Document:

GUARANTY
                                    --------

     GUARANTY, dated as of March 30, 2000, between FIRST AVIATION SERVICES,
INC., a Delaware corporation with an office at 15 Riverside Avenue, Westport,
Connecticut 06880 ("Guarantor") and HUDSON UNITED BANK, a state banking
corporation with an office located at 87 Post Road East, Westport, Connecticut
06880 (the "Lender").

                                    Recitals
                                    --------

WHEREAS, AEROSPACE PRODUCTS INTERNATIONAL, INC., a Delaware corporation (the
"Borrower") and Lender have entered into a certain Commercial Revolving Loan and
Security Agreement dated as of March 30, 2000 (as it may be amended or modified
further from time to time, the "Loan Agreement"), providing, subject to the
terms and conditions thereof, for extensions of credit to be made by the Lender
to the Borrower for the benefit of the Borrower and the Guarantor; and

WHEREAS, it is required by the Loan Agreement, that the Guarantor execute and
deliver this Guaranty whereby the Guarantor shall guarantee the payment when due
of all principal, interest and other amounts that shall be at any time payable
by the Borrower under the Loan Agreement, the Note, and the other Loan
Documents; and

WHEREAS, in consideration of the financial and other support that the Borrower
has provided, and such financial and other support as the Borrower may in the
future provide, to Guarantor, whether directly or indirectly, and in order to
induce the Lender to enter into the Loan Agreement, the Guarantor is willing to
guarantee the obligations of the Borrower under the Loan Agreement, the Note,
and the other Loan Documents.

                                   Definitions
                                   -----------

     Unless otherwise indicated, capitalized terms used herein shall have the
respective meanings ascribed to such terms in the Loan Agreement. As used
herein, the following words and terms shall have the following meanings:

     (a) "Contingent Liability" shall mean any agreement, undertaking or
arrangement by which any Person guarantees, endorses or otherwise becomes, or is
contingently liable upon (by direct or indirect agreement, contingent or
otherwise, to provide funds for payment, to supply funds to, or otherwise to
invest in, a debtor, or otherwise to assure a creditor against loss), the debt,
obligation or other liability of any other Person (other than by endorsements of
negotiable instruments in the course of collection), or guarantees the payment
of dividends or other distributions upon the shares of any other Person. The
amount of the obligor's obligation under any Contingent Liability shall be
deemed to be the outstanding principal amount (or maximum permitted principal
amount, if larger) of the debt, obligation or other liability guaranteed thereby
(subject to any limitation set forth therein).

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     (b) "Material Adverse Effect" means a material adverse effect on (i) the
business, operations, property or condition (financial or otherwise) of the
Guarantor taken as a whole, (ii) the ability of the Guarantor to perform its
obligations under this Guaranty or any of the other Loan Documents, or (iii) the
validity or enforceability of this Guaranty or any of the other Loan Documents
or the rights or remedies of the Bank.

     (c) "Leverage Ratio" for any period shall mean the ratio of (i) Total
Liabilities to (ii) Tangible Net Worth.

     (d) "Tangible Net Worth" shall mean, as at any date the sum of the Capital
Stock and paid-in surplus, plus retained earnings (or minus accumulated deficit)
of the Guarantor and its Subsidiaries on a consolidated basis minus intangible
assets (including, without limitation, franchises, patents and patent
applications, trademarks and brand names, goodwill, research and development
expenses, unamortized debt discount and expense, and all write-ups in the book
value of any asset).

     (e) "Total Liabilities" shall mean at any time of determination, amount
equal to all liabilities of the Guarantor and its Subsidiaries determined on a
consolidated basis in accordance with GAAP.

                                    Agreement
                                    ---------

     In consideration of the Recitals, which are incorporated by reference and
the representations, covenants and warranties contained herein, the parties,
intending to be bound legally, agree as follows:

     1. Guaranty. The Guarantor unconditionally guaranties the punctual payment
when due, whether at stated maturity, by acceleration or otherwise, of the
obligations of the Borrower under the Note and under any amendment,
modification, renewal, extension, substitution or replacement thereof or
thereto, whether for principal, interest, fees, expenses or otherwise and all
expenses incurred by the Lender in enforcing any of its rights under this
Guaranty (such obligations being referred to collectively as the "Obligations").

