Document:

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                                                                   Exhibit 10.25

                           PROCEEDS SHARING AGREEMENT

         This PROCEEDS SHARING AGREEMENT is made on July 17, 2002, by and among
BANK OF AMERICA, N.A., a national banking association in its capacity as
administrative and collateral agent (together with its successors in such
capacity, the "Agent") for the Pre-Petition Lenders (as defined below) under the
Syndicated Loan Agreement (as defined below); each of the Pre-Petition Lenders;
JAMES VENTURES, L.P., a Texas limited partnership ("James Ventures"); ROBERT
BELFER, an individual resident of the State of New York ("Belfer"); LJH, LTD., a
Texas limited partnership and successor-in-interest to LJH Corporation ("LJH");
DON A. SANDERS, an individual resident of the State of Texas ("Sanders";
together with James Ventures, Belfer, LJH, and their respective heirs,
successors and permitted assigns, the "AVS Investors" and individually, an "AVS
Investor"); and J. WILLIAM BOYAR, an individual resident of the State of Texas
not individually but solely as trustee for the AVS Investors (the "AVS Investor
Trustee").

                                    Recitals:

         Kellstrom Industries, Inc., a Delaware corporation ("Kellstrom"),
Kellstrom Commercial Aircraft, Inc., a Delaware corporation ("Kellcad"),
Kellstrom Solair, Inc., a Florida corporation ("Solair"), Certified Aircraft
Parts, Inc., a Florida corporation ("Certified"), Aircraft 21801, Inc., a
Delaware corporation ("21801"), and Aircraft 21805, Inc., a Delaware corporation
("21805"), are parties to that certain Amended and Restated Loan and Security
Agreement dated as of December 14, 1998 (as at any time amended, the "Syndicated
Loan Agreement"), with various lenders (the "Pre-Petition Lenders"), Agent and
Banc of America Securities LLC, as syndication agent ("Syndication Agent").

         Pursuant to that certain Real Estate Mortgage, Assignment of Rents and
Security Agreement dated as of February 1, 1999, executed by Kellstrom in favor
of Agent for the benefit of the Pre-Petition Lenders (the "Syndicated
Mortgage"), Kellstrom has granted to Agent, for its benefit and the benefit of
the Pre-Petition Lenders, a lien on certain real property and related
improvements located at or near 1100 International Parkway, Sunrise, Florida, to
secure indebtedness of up to $9,000,000.

         The AVS Investors and Kellstrom are parties to a certain Agreement with
Respect to Standby Letter of Credit Facility dated December 1, 2000 (as at any
time amended, the "AVS Investor LC Agreement") in connection with which the AVS
Investors caused to be issued certain letters of credit in favor of Agent, for
the benefit of the Pre-Petition Lenders, in the aggregate amount of $8,000,000
(the "AVS Investor Letters of Credit").

         Kellstrom's obligation to reimburse the AVS Investors for any draws
under AVS Investor Letters of Credit was evidenced by, among other things, four
certain Promissory Notes, each in the original principal amount of $2,000,000,
made by Kellstrom and payable to the order of an AVS Investor (the "AVS Investor
Notes").

         Agent submitted draws, in the aggregate amount of $8,000,000, under the
AVS Investor Letters of Credit on or about October 17 and 18, 2001, and such
draws caused a funding under the AVS Investor Notes.

         Kellstrom's obligation to reimburse the AVS Investors for any draws
under AVS Investor Letters of Credit, and to pay the AVS Investor Notes, was
secured by a collateral assignment of direct or indirect cash

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         proceeds from the sale of any or all of the Property (as defined
below), as set forth in that certain Collateral Assignment of Proceeds dated as
of December 1, 2000, among Kellstrom and the AVS Investors (as at any time
amended, the "AVS Investor Collateral Assignment") and an Agreement Not To
Encumber dated as of December 1, 2000, among Kellstrom and the AVS Investors (as
at any time amended, the "AVS Investor Negative Pledge").

