and hold
harmless the other party hereunder, and such other party's officers, directors,
agents and representatives, from all liabilities, damages, claims, costs, fees
and expenses whatsoever (including reasonable attorney's fees and court costs)
with respect to said claim for brokerage. The provisions of this Section shall
survive the Closing and any cancellation or termination of this Letter
Agreement.

                                      -5-
<PAGE>   14

         12. NOTICES. All notices, requests, demands, claims, and other
communications hereunder shall be in writing and shall be deemed given if
delivered by certified or registered mail (first class postage prepaid),
guaranteed overnight delivery or facsimile transmission if such transmission is
confirmed by delivery by certified or registered mail (first class postage
prepaid) or guaranteed overnight delivery, to the following addresses and
telecopy numbers (or to such other addresses or telecopy numbers which any party
shall designate in writing to the other parties):

         If to Kellstrom at:

                  Kellstrom Industries, Inc.
                  3701 Flamingo Road
                  Miramar, Florida 33027
                  Attn:    Fred von Husen
                  Telecopy:  (954) 858-2449

         with a copy to:

                  Akerman Senterfitt & Eidson, P.A.
                  Las Olas Centre II, Suite 1600
                  350 East Las Olas Boulevard
                  Ft. Lauderdale, FL 33301-2229
                  Attn: Bruce I. March, Esq.
                  Telecopy:  (954) 463-2224

         If to ASDSC at:

                  Aviation Sales Company
                  3601 Flamingo Road
                  Miramar, Florida  33027
                  Attn:  Dale Baker, Chief Executive Officer
                  Telecopy:  (954) 538-6775

         with a copy to:

                  Boyar & Miller
                  4265 San Felipe, Suite 1200
                  Houston, Texas 77027
                  Attn: J. William Boyar
                  Telecopy: (713) 552-1758

Notices shall be deemed given when accepted or refused if delivered by hand or
by overnight delivery service, or on the third (3rd) day following the date
mailed, if mailed in accordance with the foregoing.

                                      -6-
<PAGE>   15

         13. RISK OF LOSS. In the event of any damage to the Property by fire or
other casualty, Kellstrom can elect to either cancel this Letter Agreement or
close with all proceeds of insurance and all claims relating to the casualty
assigned to Kellstrom at Closing.

         14. INDEMNIFICATION. The terms of the Asset Purchase Agreement shall
control with respect to the indemnity obligations of ASDSC and Kellstrom.

         15. DUTY OF CONFIDENTIALITY.

                  (a)      Kellstrom agrees to keep all information and/or
                           reports obtained from ASDSC, and the results of all
                           of Kellstrom's tests and inspections, confidential
                           and will not disclose any such information to any
                           person or entity, other than to its employees,
                           lawyers, accountants, consultants, partners,
                           investors, lenders and financial advisors, without
                           obtaining the prior written consent of ASDSC.

                  (b)      Kellstrom and ASDSC each agree that, in addition to
                           the foregoing, the confidentiality provisions of the
                           Asset Purchase Agreement shall control as to this
                           Letter Agreement.

        16. MISCELLANEOUS.

                  (a)      In construing this Letter Agreement, the singular
                           shall be held to include the plural, the plural shall
                           include the singular, the use of any gender shall
                           include every other and all genders, and captions and
                           paragraph headings shall be disregarded.

                  (b)      All of the exhibits attached to this Letter Agreement
                           are by reference thereto incorporated in, and made a
                           part of, this Letter Agreement.

                  (c)      ASDSC agrees that at any time and from time to time,
                           before and after the Closing, to execute and deliver
                           such further documents and do such further acts and
                           things Kellstrom may reasonably request in order to
                           fully effectuate the purposes of this Letter
                           Agreement.

                  (d)      This Letter Agreement may be executed in two or more
                           counterparts, each of which shall be deemed an
                           original, but all of which together shall constitute
                           one and the same instrument.

                  (e)      Time shall be considered of the essence with respect
                           to all of the provisions contained in this Letter
                           Agreement.

                                      -7-
<PAGE>   16

                  (f)      This Letter Agreement shall be assignable by
                           Kellstrom provided that no assignment by Kellstrom
                           shall release it of any of its obligations hereunder.

                  (g)      If the transfer of the Realty by ASDSC to Kellstrom
                           is subject to compliance with any municipal, county
                           or state regulations concerning the subdivision of
                           lands, ASDSC shall be responsible for complying with
                           all such applicable regulations and obtaining all
                           required permits, plats, waiver of plats or other
                           approvals from the applicable governmental agency
                           prior to Closing.

                  (h)      This Letter Agreement, the Real Property Lease and
                           the related Asset Purchase Agreement and all exhibits
                           attached hereto and thereto constitute the entire
                           agreement between the parties and supersede any prior
                           oral or written agreements between the parties with
                           respect to the subject matter hereof. This Letter
                           Agreement (including all exhibits and addenda
                           attached hereto) may not be changed, altered or
                           modified except by an instrument in writing executed
                           by all parties. This Letter Agreement (including all
                           exhibits attached hereto) shall be binding upon the
                           parties and their respective successors and assigns.
                           Notwithstanding the foregoing, all representations,
                           warranties and indemnities contained in the Asset
                           Purchase Agreement which are applicable to the
                           Property, shall survive the Closing of this
                           transaction and shall be applicable to the Property
                           to the extent set forth in the Asset Purchase
                           Agreement and to the extent they do not conflict with
                           the indemnities set forth herein.

                  (i)      The terms, provisions and conditions of this Letter
                           Agreement shall be governed by and construed in
                           accordance with the laws of the State of Texas.