     2. Guaranty Absolute. (a) The Guarantor guaranties that the Obligations
will be paid strictly in accordance with the terms thereof regardless of any
law, regulation or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of the Lender with respect thereto.
The liability of the Guarantor under this Guaranty shall be absolute and
unconditional irrespective of:

          (i) any lack of validity or enforceability of the Obligations or any
other agreement or instrument relating thereto;

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          (ii) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations, or any other amendment or waiver
of or any consent to departure from the Obligations; or

          (iii) any exchange, release or non-perfection of any collateral, or
any release or amendment or waiver of or consent to departure from any other
guaranty, for any of the Obligations.

     (b) This Guaranty shall continue to be effective or be reinstated, as the
case may be, if at any time any payment of any of the Obligations is rescinded
or must otherwise be returned by the Lender due to the insolvency, bankruptcy or
reorganization of the Borrower or otherwise, all as though such payment had not
been made.

     3. Subrogation; Contribution. The Guarantor will not exercise any rights
which it may acquire by way of subrogation under this Guaranty, by any payment
made hereunder or otherwise, until all the Obligations shall have been paid in
full. If any amount shall be paid to the Guarantor on account of such
subrogation rights or by way of contribution or indemnification at any time when
all the Obligations shall not have been paid in full, such amount shall be held
in trust for the benefit of the Lender and shall forthwith be paid to the Lender
to be credited and applied upon the Obligations, whether matured or unmatured,
in accordance with the terms of the Obligations. If the Guarantor shall make
payment to the Lender of all or any part of the Obligations and all the
Obligations shall be paid in full, the Lender will, at the Guarantor's request,
execute and deliver to the Guarantor appropriate documents, without recourse and
without representation or warranty, necessary to evidence the transfer by
subrogation to the Guarantor of an interest in the Obligations resulting from
such payment by the Guarantor.

     4. Affirmative Covenants. The Guarantor covenants and agrees that so long
as this Guaranty shall remain in effect and so long as the Obligations shall
remain unpaid, the Guarantor shall:

     4.1 Access to Records and Premises. Keep adequate records and books of
account, in which complete entries will be made in accordance with GAAP
consistently applied with prior years, reflecting all financial transactions of
the Guarantor. At any reasonable time during normal business hours and upon
reasonable prior written notice, from time to time, permit the Lender or any
agents or representatives thereof, for the purpose of ascertaining whether or
not each and every provision hereof and of any related documents, instrument or
document is being performed and to make reasonable examinations and make
reasonable number of copies of and abstracts from the records and books of
account of, and visit, examine and inspect the properties of, the Lender and to
discuss the affairs, finances and accounts of the Lender with the President, the
Directors and the chief financial officer or the Lender's management, including,
without limitation, permitting the Lender or its agents or representatives to
conduct periodic audits of the Guarantor at the Guarantor's reasonable expense,
as often as the Lender may reasonably request, but not, in any event, more than

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once every six (6) months. The Lender agrees to exercise its rights under this
Section 4.1 in a manner which will not unreasonably interfere with the business
of the Guarantor.

     4.2. Financial Statements; Reports. Furnish to the Lender:

          a.   Monthly, unaudited, internally prepared compilation of
               consolidated results of the Guarantor and its Subsidiaries, to be
               submitted on or before the twentieth (20th) day of every calendar
               month;

          b.   Annual budget to be submitted within thirty (30) days following
               Guarantor's fiscal year end;

          c.   Quarterly Covenant Compliance Certificates, to be submitted
               within thirty (30) days following April 30, July 31, October 30
               and January 31;

          d.   Copies of Guarantor's Form 10-K and 10-Q to be submitted within
               fifteen (15) days of filing with the Securities and Exchange
               Commission.