         Agent and the AVS Investors have previously entered into that certain
Intercreditor Agreement dated as of December 1, 2000 (as at any time amended,
the "Prior Intercreditor Agreement"), to set forth their agreements with respect
to the application of any proceeds from the Property.

         The parties hereto desire to enter into this Agreement to set forth
their agreements with respect to the Property and any proceeds thereof and
setting forth certain other agreements between them with respect to the Debtors.

         NOW, THEREFORE, in consideration of the foregoing premises, the mutual
covenants and conditions herein contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby expressly
acknowledged, the parties hereto, intending to be bound hereby, agree as
follows:

         1.       Certain  Definitions.  In  addition to the terms  defined in
the  recitals  hereto,  as used in this  Agreement,  the following terms shall
have the following meanings for the purposes of this Agreement:

                  "Acceptable Bankruptcy Plan" shall mean a Bankruptcy Plan, in
         form and substance acceptable to Agent and the Pre-Petition Lenders,
         which, among other things, provides that Agent shall have Control of
         the Property.

                  "Affiliate" shall mean, with respect to a Person, (a) any
         partner, officer, shareholder (if holding more than 10% of the
         outstanding shares of capital stock of such Person), director, employee
         or managing agent of such Person, (b) any other Person that, (i)
         directly or indirectly through one or more intermediaries, controls, or
         is controlled by, or is under common control with, such given Person,
         (ii) directly or indirectly beneficially owns or holds 10% or more of
         any class of voting stock or partnership or other voting interest of
         such Person or any subsidiary of such Person, or (iii) 10% or more of
         the voting stock or partnership or other voting interest of which is
         directly or indirectly beneficially owned or held by such Person or a
         subsidiary of such Person. For purposes of this definition, the term
         "control" and the related terms "controls" and "controlled"shall mean
         the possession, directly or indirectly, of the power to direct or cause
         the direction of the management and policies of a Person, whether
         through ownership of voting securities or partnership or other voting
         interests, by contract or otherwise.

                  "Aggregate Carrying Costs" shall mean the aggregate amount of
         Carrying Costs incurred during the period from the date of this
         Agreement until the consummation of a Qualifying Disposition, minus the
         aggregate amount of Rental Payments and Net Insurance Proceeds, if any,
         received during such period and applied to pay or reimburse Agent or
         Pre-Petition Lenders for such Carrying Costs.

                  "Agreement" shall mean this Proceeds Sharing Agreement, as the
         same may be modified, amended or supplemented from time to time.

                  "ASDSC" shall mean Aviation Sales Distribution Services
         Company, a Delaware corporation.

                  "Asset Sale Agreement" shall mean the Asset Sale Agreement
         dated as of February 20, 2002, among Buyer and Sellers, as the same may
         be modified, amended or supplemented from time to time.

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                  "Association Lien" shall mean the lien claimed by the Sawgrass
         International Corporate Park Association, Inc. against Kellstrom
         relating to past due maintenance and assessment fees in the amount of
         $31,784.56, as recorded on February 12, 2002, in Official Records Book
         32754, Page 1029 of the Public Records of Broward County, Florida.

                  "AVS" shall mean TIMCO Aviation Services, Inc., a Delaware
         corporation formerly known as Aviation Sales Company.

                  "AVS Investor Collateral Assignment" shall have the meaning
         set forth in the Recitals.

                  "AVS Investor LC Agreement" shall have the meaning set forth
         in the Recitals.

                  "AVS Investor Letters of Credit" shall have the meaning set
         forth in the Recitals.

                  "AVS Investor Loan Documents" shall mean and include AVS
         Investor LC Agreement, the AVS Investor Notes, the AVS Investor
         Collateral Assignment, the AVS Investor Negative Pledge, and all other
         instruments or agreements now or hereafter evidencing or securing the
         payment of the whole or any part of the AVS Investor Obligations.

