Document:

<PAGE>   1
                                                                    Exhibit 10.4

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                              COOPERATION AGREEMENT

                                      AMONG

                           KELLSTROM INDUSTRIES, INC.,

                             AVIATION SALES COMPANY

                                       AND

                  AVIATION SALES DISTRIBUTION SERVICES COMPANY

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

                                DECEMBER 1, 2000

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                                      INDEX

<TABLE>
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<S>                                                                                    <C>
ARTICLE I DEFINITIONS....................................................................1

      1.1   Defined Terms................................................................1
      1.2   Other Definitional Provisions................................................5

ARTICLE II REPRESENTATIONS AND WARRANTIES OF KELLSTROM...................................6

      2.1   Corporate Status.............................................................6
      2.2   Corporate Power and Authority................................................6
      2.3   Enforceability...............................................................6
      2.4   No Violation.................................................................6

ARTICLE III REPRESENTATIONS AND WARRANTIES OF AVS AND AVSDS..............................7

      3.1   Corporate Status.............................................................7
      3.2   Power and Authority..........................................................7
      3.3   Enforceability...............................................................7
      3.4   No Violation.................................................................7

ARTICLE IV AGREEMENT TO COOPERATE........................................................8

      4.1   Purchases of Required Parts by the AVS Companies.............................8
      4.2   Purchases of MRO Services by Kellstrom for KAV Inventory.....................9
      4.3   Purchases of MRO Services by Kellstrom for Kellstrom Inventory..............10
      4.4   Provision of Parts for AVS Exchange Pools...................................10
      4.5   Disposal of Parts by AVS Companies..........................................12
      4.6   Aircraft Interior Design ("AID")............................................13
      4.7   Purchases or Leases of Engines by Timco Engine Center; Certain Engine.......13
      4.8   Purchases of MRO Services by AVS Companies..................................13
      4.9   Bidding.....................................................................13
      4.10  Sale of Parts by Aviation Sales Leasing Company ("ASLC")....................13
      4.11  Violations..................................................................14
      4.12  Performance.................................................................14

ARTICLE V TERMINATION...................................................................14

ARTICLE VI GENERAL PROVISIONS...........................................................15

      6.1   Notices ....................................................................15
      6.2   Entire Agreement............................................................16
      6.3   Amendment; Waiver...........................................................16
      6.4   Binding Effect; Assignment..................................................16
      6.5   Counterparts................................................................17
      6.6   Interpretation..............................................................17
      6.7   Severability................................................................17
      6.8   Governing Law; Jurisdiction.................................................17
      6.9   Arm's Length Negotiations...................................................18
      6.10  Additional Covenants of AVS.................................................18
      6.11  Additional Covenants of Kellstrom...........................................18

</TABLE>

                                       i
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                              COOPERATION AGREEMENT

         This Cooperation Agreement (this "Agreement") is entered into as of
December 1, 2000 (the "Effective Date") among Kellstrom Industries, Inc., a
Delaware corporation ("Kellstrom"), Aviation Sales Company, a Delaware
corporation ("AVS") and Aviation Sales Distribution Services Company, a Delaware
corporation ("AVSDS").

                                    RECITALS

         The AVS Companies (as hereinafter defined) are engaged in, among other
things, the redistribution of aircraft engines, aircraft parts and aircraft
engine parts through sale, lease and exchange transactions (the "Business").
Contemporaneous with the execution of this Agreement, Kellstrom is purchasing
certain assets of the Business pursuant to that certain Asset Purchase Agreement
dated as of September 20, 2000 among Kellstrom, AVS and AVSDS (the "Asset
Purchase Agreement"), and KAV Inventory, LLC, a Delaware limited liability
company ("KAV") is purchasing certain inventory of the Business pursuant to that
certain Inventory Purchase Agreement dated as of September 20, 2000, among KAV,
AVS and AVSDS (the "Inventory Purchase Agreement"). As a material inducement to
Kellstrom to enter into the Asset Purchase Agreement and to join in the
Inventory Purchase Agreement and to consummate the transactions contemplated
thereby, and as an inducement to AVS and AVSDS to enter into the Asset Purchase
Agreement and the Inventory Purchase Agreement and to consummate the
transactions contemplated thereby, the parties hereto agree to make the
covenants and agreements contained herein on the terms and subject to the
conditions contained in this Agreement.

                               TERMS OF AGREEMENT

         In consideration of the mutual representations, warranties, covenants
and agreements contained herein, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         1.1 DEFINED TERMS. As used herein, the following terms shall have the
following meanings:

                  "Affiliate" shall have the meaning ascribed to it in Rule
                  12b-2 of the General Rules and Regulations promulgated under
                  the Exchange Act (as hereinafter defined), as in effect on the
                  date hereof.

                  "AVS Approved Vendor" means a vendor that meets the criteria
                  of an acceptable vendor under the provisions of the AVS
                  quality manual then in effect.

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                  "AVS Companies" means AVS and each of its Subsidiaries and
                  each of their respective successors and assigns.

                  "BER" with respect to any Part means a part that is beyond
                  economic repair.

                  "Business Day" means any day other than a Saturday or Sunday
                  or a day on which commercial banks are required or authorized
                  to close in Miami, Florida.

                  "Consignment Agreement" means that certain Consignment
                  Agreement between KAV and Kellstrom of even date herewith.

                  "Contract" means any agreement, contract, lease, note,
                  mortgage, indenture, loan agreement, franchise agreement,
                  covenant, employment agreement, lease agreement, exchange
                  agreement, license agreement, instrument, purchase or sales
                  order, commitment, undertaking or obligation, in each case,
                  whether written or oral, express or implied.

                  "Designated Locations" means (i) each location specified as a
                  "Designated Location" on SCHEDULE 1.1, and (ii) subject to any
                  restrictions or requirements contained in the Kellstrom Credit
                  Facility (as defined in the Asset Purchase Agreement) and the
                  Senior Credit Facility (as defined in the Inventory Purchase
                  Agreement), each other location to which Kellstrom hereafter
                  consents upon written request of AVS Companies to designate as
                  a Designated Location (which consent shall not be unreasonably
                  withheld or delayed).

                  "Exchange Act" means the Securities Exchange Act of 1934, as
                  amended, or any successor thereto, and any rules and
                  regulations promulgated thereunder.

                  "Exchange Pool" means a pool of Parts made available to the
                  AVS Companies for use by them in exchange arrangements with
                  third parties.

                  "Fair Market Value" means, with respect to any Part, an amount
                  equal to the arithmetic mean of the prices in United States
                  dollars at which Parts of the same type and quality as, or of
                  a type and quality similar

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                  to or reasonably interchangeable with, the Part so used (if
                  any), shall, during the three-month period ending on the date
                  such Part is so used (or such longer period as may be
                  necessary to have at least three (3) relevant transactions
                  within the relevant period), have been invoiced for sale by
                  Kellstrom, in arm's length transactions to purchasers who are
                  not affiliated with, do not control or are not controlled by,
                  or under common control with, Kellstrom; and, if no such
                  invoiced prices are available for a Part, the price
                  established by the mutual agreement of Kellstrom and AVS, or
                  in the absence of an agreement, the price determined to be the
                  fair market value of such Part by a mutually acceptable
                  third-party appraiser.

                  "Governmental Authority" means any nation or government, any
                  state, regional, local or other political subdivision thereof,
                  and any entity or official exercising executive, legislative,
                  judicial, regulatory or administrative functions of or
                  pertaining to government.

                  "Gross Sales Price" means with respect to the sale of any
                  Part, the total invoice price therefor minus the sum of (a)
                  any freight, insurance, shipping or handling charges; (b) any
                  sales, use, stamp, value added, transfer, recording and other
                  taxes; (c) any customs and duties applicable to such sales;
                  and (d) any rebates, discounts or allowances.

                  "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements
                  Act of 1976, as amended, or any successor thereto, and any
                  rules and regulations promulgated thereunder.

                  "Identified Customer" means any Person which has committed to
                  purchase a Part from Kellstrom.

                  "KAV Book Value" as to any Part included in the KAV Inventory
                  means the value at which such Part is carried on the books of
                  KAV.

                  "KAV Exchange Pool" means a pool of Parts out of the KAV
                  Inventory made available to the AVS Companies for use by them
                  in exchange arrangements with third parties.

                  "KAV Inventory" means the inventory of Parts owned by KAV and
                  consigned to Kellstrom under the Consignment Agreement.

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                  "Kellstrom Approved Vendor" means a vendor that meets the
                  criteria of an acceptable vendor under the provisions of the
                  Kellstrom quality manual then in effect.

                  "Kellstrom Exchange Pool" means a pool of Parts out of the
                  Kellstrom Inventory made available to the AVS Companies for
                  use by them in exchange arrangements with third parties.

