Document:

March 24, 2000

First Aviation Services Inc.
15 Riverside Avenue
Westport, CT  06880-4214

Gentlemen:

                  This letter, when countersigned by you in the space indicated
below, will evidence the agreement of First Equity Development, Inc. and its
affiliates ("First Equity") and First Aviation Services Inc. ("FAvS") as to the
allocation of potential investment and acquisition opportunities in the
aerospace parts distribution and logistics business. For good and valuable
consideration, the receipt and sufficiency of which hereby are acknowledged, the
parties agree as follows:

                  For that period of time commencing on March 7, 2000 and ending
March 6, 2002, neither First Equity nor any majority-owned subsidiary of First
Equity shall directly or indirectly as a principal (whether solely or jointly
with others) consummate any investment in or acquisition of (whether by way of
merger, purchase of assets, acquisition of any equity security or joint venture
interest or otherwise) a majority voting or economic interest in any aerospace
parts distribution and logistics business that is engaged anywhere in the world
(a "Covered Acquisition") without first notifying FAvS of such intent as set
forth in this letter agreement and complying with the other terms set forth
herein.

                  No later than twenty days prior to the time First Equity or
any majority-owned subsidiary wishes to effect a Covered Acquisition, First
Equity will furnish to the Secretary of FAvS a written notice (a "Notice")
advising FAvS of its desire to effect a Covered Acquisition. The Notice shall
set forth in reasonable detail the relevant information regarding the Covered
Acquisition, including a description of the Covered Acquisition, the proposed
consideration to be paid by First Equity in connection therewith, a summary of
the financial data relied upon by First Equity in arriving at its determination
to effect the transaction and such other information as First Equity reasonably
determines to be relevant. The Secretary of FAvS promptly shall forward the
Notice to the directors of FAvS who are not as of the date of the Notice
affiliated with First Equity (the "Non-Affiliated Directors"). In addition,
following the giving of a Notice, representatives of First Equity will, at the
request of the Non-Affiliated Directors, meet with one or more of the
Non-Affiliated Directors and representatives of FAvS and its legal and financial
advisors to discuss the Covered Acquisition.

                  Within fifteen days of the date that the Secretary of FAvS
receives a Notice, the Non-Affiliated Directors will in writing advise First
Equity whether FAvS is interested in effecting the Covered Acquisition for its
own account on the terms set forth
<PAGE>
March 24, 2000
First Aviation Services
Page 2

in the Notice. In the event FAvS is so interested, then neither First Equity nor
any of its majority-owned subsidiaries will, without the prior consent of FAvS,
enter into any agreement to effect the Covered Acquisition for a period of
thirty days following the date of such notification to First Equity. If,
following the conclusion of such thirty-day period, FAvS has not entered into an
agreement to effect the Covered Acquisition, then First Equity may effect such
Covered Acquisition free of the restrictions of this letter agreement. In the
event the Non-Affiliated Directors advise First Equity that FAvS is not
interested in the Covered Acquisition, then First Equity may, for a period of
sixty days following the date of such notification, enter into an agreement to
effect the Covered Acquisition at a price not below that set forth in the
Notice. Following such sixty-day period (or in the event First Equity wishes to
effect the Covered Acquisition at a price lower than the price set forth in the
Notice), the provisions of this letter agreement will once again apply to the
Covered Acquisition.

                  Notwithstanding anything set forth in this letter agreement to
the contrary, this letter agreement shall not apply to any Covered Acquisition
which is part of an acquisition (whether by way of merger, purchase of assets,
acquisition of any equity security or joint venture interest or otherwise) of a
business (a "Target Business") if the revenue derived by the Target Business
from the business that constitutes the Covered Acquisition in the fiscal year
preceding such acquisition constituted less than 15% of the aggregate net sales
of the Target Business.

                  This letter agreement shall not be deemed in any way to apply
to advisory services performed by First Equity or its affiliates on behalf of
third parties. Except as expressly set forth herein, nothing contained in this
letter agreement shall be deemed to create any obligation on the part of First
Equity to advise FAvS with respect to any Covered Acquisition or with respect to
any other investment or acquisition opportunities. Any fees that may be due and
owing to First Equity by reason of its making FAvS aware of any Covered
Acquisition shall be as mutually agreed by separate agreement between FAvS and
First Equity.