     4.3. Notice Requirements. Furnish to Lender:

               (a) Within five (5) days of a formal proposal made to the Board
          of Directors of the Guarantor, notification of any proposed or pending
          change in the senior executive management or corporate structure of
          the Guarantor;

               (b) Written notification within seven (7) Business Days of any
          Material Adverse Change in the financial condition of the Guarantor;
          and

               (c) Written notification within ten (10) Business Days of
          becoming aware of any Event of Default, or any occurrence but for the
          giving of notice on the passage of time would constitute an Event of
          Default.

     4.4. Primary Bank. Maintain its primary operating accounts with the Lender.

     4.5. ERISA Reports. Comply in all material respects with the provisions of
          ERISA applicable to any Plan maintained by the Guarantor and furnish
          to the Lender as soon as possible, and in any event within ten (10)
          days after the Guarantor knows or has reason to know that any
          Reportable Event with respect to any Plan has occurred, a statement of
          the chief financial officer of the Guarantor setting forth details as
          to such Reportable Event and the action which the Guarantor proposes
          to take with respect thereto.

     4.6. Litigation. Furnish to Lender within thirty (30) days after the
          commencement thereof, notice of all actions, suits and proceedings
          before any court or governmental

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<PAGE>

          department, commission, board, bureau, agency or instrumentality,
          domestic or foreign, the subject matter of which may result in an
          adverse decision affecting the Guarantor in an amount which would have
          a Material Adverse Effect.

     5. Representations and Warranties. The Guarantor represents and warrants to
the Lender as follows:

     (a) The Guarantor is a corporation duly organized, validly existing and in
good standing under the laws of the state indicated at the beginning of this
Guaranty.

     (b) The Guarantor is qualified as a foreign corporation in each state in
which the character of its properties or the nature of its business requires.

o     (c) The execution, delivery and performance by the Guarantor of this
Guaranty has been duly authorized by all necessary corporate action and does not
and will not:

          (i) require any consent or approval of the stockholders of the
Guarantor;

          (ii) contravene the Guarantor's certificate of incorporation or
by-laws;

          (iii) violate any provision of any law, rule, regulation, order, writ,
judgment, injunction, decree, determination or award presently in effect having
applicability to the Guarantor;

          (iv) result in a breach of or constitute a default under any indenture
or loan or credit agreement or any other material agreement, lease, document or
instrument to which the Guarantor is a party or by which it or its respective
properties may be bound or affected;

          (v) result in or require the creation or imposition of any mortgage,
deed of trust, pledge, lien, security interest or other charge or encumbrance of
any nature (other than arising under any document delivered to the Lender in
connection herewith) upon or with respect to any of the properties now owned or
hereafter acquired by the Guarantor; or

          (vi) render the Guarantor "insolvent" within the meaning of such term
as defined in ss. 101 of Title 11 of the United States Code or ss. 2 of either
the Uniform Fraudulent Transfer Act or the Uniform Fraudulent Conveyance Act, as
each is amended from time to time

     (d) The Guarantor is not in default under any law, rule, regulation, order,
writ, judgment, injunction, decree, determination or award having applicability
to the Guarantor or any indenture, agreement, lease, document or instrument to
which the Guarantor is a party or by which it or its respective properties may
be bound or affected;

     (e) No authorization or approval or other action by, and no notice to or
filing with, any

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<PAGE>

governmental authority or regulatory body is required for the due execution,
delivery and performance by the Guarantor of this Guaranty.

     (f) This Guaranty is the legal, valid and binding obligation of the
Guarantor, enforceable against the Guarantor in accordance with its terms.

     (h) There is no pending or threatened action or proceeding affecting the
Guarantor before any court, governmental agency or arbitrator which may
materially and adversely affect the financial condition or operations of the
Guarantor.

     (i) The Guarantor has filed all federal, state and municipal tax returns
required to be filed and has paid all taxes shown thereon to be due, including
interest and penalties, or provided adequate reserves for payment thereof.