                  "AVS Investor Negative Pledge" shall have the meaning set
         forth in the Recitals.

                  "AVS Investor Notes" shall have the meaning set forth in the
         Recitals.

                  "AVS Investor Obligations" shall mean and include all
         liabilities and obligations of any or all Debtors to the AVS Investors
         or the AVS Investor Trustee, whether now or hereafter created, incurred
         or arising, and whether direct or indirect, absolute or contingent,
         primary or secondary, due or to become due, joint or several,
         including, without limitation, all liabilities now or at any time or
         times hereafter owing to the AVS Investors or the AVS Investor Trustee
         under any of the AVS Investor Loan Documents.

                  "AVS Investor Release" shall mean a Mutual Release among the
         AVS Investors, AVS Investor Trustee, Agent, Syndication Agent and
         Pre-Petition Lenders in the form attached hereto as Exhibit B.

                  "AVS Investor Trustee" shall have the meaning set forth in the
         Recitals.

                  "AVS Parties" shall mean the AVS Investors and the AVS
         Investor Trustee, and each of their respective Affiliates and
         successors.

                  "AVS Party Purchase Term" shall mean the period starting on
         the date of this Agreement and ending on the later to occur of (a) 90
         days after the date the Agent obtains Control of the Property or (b)
         October 31, 2003.

                  "AVS/ASDSC Release" shall mean a Mutual Release among AVS,
         ASDSC, KAV Agent, KAV Lenders, Agent, Syndication Agent and
         Pre-Petition Lenders in the form attached hereto as Exhibit D.

                  "Bankruptcy Cases" shall mean the Debtors' cases under Chapter
         11 of the Bankruptcy Code pending in the Bankruptcy Court and any case
         under Chapter 7 of the Bankruptcy Code to which any such Chapter 11
         Case may hereafter be converted.

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                  "Bankruptcy Code" shall mean title 11 of the United States
         Code.

                  "Bankruptcy Court" shall mean the United States Bankruptcy
         Court for the District of Delaware.

                  "Bankruptcy Plan" shall mean a joint plan of liquidation
         proposed by Debtors or any other Person in the Bankruptcy Cases.

                  "Bankruptcy Plan Transfer" shall mean the transfer of the
         Property by Kellstrom to a liquidating trust for the benefit of Agent
         and Pre-Petition Lenders (subject to the terms and provisions of this
         Agreement) pursuant to a Bankruptcy Plan.

                  "Buyer" shall mean KIAC, Inc., a Delaware corporation.

                  "Carrying Costs" shall mean the actual out-of-pocket costs
         incurred by any Debtor, any Owner, any Pre-Petition Lender or Agent (or
         any of their respective successors or assigns) from the date of this
         Agreement through the date of a Qualifying Disposition to insure,
         maintain, protect and repair any of the Property, to discharge any
         adverse liens or claims upon any of the Property and to ensure that any
         of the Property complies with all applicable laws, including, without
         limitation, any and all real estate taxes, insurance costs, reasonable
         maintenance and upkeep expenses for all or any part of the Property,
         environmental remediation expenses, property owners association dues
         and utilities (but specifically excluding any principal and interest
         payments made or owing by any Debtor under the Syndicated Loan
         Documents or any other loan secured by a lien on all of any part of the
         Property).

                  "Control" shall mean the ability of the Agent, whether
         directly or indirectly, (a) lawfully to prevent any sale or other
         disposition of the Property on terms that are unacceptable to Agent
         (whether pursuant to a Disposition Order, an Acceptable Bankruptcy Plan
         or otherwise), (b) lawfully to cause the sale or other disposition of
         the Property on terms that are acceptable to Agent (whether pursuant to
         a Disposition Order, an Acceptable Bankruptcy Plan or otherwise), and
         (c) lawfully to direct application of Net Cash Proceeds from the
         Property for application to the Syndicated Obligations.