                  "Kellstrom Inventory" means the inventory of Parts owned or
                  managed by Kellstrom and its Subsidiaries from time to time,
                  excluding in any event the KAV Inventory.

                  "Lien" means any mortgage, pledge, security interest,
                  encumbrance, lien or charge of any kind (including, but not
                  limited to, any conditional sale or other title retention
                  agreement, any lease in the nature thereof, and the filing of
                  or agreement to give any financing statement under the Uniform
                  Commercial Code or comparable law of any jurisdiction in
                  connection with such mortgage, pledge, security interest,
                  encumbrance, lien or charge).

                  "Market Price" means the price at which a Part can be
                  purchased on an arm's length basis by the AVS Companies from a
                  third party.

                  "Material Adverse Change (or Effect)," with respect to any
                  Person, means a change (or effect) in condition (financial or
                  otherwise), properties, assets, liabilities, rights,
                  obligations, operations or business of such Person which
                  change (or effect), individually or in the aggregate, is
                  materially adverse to such condition (financial or otherwise),
                  properties, assets, liabilities, rights, obligations,
                  operations or business.

                  "MRO Business" means the business of maintaining, repairing
                  and overhauling aircraft, aircraft engines, aircraft parts and
                  aircraft engine parts.

                  "MRO Services" means services for the repair, maintenance or
                  overhaul of Parts.

                  "Non-Competition Agreement" means the Non-Competition
                  Agreement of even date herewith among Kellstrom, KAV, AVS and
                  AVSDS.

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                  "Part" means any aircraft engine, aircraft part and aircraft
                  engine part, component or other item of property, and the
                  Records therefor, including any aircraft engine, aircraft part
                  or aircraft engine part, component or other item of property
                  that is installed in or attached or affixed to any part in
                  connection with its repair, maintenance, overhaul,
                  modification, refurbishment, certification or otherwise.

                  "Permitted Activities" means activities to be engaged in by
                  the AVS Companies described in Article IV, to the extent and
                  in accordance with the provisions thereof.

                  "Person" means an individual, partnership, corporation,
                  business, trust, joint stock company, estate, trust,
                  unincorporated association, joint venture, Governmental
                  Authority or other entity, of whatever nature.

                  "Qualified Offer" means a bona fide offer in writing from an
                  independent third party who is not an Affiliate of AVS,
                  setting forth the identity of the offering party, the Parts
                  proposed to be purchased, the consideration proposed to be
                  paid therefor and any other terms and conditions of the offer.

                  "Records" means, with respect to any Part, documentation and
                  other records relating to the maintenance, repair,
                  traceability and/or life limited status of the Parts, and any
                  other documentation required to be maintained with respect to
                  such Part by the Federal Aviation Act of 1958, as amended, and
                  standard industry practices.

                  "SEC" means the United States Securities and Exchange
                  Commission.

         1.2 OTHER DEFINITIONAL PROVISIONS.

                  (a) All terms defined in this Agreement shall have the defined
meanings when used in any certificates, reports or other documents made or
delivered pursuant hereto or thereto, unless the context otherwise requires.

                  (b) All terms defined in the singular shall have a comparable
meaning when used in the plural, and vice versa.

                  (c) All matters of an accounting nature in connection with
this Agreement and the transactions contemplated hereby shall, except as
expressly set forth herein, be determined in accordance with GAAP applied on a
basis consistent with prior periods.

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                  (d) As used herein, the neuter gender shall also denote the
masculine and feminine, and the masculine gender shall also denote the neuter
and feminine, where the context so permits.

                  (e) Whenever the words "include," "includes" or "including"
are used in this Agreement, they shall be deemed to be followed by the words
"without limitation."

                  (f) Whenever this Agreement provides for a payment to be made
by any party, such payment shall be made by wire transfer of immediately
available United States funds.

                  (g) When a reference is made in this Agreement to an article,
section, paragraph, clause, schedule or exhibit, such reference shall be deemed
to be to this Agreement unless otherwise indicated.

                                   ARTICLE II

                   REPRESENTATIONS AND WARRANTIES OF KELLSTROM

         As a material inducement to AVS and AVSDS to enter into this Agreement
and to consummate the transactions contemplated hereby, Kellstrom makes the
following representations and warranties to AVS and AVSDS:

         2.1 CORPORATE STATUS. Kellstrom is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and has the requisite corporate power and authority to own or lease its
properties and to carry on its business as now being conducted.

         2.2 CORPORATE POWER AND AUTHORITY. Kellstrom has the corporate power
and authority to execute and deliver this Agreement to perform its obligations
hereunder and to consummate the transactions contemplated hereby. Kellstrom has
taken all corporate actions necessary to authorize the execution and delivery of
this Agreement, the performance of its obligations hereunder and the
consummation of the transactions contemplated hereby.

         2.3 ENFORCEABILITY. This Agreement has been duly executed and delivered
by Kellstrom and constitutes the legal, valid and binding obligation of
Kellstrom, enforceable against Kellstrom in accordance with their terms, except
as the same may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors' rights
generally and general equitable principles regardless of whether such
enforceability is considered in a proceeding at law or in equity.

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         2.4 NO VIOLATION. Except as set forth in SCHEDULE 2.4, the execution or
delivery of this Agreement, the performance by Kellstrom of its obligations
hereunder or the consummation by it of the transactions contemplated hereby do
not (i) contravene any provision of the Restated Certificate of Incorporation or
By-Laws of Kellstrom, each as amended to date, (ii) violate or conflict with any
law, statute, ordinance, rule, regulation, decree, writ, injunction, judgment or
order of any Governmental Authority or of any arbitration award which is either
applicable to, binding upon or enforceable against Kellstrom, to the extent such
violation or conflict could have a Material Adverse Effect on Kellstrom, (iii)
conflict with, result in any breach of, or constitute a default (or an event
which would, with the passage of time or the giving of notice or both,
constitute a default) under, or give rise to a right to terminate, amend,
modify, abandon or accelerate, any Contract which is applicable to, binding upon
or enforceable against Kellstrom, (iv) result in or require the creation or
imposition of any Lien upon or with respect to any of the property or assets of
Kellstrom or (v) require the consent, approval, authorization or permit of, or
filing with or notification to, any Governmental Authority, any court or
tribunal or any other Person, except any SEC and other filings required to be
made by Kellstrom and any filings required to be made by the parties under the
HSR Act, if any.

                                   ARTICLE III

                 REPRESENTATIONS AND WARRANTIES OF AVS AND AVSDS

         As a material inducement to Kellstrom to enter into this Agreement and
to consummate the transactions contemplated, AVS and AVSDS, jointly and
severally, make the following representations and warranties to Kellstrom:

         3.1 CORPORATE STATUS. Each of AVS and AVSDS is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has the requisite power and authority to own or lease its
properties and to carry on its business as now being conducted. Each of AVS and
AVSDS is legally qualified to transact business as a foreign corporation, and is
in good standing as such, in those jurisdictions set forth on SCHEDULE 3.1.
There is no pending or Threatened proceeding for the dissolution, liquidation,
insolvency or rehabilitation of AVS or AVSDS.

         3.2 POWER AND AUTHORITY. Each of AVS and AVSDS has the corporate power
and authority to execute and deliver this Agreement, to perform its respective
obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby. Each of AVS and AVSDS has taken all corporate
action necessary to authorize the execution and delivery of this Agreement, the
performance of its obligations hereunder and the consummation of the
transactions contemplated hereby.

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         3.3 ENFORCEABILITY. This Agreement has been duly executed and delivered
by each of AVS and AVSDS, and constitutes the legal, valid and binding
obligation of each of them, enforceable against each of them in accordance with
its terms, except as the same may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and general equitable principles regardless of
whether such enforceability is considered in a proceeding at law or in equity.

         3.4 NO VIOLATION. Except as set forth in SCHEDULE 3.4, the execution or
delivery of this Agreement by AVS and AVSDS, the performance by AVS and AVSDS of
their respective obligations hereunder or the consummation by AVS and AVSDS of
the transactions contemplated hereby do not (i) contravene any provision of the
Certificate of Incorporation or By-Laws, each as amended to date, of AVS and
AVSDS, (ii) violate or conflict with any law, statute, ordinance, rule,
regulation, decree, writ, injunction, judgment or order of any Governmental
Authority or of any arbitration award which is either applicable to, binding
upon or enforceable against AVS or AVSDS, to the extent such violation or
conflict could have a Material Adverse Effect on AVS or AVSDS, (iii) conflict
with, result in any breach of, or constitute a default (or an event which would,
with the passage of time or the giving of notice or both, constitute a default)
under, or give rise to a right to terminate, amend, modify, abandon or
accelerate, any Contract which is applicable to, binding upon or enforceable
against AVS or AVSDS, (iv) result in or require the creation or imposition of
any Lien upon or with respect to any of the property or assets of AVS or AVSDS,
or (v) require the consent, approval, authorization or permit of, or filing with
or notification to, any Governmental Authority, any court or tribunal or any
other Person, except any SEC and other filings required to be made by AVS and
any filings required to be made by the parties under the HSR Act, if any.