     (j) No information, exhibit or report furnished by the Guarantor to the
Lender in connection with the negotiation of this Guaranty, or any other
document executed by the Guarantor, contains or contained any material
misstatement of fact or omitted to state a material fact necessary to make the
statements contained therein not misleading.

     6. Covenants. The Guarantor covenants and agrees that so long as this
Guaranty shall remain in effect and so long as the Obligations shall remain
unpaid, the Guarantor will not, directly or indirectly, without the written
consent of the Lender, which in the case of Section 6.2 and 6.5, shall not be
unreasonably withheld.

     6.1. Leverage Ratio. Permit the ratio of its Tangible Net Worth to its
Total Liabilities to be less than 1.25 to 1.0 for any fiscal quarter of the
Guarantor, measured quarterly.

     6.2. Borrowing. Create, incur, assume or suffer to exist any liability for
Indebtedness, except Indebtedness under the Note and Loan Documents.

     6.3. Merger and Acquisition or Sale of Property. Consolidate with, be
acquired by, or merge into or with any Person, or sell, lease or otherwise
dispose of all or substantially all of its properties or any of its capital
stock, or acquire all or substantially all of the stock or property of any
person, or permit any Subsidiary to do so.

     6.4. Business Changes. Materially change the nature of its business as
conducted by the Guarantor and its Subsidiaries taken as a whole on the date
hereof, or alter or modify its corporate name, structure or status (including,
without limitation, its tax status) or alter its accounting principles,
treatment or recording practices, except as permitted or required by GAAP, the
SEC or NASDAQ or permit any Subsidiary so to do.

     6.5. Contingent Liabilities. Assume, guaranty, endorse or otherwise become
liable for any Indebtedness or Contingent Liability of any Person, except as
required by this Agreement and

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<PAGE>

by the endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business.

     6.6. Investment, Loan, Guaranties, Revolving Loan. Intentionally Deleted.

     6.7. Change of Control. Permit a Change in Control of the Borrower.

     6.8. Change Name or Location. Change the Borrower's names or conduct the
Borrower's businesses under any trade name or style other than as hereinabove
set forth or change its chief executive office, place of business or the present
locations of its business assets or records relating thereto from the address
set forth in the first paragraph of this Agreement.

     6.9. Certificate of Incorporation and By-laws. Amend or otherwise modify
its certificate of incorporation or by-laws, or permit any Subsidiary so to do,
in any way which would adversely and materially affect the interest of the
Lender under any of the Loan Documents or the obligations of the Guarantor or
Borrower under the Loan Documents.

     7. Continuing Guaranty; Transfer of Note. This Guaranty is a continuing
guaranty and shall:

     (a) remain in full force and effect until payment in full of the
Obligations and all other amounts payable under this Guaranty;

     (b) be binding upon the Guarantor, its successors and assigns; and

     (c) inure to the benefit of and be enforceable by the Lender, and its
respective successors, transferees and assigns.

Without limiting the generality of the foregoing clause (c), the Lender may
assign or otherwise transfer the Note or any of the Obligations held by it to
any other person or entity, and such other person or entity shall thereupon
become vested with all the rights in respect thereof granted to the Lender
herein or otherwise.

     8. Amendments. No amendment or waiver of any provision of this Guaranty and
no consent to any departure by the Guarantor therefrom shall in any event be
effective unless the same shall be in writing and signed by the Lender.

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<PAGE>

     9. Addresses for Notices. Any notice provided for under this Agreement
shall be in writing and shall be effective upon receipt or upon failure of the
addressee to accept delivery if and when mailed by registered or certified mail,
postage prepaid, or express parcel service, addressed to such party at such
address. Any party and any representative designated below may, by notice to the
other in the manner provided herein, change its address for receiving such
notices. All notices and consents on behalf of any party hereto shall be signed
by such party and shall be sent:

                  If to the Guarantor:

                  FIRST AVIATION SERVICES, INC.
                  15 Riverside Avenue
                  Westport, Connecticut 06880
                  Attention:  Aaron Hollander

                  If to the Lender:

                  HUDSON UNITED BANK
                  87 Post Road East
                  Westport, Connecticut 06880

                  Attention:  Allison Knapp, Vice President

     10. Severability. If any clause or provision of this Guaranty is determined
to be illegal, invalid or unenforceable under any present or future law by the
final judgment of a court of competent jurisdiction, the remainder of this
Guaranty will not be affected thereby.