                  "Debtors" shall mean Kellstrom,  Kellcad, Solair, Certified,
         21801, 21805, DC-9 Aircraft Holdings,  L.L.C., a Nevada limited
         liability company, and DC-9 Aircraft Holdings II, L.L.C., a Delaware
         limited liability company.

                  "Disposition Agreement" shall have the meaning ascribed to it
         in Section 3 hereof.

                  "Disposition Motion" shall mean a motion that may be filed by
         Debtors with the Bankruptcy Court seeking approval and ratification of
         a Disposition Agreement.

                  "Disposition Order" shall mean an order of the Bankruptcy
         Court, in form and substance acceptable to Agent and the AVS Investors,
         either (a) approving the relief requested in a Disposition Motion, or
         (b) otherwise allowing Agent lawfully to prevent any sale or other
         disposition of the Property on terms that are unacceptable to Agent.

                  "Enforcement Action" shall mean the commencement of any action
         (including, without limitation, judicial action, exercise of self-help
         or power of sale), suit or proceeding by Agent pursuant to the
         Syndicated Mortgage or any other security document to foreclose or
         otherwise enforce any lien upon, sell, seize, levy, execute upon,
         attach, sequester, appoint a receiver for or otherwise dispose of any
         of the

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         Property, but shall exclude (i) any assertion by Agent of its lien on
         any of the Property as the basis for an objection to a sale of any of
         the Property under Section 363 of the Bankruptcy Code or for obtaining
         the proceeds from any sale or other disposition of any of the Property,
         whether or not such sale or other disposition is a Qualifying
         Disposition, (ii) any consent by Agent or withholding by Agent of its
         consent to any sale or other disposition of any of the Property,
         whether or not such sale or other disposition is a Qualifying
         Disposition, and (iii) any direction by Agent to cause the sale or
         other disposition of any of the Property at any time Agent has Control
         of any of the Property, whether or not such sale or other disposition
         is a Qualifying Disposition.

                  "Initial Sharing Term" shall mean the period starting on the
         date of this Agreement and ending on the earlier to occur of (a) the
         365 days after the date of the confirmation of an Acceptable Bankruptcy
         Plan or (b) October 31, 2003.

                  "KAV" shall mean KAV Inventory, LLC, a Delaware limited
         liability company.

                  "KAV Agent" shall mean Bank of America, N.A., a national
         banking association, in its capacity as agent for the KAV Lenders.

                  "KAV Lenders" shall mean the various financial institutions
         from time to time party to the KAV Loan Agreement as lenders.

                  "KAV Loan Agreement" shall mean that certain Loan and Security
         Agreement dated as of December 1, 2000, among KAV, the KAV Lenders and
         the KAV Agent, as the same may be modified, amended or supplemented
         from time to time.

                  "KAV Release" shall mean a Mutual Release among KAV, KAV
         Agent, KAV Lenders, Agent, Syndication Agent and Pre-Petition Lenders
         in the form attached hereto as Exhibit C.

                  "Kellstrom" shall have the meaning set forth in the Recitals.

                  "Net Cash Proceeds" shall mean proceeds (including, without
         limitation, cash payments that are received on account of deferred
         payment obligations as and when received) that Agent receives (or is
         lawfully entitled to receive) and, except for the sharing provisions
         set forth herein, is entitled to retain for the benefit of itself and
         the Pre-Petition Lenders in cash from the sale, transfer or other
         disposition of any of the Property, after payment of all reasonable and
         customary costs and expenses of such sale, transfer or other
         disposition (including, without limitation, legal fees, sales
         commissions, property taxes and any payments made to satisfy the
         Association Lien and any other prior encumbrances other than any
         amounts owing to the Agent and Pre-Petition Lenders under the
         Syndicated Loan Documents or the AVS Investors or the AVS Investor
         Trustee under the AVS Investor Loan Documents); provided that Net Cash
         Proceeds shall not include any Rental Payments or Net Insurance
         Proceeds.