                                   ARTICLE IV

                             AGREEMENT TO COOPERATE

         The parties hereto wish to cooperate with each other to enhance their
respective businesses by establishing preferred provider relationships as
follows:

         4.1 PURCHASES OF REQUIRED PARTS BY THE AVS COMPANIES. If the AVS
Companies shall desire to purchase any Parts for use in its MRO Business or for
any other purpose (each a "Required Part"), it shall purchase such Part as
follows:

                  (a) If the KAV Inventory shall include a Part that is
identical in part number and condition (serviceable, unserviceable, overhauled
or new) to the Required Part, then the AVS Companies shall purchase the Required
Part from Kellstrom out of the KAV Inventory if the price quoted therefor by
Kellstrom is less than or equal to the Fair Market Value of such Part (or if the
Fair Market Value of such Part shall be less than the KAV Book Value of such
Part, then the AVS Companies shall purchase the Required Part from Kellstrom out
of the KAV Inventory if the price

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quoted therefor by Kellstrom is less than or equal to the lesser of (a) the KAV
Book Value of such Part, or (b) 115% of the Fair Market Value of such Part) (in
any such case, the "KAV Maximum Price").

                  (b) If the AVS Companies shall not for any reason have
purchased the Required Part from Kellstrom out of the KAV Inventory pursuant to
clause (a) above and the Kellstrom Inventory shall include a Part that is
identical in part number and condition (serviceable, unserviceable, overhauled
or new) to the Required Part, then the AVS Companies shall purchase the Required
Part from Kellstrom out of the Kellstrom Inventory if the price quoted therefor
by Kellstrom is less than or equal to the Fair Market Value of such Part.

                  (c) If the AVS Companies shall not for any reason have
purchased the Required Part from Kellstrom out of the KAV Inventory pursuant to
clause (a) above or out of the Kellstrom Inventory pursuant to clause (b) above,
then the AVS Companies shall, at the election of Kellstrom, purchase the
Required Part using Kellstrom as a broker if Kellstrom can secure such Required
Part for a price less than or equal to the Fair Market Value of such Part in a
timely manner based on customary industry standards and customer time
parameters.

                  (d) If the AVS Companies shall not for any reason have
purchased the Required Part from Kellstrom out of the KAV Inventory pursuant to
clause (a) above or out of the Kellstrom Inventory pursuant to clause (b) above,
or shall not have purchased the Required Part using Kellstrom as a broker
pursuant to clause (c) above, then the AVS Companies shall have the right to
purchase the Required Part from any third party.

                  (e) Notwithstanding the foregoing, (i) the AVS Companies may
purchase factory new parts directly from original equipment manufacturers (or
their authorized distributors) without complying with clauses (a) through (d)
above, and (ii) Kellstrom shall have the right upon receipt of any request from
the AVS Companies to elect not to sell any Parts out of the KAV Inventory or the
Kellstrom Inventory even if a Part identical in part number and condition
(serviceable, unserviceable, overhauled or new) to the Required Part is included
in the KAV Inventory and/or the Kellstrom Inventory.

         4.2 PURCHASES OF MRO SERVICES BY KELLSTROM FOR KAV INVENTORY. If
Kellstrom shall desire to purchase any MRO Services (the "Required MRO
Services") for the repair, maintenance or overhaul of KAV Inventory, it shall
purchase such MRO Services as follows:

                  (a) If Kellstrom shall desire to purchase any Required MRO
Services in connection with the sale of any Part included in the KAV Inventory
to an Identified Customer, then Kellstrom shall purchase the Required MRO
Services from the AVS Companies if the AVS Companies (i) are Kellstrom Approved
Vendors with respect to the provisions of the Required MRO Services for such
Part, (ii) have the capability to provide the Required MRO Services, (iii) can
complete the Required MRO Services within time parameters acceptable to
Kellstrom and the

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Identified Customer, and (iv) can complete the Required MRO Services at a cost
to Kellstrom of no more than 115% of the lowest price at which Kellstrom can
secure such Required MRO Services from a third party; PROVIDED, HOWEVER, in no
event shall Kellstrom be required to purchase the Required MRO Services from the
AVS Companies if the Identified Customer requests the use of another vendor in
connection with the provision of such Required MRO Services.

                  (b) If Kellstrom shall desire to purchase any Required MRO
Services in connection with any Part included in the KAV Inventory other than in
connection with the sale of such Part to an Identified Customer, then Kellstrom
shall purchase the Required MRO Services from the AVS Companies if the AVS
Companies (i) are Kellstrom Approved Vendors with respect to the provisions of
the Required MRO Services for such Part, (ii) have the capability to provide the
Required MRO Services, (iii) can complete the Required MRO Services within time
parameters reasonably acceptable to Kellstrom, and (iv) can complete the
Required MRO Services at a cost to Kellstrom of no more than 115% of the lowest
price at which Kellstrom can secure such Required MRO Services from a third
party.

         4.3 PURCHASES OF MRO SERVICES BY KELLSTROM FOR KELLSTROM INVENTORY.
Kellstrom shall endeavor to use the AVS Companies from time to time if it shall
desire to purchase any MRO Services for the repair, maintenance or overhaul of
any Part included in the Kellstrom Inventory, and shall consider, among other
things, the following factors in connection with its decision: (i) whether the
AVS Companies are Kellstrom Approved Vendors with respect to the provisions of
such MRO Services for such Part; (ii) whether the AVS Companies have the
capability to provide such MRO Services; (iii) whether the AVS Companies can
complete such MRO Services within time parameters acceptable to Kellstrom (and,
if applicable, its Identified Customer); (iv) whether the AVS Companies can
complete such MRO Services at a cost acceptable to Kellstrom (and, if
applicable, its Identified Customer); and (v) the preferences of any customers
of Kellstrom.

         4.4 PROVISION OF PARTS FOR AVS EXCHANGE POOLS. The AVS Companies shall
have the right, in their discretion, to maintain from time to time Exchange
Pools at one or more Designated Locations which they may make available for
exchange arrangements with their customers. AVS agrees that it shall obtain the
Parts required from time to time for such Exchange Pools (the "Required Exchange
Pool Parts") as follows:

                  (a) If the KAV Inventory shall include a Part that is
identical in part number and condition (serviceable, unserviceable, overhauled
or new) to the Required Exchange Pool Part, then the AVS Companies shall obtain
and Kellstrom shall make available the Required Exchange Pool Part from
Kellstrom out of the KAV Inventory.

                  (b) If the KAV Inventory shall not include a Part that is
identical in part number and condition (serviceable, unserviceable, overhauled
or new) to the Required Exchange Pool Part and the Kellstrom Inventory shall
include a Part that is identical in part number and condition (serviceable,
unserviceable, overhauled or new) to the Required Exchange Pool Part which

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<PAGE>   13

Kellstrom, in its sole discretion, elects to make available to the AVS Companies
for the Exchange Pools, then the AVS Companies shall obtain the Required
Exchange Pool Part from Kellstrom out of the Kellstrom Inventory.

                  (c) If neither the KAV Inventory nor the Kellstrom Inventory
shall include a Part that is identical in part number and condition
(serviceable, unserviceable, overhauled or new) to the Required Exchange Pool
Part, or if the Kellstrom Inventory shall include such a Part but Kellstrom, in
its sole discretion, elects not to make such part available to the AVS Companies
for the Exchange Pools, then the AVS Companies shall have the right to obtain
the Required Exchange Pool Part from any third party.