                  Notwithstanding anything set forth in this letter agreement to
the contrary, this letter agreement automatically shall terminate and First
Equity shall have no continuing obligations hereunder from and after the date
that First Equity beneficially owns less than 10% of FAvS's outstanding voting
securities.

                  This letter agreement shall be construed, interpreted and
enforced in accordance with the laws of the state of Connecticut. This letter
agreement sets forth the entire understanding of the parties hereto with respect
to the subject matter hereof and may not be amended, changed or altered except
in writing by the parties hereto. All communications and notices hereunder shall
be in writing and shall be deemed to have been duly given when delivered
personally or by fax to the respective addresses and fax numbers of the parties
as designated by them from time to time.
<PAGE>
March 24, 2000
First Aviation Services
Page 3

                  If the foregoing correctly sets forth your understanding of
our agreement, please so indicate by signing in the place provided for below.

                                                  Very truly yours,

                                                  FIRST EQUITY DEVELOPMENT, INC.

                                                  By: /s/ Aaron P. Hollander
                                                     -----------------------

Accepted and Agreed to:

FIRST AVIATION SERVICES INC.

By: /s/ John A. Marsalisi
    ---------------------March 24, 2000

Mr. John A. Marsalisi
Chief Financial Officer
First Aviation Services Inc.
15 Riverside Avenue
Westport, CT  06880-4214

Re:      ENGAGEMENT LETTER between First Equity Development Inc. and its
affiliate, FED Securities Inc. and First Aviation Services Inc.

Dear Mr. Marsalisi:

This letter will confirm the terms and conditions by which First Equity
Development Inc. and its affiliate, FED Securities Inc. (collectively "First
Equity"), with offices at 15 Riverside Avenue, Westport, Connecticut, has been
engaged to serve as investment counselor and financial advisor to First Aviation
Services Inc. ("FAvS" or the "Company").

The undersigned hereby agree to the following terms and conditions:

1.   Engagement Agreement.  FAvS does hereby engage First Equity as investment
     counselor and financial advisor for the purpose of locating possible
     acquisitions and/or mergers, (hereinafter referred to as "Acquisitions"),
     negotiating such Acquisitions, assisting in locating lenders for
     appropriate credit facilities, negotiating the credit facilities and
     providing advice and support for the implementation of such credit
     facilities, (hereinafter referred to as the "Financing") and for the
     possible divestment of certain assets (hereinafter referred to as
     "Divestment"). The Company agrees to refer all proposals and inquiries with
     respect to any potential Acquisition, Financing and/or Divestment to First
     Equity. Execution of this agreement by both parties reconfirms First
     Equity's authorization to proceed.

2.   Services Provided.  The specific services that First Equity will continue
     to provide throughout this assignment will vary depending upon specific
     needs and market conditions.

     First Equity believes that several aspects of its role will be particularly
     important in assisting in the completion of Acquisitions, Financings and
     Divestments; these include, but are not limited to, the following:
     valuation analysis, assistance with due diligence, development of a
     strategy to identify potential targets, lenders, investors, and acquirors,
     and negotiation of transactions. First Equity will manage the day to day
     aspects of the transactions, bringing in FAvS management at appropriate
     points in the negotiations and discussions to make decisions, thus allowing
     FAvS management to focus on operating the Company's business.
<PAGE>
FAvS Engagement Letter
March 24, 2000
Page 2

3.   Term. Subject to the payment obligations set forth in Section 4 below, this
     Agreement shall be considered effective as of February 1, 2000, and shall
     remain in full force and effect until February 1, 2002, unless otherwise
     amended or terminated as described in Paragraph 6.

4.   Compensation.

     (a) All reasonable out-of-pocket expenses incurred by First Equity,
         including but not limited to transportation, food, lodging, applicable
         sales taxes, etc., in the performance of the services to be rendered
         hereunder, shall be borne by FAvS and reimbursed to First Equity. First
         Equity makes it a practice of keeping its clients' expenses to a
         minimum, while at the same time providing its professionals with a
         productive working environment.

     (b) During the Term of this Agreement, First Equity will receive a retainer
         of thirty thousand dollars in U.S. funds (US $30,000) per month
         (hereinafter referred to as "Retainer").