                  "Net Insurance Proceeds" shall mean cash proceeds received by
         Agent (or which Agent is lawfully entitled to receive) and, except for
         the sharing provisions set forth herein, which Agent is entitled to
         retain for the benefit of itself and the Pre-Petition Lenders on
         account of any insurance on any of the Property, but excluding any
         insurance proceeds used for the repair or replacement of any loss of or
         damage to any of the Property.

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                  "Owner" shall mean, as appropriate, Kellstrom, any successor
         owner or transferee of any of the Property pursuant to a Bankruptcy
         Plan Transfer, or Agent or an Affiliate of Agent following a
         foreclosure sale in which Agent or such Affiliate of Agent becomes the
         owner of any of the Property.

                  "Person" shall mean an individual, limited liability company,
         corporation, partnership, association, trust or unincorporated
         organization, joint venture or other entity or a government or any
         agency or political subdivision thereof.

                  "Post-Closing Resolution Agreement" shall mean that certain
         Post-Closing Resolution Agreement dated as of June 10, 2002, among
         Kellstrom, AVS and ASDSC.

                  "Pre-Petition Lenders" shall have the meaning set forth in the
         Recitals.

                  "Prior Intercreditor Agreement" shall have the meaning set
         forth in the Recitals.

                  "Property" shall mean the real property described on Exhibit A
         attached hereto.

                  "Purchase Price" shall mean, with respect to a purchase of the
         Property by an AVS Party, an amount payable in cash equal to $5,500,000
         plus the amount of Aggregate Carrying Costs incurred through the date
         of such purchase.

                  "Qualifying Disposition" shall mean (a) a sale or other
         disposition of the Property that constitutes a transfer of fee simple
         title to the Property by Owner which results in Net Cash Proceeds being
         received by Agent, but shall exclude, without limitation, any
         Bankruptcy Plan Transfer or (b) a foreclosure by Agent upon the
         Property under the Syndicated Loan Documents or applicable law pursuant
         to which fee simple title to the Property is transferred to a Person
         who is not Agent, any Pre-Petition Lender, an Affiliate of Agent or an
         Affiliate of any Pre-Petition Lender and which results in Net Cash
         Proceeds being received by Agent, for its benefit and the benefit of
         the Pre-Petition Lenders, but shall exclude, without limitation, (i)
         any foreclosure by Agent upon the Property in which Agent or an
         Affiliate of Agent acquires the Property as a result of a credit bid or
         in exchange for debt forgiveness and (ii) any purchase of the Property
         by Agent, any Pre-Petition Lender, an Affiliate of Agent, or an
         Affiliate of any Pre-Petition Lender by credit bid of any of the
         Syndicated Obligations at a sale under Section 363 of the Bankruptcy
         Code or pursuant to a Bankruptcy Plan. A Qualifying Disposition shall
         not include any lease of any of the Property that does not result in
         the transfer of fee simple title to the Property.

                  "Rental Payments" shall mean any rental payments received by
         Agent (or which Agent is entitled to receive) and, except for the
         sharing provisions set forth herein, which Agent is entitled to retain
         for the benefit of itself and the Pre-Petition Lenders from the lease
         by Owner (with Agent's prior written consent) of some or all of the
         Property to any Person after the date of this Agreement.

                  "Sellers" shall mean, collectively, Kellstrom, Solair,
         Certified and Kellcad.

                  "Syndicated Loan Agreement" shall have the meaning ascribed to
         it in the Recitals.

                  "Syndicated Loan Documents" shall mean and include the
         Syndicated Loan Agreement, the Syndicated Mortgage and all other
         instruments or agreements now or hereafter evidencing or securing the
         payment of the whole or any part of the Syndicated Obligations.

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                  "Syndicated Mortgage" shall have the meaning ascribed to it in
         the Recitals.