                  (d) If any customer of the AVS Companies shall request the
exchange of a Part with any Part from the Exchange Pools which originate from
the KAV Inventory or the Kellstrom Inventory then:

                           (i) the AVS Companies may make such Part available to
                  its customer for exchange and shall remit to Kellstrom an
                  exchange fee in an amount equal to the amount set forth on
                  EXHIBIT A attached hereto (as the same may be modified from
                  time to time by the parties);

                           (ii) the AVS Companies shall at the sole cost of the
                  AVS Companies rework the Part received from such customer in
                  exchange to the same or better condition (with appropriate
                  records and tagging) as the Part provided by the AVS Companies
                  in exchange therefor;

                           (iii) the AVS Companies shall charge its customer
                  such amount as it may in its sole discretion deem appropriate
                  for the MRO Services provided pursuant to subsection (ii)
                  above and shall be entitled to retain the full amount thereof;

                           (iv) upon receipt of a Part from a customer in
                  exchange for a Part which originates from the KAV Inventory,
                  the Part received from such customer shall automatically,
                  without any action by any party, become part of the KAV
                  Inventory to be held in the KAV Exchange Pool (provided that
                  this shall in no way affect any obligations of the AVS
                  Companies to rework such Part in accordance with subsection
                  (ii) above);

                           (v) upon receipt of a Part received from a customer
                  in exchange for a Part which originates from the Kellstrom
                  Inventory, the Part received from such customer shall
                  automatically, without any action by any party, become part of
                  the Kellstrom Inventory to be held in the Kellstrom Exchange
                  Pool (provided that this shall in no way affect any obligation
                  of the AVS Companies to rework such Part in accordance with
                  subsection (ii) above);

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                  (e) If Kellstrom shall at any time desire to sell any Part
included in the Exchange Pool which originates from the KAV Inventory or the
Kellstrom Inventory, then Kellstrom shall provide the AVS Companies with notice
thereof, and the AVS Companies shall, as long as such Part is not already
committed to a customer's exchange transaction, ship the Part to or at the
direction of Kellstrom f.o.b. AVS Company dock within one (1) Business Day of
notice thereof from Kellstrom.

                  (f) If the AVS Companies shall at any time determine that any
part received from a customer in exchange for a Part which originates from the
KAV Inventory or the Kellstrom Inventory is BER and such part is not thereafter
replaced by the customer with a non-BER part, then the AVS Companies shall
purchase from Kellstrom the Part delivered to such customer in connection with
the exchange transaction at the price set forth in EXHIBIT A (as the same may be
amended from time to time).

                  (g) If the AVS Companies shall desire to replace any Part sold
by Kellstrom or the AVS Companies out of the Exchange Pool, the AVS Companies
shall replace such Part in accordance set forth in subsections 4.4(a), (b) and
(c) above.

                  (h) The AVS Companies shall maintain all Parts held in the
Exchange Pool that originate from the KAV Inventory and all Parts held in the
Exchange Pool that originate from the Kellstrom Inventory in separate, secure,
uniquely identified warehouse areas. The AVS Companies shall cooperate with
Kellstrom in the preparation and filing of all forms (including, without
limitation, filings of financing statements under the Uniform Commercial Code as
in effect in each jurisdiction deemed applicable by Kellstrom) deemed necessary
or advisable by Kellstrom to protect and preserve Kellstrom's or KAV's, as
applicable, right, title and interest in and to the Parts held in the Exchange
Pool that originate from the KAV Inventory or that originate from the Kellstrom
Inventory.

         4.5 DISPOSAL OF PARTS BY AVS COMPANIES. If any of the AVS Companies
shall at any time acquire any Parts (including, without limitation, any Parts
which it acquires as a condition to securing MRO Business, in connection with
the acquisition of any Person, or surplus Parts which arise in connection with
the performance of MRO Services) and elects, in its discretion, to dispose of
such Parts, then it shall do so as follows:

                  (a) The AVS Companies shall promptly deliver written notice to
Kellstrom of the Parts which it desires to dispose of, setting forth for each
such Part, the quantity and condition thereof (the "Sale Notice").

                  (b) Kellstrom shall have the right exercisable by it by
delivering written notice to AVS within thirty (30) days of receipt of a Sale
Notice to either (i) purchase the Parts in accordance with subsection (c) below,
or (ii) sell such Parts on behalf of the AVS Companies pursuant to a consignment
arrangement in accordance with subsection (d) below.

                                       12
<PAGE>   15

                  (c) If Kellstrom shall elect to purchase the Parts proposed to
be disposed of by the AVS Companies, then Kellstrom shall have the right to
purchase such Parts at the price and on terms mutually agreed to by Kellstrom
and AVS.

                  (d) If Kellstrom shall elect not to purchase the Parts
proposed to be disposed of by the AVS Companies, or if Kellstrom and AVS cannot
agree on the price and terms of such sale, then Kellstrom shall have the right
exercisable by it by delivering written notice to AVS within thirty (30) days of
receipt of a Sale Notice to sell such Parts on behalf of the AVS Companies
pursuant to the Consignment Agreement attached hereto as EXHIBIT B and at the
special consignment rate. The "Special Consignment Rate" shall mean a
consignment fee of 8% on the first $2,000,000 of the Gross Sales Price (prorated
for any partial calendar year) of the purchase price of such Parts invoiced by
Kellstrom during each calendar year, and a consignment fee of 25% on amounts
over $2,000,000 of the Gross Sales Price (prorated for any partial calendar
year) of the purchase price of such Parts invoiced by Kellstrom during such
calendar year.

                  (e) If Kellstrom shall (i) notify AVS in writing of its
election not to purchase the Parts in accordance with subsection 4.5(c) above
and not to sell such Parts on behalf of the AVS Companies pursuant to a
consignment arrangement in accordance with subsection 4.5(d) above, or (ii) fail
to respond to any Sale Notice within the time period set forth in subsection
4.5(b) above, then the AVS Companies shall be free to sell or consign such Parts
in such manner and to such parties as they may deem appropriate.

         4.6 AIRCRAFT INTERIOR DESIGN ("AID"). AVS may continue to operate the
business conducted by AID in the same manner as such business is conducted by
AID as of the date hereof, and may expand the scope of such business only so
long as such expanded scope shall not in any way violate any terms of this
Agreement or the Non-Competition Agreement.

         4.7 PURCHASES OR LEASES OF ENGINES BY TIMCO ENGINE CENTER; CERTAIN
ENGINE. If Timco Engine Center shall at any time desire to purchase or lease (as
lessee) aircraft engines as required by its engine shop support requirements
agreements, it shall do so in accordance with the provisions of SECTIONS 4.1(a),
(b) and (c) hereof. The provisions of Section 4.5 hereof shall be inapplicable
to the sale by Timco Engine Center to Express One of that certain Pratt &
Whitney model JT8D-7B aircraft engine bearing manufacturer's serial number
649440.

         4.8 PURCHASES OF MRO SERVICES BY AVS COMPANIES. The AVS Companies shall
endeavor to use Kellstrom from time to time if it shall desire to purchase any
MRO Services for the repair, maintenance, overhaul or conversion of C-130
aircraft, and shall consider, among other things, the following factors in
connection with its decision: (i) whether Kellstrom is an AVS Approved Vendor
with respect to the provisions of such MRO Services for such aircraft, (ii)
whether Kellstrom has the capacity to provide such MRO Services; (iii) whether
Kellstrom can complete such MRO Services within time parameters acceptable to
the AVS Companies (and, if applicable,

                                       13
<PAGE>   16

its Identified Customer); (iv) whether Kellstrom can complete such MRO Services
at a cost acceptable to the AVS Companies (and, if applicable, its Identified
Customer); and (v) the preferences of any customers of the AVS Companies.

         4.9 BIDDING. AVS and Kellstrom will endeavor to cooperate on a
non-exclusive basis in developing joint bids which enhance the likelihood of bid
success for each party. The parties may also participate in existing bids held
by the parties.

         4.10 SALE OF PARTS BY AVIATION SALES LEASING COMPANY ("ASLC").
Notwithstanding anything to the contrary contained in SECTION 4.5, if ASLC shall
at any time elect to dispose of any Parts owned by it and on lease to Air
France, it shall only do so as follows:

                  (a) ASLC shall obtain a Qualified Offer to purchase such Parts
and shall promptly deliver written notice to Kellstrom attaching a copy of the
Qualified Offer and irrevocably offering to sell such Parts to Kellstrom on the
terms contained in the Qualified Offer.

                  (b) Kellstrom shall have the right exercisable by it by
delivering written notice to ASLC within seven (7) days after receipt of any
notice pursuant to Section 4.10(a) above to purchase such Parts on the terms set
forth in the Qualified Offer, which purchase shall be consummated on a date
agreed to by the parties (not to exceed thirty (30) days from the receipt of
notice under Section 4.10(a)).

If Kellstrom shall elect not to purchase the Parts proposed to be sold by ASLC
(or shall fail to timely respond to a notice received pursuant to Section
4.10(a) above), ASLC shall have the right to sell such Parts to the offeror on
the terms set forth in the Qualified Offer within thirty (30) days of the
receipt of notice under Section 4.10(a) above. If ASLC shall not sell such Parts
to the offeror pursuant to the Qualified Offer within such thirty (30) day
period, it shall thereafter be required to comply with the provisions of this
Section prior to any sale of such Parts.

Notwithstanding the foregoing, all other parts owned by ASLC as of the date of
the Asset Purchase Agreement may be sold or consigned in such manner and with
and to such parties as AVS may deem appropriate without any further compliance
with the provisions of this Agreement.