     (c) In the event that FAvS or any of its subsidiaries or affiliates
         consummates a Financing, an Acquisition or a Divestment (hereinafter
         referred to as the "Closing") and if such agreement shall occur during
         the Term of this Agreement as set forth in Paragraph 3 or within six
         (6) months from the end of the Term, then, upon the Closing, First
         Equity shall be entitled to a fee ("Success Fee") payable in cash in
         U.S. dollars at the Closing. The amount of the Success Fee shall be
         subject to negotiation between First Equity and FAvS, and subject to
         the approval of the independent members of the FAvS Board of Directors.

     (d) The Success Fee shall be reduced by the amount of the Retainer paid
         during the prior twelve months, unless deducted on a prior transaction,
         however, under no circumstances shall the Retainer deducted exceed
         $360,000.

     In the event of an Acquisition or a Divestiture, the Success Fee will be
     based on total consideration which will be deemed to include, but not be
     limited to, the total value of the equity as determined by the final
     purchase price paid for the equity of the Acquisition or Divestiture plus
     any debt assumed by the acquiror.

     In the event that the event is a Financing, then the Success Fee will be
     based on the total credit facility issued to FAvS or any of its
     subsidiaries or affiliates, excluding affiliates that only relate to First
     Equity.

5.   Relationship. Nothing herein shall be deemed to constitute an employment or
     agency relationship between First Equity and FAvS. Nevertheless, nothing
     contained herein shall be deemed to preclude the creation of such
     relationship by separate agreement of the parties, in writing, for a
     particular purpose. Except as expressly agreed to in writing, First Equity
     shall not have the authority to obligate, bind or commit FAvS in any manner
     whatsoever.
<PAGE>
FAvS Engagement Letter
March 24, 2000
Page 3

     Recognizing that transactions of the type contemplated in this engagement
     sometimes result in litigation, and that First Equity's role is advisory,
     FAvS agrees to indemnify First Equity (including its affiliated entities
     and its officers, directors, agents, employees and controlling persons) to
     the full extent lawful against claims, losses and expenses incurred
     (including the expense of investigation, preparation and reasonable fees
     and disbursements of First Equity and such persons' counsel) arising out of
     First Equity's engagement as per this letter, and if indemnification were
     for any reason not to be available, to contribute to the settlement, loss
     or expenses involved in the proportion that FAvS' economic interest bears
     to First Equity's economic interest in any transaction. However, such
     indemnification and contribution shall not apply to any claim, loss or
     expense which arises from First Equity's gross negligence or willful
     misconduct in the performance of its services hereunder or which relate to
     matters not envisioned by this letter.

     First Equity shall use due care to avoid any litigation or claims relating
     to First Equity's services hereunder. In the event of such claim or
     litigation, First Equity shall immediately notify the Chief Executive
     Officer of FAvS in writing, and shall cooperate and assist FAvS in the
     defense and/or settlement of same. FAvS' obligation to indemnify First
     Equity is conditioned upon such cooperation and assistance and FAvS shall
     have the complete right to defend or settle any such indemnified claims
     and/or litigation. First Equity may elect to have separate legal
     representation at First Equity's expense.

6.   Assignment, Amendment and Termination. This Agreement shall not be
     assignable by either party except to successors to all or substantially all
     of the business of either. Further, this Agreement shall not be amended or
     terminated by either party for any reason whatsoever except with 30 days
     written notice and with the prior written consent of the other party, which
     consent may not be arbitrarily withheld by the party whose consent is
     required. However, should FAvS terminate this Agreement prior to February
     1, 2002, FAvS would be liable for any Retainers due but unpaid, any out of
     pocket expenses that are due and unpaid as well as for any Success Fees
     payable as per the terms defined in Section 4c.
<PAGE>
FAvS Engagement Letter
March 24, 2000
Page 4

7.   Contract Interpretation.  This Agreement is subject to, and will be
     interpreted, in accordance with the laws of the State of Connecticut.

ACCEPTED AND APPROVED BY:

     /s/ John A. Marsalisi                         /s/ Aaron P. Hollander
     --------------------------------              ----------------------
     John A. Marsalisi                             Aaron P. Hollander
     Chief Financial Officer                       Managing Director
     First Aviation Services Inc.                  First Equity Development Inc.

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