                  "Syndicated Obligations" shall mean and include all
         liabilities and obligations of any or all Debtors to Agent or any
         Pre-Petition Lender, whether heretofore or hereafter created, incurred
         or arising, and whether direct or indirect, absolute or contingent,
         primary or secondary, due or to become due, joint or several,
         including, without limitation, all liabilities heretofore or at any
         time or times hereafter owing to Agent or any Pre-Petition Lender under
         any of the Syndicated Loan Documents. For purposes hereof, all Carrying
         Costs incurred from the date of this Agreement through the date of a
         Qualifying Disposition shall be deemed a part of the Syndicated
         Obligations.

                  "Syndication Agent" shall have the meaning set forth in the
         Recitals.

         2. Termination of Prior Intercreditor Agreement. The parties hereto
agree that the Prior Intercreditor Agreement is hereby terminated and shall no
longer be of any force or effect and that none of the parties hereto shall have
any liabilities or obligations thereunder. The AVS Investor Trustee and the AVS
Investors agree to execute and deliver all terminations and satisfactions, if
any, necessary to effectuate such termination.

         3. Disposition Agreement. Promptly after the execution and delivery of
this Agreement, the Agent and AVS Investors will diligently and in good faith
attempt to negotiate with Debtors an agreement allowing Agent lawfully to
prevent any sale or other disposition of the Property on terms that are
unacceptable to Agent (the "Disposition Agreement"), and the Agent and the AVS
Investors will support a Disposition Motion, if any is filed, seeking entry of a
Disposition Order.

         4.       Disposition and Purchase Rights.

                  (a) Purchase of Property by an AVS Party. If and for so long
         as Agent has Control of the Property, Agent and Pre-Petition Lenders
         agree that, during the AVS Party Purchase Term, they will consent to a
         sale of the Property to an AVS Party upon the following terms and
         subject to the following conditions: (i) such sale is closed and the
         Purchase Price paid prior to the expiration of the AVS Party Purchase
         Term; (ii) the cash purchase price to be paid by such AVS Party is at
         least equal to the Purchase Price; (iii) the Agent receives (and is
         authorized to retain for the benefit of itself and the Pre-Petition
         Lenders) all of the Net Cash Proceeds from such sale for application to
         the Syndicated Obligations; (iv) the sale is on an as-is, where-is
         basis, without recourse to Agent, Pre-Petition Lenders or Owner; and
         (v) a Qualifying Disposition of the Property has not been previously
         concluded. If Agent does not have Control of the Property, Agent and
         Pre-Petition Lenders agree that they will not object to and will
         support a sale of the Property to an AVS Party if each of the foregoing
         terms and conditions set forth in this Section 4(a) is satisfied.
         Neither Agent nor any Pre-Petition Lender shall be charged with any
         notice that a Person other than an AVS Investor or the AVS Investor
         Trustee is an AVS Party unless Agent shall have previously received
         written notice from the AVS Investor Trustee that such Person is an AVS
         Party.

                  (b) Agent's Rights to Foreclose and Consent to Sale. Subject
         to the provisions of Sections 6, 7 and 8 of this Agreement regarding
         the sharing of proceeds from a Qualifying Disposition of the Property,
         (i) Agent shall at all times have the sole and exclusive right, subject
         to clause (b) of Section 10, to undertake or refrain from undertaking
         any Enforcement Action with respect to the Property, including, without
         limitation, the right to foreclose upon, sell, transfer, liquidate or
         otherwise dispose of the Property for any amount (including, without
         limitation, for cash or non-cash