                  (j)      The Texas Real Estate License Act requires that ASDSC
                           notify Kellstrom that Kellstrom should either (i)
                           have an attorney examine an abstract of title to the
                           Property, or (ii) obtain a title insurance policy
                           covering the Property. Notice to that effect is,
                           therefore, hereby given to and acknowledged by
                           Kellstrom.

                  (k)      KELLSTROM HEREBY WAIVES ITS RIGHTS UNDER THE
                           DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT,
                           SECTION 17.41 ET SEQ. OF THE TEXAS BUSINESS &
                           COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL
                           RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN
                           ATTORNEY OF KELLSTROM'S OWN SELECTION, KELLSTROM
                           VOLUNTARILY CONSENTS TO THIS WAIVER.

                                      -8-
<PAGE>   17

                                    EXHIBIT A
                                Legal Description

                          METES AND BOUNDS DESCRIPTION
                         9.5360 ACRES OUT OF LOT 77 & 78
                             ZYCHLINSKI SUBDIVISION
                        PEARLAND, BRAZORIA COUNTY, TEXAS

All that certain 9.5360 acres out of Lots 77 & 78 of the Zychlinski Subdivision
according to the plat recorded in Vol. 29, Pg. 43 Brazoria County Deed Records,
Abstract 542 and being more particularly described by metes and bounds as
follows:

Beginning at a found 1" iron pipe marking a point from which the original
northwest corner of that certain called 5.00 acre tract described in a deed
dated 6/17/1987 from Pearland Investment Co. to Harry E. Bradley filed in Vol.
433, Pg. 86 Brazoria County Official Records, bears N 00(Degree) 01' 30" -
40.00' and from which the intersection of the south right-of-way line of Knapp
Road and the east right-of-way line of North Main Street (Texas Highway 35)
bears N 89(Degree) 54' 34" W - 972.32' and being on the south right-of-way line
of Knapp Road (90' wide);

Thence S 89(Degree) 54' 34" E - 354.49' with the south right-of-way line of
Knapp Road as established by that certain right-of-way deed filed in Vol. 1379
Pg. 48 Brazoria County Deed Records to a set 5/8" iron rod and marking the
northwest corner of that certain 4.8584 acre tract as described in a deed dated
6/17/1987 from Pearland Investment Co. to Harry E. Bradley filed in Vol. 433,
Pg. 86 Brazoria County Official Records; from which the common north corner of
said Lots 77 & 78 bears N 00(Degree) 01' 30" E - 40.00';

Thence East continuing with the south right-of-way line of Knapp Road (90'
wide), passing a call and found 5/8" iron rod at 450.02' and continuing a total
distance of 839.93' to a call and found 1/2" iron rod marking the northeast
corner of said 4.8584 acre tract;

Thence South - 96.05' with the west line of that certain Tract "C" as described
in a deed dated 2/28/1979 from Frank A. Touisinau, Trustee to City of Pearland
filed in Vol. 1447, Pg. 287 Brazoria County Deed Records to a point for corner
marking the southeast corner of said 4.8584 acre tract and being in the bed of
an existing ditch commonly known as Hickory Slough, from which a call and found
1/2" iron rod marking the southwest corner of said Tract "C" bears South 38.56'
(called 38.95');

Thence West - 50.00' with the south line of said 4.8584 acres to a set 5/8" iron
rod for angle point;

                                      -9-
<PAGE>   18

Thence S 69(Degree) 46' 00" W - 565.14' continuing with the south line of said
4.8584 acre tract to a set 5/8" iron rod marking the point of curvature of a
curve to the left having a radius of 283.66' a central angle of 31(Degree) 30'
00";

Thence with said curve and continuing with the south line of said 4.8584 acre
tract an arc distance of 155.95' to the point of tangency from which a set 5/8"
iron rod for reference point bears N 40(Degree) 26' 54" W - 40.25';

Thence S 38(Degree) 16' 00" W - 218.46' continuing with the south line of said
4.8584 acre tract to a point for corner being in the east line of said called
5.00 acre tract;

Thence S 00(Degree) 01' 30" W - 21.00' with the east line of said called 5.00
tract to a set 5/8" iron rod for corner marking the southeast corner of said
5.00 acre tract;

Thence West - 354.49' with the south line of said 5.00 acre tract to a call and
found 1" iron pipe for corner;

Thence N 00(Degree) 01' 30" E - 575.06' with the east line of that certain 2.00
acre tract as described in a deed dated 5/20/1986 from R.L. Delhomme to
Manhatten Building Co. filed in Vol. 283, Pg. 158 Brazoria County Deed Records
to the POINT OF BEGINNING and containing 9.5360 acres (415,389 square feet) of
land more or less.

                                      -10-<PAGE>   1
                                                                Exhibit 10.11

           AGREEMENT WITH RESPECT TO STANDBY LETTER OF CREDIT FACILITY

         THIS AGREEMENT WITH RESPECT TO STANDBY LETTER OF CREDIT FACILITY
("Agreement"), dated December 1, 2000 (the "Effective Date"), is by and among
KELLSTROM INDUSTRIES, INC., a Delaware corporation (the "Borrower"), and each of
JAMES VENTURES, L.P., a Texas limited partnership, ROBERT BELFER, an individual
residing in New York, New York, LJH CORPORATION, a Texas corporation, and DON A.
SANDERS, an individual residing in Houston, Texas (individually, a "Lender" and
collectively, the "Lenders").

                              W I T N E S S E T H:

         BACKGROUND. Borrower has requested that Lenders issue one or more
Standby Letters of Credit aggregating $8,000,000 for the benefit of Agent (as
hereinafter defined), and Lenders are willing to do so upon the terms and
conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of the promises herein contained, and
each intending to be legally bound hereby, the parties agree as follows:

         SECTION I. DEFINITIONS.