     11. Headings. Section headings are for convenience of reference only, and
shall not affect the interpretation or meaning of any provision of this
Guaranty.

     12. Entire Agreement. This Guaranty constitutes the entire agreement
between the parties, and supersedes all prior discussions and negotiations
relating to the subject matter hereof. The terms of this Guaranty cannot be
changed or terminated orally, and shall be deemed effective as of the date
accepted by the Lender by its duly authorized officer. This Guaranty may not be
amended or terminated except by a writing signed by the party against whom
enforcement thereof is sought.

     13. Successors and Assigns. This Guaranty shall bind and inure to the
benefit of the parties hereto and their respective successors and assigns;
provided, however, that the Guarantor shall not assign this Guaranty, or any
related document, or any of its rights without the prior written consent of the
Lender.

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<PAGE>

     14. Waiver; Failure or Delay not a Waiver. The Guarantor waives promptness,
diligence, notice of acceptance, notice or presentment, demand or protest and
any other notice with respect to any of the Obligations and this Guaranty and
any requirement that the Lender exhaust any right or take any action against the
Borrower or any other person or entity or any collateral.
No delay or omission by the Lender to exercise any right hereunder shall impair
any such right, and any such delay or omission shall not be construed to be a
waiver thereof. A waiver of any single breach of default hereunder shall not be
deemed a waiver of any other breach or default. Any waiver, amendment to,
consent or approval under this Guaranty by the Lender must be in writing to be
effective and must be signed by the Lender.

     15. Governing Law; Consent to Jurisdiction. This Guaranty is, and shall be
deemed to be, a contract entered into under and pursuant to the laws of the
State of Connecticut and shall be in all respects governed, construed, applied
and enforced in accordance with the laws of said State; and no defense given or
allowed by the laws of any other State or Country shall be interposed in any
action or proceeding hereon unless such defense is also given or allowed by the
laws of the State of Connecticut. The undersigned irrevocably appoints Aaron
Hollander and each and every officer of the undersigned as its attorneys upon
whom may be served any notice, process or pleading in any action or proceeding
against it arising out of or in connection with this Guaranty or any other Loan
Document (as defined in the Loan Agreement). The undersigned hereby consents
that any action or proceeding against it may be commenced and maintained in any
court within the State of Connecticut or in the United States District Court for
the District of Connecticut or, at the option of Bank, any court in which Bank
shall initiate legal or equitable proceedings and which has subject matter
jurisdiction over the matter in controversy, and that such action or proceeding
may be commenced by service of process on any such officer. The undersigned
agrees that the courts of the State of Connecticut and the United States
District Court for the District of Connecticut shall have jurisdiction with
respect to the subject matter hereof and the person of the undersigned. The
undersigned agrees not to assert any defense to any proceeding initiated by Bank
based upon improper venue or inconvenient forum.

     16. Other Guarantors. The Guarantor acknowledges that other individuals or
entities may also guaranty the liabilities of the Borrower (the "Other
Guarantors") and that it is unconditionally delivering this Guaranty to the
Lender. The Guarantor further acknowledges that the failure of any of the Other
Guarantors to execute and deliver their respective guaranties or the discharge
of any of the Other Guarantors of their respective guarantied obligations shall
not discharge the liability of the Guarantor.