         4.11 VIOLATIONS. In the event of a disposal of a Part other than in
conformity with SECTION 4.5 or SECTION 4.10 hereof, in addition to any other
remedy Kellstrom may have, the AVS Companies shall pay to Kellstrom 25% of the
Gross Sale Price, as applicable, of such Part.

         4.12 PERFORMANCE. In connection with any parties performance under this
Article IV, the parties agree that the time period for each parties performance
of such obligation shall be in accordance with customary industry standards. In
connection with requests for Parts, the following response times for the
provision of notice of availability of requested Parts are customary industry
standards:

                                       14
<PAGE>   17

         Aircraft on Ground - 2 hours;
         Expedite - 1 day; and
         Replenishing - 3 days.

                                    ARTICLE V

                                   TERMINATION

         This Agreement may be terminated as follows:

                  (a) by mutual written consent of the parties; or

                  (b) upon sixty (60) days prior written notice by any of the
parties hereto after the KAV has been dissolved or liquidated; PROVIDED,
HOWEVER, that notwithstanding any termination of this Agreement for any reason,
SECTION 4.5 and SECTION 4.10 of this Agreement shall survive until the
expiration of the Restriction Period as term is defined in the Non-Competition
Agreement.

                                   ARTICLE VI

                               GENERAL PROVISIONS

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

                  (a)      IF TO KELLSTROM TO:

                           Kellstrom Industries, Inc.
                           1100 International Parkway
                           Sunrise, Florida 33323
                           Attn:  Zivi R. Nedivi, President
                           Telecopy:  (954) 858-2449

                           WITH A COPY TO:

                           Akerman, Senterfitt & Eidson, P.A.
                           350 East Las Olas Boulevard, Suite 1600
                           Fort Lauderdale, Florida 33301

                                       15
<PAGE>   18

                           Attn:  Bruce I. March, Esq.
                           Telecopy:  (954) 463-2224

                  (b)      IF TO AVS OR AVSDS TO:

                           Aviation Sales Company
                           3601 Flamingo Road
                           Miramar, Florida 33307
                           Attn:  Dale Baker, Chairman
                           Telecopy:  (954) 538-6775

                           WITH A COPY TO:

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

Notice shall be deemed given on the date sent if sent by facsimile transmission
and on the date delivered (or the date of refusal of delivery) if sent by
overnight delivery or certified or registered mail.

         6.2 ENTIRE AGREEMENT. This Agreement (including the exhibits and
schedules attached hereto and thereto) and the other documents delivered
pursuant hereto and thereto contains the entire understanding of the parties in
respect of its subject matter and supersedes all prior agreements and
understandings (oral or written) between or among the parties with respect to
such subject matter. The exhibits and schedules constitute a part of the
document to which they are attached as though set forth in full thereon.

         6.3 AMENDMENT; WAIVER. This Agreement may not be modified, amended,
supplemented, canceled or discharged, except by written instrument executed by
all parties. No failure to exercise, and no delay in exercising, any right,
power or privilege under this Agreement shall operate as a waiver, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
the exercise of any other right, power or privilege. No waiver of any breach of
any provision shall be deemed to be a waiver of any preceding or succeeding
breach of the same or any other provision, nor shall any waiver be implied from
any course of dealing between the parties. No extension of time for performance
of any obligations or other acts hereunder or under any other agreement shall be
deemed to be an extension of the time for performance of any other obligations
or any other acts. Except as otherwise provided herein, the rights and remedies
of the parties under this Agreement are in addition to all other rights and
remedies, at law or equity, which they may have against each other.

                                       16
<PAGE>   19

         6.4 BINDING EFFECT; ASSIGNMENT. The rights and obligations of this
Agreement shall bind and inure to the benefit of the parties and their
respective heirs, executors, personal representatives, trustees, guardians,
attorneys-in-fact, successors and assigns. Nothing expressed or implied herein
shall be construed to give any other person any legal or equitable rights
hereunder. Except as expressly provided herein, no party may assign any of its
rights or delegate any of its obligations under this Agreement without the prior
written consent of the non-assigning or non-delegating parties; PROVIDED,
HOWEVER, that notwithstanding anything to the contrary contained in this
Agreement, (1) either party may assign any or all of its rights and privileges
under this Agreement to its lenders from time to time, without the consent of
the other parties, provided that any such assignees shall take such assignment
subject to all of the terms, conditions and limitations set forth in the
Agreement, and (2) either party may assign its rights and delegate its
obligations under this Agreement to any direct or indirect wholly-owned
Subsidiary of the respective party, and upon such assignment, such Subsidiary
shall have full rights and obligations under this Agreement as if it were a
party hereto. Such Subsidiary shall be a third-party beneficiary with respect to
all rights and remedies provided hereunder or otherwise provided at law or in
equity. In the case of any assignment by a party, such party shall remain fully
responsible and liable for all of its obligations hereunder.

         6.5 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which taken together
shall constitute one and the same instrument.

         6.6 INTERPRETATION. Any reference made in this Agreement to an article,
section, paragraph, clause, schedule or exhibit shall be deemed to be to the
referenced article, section, paragraph, clause, schedule or exhibit of this
Agreement unless otherwise indicated. The headings contained in this Agreement
and on the exhibits and schedules hereto are for reference purposes only and
shall in no way affect in any way the meaning or interpretation of this
Agreement or the exhibits or schedules hereto. Time shall be of the essence in
this Agreement.

         6.7 SEVERABILITY. If any word, phrase, sentence, clause, section,
subsection or provision of this Agreement as applied to any party or to any
circumstance is adjudged by a court to be invalid or unenforceable, the same
will in no way affect any other circumstance or the validity or enforceability
of any other word, phrase, sentence, clause, section, subsection or provision of
this Agreement. If any provision of this Agreement, or any part thereof, is held
to be unenforceable because of the duration of such provision or the area
covered thereby or otherwise, the parties agree that the court making such
determination shall have the power to reduce the duration and/or area of such
provision, and/or to delete specific words or phrases, and in its reduced form,
such provision shall then be enforceable and shall be enforced.

         6.8 GOVERNING LAW; JURISDICTION. This Agreement shall be construed in
accordance with and governed for all purposes by the laws of the State of
Florida applicable to contracts

                                       17
<PAGE>   20

executed and to be wholly performed within such State. Any suit, action or
proceeding against Kellstrom or AVS or AVSDS arising out of, or with respect to,
this Agreement or any judgment entered by any court in respect thereof shall be
brought in the courts of Broward County, Florida or in the U.S. District Court
for the Southern District of Florida and each party hereby irrevocably (a)
accepts and consents to the exclusive personal jurisdiction of such courts for
the purpose of any suit, action or proceeding, (b) waives, to the fullest extent
permitted by law, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this
Agreement or any judgment entered by any court in respect thereof brought in
such courts, (c) waives any claim that any suit, action or proceedings brought
in such courts has been brought in an inconvenient forum, and (d) agrees that
service of process, summons, notice or document by U.S. registered mail in
accordance with this Agreement shall be effective service of process for any
action, suit or proceeding brought against a party in any such court.

         6.9 ARM'S LENGTH NEGOTIATIONS. Each party hereto expressly agrees that
(a) before executing this Agreement, it has fully informed itself of the terms,
contents, conditions and effects of this Agreement; (b) it has relied solely and
completely upon its own judgment in executing this Agreement; (c) it has had the
opportunity to seek and has obtained the advice of counsel before executing this
Agreement; (d) it has acted voluntarily and of its own free will in executing
this Agreement; (e) it is not acting under duress, whether economic or physical,
in executing this Agreement; and (f) this Agreement is the result of arm's
length negotiations conducted by and among the parties and their respective
counsel.

         6.10 ADDITIONAL COVENANTS OF AVS. AVS covenants and agrees that it
shall cause each of the AVS Companies to comply with the terms and conditions of
this Agreement.

         6.11 ADDITIONAL COVENANTS OF KELLSTROM. Kellstrom covenants and agrees
that it shall cause each of its subsidiaries to comply with the terms and
conditions of this Agreement.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       18
<PAGE>   21
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the day and year first above written.