         As used herein:

         1.01 "ACQUISITION" means the acquisition by Borrower of the parts
redistribution business of Aviation Sales Distribution Services Company ("AVS
Distribution"), a wholly-owned subsidiary of Aviation Sales Company ("AVS"), and
the acquisition by KAV Inventory, LLC ("KAV"), of the aircraft parts and engine
parts inventory of AVS Distribution.

         1.02 "AGENT" means Bank of America, N.A., formerly NationsBank, N.A.,
in its capacity as agent for the lenders under the Senior Loan Agreement.

         1.03 "KELLSTROM COMMON STOCK" means common stock, $0.01 par value,
issued by Borrower.

         1.04 "KELLSTOM HEADQUARTERS BUILDING" means VRDN Real Estate and the
Parking Facility Real Estate (both as defined in the Senior Loan Agreement)

         1.05 "LC TERMINATION DATE" means the earlier to occur of (i) the sale
by Borrower of the Kellstrom Headquarters Building, (ii) June 1, 2001, or (iii)
written notice from Borrower to Lenders that no further draws shall be made on
Letters of Credit, which notice must include a written consent to the foregoing
from the Agent.

         1.06 "LOAN MATURITY DATE" means December 1, 2001.

                                      -1-
<PAGE>   2

         1.07 "SENIOR LOAN AGREEMENT" means that certain Amended and Restated
Loan and Security Agreement dated as of December 14, 1998 among Borrower and
certain subsidiaries of Borrower, as borrowers, and the Agent, certain other
lenders and other parties thereto, as amended through the date hereof.

         1.08 "SENIOR LOAN EVENT OF DEFAULT" means an Event of Default (as
defined in the Senior Loan Agreement) under the Senior Loan Agreement.

         1.09 "INTERCREDITOR AGREEMENT" means that certain Intercreditor
Agreement dated of even date herewith, by and between the Agent and each of
Lenders, which Intercreditor Agreement is in the form attached hereto as EXHIBIT
"1.09".

         SECTION II. THE STANDBY LETTER OF CREDIT FACILITY.

         2.01 ESTABLISHMENT OF THE STANDBY LETTER OF CREDIT FACILITY. Subject to
the terms and conditions of this Agreement, each Lender agrees to cause to be
issued a letter of credit (individually, a "Letter of Credit" and collectively,
the "Letters of Credit") for the benefit of Agent for the ratable benefit of the
lenders under the Senior Loan Agreement (the "Beneficiary") in the amount of
$2,000,000. The aggregate amount of the Letters of Credit shall be $8,000,000.
The Letters of Credit shall be in the form attached hereto as EXHIBIT "2.01" and
shall be issued by one or more of the banks listed on SCHEDULE "2.01". All draws
under the Letters of Credit shall be allocated pro rata among the Letters of
Credit. Partial draws shall be permitted under the Letters of Credit, although
pay downs and redraws under the Letters of Credit shall not be permitted. The
Letters of Credit shall expire (or be returned to Lenders, as applicable) upon
the LC Termination Date.

         2.02 DRAWS UPON LETTERS OF CREDIT. The Letters of Credit may be drawn
only upon the Letter of Credit issuers' receipt of sight drafts and certificates
in the form of EXHIBIT "2.02" attached hereto, each properly completed and
executed; provided, however, in no event may the Letters of Credit be drawn on
or after the LC Termination Date.

         2.03 THE NOTES. Any draw by Beneficiary under the Letters of Credit in
accordance with its terms shall be deemed a term loan (the "Loan") from the
applicable Lender to Borrower. All draws shall be made in an amount pro rata to
the amounts of the respective Letters of Credit. The Loan shall be subject to
and repaid pursuant to the terms of the note executed by Borrower in favor of
each Lender, each such note to be in the form of EXHIBIT "2.03" hereto
(individually, a "Note" and collectively, the "Notes"), and each Lender shall
receive from Borrower at Closing (as hereinafter defined) an executed Note. All
payments made by Borrower under the Notes (other than reimbursement of expenses
as provided for herein or in the Notes) shall first be applied to accrued and
unpaid interest and then to principal.

         2.04 PAYMENTS OF PRINCIPAL. Subject to the mandatory prepayment
provisions contained below, the principal of the Loan will be repaid in one
payment due upon the earlier to occur of the receipt by Borrower of any proceeds
(excluding deposits and other relatively de minimus amounts routinely received
prior to a closing) from the sale of the Kellstrom Headquarters Building, or the
Loan Maturity Date. All payments shall be made to Lenders on a

                                      -2-
<PAGE>   3

pro rata basis in accordance with the amounts drawn under the Letters of Credit
and allocated to the Notes on the same basis, unless otherwise directed by
Lenders. In the event such payment is to be made other than pro rata, Lenders
shall provide notice to Borrower in the manner provided below, which notice
shall be executed by each of Lenders whose payment is being made other than pro
rata. Any such notice shall be given at least fifteen (15) days prior to the
date any payment is due to Lenders hereunder. Notwithstanding any other
provision to the contrary contained in this Agreement, payment of principal of
the Loan shall be made exclusively from the proceeds of a Permitted
Sale-Leaseback (as defined in the Senior Loan Agreement) of the VRDN Real Estate
and the Parking Facility Real Estate (both as defined in the Senior Loan
Agreement).

         2.05 MANDATORY PREPAYMENT. Intentionally Omitted.

         2.06 VOLUNTARY PREPAYMENT. Borrower may voluntarily prepay the Loan in
whole or, from time to time, in part, all without premium. All such prepayments
shall be allocated pro rata among Lenders with payments first allocated to
accrued and unpaid interest and then to principal.

         2.07 INTEREST RATE AND PAYMENTS OF INTEREST.

                  (a)      Interest shall be paid as follows:

                           (1)      Subject to the provisions of Section
                                    2.07(b), interest on the principal balance
                                    of the Loan, from time to time outstanding,
                                    will be payable at the rate (the "Rate")
                                    equal to a fixed per annum rate of eighteen
                                    percent (18%).