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         consideration), all as provided in the Syndicated Loan Documents or by
         applicable law, in the manner deemed appropriate by Agent, without
         regard to any claims or interests of the AVS Investors or the AVS
         Investor Trustee with respect to the Property, provided that, to the
         extent such Enforcement Action does not result in a Qualifying
         Disposition, the rights of the AVS Investors and the AVS Investor
         Trustee under this Agreement shall remain in full force and effect, and
         (ii) Agent shall have the right to consent to any sale or other
         disposition of the Property by Owner for any amount, without regard to
         any claims or interests of the AVS Investors or the AVS Investor
         Trustee with respect to the Property, provided that if Agent does not
         have Control of the Property, Agent shall not consent to or support a
         sale of the Property during the Initial Sharing Term to any purchaser
         for a gross purchase price less than $8,000,000 (other than to an AVS
         Party for an amount equal to the Purchase Price) and shall object (in
         which objection Agent shall endeavor to raise all known grounds
         reasonably believed by Agent to be a basis for such objection under
         Section 363 of the Bankruptcy Code) to any such sale that may be
         proposed by Owner.

                  (c) Notice to AVS Investor Trustee of Proposed Sale. If Agent
         has Control of the Property and elects to cause or consent to any sale
         or other disposition of the Property to a purchaser (other than an AVS
         Party) during the Initial Sharing Term pursuant to a transaction that
         would constitute a Qualifying Disposition upon its consummation, Agent
         shall promptly notify the AVS Investor Trustee in writing (a "Sale
         Notice") of such election, setting forth the terms and conditions of
         any such proposed sale (a "Proposed Sale"). If (i) the purchase price
         for the Property pursuant to such Proposed Sale is less than a gross
         amount of $8,000,000 and (ii) Agent has received, within ten (10) days
         after transmittal of the Sale Notice to the AVS Investor Trustee, a
         duly executed binding commitment (without a financing contingency) from
         an AVS Party, in form and substance acceptable to Agent in its sole
         discretion, to purchase the Property, within thirty (30) days after
         Agent's receipt such commitment, on an as-is, where-is basis and
         without recourse to Agent, Pre-Petition Lenders or Owner for an amount
         in cash equal to the lesser of (i) the gross purchase price proposed to
         be paid in connection with the Proposed Sale or (ii) the Purchase
         Price, then Agent agrees it will not cause or consent to the Proposed
         Sale until after the end of such thirty (30) day period.

                  (d) Application of Net Cash Proceeds. In the event the
         Property is sold to an AVS Party, whether pursuant to Section 4(a),
         Section 4(c) or otherwise, Agent shall be entitled to receive (and
         retain for the benefit of itself and the Pre-Petition Lenders) all of
         the Net Cash Proceeds from such sale.

         5. Dispositions Other than a Qualified Disposition. The parties hereto
agree that any sale, transfer or other disposition of the Property at any time,
whether or not during the Initial Sharing Term, that does not constitute a
Qualifying Disposition shall not trigger any of the provisions of Sections 6, 7
or 8 hereof, and this Agreement shall continue in full force and effect. Agent
shall not transfer or otherwise assign any lien on the Property unless the
assignee agrees to be bound by the provisions of this Agreement.

         6.       Proceeds  Sharing From Qualifying  Disposition  Without
Control.  If at any time during the Initial Sharing Term the Property is sold
or otherwise  disposed of to a Person (other than an AVS Party)  pursuant to a
Qualifying  Disposition  at a time when the Agent does not have Control of the
Property, then

                  (a) provided Agent filed with the Bankruptcy Court an
         objection to such Qualifying Disposition (in which objection Agent
         shall endeavor to raise all known grounds reasonably believed by Agent
         to be a basis for such objection under Section 363 of the Bankruptcy
         Code) and advocated such objection at any hearing, but such Qualifying
         Disposition was consummated notwithstanding such objection, then (i)
         first, Agent, for its benefit and the benefit of the Pre-Petition
         Lenders, shall be entitled to retain from the Net Cash Proceeds of a
         Qualifying Disposition an amount equal to the Aggregate