                                     KELLSTROM INDUSTRIES, INC., a Delaware
                                     corporation

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

                                     AVIATION SALES COMPANY, a Delaware
                                     corporation

                                     By: /s/ Dale S. Baker
                                         ---------------------------------------
                                          Dale S. Baker
                                          Chairman and Chief Executive Officer

                                     AVIATION SALES DISTRIBUTION
                                     SERVICES COMPANY, a Delaware corporation

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

                                       19<PAGE>   1
                                                                    Exhibit 10.5

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

                            NON-COMPETITION AGREEMENT

                                      AMONG

                           KELLSTROM INDUSTRIES, INC.,

                               KAV INVENTORY, LLC,

                  AVIATION SALES DISTRIBUTION SERVICES COMPANY,

                                       AND

                             AVIATION SALES COMPANY

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

                                DECEMBER 1, 2000

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

<PAGE>   2

                                      INDEX

                                                                          Page
                                                                          ----

ARTICLE I DEFINITIONS.......................................................1

      1.1 Defined Terms.....................................................1
      1.2 Other Definitional Provisions.....................................3

ARTICLE II REPRESENTATIONS AND WARRANTIES OF KELLSTROM......................4

      2.1 Corporate Status..................................................4
      2.2 Corporate Power and Authority.....................................4
      2.3 Enforceability....................................................4
      2.4 No Violation......................................................5

ARTICLE III REPRESENTATIONS AND WARRANTIES OF AVS...........................5

      3.1 Corporate Status..................................................5
      3.2 Power and Authority...............................................5
      3.3 Enforceability....................................................5
      3.4 No Violation......................................................6

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF KAV............................6

      4.1 Status............................................................6
      4.2 Power and Authority...............................................6
      4.3 Enforceability....................................................6
      4.4 No Violation......................................................7

ARTICLE V COVENANT NOT TO COMPETE...........................................7

      5.1 Restrictive Covenants.............................................7

ARTICLE VI GENERAL PROVISIONS...............................................8

      6.1 Notices...........................................................8
      6.2 Entire Agreement..................................................9
      6.3 Amendment; Waiver.................................................9
      6.4 Binding Effect; Assignment.......................................10
      6.5 Counterparts.....................................................10
      6.6 Interpretation...................................................10
      6.7 Severability.....................................................10
      6.8 Governing Law; Jurisdiction......................................10
      6.9 Arm's Length Negotiations........................................11

                                       i
<PAGE>   3

                            NON-COMPETITION AGREEMENT

         This Non-Competition Agreement (this "Agreement") is entered into as of
December 1, 2000 (the "Effective Date") among Kellstrom Industries, Inc., a
Delaware corporation ("Kellstrom"), KAV Inventory, LLC, a Delaware limited
liability company ("KAV"), Aviation Sales Company, a Delaware corporation
("AVS") and Aviation Sales Distribution Services Company, a Delaware corporation
("AVSDS").

                                    RECITALS

         The AVS Companies (as hereinafter defined) are engaged in, among other
things, the redistribution of aircraft engines, aircraft parts and aircraft
engine parts through sale, lease and exchange transactions (the "Business").
Contemporaneous with the execution of this Agreement, Kellstrom is purchasing
certain assets of the Business pursuant to that certain Asset Purchase Agreement
dated as of September 20, 2000 among Kellstrom, AVS and AVSDS (the "Asset
Purchase Agreement"), and the KAV is purchasing certain inventory of the
Business pursuant to that certain Inventory Purchase Agreement dated as of
September 20, 2000 among KAV, AVS and AVSDS (the "Inventory Purchase
Agreement"). As a material inducement to Kellstrom and KAV to enter into the
Asset Purchase Agreement and the Inventory Purchase Agreement and to consummate
the transactions contemplated thereby, AVS and AVSDS agreed to make the
covenants and agreements contained herein on the terms and subject to the
conditions contained in this Agreement.

                               TERMS OF AGREEMENT

         In consideration of the mutual representations, warranties, covenants
and agreements contained herein, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         1.1 DEFINED TERMS. As used herein, the following terms shall have the
following meanings:

                  "Affiliate" shall have the meaning ascribed to it in Rule
                  12b-2 of the General Rules and Regulations promulgated under
                  the Exchange Act (as hereinafter defined), as in effect on the
                  date hereof.

                  "AVS Companies" means AVS or any of its Subsidiaries or any of
                  their respective successors and assigns.

<PAGE>   4

                  "Change of Control of AVS" means (i) a reorganization, merger
                  or consolidation of AVS with a Competitor or any Affiliates of
                  a Competitor in which AVS is not the surviving entity, or (ii)
                  the acquisition by a Competitor, or by any Affiliate of a
                  Competitor, of all of the issued and outstanding shares of
                  capital stock of AVS in one or more transactions.

                  "Competitor" means any Person that has a substantial portion
                  of its business in the aviation and/or aerospace industry.

                  "Contract" means any agreement, contract, lease, note,
                  mortgage, indenture, loan agreement, franchise agreement,
                  covenant, employment agreement, lease agreement, exchange
                  agreement, license agreement, instrument, purchase or sales
                  order, commitment, undertaking or obligation, in each case,
                  whether written or oral, express or implied.

                  "Cooperation Agreement" means that certain Cooperation
                  Agreement between Kellstrom and AVS of even date herewith.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
                  amended, or any successor thereto, and any rules and
                  regulations promulgated thereunder.

                  "Governmental Authority" means any nation or government, any
                  state, regional, local or other political subdivision thereof,
                  and any entity or official exercising executive, legislative,
                  judicial, regulatory or administrative functions of or
                  pertaining to government.

                  "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements
                  Act of 1976, as amended, or any successor thereto, and any
                  rules and regulations promulgated thereunder.

                  "MRO Business" means the business of maintaining, repairing
                  and overhauling aircraft, aircraft engines, aircraft parts and
                  aircraft engine parts.

                  "Material Adverse Change (or Effect)," with respect to any
                  Person, means a change (or effect) in condition (financial or
                  otherwise), properties, assets, liabilities, rights,
                  obligations, operations or business of such Person which
                  change (or effect), individually or in the aggregate, is
                  materially adverse to such condition (financial

                                       2
<PAGE>   5

                  or otherwise), properties, assets, liabilities, rights,
                  obligations, operations or business.

                  "Permitted Activities" has the meaning given to such term in
                  the Cooperation Agreement.

                  "Person" means an individual, partnership, corporation,
                  business, trust, joint stock company, estate, trust,
                  unincorporated association, joint venture, Governmental
                  Authority or other entity, of whatever nature.

                  "Redistribution Business" means the business of purchasing for
                  resale, exchange or lease aircraft for disassembly, aircraft
                  engines, aircraft parts and aircraft engine parts, in each
                  case, in new, overhauled, serviceable or repairable condition
                  (but excluding the purchase of factory new parts from original
                  equipment manufacturers or authorized distributors thereof).

                  "SEC" means the United States Securities and Exchange
                  Commission.

                  "Subsidiaries" means any Person in which a party hereto or any
                  Subsidiary of a party hereto (i) directly or indirectly owns
                  (beneficially or of record) or has the power to vote fifty
                  percent (50%) or more of the outstanding voting stock or other
                  equity interests, or (ii) otherwise controls the management or
                  operation.

                  "Threatened" means any demand or statement that has been made
                  in writing or any notice that has been given in writing in
                  connection with a claim, charge, proceeding, dispute, action
                  or other matter.

         1.2 OTHER DEFINITIONAL PROVISIONS.

                  (a) All terms defined in this Agreement shall have the defined
meanings when used in any certificates, reports or other documents made or
delivered pursuant hereto or thereto, unless the context otherwise requires.

                  (b) All terms defined in the singular shall have a comparable
meaning when used in the plural, and vice versa.

                  (c) All matters of an accounting nature in connection with
this Agreement and the transactions contemplated hereby shall, except as
expressly set forth herein, be determined in accordance with GAAP applied on a
basis consistent with prior periods.

                                       3
<PAGE>   6

                  (d) As used herein, the neuter gender shall also denote the
masculine and feminine, and the masculine gender shall also denote the neuter
and feminine, where the context so permits.

                  (e) Whenever the words "include," "includes" or "including"
are used in this Agreement, they shall be deemed to be followed by the words
"without limitation."

                  (f) Whenever this Agreement provides for a payment to be made
by any party, such payment shall be made by wire transfer of immediately
available United States funds.

                  (g) When a reference is made in this Agreement to an article,
section, paragraph, clause, schedule or exhibit, such reference shall be deemed
to be to this Agreement unless otherwise indicated.

                                   ARTICLE II

                   REPRESENTATIONS AND WARRANTIES OF KELLSTROM

         As a material inducement to AVS and AVSDS to enter into this Agreement
and to consummate the transactions contemplated hereby, Kellstrom makes the
following representations and warranties to AVS and AVSDS:

         2.1 CORPORATE STATUS. Kellstrom is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and has the requisite corporate power and authority to own or lease its
properties and to carry on its business as now being conducted. Kellstrom is
legally qualified to transact business as a foreign corporation, and is in good
standing as such, in those jurisdictions set forth on SCHEDULE 2.1. There is no
pending or threatened proceeding for the dissolution, liquidation, insolvency or
rehabilitation of Kellstrom.