                           (2)      Interest shall be calculated on the basis of
                                    a 360-day year, and shall be payable on the
                                    first day of each month in which amounts are
                                    outstanding under the Loan; provided,
                                    however, to the extent that there is
                                    insufficient availability under the Senior
                                    Loan Agreement (computed in the same manner
                                    as availability for mandatory prepayments of
                                    principal as described in Section 2.05
                                    above), interest shall accrue and not be
                                    payable until the sooner of the date in
                                    which there is sufficient availability or
                                    the Loan Maturity Date. After maturity,
                                    whether by acceleration or otherwise,
                                    accrued interest shall be payable on demand.

                  (b)      Notwithstanding any provision herein or in the Notes
                           to the contrary, it is the intention of the parties
                           hereto to conform strictly to applicable usury laws
                           as in effect from time to time during the term of
                           this Agreement. Accordingly, if any transaction or
                           transactions contemplated hereby would be usurious
                           under applicable law (including the laws of the
                           United States of America, or of any other
                           jurisdiction whose laws may be mandatorily
                           applicable), then, in that event, notwithstanding
                           anything to the contrary in the Notes, or any
                           agreement entered into in connection with the Notes,

                                      -3-
<PAGE>   4

                           it is agreed as follows: (i) the provisions of this
                           paragraph shall govern and control; (ii) the
                           aggregate of all interest (as defined under
                           applicable law) that is contracted for, charged or
                           received under the Notes (or any of them), or under
                           any of the other aforesaid agreements or otherwise in
                           connection with this Agreement, shall under no
                           circumstances exceed the maximum amount of interest
                           allowed by applicable law, and any excess shall be
                           promptly credited to Borrower by Lenders (or, if such
                           consideration shall have been paid in full, such
                           excess shall be promptly refunded to Borrower by
                           Lenders); (iii) neither Borrower nor any other person
                           or entity now or hereafter liable in connection with
                           the Notes shall be obligated to pay the amount of
                           such interest to the extent that it is in excess of
                           the maximum interest permitted by the applicable
                           usury laws; and (iv) the effective rate of interest
                           shall be IPSO FACTO reduced to the Highest ---- -----
                           Lawful Rate (as hereinafter defined). All sums paid,
                           or agreed to be paid, to Lenders for the use,
                           forbearance and detention of the indebtedness of
                           Borrower to Lenders shall, to the extent permitted by
                           applicable law, be amortized, prorated, allocated and
                           spread throughout the full term of the indebtedness
                           described in the Notes, in any of the aforesaid
                           agreements, or in this Agreement, until payment in
                           full so that the actual rate of interest does not
                           exceed the Highest Lawful Rate in effect at any
                           particular time during the full term thereof. The
                           maximum lawful interest rate, if any, referred to in
                           this paragraph that may accrue pursuant to the Notes
                           is referred to herein as the "Highest Lawful Rate".

         2.08 COLLATERAL. Lenders shall receive a collateral assignment of the
proceeds from the sale of the Kellstrom Headquarters Building (the "Collateral")
in the form attached hereto as EXHIBIT "2.08" (the "Collateral Assignment"). The
interest of Lenders in and to the Collateral shall be subject to the
Intercreditor Agreement. In connection with the Collateral, Borrower shall
cooperate with Lenders in the filing of UCC-1s in the applicable UCC records in
Florida (the "UCC-1s") and a Memorandum of Collateral Assignment of Proceeds
(the "Memorandum of Collateral Assignment") as well as an Agreement Not to
Encumber (the "Agreement Not to Encumber") in the applicable real property
records in Florida.

         SECTION III. WARRANT COVERAGE. At the Closing, each Lender shall
receive a detachable Warrant in the form attached hereto as EXHIBIT "3" to
purchase 10,000 shares of Kellstrom Common Stock (the "Closing Warrants") at an
exercise price equal to the higher of (i) the unweighted average of the closing
price per share for the twenty consecutive trading days prior to the date of the
Closing; and (ii) the closing price for such Common Stock on the trading day
immediately preceding the Closing. If the obligations of Lenders to make the
Letters of Credit available hereunder are completely satisfied by the release of
the Letters of Credit and the occurrence of the LC Termination Date within
thirty (30) days after the Closing, Warrants to purchase 5,000 shares of

                                      -4-
<PAGE>   5

Kellstrom Common Stock will be forfeited and returned to Borrower by each
Lender. If the LC Termination Date has not yet occurred after 60 days after the
Closing, then on the first day of each succeeding thirty-day period, commencing
on the 61st day after the Closing and concluding on the 151st day after the
Closing, each Lender will be granted a Warrant to purchase an additional 5,000
shares of Kellstrom Common Stock with each incremental issuance of Warrants
being priced at the higher of (i) the unweighted average of the closing price
per share for the twenty consecutive trading days prior to the date of issuance,
and (ii) the closing price for the Kellstrom Common Stock on the date of
issuance; provided, however, to the extent that the Letters of Credit have been
drawn as of the first day of any of the thirty-day periods described above, the
number of shares of Kellstrom Common Stock that shall be issuable upon exercise
of the Warrant granted on such first day shall be reduced by the percentage of
the face amount of the Letters of Credit that have been drawn; provided,
further, that beginning on the 91st day after the Closing and concluding on the
151st day after the Closing, the amount of shares of Kellstrom Common Stock that
shall be issuable upon exercise of the Warrant granted to each Lender on such
first day shall be further reduced by a number of shares equal to (A) the
product of (i) the aggregate face amount of the Letter of Credit applicable to
such Lender that was drawn prior to the 15th of the preceding 30 day period
divided by (ii) $2,000,000, times (B) 2,500. All Warrants issued by Borrower to
Lenders will be exercisable at any time within five (5) years after the
applicable date of issuance. The Warrants (but not the shares once issued) will
contain standard anti-dilution clauses in the event of stock splits or stock
dividends. Lenders will be granted piggyback registration rights. As described
above, the Warrants to be granted pursuant to the foregoing shall be issued to
the individual Lenders on a pro rata basis in accordance with the amount of
their commitment unless otherwise requested by all Lenders who are to receive
the Warrants other than on a pro rata basis, and any Warrants forfeited and
returned to Borrower in accordance herewith shall be returned on a pro rata
basis in accordance with the number each Lender was originally granted.