     17. THE GUARANTOR ACKNOWLEDGES THAT THE LOAN EVIDENCED BY THE NOTE IS A
COMMERCIAL TRANSACTION AND WAIVES ITS RIGHT TO NOTICE AND HEARING UNDER CHAPTER
903a OF THE CONNECTICUT GENERAL STATUTES, OR AS OTHERWISE ALLOWED BY ANY OTHER
STATE OR FEDERAL LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER MAY
DESIRE TO USE, AND FURTHER, WAIVES DILIGENCE, DEMAND, PRESENTMENT FOR

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<PAGE>

PAYMENT, NOTICE OF NONPAYMENT, PROTEST AND NOTICE OF PROTEST, AND NOTICE OF ANY
RENEWALS OR EXTENSIONS OF THIS GUARANTY THE GUARANTOR ACKNOWLEDGES THAT IT MAKES
THIS WAIVER KNOWINGLY, VOLUNTARILY, WITHOUT DURESS AND ONLY AFTER EXTENSIVE
CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH ITS ATTORNEYS.

     18. THE GUARANTOR WAIVES TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION,
PROCEEDING OR ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO
THIS GUARANTY OR THE FINANCING TRANSACTION OF WHICH THIS GUARANTY IS A PART OR
THE DEFENSE OR ENFORCEMENT OF ANY OF THE HOLDER'S RIGHTS AND REMEDIES IN
CONNECTION THEREWITH. THE GUARANTOR ACKNOWLEDGES THAT IT MAKES THIS WAIVER
KNOWINGLY, VOLUNTARILY, WITHOUT DURESS AND ONLY AFTER EXTENSIVE CONSIDERATION OF
THE RAMIFICATIONS OF THIS WAIVER WITH ITS ATTORNEYS.

     IN WITNESS WHEREOF, the Guarantor has executed this Guaranty as of the date
and year above written.

___________________________                   FIRST AVIATION SERVICES, INC

___________________________                 By  /s/ John A. Marsalisi
                                                ---------------------
                                            Name:  John A. Marsalisi
                                                   Its Vice President

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<PAGE>

STATE OF CONNECTICUT  )
                      )  ss.:__________
COUNTY OF FAIRFIELD   )

     On this the _____ day of March, 2000, before me, the undersigned officer,
personally appeared__________, who acknowledged himself to be the ____________
of FIRST AVIATION SERVICES, INC., a Delaware corporation, and that he, as such
officer, being authorized so to do, executed the foregoing instrument for the
purposes therein contained and acknowledged the same to be his free act and deed
individually and as such officer, and the free act and deed of the corporation.

     IN WITNESS WHEREOF, I hereunto set my hand.

                                       -----------------------------------
                                       Commissioner of the Superior Court
                                       Notary Public
                                       My Commission Expires:

                                       11EXECUTIVE CHANGE OF CONTROL AGREEMENT

                  This Change of Control Agreement (this "Agreement") is dated
as of December 2, 1999, by and between First Aviation Services Inc. ("FAvS" or
"the Company"), a Delaware Corporation and Gerald E. Schlesinger, an individual
(the "Executive").

                                   WITNESSETH:

                  WHEREAS the Company considers it to be in the best interests
of its stockholders to foster the continuous employment of key management
personnel, and believes that the possibility of a "Change of Control" event
involving the Company and the uncertainty and questions which it may raise among
management may result in the departure or distraction of management personnel to
the detriment of the Company and its stockholders;

                  WHEREAS, the Board of Directors has determined that
appropriate steps should be taken to reinforce and encourage the continued
attention and dedication of members of the Company's management, including the
Executive, to their assigned duties without distraction in the face of
potentially disturbing circumstances arising from the possibility of a
"Change of Control" event involving the Company;

                  NOW, THEREFORE, in consideration of the mutual premises set
forth below and for other good and valuable consideration, in order to induce
the Executive to remain in the employ of the Company, the Company agrees that
the Executive shall receive the severance benefits set forth in this Agreement
in the event his employment with the Company terminates subsequent to a "Change
of Control" of the Company under the circumstances described below:

I.      DEFINITIONS

                         Definitions.  For purposes of this Agreement, the
following definitions shall be applicable to the terms set forth below:

                  (a) Annual Salary. "Annual Salary" shall mean the Executive's
                  Annual Salary then in effect, pursuant to the Executive's
                  Employment Agreement before any deductions, exclusions,
                  deferrals or contributions under any Company plan or program,
                  but excluding, bonuses, incentive compensation, employee
                  benefits or any other non-salary forms of compensation.