         2.2 CORPORATE POWER AND AUTHORITY. Kellstrom has the corporate power
and authority to execute and deliver this Agreement to perform its obligations
hereunder and to consummate the transactions contemplated hereby. Kellstrom has
taken all corporate actions necessary to authorize the execution and delivery of
this Agreement, the performance of its obligations hereunder and the
consummation of the transactions contemplated hereby.

         2.3 ENFORCEABILITY. This Agreement has been duly executed and delivered
by Kellstrom and constitutes the legal, valid and binding obligation of
Kellstrom, enforceable against Kellstrom in accordance with its terms, except as
the same may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors' rights
generally and general equitable principles regardless of whether such
enforceability is considered in a proceeding at law or in equity.

                                       4
<PAGE>   7

         2.4 NO VIOLATION. Except as set forth in SCHEDULE 2.4, the execution or
delivery of this Agreement, the performance by Kellstrom of its obligations
hereunder or the consummation by it of the transactions contemplated hereby do
not (i) contravene any provision of the Restated Certificate of Incorporation or
By-Laws of Kellstrom, each as amended to date, (ii) violate or conflict with any
law, statute, ordinance, rule, regulation, decree, writ, injunction, judgment or
order of any Governmental Authority or of any arbitration award which is either
applicable to, binding upon or enforceable against Kellstrom, to the extent such
violation or conflict could have a Material Adverse Effect on Kellstrom, (iii)
conflict with, result in any breach of, or constitute a default (or an event
which would, with the passage of time or the giving of notice or both,
constitute a default) under, or give rise to a right to terminate, amend,
modify, abandon or accelerate, any Contract which is applicable to, binding upon
or enforceable against Kellstrom, (iv) result in or require the creation or
imposition of any Lien upon or with respect to any of the property or assets of
Kellstrom or (v) require the consent, approval, authorization or permit of, or
filing with or notification to, any Governmental Authority, any court or
tribunal or any other Person, except any SEC and other filings required to be
made by Kellstrom and any filings required to be made by the parties under the
HSR Act, if any.

                                   ARTICLE III

                 REPRESENTATIONS AND WARRANTIES OF AVS AND AVSDS

         As a material inducement to Kellstrom to enter into this Agreement and
to consummate the transactions contemplated hereby, AVS and AVSDS, jointly and
severally, make the following representations and warranties to Kellstrom and
KAV:

         3.1 CORPORATE STATUS. Each of AVS and AVSDS is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has the requisite power and authority to own or lease its
properties and to carry on its business as now being conducted. Each of AVS and
AVSDS is legally qualified to transact business as a foreign corporation, and is
in good standing as such, in those jurisdictions set forth on SCHEDULE 3.1.
There is no pending or Threatened proceeding for the dissolution, liquidation,
insolvency or rehabilitation of AVS or AVSDS.

         3.2 POWER AND AUTHORITY. Each of AVS and AVSDS has the corporate power
and authority to execute and deliver this Agreement, to perform its respective
obligations hereunder and to consummate the transactions contemplated hereby.
Each of AVS and AVSDS have taken all corporate action necessary to authorize the
execution and delivery of this Agreement, the performance of its respective
obligations hereunder and the consummation of the transactions contemplated
hereby.

         3.3 ENFORCEABILITY. This Agreement has been duly executed and delivered
by each of AVS and AVSDS, and constitutes the legal, valid and binding
obligation of each of them, enforceable against each of them in accordance with
its terms, except as the same may be limited

                                       5
<PAGE>   8

by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors' rights generally and general equitable
principles regardless of whether such enforceability is considered in a
proceeding at law or in equity.

         3.4 NO VIOLATION. Except as set forth in SCHEDULE 3.4, the execution or
delivery of this Agreement by AVS and AVSDS, the performance by AVS and AVSDS of
their respective obligations hereunder or the consummation by AVS and AVSDS of
the transactions contemplated hereby do not (i) contravene any provision of the
Certificate of Incorporation or By-Laws, each as amended to date, of AVS and
AVSDS, (ii) violate or conflict with any law, statute, ordinance, rule,
regulation, decree, writ, injunction, judgment or order of any Governmental
Authority or of any arbitration award which is either applicable to, binding
upon or enforceable against AVS or AVSDS, to the extent such violation or
conflict could have a Material Adverse Effect on AVS or AVSDS, (iii) conflict
with, result in any breach of, or constitute a default (or an event which would,
with the passage of time or the giving of notice or both, constitute a default)
under, or give rise to a right to terminate, amend, modify, abandon or
accelerate, any Contract which is applicable to, binding upon or enforceable
against AVS or AVSDS, (iv) result in or require the creation or imposition of
any Lien upon or with respect to any of the property or assets of AVS or AVSDS
or (v) require the consent, approval, authorization or permit of, or filing with
or notification to, any Governmental Authority, any court or tribunal or any
other Person, except any SEC and other filings required to be made by AVS and
any filings required to be made by the parties under the HSR Act, if any.

                                   ARTICLE IV

                      REPRESENTATIONS AND WARRANTIES OF KAV

         As a material inducement to AVS and AVSDS to enter into this Agreement
and to consummate the transactions contemplated hereby, KAV makes the following
representations and warranties to AVS and AVSDS:

         4.1 STATUS. KAV is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Delaware and has
the requisite power and authority to own or lease its properties and to carry on
its business as now being conducted.

         4.2 POWER AND AUTHORITY. KAV has the power and authority to execute and
deliver this Agreement to perform its obligations hereunder and to consummate
the transactions contemplated hereby. KAV has taken all actions necessary to
authorize the execution and delivery of this Agreement, the performance of its
obligations hereunder and the consummation of the transactions contemplated
hereby.

         4.3 ENFORCEABILITY. This Agreement has been duly executed and delivered
by KAV and constitutes the legal, valid and binding obligation of SPC,
enforceable against SPC in accordance with its terms, except as the same may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors' rights generally

                                       6
<PAGE>   9

and general equitable principles regardless of whether such enforceability is
considered in a proceeding at law or in equity.

         4.4 NO VIOLATION. None of the execution or delivery of this Agreement,
the performance by KAV of its obligations hereunder or the consummation by it of
the transactions contemplated hereby will (i) contravene any provision of the
Operating Agreement and other organizational documents of KAV, each as amended
to date, (ii) violate or conflict with any law, statute, ordinance, rule,
regulation, decree, writ, injunction, judgment or order of any Governmental
Authority or of any arbitration award which is either applicable to, binding
upon or enforceable against KAV, to the extent such violation or conflict could
have a Material Adverse Effect on KAV, (iii) conflict with, result in any breach
of, or constitute a default (or an event which would, with the passage of time
or the giving of notice or both, constitute a default) under, or give rise to a
right to terminate, amend, modify, abandon or accelerate, any Contract which is
applicable to, binding upon or enforceable against KAV, (iv) result in or
require the creation or imposition of any Lien upon or with respect to any of
the property or assets of KAV or (v) require the consent, approval,
authorization or permit of, or filing with or notification to, any Governmental
Authority, any court or tribunal or any other Person, except any SEC and other
filings required to be made by KAV and any filings required to be made by the
parties under the HSR Act, if any.

                                    ARTICLE V

                             COVENANT NOT TO COMPETE

         5.1 RESTRICTIVE COVENANTS.

                  (a) Except as provided herein or in the Cooperation Agreement,
none of the AVS Companies shall, until the earlier of: (i) the fifth anniversary
of the Effective Date, (ii) the later of (a) the date that none of the AVS
Companies own beneficially or of record any interest in KAV, or (b) the third
anniversary of the Effective Date, or (iii) the occurrence of a Change of
Control of AVS (the "Restriction Period"), directly or indirectly, alone or as a
partner, joint venturer, officer, director, member, employee, consultant, agent,
independent contractor or shareholder of, or lender to, any company or business,
engage in the Redistribution Business, anywhere in the world; PROVIDED, HOWEVER,
that engaging in Permitted Activities, or beneficially owning less than two
percent (2%) of the shares of stock of any other corporation having a class of
equity securities actively traded on a national securities exchange or
over-the-counter market shall not be deemed, in and of itself, to violate the
prohibitions of this SECTION 5.1(a).

                  (b) AVS agrees and acknowledges that the restrictions
contained in this SECTION 5.1 are reasonable in scope, duration and area, and
are necessary to protect Kellstrom and SPC after the Effective Date. The parties
agree and acknowledge that the breach of this SECTION 5.1 will cause irreparable
damage to Kellstrom and KAV for which monetary damages may not be adequate, and
upon breach (or threatened breach) of any provision of this SECTION 5.1,
Kellstrom and KAV shall be entitled to injunctive relief, specific performance
or other equitable relief without the

                                       7
<PAGE>   10

need to post a bond or other security or prove special damages; PROVIDED,
HOWEVER, that this shall in no way limit any other remedies which Kellstrom and
KAV may have (including, without limitation, the right to seek monetary
damages). If any provision of this SECTION 5.1, as applied to any party or to
any circumstance, is adjudged by a court to be invalid or unenforceable, the
same will in no way affect any other circumstance or the validity or
enforceability of the remainder of this Agreement. If any such provision, or any
part thereof, is held to be unenforceable because of the duration of such
provision, the scope of activity or the area covered thereby, the parties agree
that the court making such determination shall have the power to reduce the
duration, scope and/or area of such provision, and/or to delete specific words
or phrases, and in its reduced form, such provision shall then be enforceable
and shall be enforced.