         SECTION IV. CONDITIONS PRECEDENT. The obligation of each Lender to
provide his respective Letter of Credit is subject to the following conditions
precedent:

         4.01 DOCUMENTS REQUIRED FOR THE CLOSING. Borrower shall have duly
delivered to Lenders, prior to the release of the Letters of Credit (the
"Closing"), the following:

                  (a)      The Notes;

                  (b)      The UCC-1s, the Collateral Assignment, the Memorandum
                           of Collateral Assignment and the Agreement Not to
                           Encumber;

                  (c)     A certified (dated as of the date of the Closing) copy
                          of resolutions of Borrower's board of directors
                          authorizing the execution, delivery and performance of
                          this Agreement, the Notes, the Collateral Assignment,
                          the Agreement Not to Encumber, the Warrants, the
                          Purchase and Sale Agreement (as hereafter defined) and
                          each other document to be delivered pursuant hereto;

                  (d)     A copy certified as of the most recent practicable
                          date by the Secretary of State, of Borrower's
                          certificate of incorporation, together with a
                          certificate (dated the date of the Closing) of
                          Borrower's corporate secretary to the effect that such
                          certificate of incorporation have not been amended
                          since the date of the aforesaid certification;

                                      -5-
<PAGE>   6

                  (e)     Certificates, as of the most recent dates practicable,
                          of the aforesaid Secretary of State, the Secretary of
                          State of each state in which Borrower is qualified as
                          a foreign corporation, and the department of revenue
                          or taxation of each of the foregoing states, as to the
                          good standing of Borrower;

                  (f)     The Closing Warrants;

                  (g)     The Purchase and Sale Agreement and the Memorandum of
                          Purchase and Sale Agreement, as defined below;

                  (h)     A fee payable in cash in the amount of three percent
                          (3%) of the face amount of the Letters of Credit (the
                          "Fee"). The Fee shall be payable by cashier's check or
                          wire transfer to each of Lenders in the amount of
                          $60,000;

                  (i)     Lenders shall have received consent to the transaction
                          contemplated hereby from the Agent under the Senior
                          Loan Agreement; and

                  (j)     Lenders shall have received an opinion of counsel for
                          Borrower in form and substance reasonably acceptable
                          to Lenders.

         4.02 CERTAIN EVENTS. At the time of the Closing:

                  (a)     No Event of Default shall have occurred and be
                          continuing, and no event shall have occurred and be
                          continuing that, with the giving of notice or passage
                          of time or both, would be an Event of Default;

                  (b)     Each of the parties thereto shall have entered into
                          the Tenth Amendment to the Senior Loan Agreement;

                  (c)     The Acquisition shall have been completed, including
                          the funding of a loan pursuant to that certain Loan
                          and Security Agreement of even date herewith among
                          Bank of America, N.A., certain other lenders and KAV,
                          subject only to the completion of the Closing; and

                  (d)     Each of the representations and warranties of Borrower
                          contained in the Senior Loan Agreement and in this
                          Agreement shall be true and correct in all material
                          respects as if made on the date of the Closing,
                          Borrower shall be otherwise in compliance with all
                          covenants and conditions hereunder and under the
                          Senior Loan Agreement, and Borrower shall have
                          delivered to Lenders a certificate of its Chief
                          Financial Officer confirming the foregoing.

                                      -6-
<PAGE>   7

         SECTION V. REPRESENTATIONS AND WARRANTIES. To induce Lenders to enter
into this Agreement, Borrower represents and warrants to Lenders as follows:

         5.01 INCORPORATION BY REFERENCE OF REPRESENTATIONS FROM SENIOR LOAN
AGREEMENT. Each of the representations and warranties contained in the Senior
Loan Agreement in favor of the Agent and the other lenders described therein
(the "Representations and Warranties") are true in all material respects as of
the date hereof and Lenders shall be entitled to rely upon the Representations
and Warranties as if they were made directly to Lenders. In connection with the
foregoing, each of the Representations and Warranties are hereby incorporated
herein by reference and made a part hereof as if set forth in full herein.

         5.02 POWER AND AUTHORITY. Borrower has the power and authority to enter
into and perform its obligations under this Agreement, the Notes, the Warrants,
the Purchase and Sale Agreement and the Collateral Assignment, and to incur the
obligations herein and therein provided for, and has taken all actions necessary
to authorize the execution, delivery and performance of this Agreement, the
Notes, the Warrants, the Purchase and Sale Agreement and the Collateral
Assignment.

         5.03 ENFORCEABILITY. Each of this Agreement, the Notes, the Warrants,
the Purchase and Sale Agreement and the Collateral Assignment are or will when
delivered be valid, binding and enforceable in accordance with their respective
terms.

         5.04 VALID ISSUANCE OF COMMON STOCK. The shares of Common Stock of
Borrower issuable upon the exercise of the Warrants have been duly and validly
reserved for issuance and, upon issuance in accordance with the terms of the
Warrants (including receipt of any payment required to be made upon exercise of
the Warrants), shall be duly and validly issued, fully paid and nonassessable,
and issued in compliance with all applicable securities laws, as presently in
effect, of the United States and each of the states whose securities laws govern
the issuance of any of the Common Stock pursuant to the Warrants.