                  (b) Cause.  "Cause" shall mean only the following:  (i)
                  continued failure by the Executive after receipt of written
                  notice thereof to perform his duties hereunder or those duties
                  which may, from time to time, be reasonably requested by the
                  Chief Operating Officer or the Chief Executive Officer of the
                  Company (other than such failure resulting from the
                  Executive's incapacity due to physical or mental illness), as
                  determined by the independent members of the Board of
                  Directors in their reasonable discretion; (ii) misconduct by
                  the Executive which is materially injurious to the Company;
                  (iii) conviction of or
<PAGE>

                  pleading no contest to a felony or crime of moral
                  turpitude; (iv) habitual drunkenness or drug use by the
                  Executive; (v) failure to uphold the policies of the Company
                  and/or action by the Executive beyond the scope of his
                  employment, as such scope is set by the Chief Operating
                  Officer or the Chief Executive Officer of the Company from
                  time to time; (vi) a material breach of this Agreement by the
                  Executive.

                  (c) Change of Control. A "Change of Control" shall occur if
                  during any period of two consecutive years, individuals who at
                  the beginning of such period constitute the Board of Directors
                  cease for any reason to constitute less than one half of the
                  membership of the board, unless the election, or the
                  nomination for election by the Company's shareholders of each
                  Director first elected during such period was approved by a
                  vote of at least two-thirds of the Directors then still in
                  office who were Directors at the beginning of any such period.

II      SEVERANCE PRIOR TO CHANGE OF CONTROL

                  If during the term of this agreement, no Change of Control has
occurred and the Executive's employment with the Company is terminated for any
reason, this agreement shall not apply and Executive shall be entitled to
receive severance if such payments are appropriate under the provisions of said
Executive's Employment Agreement with the Company, if any. In the absence of an
Employment Agreement, then said Executive shall be entitled to severance in
accordance with the Company's applicable severance policy. The Company shall not
discharge the Executive in anticipation of a Change of Control in order to avoid
the Company or its successor's obligations under this agreement.

III     SEVERANCE AFTER CHANGE OF CONTROL

                  If during the term of this Agreement and following a Change of
Control, Executive's employment with the Company is terminated for any reason,
including his/her voluntary resignation, but other than by (i) death, (ii)
Cause, or (iii) Disability, Executive shall be entitled to receive, subject to
applicable federal, state and or local taxes and other amounts required by
governmental authorities to be withheld or deducted, the payment by the Company
of an amount equal to two times the Executive's Annual Salary as of the date of
the Change of Control. The Company shall make payment to the Executive in twelve
equal monthly installments beginning on the first day of the calendar month
following the date of such termination and on the first day of each of the next
eleven calendar months thereafter.

IV      EQUALIZATION

     (a) In the event it shall be determined that any payment or distribution by
the Company or any of its subsidiaries or affiliates, to or for the benefit of
the Executive in accordance with Section III above or otherwise pursuant to or
by reason of any other agreement, policy, plan, program or arrangement,
including without limitation any stock option agreement (a "Payment"), would be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code
of 1986, as amended (the "Code") (such tax, together with any interest and
penalties, being hereafter collectively referred to as the "Excise Tax"), then
the Executive shall be entitled to
<PAGE>

receive an additional payment (an "Equalization Payment") in an amount such
that, after payment by the Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including any Excise Tax imposed
on the Equalization Payment, the Executive retains an amount of the Equalization
Payment equal to the Excise Tax imposed upon the Payment.

     (b) The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of the Equalization Payment. Such notification shall be given no later
than fifteen (15) business days after the receipt by the Executive of such a
claim by the Internal Revenue Service.

V       PAYMENT

                  All payments made pursuant to this Agreement will be subject
to the withholding of applicable federal, state and local income taxes as well
as any governmental or court order of a competent jurisdiction.