                  (c) Notwithstanding anything to the contrary contained herein,
this Agreement shall not be deemed to restrict (i) Timco Engine Center, Inc.
from selling to Express One that certain Pratt & Whitney model JT8-D7B aircraft
engine bearing manufacturer's serial number 649440 or (ii) the AVS Companies
from selling aircraft parts and aircraft engine parts that are installed by any
of the AVS Companies into an aircraft, aircraft engine or rotable part in
connection with its MRO Business; PROVIDED, HOWEVER, that the AVS Companies
shall purchase all such parts from and after the Effective Date in compliance
with the provisions of the Cooperation Agreement for so long as the Cooperation
Agreement shall remain in effect.

                                   ARTICLE VI

                               GENERAL PROVISIONS

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

                  (a)      IF TO KELLSTROM OR KAV TO:

                           Kellstrom Industries, Inc.
                           1100 International Parkway
                           Sunrise, Florida 33323
                           Attn:  Zivi R. Nedivi, President
                           Telecopy:  (954) 858-2449

                           WITH A COPY TO:

                           Akerman, Senterfitt & Eidson, P.A.
                           350 East Las Olas Boulevard, Suite 1600
                           Fort Lauderdale, Florida 33301

                                       8
<PAGE>   11

                           Attn:  Bruce I. March, Esq.
                           Telecopy:  (954) 463-2224

                  (b)      IF TO AVS, AVSDS OR KAV TO:

                           Aviation Sales Company
                           3601 Flamingo Road
                           Miramar, Florida 33307
                           Attn:  Dale Baker, Chairman
                           Telecopy:  (954) 538-6775

                           WITH A COPY TO:

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

Notice shall be deemed given on the date sent if sent by facsimile transmission
and on the date delivered (or the date of refusal of delivery) if sent by
overnight delivery or certified or registered mail.

         6.2 ENTIRE AGREEMENT. This Agreement (including the exhibits and
schedules attached hereto) and the other documents delivered pursuant hereto
contains the entire understanding of the parties in respect of its subject
matter and supersedes all prior agreements and understandings (oral or written)
between or among the parties with respect to such subject matter. The exhibits
and schedules constitute a part of the document to which they are attached as
though set forth in full thereon.

         6.3 AMENDMENT; WAIVER. This Agreement may not be modified, amended,
supplemented, canceled or discharged, except by written instrument executed by
all parties. No failure to exercise, and no delay in exercising, any right,
power or privilege under this Agreement shall operate as a waiver, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
the exercise of any other right, power or privilege. No waiver of any breach of
any provision shall be deemed to be a waiver of any preceding or succeeding
breach of the same or any other provision, nor shall any waiver be implied from
any course of dealing between the parties. No extension of time for performance
of any obligations or other acts hereunder or under any other agreement shall be
deemed to be an extension of the time for performance of any other obligations
or any other acts. Except as otherwise provided herein, the rights and remedies
of the parties under this Agreement are in addition to all other rights and
remedies, at law or equity, which they may have against each other.

                                       9
<PAGE>   12

         6.4 BINDING EFFECT; ASSIGNMENT. The rights and obligations of this
Agreement shall bind and inure to the benefit of the parties and their
respective heirs, executors, personal representatives, trustees, guardians,
attorneys-in-fact, successors and assigns. Nothing expressed or implied herein
shall be construed to give any other person any legal or equitable rights
hereunder. Except as expressly provided herein, no party may assign any of its
rights or delegate any of its obligations under this Agreement without the prior
written consent of the non-assigning or non-delegating parties; PROVIDED,
HOWEVER, that notwithstanding anything to the contrary contained in this
Agreement, (1) each of Kellstrom and KAV may assign any or all of its rights and
privileges under this Agreement to its respective lenders from time to time,
without the consent of AVS or AVSDS, provided that any such assignee shall take
such assignment subject to all of the terms, conditions and limitations set
forth in the Agreement, and (2) Kellstrom may assign its rights and delegate its
obligations under this Agreement to any direct or indirect wholly-owned
Subsidiary of Kellstrom, and upon such assignment, such Subsidiary shall have
full rights and obligations under this Agreement as if it were a party hereto.
Such Subsidiary shall be a third-party beneficiary with respect to all rights
and remedies provided hereunder or otherwise provided at law or in equity. In
the case of any assignment by Kellstrom, Kellstrom shall remain fully
responsible and liable for all of its obligations hereunder.

         6.5 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which taken together
shall constitute one and the same instrument.

         6.6 INTERPRETATION. Any reference made in this Agreement to an article,
section, paragraph, clause, schedule or exhibit shall be deemed to be to the
referenced article, section, paragraph, clause, schedule or exhibit of this
Agreement unless otherwise indicated. The headings contained in this Agreement
and on the exhibits and schedules hereto are for reference purposes only and
shall in no way affect in any way the meaning or interpretation of this
Agreement or the exhibits or schedules hereto. Time shall be of the essence in
this Agreement.

         6.7 SEVERABILITY. If any word, phrase, sentence, clause, section,
subsection or provision of this Agreement as applied to any party or to any
circumstance is adjudged by a court to be invalid or unenforceable, the same
will in no way affect any other circumstance or the validity or enforceability
of any other word, phrase, sentence, clause, section, subsection or provision of
this Agreement. If any provision of this Agreement, or any part thereof, is held
to be unenforceable because of the duration of such provision or the area
covered thereby or otherwise, the parties agree that the court making such
determination shall have the power to reduce the duration and/or area of such
provision, and/or to delete specific words or phrases, and in its reduced form,
such provision shall then be enforceable and shall be enforced.

         6.8 GOVERNING LAW; JURISDICTION. This Agreement shall be construed in
accordance with and governed for all purposes by the laws of the State of
Florida applicable to contracts executed and to be wholly performed within such
State. Any suit, action or proceeding against Kellstrom, KAV, AVS or AVSDS
arising out of, or with respect to, this Agreement or any judgment entered by
any court in respect thereof shall be brought in the courts of Broward County,
Florida or

                                       10
<PAGE>   13

in the U.S. District Court for the Southern District of Florida and each party
hereby irrevocably (a) accepts and consents to the exclusive personal
jurisdiction of such courts for the purpose of any suit, action or proceeding,
(b) waives, to the fullest extent permitted by law, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or any judgment entered by any
court in respect thereof brought in such courts, (c) waives any claim that any
suit, action or proceedings brought in such courts has been brought in an
inconvenient forum, and (d) agrees that service of process, summons, notice or
document by U.S. registered mail in accordance with this Agreement shall be
effective service of process for any action, suit or proceeding brought against
a party in any such court.

         6.9 ARM'S LENGTH NEGOTIATIONS. Each party hereto expressly agrees that
(a) before executing this Agreement, it has fully informed itself of the terms,
contents, conditions and effects of this Agreement; (b) it has relied solely and
completely upon its own judgment in executing this Agreement; (c) it has had the
opportunity to seek and has obtained the advice of counsel before executing this
Agreement; (d) it has acted voluntarily and of its own free will in executing
this Agreement; (e) it is not acting under duress, whether economic or physical,
in executing this Agreement; and (f) this Agreement is the result of arm's
length negotiations conducted by and among the parties and their respective
counsel.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       11
<PAGE>   14
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the day and year first above written.

                                    KELLSTROM INDUSTRIES, INC., a Delaware
                                    corporation

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

                                    KAV INVENTORY, LLC, a Delaware limited
                                    liability company

                                    By: /s/ Zivi R. Nedivi
                                        ----------------------------------------
                                          Zivi R. Nedivi, Manager

                                    By: /s/ Oscar Torres
                                        ----------------------------------------
                                          Oscar Torres, Manager

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

                                    By: /s/ Michael C. Brant
                                        ----------------------------------------
                                         Michael C. Brant, Manager

                                    AVIATION SALES COMPANY, a Delaware
                                    corporation

                                    By: /s/ Dale S. Baker
                                        ----------------------------------------
                                         Dale S. Baker
                                         Chairman and Chief Executive Officer

                                    AVIATION SALES DISTRIBUTION
                                    SERVICES COMPANY, a Delaware corporation

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

                                       12

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