         5.05 NO CONFLICT. The execution, delivery and performance of this
Agreement, the Notes, the Collateral Assignment and the Warrants, and the
consummation of the transactions contemplated hereby and thereby shall not
result in any material violation or be in conflict with or constitute, with or
without the passage of time and giving of notice, either a default under any
such provision, instrument, judgment, order, writ, decree or contract or an
event that, other than with respect to the Collateral Assignment and the
Purchase and Sale Agreement, results in the creation of any lien, charge or
encumbrance upon any assets of Borrower or the suspension, revocation,
impairment, forfeiture or nonrenewal of any material permit, license,
authorization or approval applicable to Borrower, its business or operations or
any of its assets or properties.

         All the representations and warranties set forth in this Section V
shall survive until all obligations of Borrower to Lenders hereunder, or under
the Notes, the Collateral Assignment or the Purchase and Sale Agreement (the
"Obligations") are satisfied in full.

                                      -7-
<PAGE>   8

         SECTION VI. COVENANTS OF BORROWER. Borrower does hereby covenant and
agree with Lender, that, so long as any of the obligations under the Notes and
this Agreement remain unsatisfied or any commitments hereunder remain
outstanding, it will comply at all times with the following affirmative
covenants:

         6.01 SALE-LEASEBACK. Borrower will use its commercial best efforts to
complete the sale-leaseback of the Kellstrom Headquarters Building (the
"Sale-Leaseback") to Corporate Realty Investment Company L.L.C. ("CRIC") in
accordance with the provisions of the commitment letter executed by Borrower and
CRIC dated October 31, 2000 (the "Commitment Letter") in connection therewith.
Borrower shall communicate with Lenders on a regular basis and as requested by
Lenders as to the status of such sale. Borrower agrees that until such time the
Obligations are satisfied in full, Borrower shall not grant any additional liens
on the Kellstrom Headquarters Building without written permission of Lenders. At
the Closing, Borrower and the Lenders shall enter into a Purchase and Sale
Agreement with respect to the Kellstrom Headquarters Building (the "Purchase and
Sale Agreement") pursuant to which the Lenders shall have the right and option
to purchase the Kellstrom Headquarters Building subject to the terms and
conditions set forth therein. Further, at the Closing, Borrower will cooperate
with Lenders in executing a Memorandum of Purchase and Sale Agreement
("Memorandum of Purchase and Sale Agreement") for filing in the appropriate real
property records in Florida.

         6.02 FINANCIAL STATEMENTS. Borrower will furnish to Lenders the same
financial statements and financial compliance certificates required to be
furnished to the Agent under the Senior Loan Agreement on the same timetable set
forth in the Senior Loan Agreement. Lenders acknowledge that the information
disclosed pursuant to this Section 6.02 may constitute material non-public
information regarding the Company, that the Company is subject to the Securities
Exchange Act of 1934, as amended, and that Federal and state securities laws are
applicable that would prohibit a person in possession of material non-public
information regarding a publicly-held issuer from, among other things, trading
in the securities of such issuer. Lenders agree to maintain in confidence all
non-public material information provided to Lenders pursuant hereto, and not to
trade while in possession of any such information.

         6.03 INSPECTION. Borrower will, when requested to do so, make available
for inspection by duly authorized representatives of Lenders any of its books
and records and will furnish Lenders any information regarding its business
affairs and financial condition within a reasonable time after written request
therefor.

         6.04 DEFAULT UNDER SENIOR LOAN AGREEMENT. Borrower will give prompt
notice to Lenders if it becomes aware of the occurrence of any Senior Loan Event
of Default or any fact, condition or event that only with the giving of notice
or passage of time or both, would become a Senior Loan Event of Default or if it
becomes aware of any material adverse change in the business prospects,
financial condition (including, without limitation, proceedings in bankruptcy,
insolvency, reorganization, or the appointment of a receiver or trustee), or
results of operations of Borrower, or of the failure of Borrower to observe any
of its undertakings hereunder.

                                      -8-
<PAGE>   9

         6.05 AVAILABILITY UNDER SENIOR LOAN AGREEMENT. Borrower will use its
best commercial efforts to cause the Letters of Credit not to be drawn upon by
the Agent and, if drawn upon, to permit Borrower to prepay any outstanding
indebtedness hereunder as soon as possible after such indebtedness becomes
outstanding.

         SECTION VII. DEFAULT.

         7.01 EVENT OF DEFAULT. The occurrence of any one or more of the
following events shall constitute an "Event of Default" hereunder:

                  (a)     Borrower shall fail to pay any principal payable
                          hereunder that is due on the Loan Maturity Date;

                  (b)     Borrower shall fail to pay any other principal
                          payable hereunder, including mandatory prepayments
                          described above, and such failure shall continue for
                          a period of five (5) calendar days;

                  (c)     Borrower, shall fail to pay when due any installment
                          of interest or other amount payable hereunder, and
                          such failure shall continue for a period of five (5)
                          calendar days;

                  (d)     Borrower shall fail to observe or perform any other
                          obligation to be observed or performed by it
                          hereunder, or in the Notes, and such failure shall
                          continue for ten (10) calendar days after either (i)
                          notice of such failure from any one of Lenders, or
                          (ii) Borrower was otherwise notified or became aware
                          of such failure;

                  (e)     Any financial statement, representation, warranty, or
                          certificate made or furnished by or with respect to
                          Borrower to Lenders in connection with this Agreement,
                          or as inducement to Lenders to enter into this
                          Agreement, or in any separate statement or document to
                          be delivered to Lenders hereunder, shall be materially
                          false, incorrect, or incomplete when made;