VI      VESTING OF STOCK OPTIONS

                  Vesting of any long-term incentive grants and awards resulting
from employment terminations, regardless of the reason for or date of such
termination, shall be governed by the long-term incentive plan document and any
grant or award agreements and shall not be affected by the terms of this
Agreement.

VII     AT WILL EMPLOYMENT

                  The Company and the Executive acknowledge that the Executive's
employment with the Company is and shall continue to be at-will, as defined
under applicable law. If the Executive's employment terminates for any reason,
whether prior to or after a Change of Control, the Executive shall not be
entitled to any payments or benefits, other than as provided by this Agreement,
the Executive's Employment Agreement and/or as may otherwise be available in
accordance with the terms of the Company's then existing employee plans and
written policies in effect at the time of termination.

VIII    TERMINATION

                  This Agreement shall terminate, except for any unpaid
obligations of the Company, at the earlier of December 2, 2002 or two years
following a Change of Control of the Company.

IX      NO OBLIGATION TO MITIGATE

                  The Executive is under no obligation to mitigate damages in
the amount of any payment provided herein by seeking other employment or
otherwise.
<PAGE>

X       ASSIGNMENT, SUCCESSORS

                  (a) Without limiting the rights of the Executive as provided
in Section III hereof, the Company shall require any successor to or assign
(whether direct or indirect, by purchase, merger, consolidation or otherwise) of
all or substantially all of the business and/or assets of the Company, by
agreement in form and substance reasonably satisfactory to the Executive, to
expressly and unconditionally assume and agree to perform this Agreement.

                  (b) This Agreement shall inure to the benefit of and be
enforceable by the Executive's personal and legal representatives, executors,
administrators, successors, heirs, distributes, devises and legatees. If the
Executive dies while any amounts are payable hereunder, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive's devisee, legatee, or other designee or, if there is
no such designee, to the Executive's estate.

                  (c) This Agreement is personal to the Executive and without
the prior written consent of the Company shall not be assignable by the
Executive except by will or the laws of descent and distribution.

XI      NOTICE

                  For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, as follows:

     If to the Company:

         First Aviation Services Inc.
         15 Riverside Avenue
         Westport, CT  06880-4214
         Attn:  Michael C. Culver

         Telephone:  (203) 291-3300
         Fax:  (203) 291-3330

    If to the Executive:

         Gerald E. Schlesinger
         16942 Old Pond Drive
         Dallas, TX  75248

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.
<PAGE>

XII     MISCELLANEOUS

                  (a) No provisions of this Agreement may be modified, waived or
discharged except in a writing signed and dated by both parties. No waiver by
either party at any time of any breach by the other party of, or compliance
with, any condition or provision of this Agreement shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or any prior or
subsequent time.

                  (b) This Agreement reflects the entire agreement of the
parties with respect to its subject matter, and supersedes all previous
agreements. No agreements or representations, oral or otherwise, expressed or
implied, with respect to the subject matter hereof have been made by either
party which are not set forth expressly in this Agreement.

                  (c) This Agreement shall be governed and construed in all
respects in accordance with the internal laws of the State of Connecticut.

                  (d) The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

                  (e) This Agreement may be executed in several counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

                  (f) Any action at law or in equity under this Agreement shall
be brought in the courts of the State of Connecticut and in no other court
(whether or not jurisdiction can be established in another court). Each party to
this agreement waives the right to argue that venue is not appropriate to the
Courts of the State of Connecticut. The parties hereby knowingly, voluntarily
and intentionally waive any right that they may have to a trial by jury, this
waiver being a material inducement for the parties entering into this agreement.

                  IN WITNESS WHEREOF, the Executive has hereunto set his hand
and, pursuant to the authorization from its Board of Directors or the Executive
Committee of the Board of Directors, the Company has caused these presents to be
executed in its name on its behalf, all on the day and year first written above.

                             FIRST AVIATION SERVICES INC.
                             a Delaware corporation

                             By: /s/ Michael C. Culver
                                ----------------------

                             Gerald E. Schlesinger
                             an individual

                             /s/ Gerald E. Schlesinger
                             -------------------------

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