                  (f)     Borrower shall admit in writing its inability to pay
                          its debts as they mature or shall make an assignment
                          for the benefit of creditors;

                  (g)     Proceedings in bankruptcy, or for reorganization of
                          Borrower or for the readjustment of any of its debts
                          under the Bankruptcy Code, as amended, or any part
                          thereof, or under any other laws, whether state or
                          federal, for the relief of debtors, now or hereafter
                          existing, shall be commenced against or by Borrower,
                          and, except with respect to any such proceedings
                          instituted by Borrower, shall not be discharged within
                          ninety (90) days of their commencement; or

                  (h)     A receiver or trustee shall be appointed for Borrower
                          or for any substantial part of its assets, or any
                          proceedings shall be instituted for the dissolution or

                                      -9-
<PAGE>   10

                          the full or partial liquidation of Borrower, and
                          except with respect to any such appointments requested
                          or instituted by Borrower, such receiver or trustee
                          shall not be discharged within ninety (90) days of his
                          appointment, and except with respect to such
                          proceedings instituted by Borrower, such proceedings
                          shall not be discharged within ninety (90) days of
                          their commencement, or Borrower shall discontinue
                          business or materially change the nature of its
                          business.

         7.02 ACCELERATION. Immediately and without notice upon the occurrence
of an Event of Default specified in the foregoing subparagraphs (g) or (h) of
Section 7.01, or at the option of Lenders, but only upon notice to Borrower,
upon the occurrence of any other Event of Default, all Obligations shall
immediately become due and payable without further action of any kind.

         7.03 REMEDIES. After any acceleration, as provided for in Section 7.02,
subject to the restrictions contained in the Intercreditor Agreement, Lenders
shall have, in addition to the rights and remedies given them by this Agreement
and the Notes, all those allowed by all applicable laws, including, but without
limitation, the Uniform Commercial Code as enacted in any jurisdiction in which
any Collateral may be located.

         SECTION VIII. MISCELLANEOUS.

         8.01 CONSTRUCTION. The provisions of this Agreement shall be in
addition to those of any guaranty, pledge or security agreement, note, or other
evidence of liability now or hereafter executed by Borrower in connection with
the Loan, all of which shall be construed as complementary to each other. To the
extent the provisions of this Agreement and the provisions of any guaranty,
pledge or security agreement, note or other evidence of liability are
inconsistent, the provision in this Agreement shall control; otherwise, nothing
herein contained shall prevent Lenders from enforcing any or all other guaranty,
pledge or security agreements, notes, or other evidences of liability in
accordance with their respective terms.

         8.02 FURTHER ASSURANCE. From time to time, Borrower will execute and
deliver to Lenders such additional documents and will provide such additional
information as Lenders may reasonably require to carry out the terms of this
Agreement and be informed of the status and affairs of Borrower.

         8.03 ENFORCEMENT AND WAIVER BY LENDERS. Lenders shall have the right at
all times to enforce the provisions of this Agreement and in strict accordance
with the terms hereof, notwithstanding any conduct or custom on the part of
Lenders in refraining from so doing at any time or times. The failure of Lenders
at any time or times to enforce their rights under such provisions, strictly in
accordance with the same, shall not be construed as having created a custom in
any way or manner contrary to specified provisions of this Agreement or as
having in any way or manner modified or waived the same. All rights and remedies
of Lenders are cumulative and concurrent, and the exercise of one right or
remedy shall not be deemed a waiver or release of any other right or remedy.

                                      -10-
<PAGE>   11

         8.04 SEVERABILITY. If any provision of this Agreement shall be held
invalid under any applicable laws, such invalidity shall not affect any other
provision of this Agreement that can be given effect without the invalid
provision, and, to this end, the provisions hereof are severable.

         8.05 BENEFIT AND BINDING EFFECT. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective heirs,
legal and personal representatives, and their successors and assigns.

         8.06 GOVERNING LAW. This Agreement is to be governed by and construed
in accordance with the laws of the State of New York.

         8.07 NOTICE. Except as otherwise provided herein, all notices, demands
and requests that any party is required or elects to give to any other shall be
in writing, or by a telecommunications device capable of creating a written
record, and any such notice shall become effective (a) upon personal delivery
thereof, including, but not limited to, delivery by overnight mail and courier
service, (b) four (4) days after it shall have been mailed by United States
mail, first class, certified or registered, with postage prepaid, or (c) in the
case of notice by such a telecommunications device, when properly transmitted,
in each case addressed to the party to be notified as follows:

                  (a)             If to Borrower:

                                  Kellstrom Industries, Inc.
                                  1100 International Parkway
                                  Sunrise, Florida  33323
                                  Attention:  Chief Financial Officer
                                  Telecopy No.:  (954) 858-2449

                                  With a copy to:

                                  Akerman, Senterfitt & Eidson, P.A.
                                  350 East Las Olas Blvd., Suite 1600
                                  Ft. Lauderdale, Florida 33301
                                  Attention:  Bruce I. March
                                   Telecopy No.  (954) 463-2224

                  (b)             If to Lender:

                                  James Ventures, L.P.
                                  5301 Hollister, Suite 300
                                  Houston, TX  77040
                                  Telecopy No. (713) 934-1150

                                  And:

                                      -11-
<PAGE>   12

                                  Mr. Robert Belfer
                                  767 5th Avenue
                                  46th Floor
                                  New York, NY 10153
                                  Telecopy No. (212) 644-6396

                                  With a copy to:

                                  Fried Frank Harris Shriver & Jacobson
                                  One New York Plaza
                                  New York, New York  10004
                                  Attention:  Robert Cassanos
                                  Telecopy No. (212) 859-4000

                                  And:

                                  LJH Corporation
                                  377 Neva Lane
                                  Dennison, Texas 75020
                                  Telecopy No. (903) 813-5857

                                  And:

                                  Mr. Don A. Sanders
                                  3100 Chase Tower
                                  600 Travis
                                  Houston, Texas 77002
                                  Telecopy No. (713) 250-4201

                                  With a copy in all cases to:

                                  Boyar & Miller
                                  4265 San Felipe, Suite 1200
                                  Houston, Texas 77027
                                  Attention:  Gary W. Miller
                                  Telecopy No. (713) 552-1758

or to such other address as each party may designate for itself by like notice.
Failure or delay in delivering copies of any notice, demand, request, consent,
approval, declaration or other communication to the persons designated above to
receive copies shall not adversely affect the effectiveness of such notice,
demand, request, consent, approval, declaration or other communication.

         8.08 APPROVAL AND CONSENT OF LENDER. In the event the approval or
consent of Lenders is required pursuant to the terms hereof, such approval or
consent shall be deemed to have been given upon receipt by Borrower of approval
or consent of the each of Lenders.

                                      -12-
<PAGE>   13

         8.09 SEVERAL OBLIGATIONS OF LENDER. The obligations contained herein of
Lenders are several to each Lender and not joint. No Lender shall be liable for
the obligations of any other Lenders contained in this Agreement.

         8.10 INDEMNIFICATION. Borrower agrees to indemnify and hold Lenders and
each of them, their respective affiliates and each such party's respective
directors, officers, employees, agents, attorneys and consultants, harmless from
and against any and all losses, claims, damages, liabilities and expenses
(including fees and disbursements of counsel) that may be incurred by or
asserted against any such indemnitees in connection with or arising out of any
documentation, investigation, litigation, proceeding or other matters related to
this Agreement, whether or not any such indemnitees are a party to such
documentation, investigation, litigation, proceeding or other matters; provided,
however, that no person shall have the right to be so indemnified hereunder for
matters arising solely from its own willful misconduct, gross negligence or bad
faith.

         8.11 NO LIABILITY FOR CONSEQUENTIAL DAMAGES. Neither Lenders nor any of
their affiliates shall be responsible or liable to Borrower or any other person
for any special, indirect, punitive, exemplary or consequential damages which
may be alleged.

         8.12 WAIVER OF TRIAL BY JURY. BORROWER HEREBY EXPRESSLY WAIVES ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING
UNDER THIS LETTER, ANY TRANSACTION RELATING HERETO, OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE.

         8.13 JURISDICTION; VENUE. BORROWER HEREBY IRREVOCABLY AND
UNCONDITIONALLY CONSENTS TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK AND OF THE UNITED STATES OF AMERICA, IN EACH CASE LOCATED IN
THE COUNTY OF NEW YORK, FOR ANY ACTION, PROCEEDING OR INVESTIGATION IN ANY COURT
OR BEFORE ANY GOVERNMENTAL AUTHORITY ("LITIGATION") ARISING OUT OF OR RELATING
TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY (AND AGREES NOT TO
COMMENCE ANY LITIGATION RELATING THERETO EXCEPT IN SUCH COURTS), AND FURTHER
AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY REGISTERED
MAIL TO ITS ADDRESS SET FORTH IN THIS AGREEMENT SHALL BE EFFECTIVE SERVICE OF
PROCESS FOR ANY LITIGATION BROUGHT AGAINST IT IN ANY SUCH COURT. Borrower hereby
irrevocably and unconditionally waives any objection to the laying of venue of
any Litigation arising out of this Agreement or the transactions contemplated
hereby in the courts of the State of New York or the United States of America,
in each case located in the County of New York, and hereby further irrevocably
and unconditionally waives and agrees not to plead or claim in any such court
that any such Litigation brought in any such court has been brought in an
inconvenient forum.

         8.14 ENTIRE AGREEMENT. THIS AGREEMENT, TOGETHER WITH THE NOTES, THE
WARRANTS AND THE COLLATERAL ASSIGNMENT, EMBODY THE FINAL, ENTIRE AGREEMENT
RELATING TO THE HEREIN CONTAINED SUBJECT MATTER AMONG THE PARTIES AND SUPERSEDE
ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS,
WHETHER

                                      -13-
<PAGE>   14

WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE
CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS
AMONG THE PARTIES HERETO.

                  (Remainder of Page Intentionally Left Blank)

                                      -14-
<PAGE>   15
         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date and year first above written.

                              BORROWER:

                              KELLSTROM INDUSTRIES, INC.

                              By: /s/ Oscar Torres
                                  ----------------------------------------------
                                  Oscar Torres, Chief Financial Officer

                              LENDERS:

                              James Ventures, L.P.

                              By: Danro Corporation, Managing General Partner

                              By: /s/ Robert Alpert
                                  ----------------------------------------------
                                  Robert Alpert, President

                               /s/ Robert Belfer
                              --------------------------------------------------
                              Robert Belfer

                              LJH Corporation

                              By: /s/ Lacy J. Harber
                                ----------------------------------------------
                              Name: Lacy J. Harber
                                    --------------------------------------------
                              Title: President
                                     -------------------------------------------

                               /s/ Don A. Sanders
                              --------------------------------------------------
                              Don A. Sanders

                                      -15-
<PAGE>   16

EXHIBITS AND SCHEDULES

EXHIBIT "1.10"           Form of Intercreditor Agreement

EXHIBIT "2.01"           Form of Letter of Credit

EXHIBIT "2.02"           Form of Sight Draft and Certificate

EXHIBIT "2.03"           Form of Notes

EXHIBIT "2.08"           Form of Collateral Assignment

EXHIBIT "3"              Form of Warrant

SCHEDULE "2.01"          List of Banks Supplying Letters of Credit

                                      -16-

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