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         Carrying Costs, for application to the Syndicated Obligations,
         (ii) second, Agent, for its benefit and the benefit of the Pre-Petition
         Lenders, shall be entitled to retain the next $5,500,000 of the Net
         Cash Proceeds of such Qualifying Disposition, for application to the
         Syndicated Obligations, (iii) third, the AVS Investor Trustee, for the
         benefit of the AVS Investors, shall be entitled to receive the next Net
         Cash Proceeds of such Qualifying Disposition in an amount not to exceed
         the remainder of $8,000,000 minus the Aggregate Carrying Costs, for
         application to the AVS Investor Obligations, and (iv) fourth, Agent,
         for its benefit and the benefit of the Pre-Petition Lenders, shall be
         entitled to retain all remaining Net Cash Proceeds of such Qualifying
         Disposition, for application to the Syndicated Obligations; or

                  (b) provided Agent did not file an objection with the
         Bankruptcy Court to such Qualifying Disposition, then (i) first, Agent,
         for its benefit and the benefit of the Pre-Petition Lenders, shall be
         entitled to retain from the Net Cash Proceeds of such Qualifying
         Disposition an amount equal to the Aggregate Carrying Costs for
         application to the Syndicated Obligations, (ii) second, the AVS
         Investor Trustee, for the benefit of the AVS Investors, shall be
         entitled to receive from the next Net Cash Proceeds of such Qualifying
         Disposition an amount not to exceed the remainder of $8,000,000 minus
         the Aggregate Carrying Costs, for application to the AVS Investor
         Obligations, and (iii) third, Agent, for its benefit and the benefit of
         the Pre-Petition Lenders, shall be entitled to retain all remaining Net
         Cash Proceeds of such Qualifying Disposition, for application to the
         Syndicated Obligations.

         7. Proceeds Sharing From Qualifying Disposition With Control. If at any
time during the Initial Sharing Term the Property is sold or otherwise disposed
of to a Person (other than an AVS Party) pursuant to a Qualifying Disposition at
a time when the Agent has Control of the Property, then (a) first, Agent, for
its benefit and the benefit of the Pre-Petition Lenders, shall be entitled to
retain from the Net Cash Proceeds of such Qualifying Disposition an amount equal
to the Aggregate Carrying Costs, for application to the Syndicated Obligations,
(b) second, the AVS Investor Trustee, for the benefit of the AVS Investors,
shall be entitled to receive the next Net Cash Proceeds of such Qualifying
Disposition in an amount not to exceed the remainder of $8,000,000 minus the
Aggregate Carrying Costs, for application to the AVS Investor Obligations, and
(c) third, Agent, for its benefit and the benefit of the Pre-Petition Lenders,
shall be entitled to retain all remaining Net Cash Proceeds of such Qualifying
Disposition, for application to the Syndicated Obligations.

         8. Proceeds Sharing From Qualifying Disposition After Initial Sharing
Term. After the expiration of the Initial Sharing Term, the Property may be sold
pursuant to a Qualifying Disposition (regardless of any date on which any
purchase offer was originally made) on such terms and for such a purchase price
as may be acceptable to Agent in its discretion, and, in the event of such
Qualifying Disposition, then (a) first, Agent, for its benefit and the benefit
of the Pre-Petition Lenders, shall be entitled to retain from the Net Cash
Proceeds of such Qualifying Disposition an amount equal to the Aggregate
Carrying Costs, for application to the Syndicated Obligations, (b) second,
Agent, for its benefit and the benefit of the Pre-Petition Lenders, shall be
entitled to retain from the Net Cash Proceeds of such Qualifying Disposition the
next $9,000,000, for application to the Syndicated Obligations, (c) third, the
AVS Investor Trustee, for the benefit of the AVS Investors, shall receive
payment of the next $8,000,000 from the Net Cash Proceeds of such Qualifying
Disposition, for application to the AVS Investor Obligations, and (d) fourth,
Agent, for its benefit and the benefit of the Pre-Petition Lenders, shall be
entitled to retain all remaining Net Cash Proceeds of such Qualifying
Disposition, for application to the Syndicated Obligations.

         9. Proceeds Sharing from Lease of Property. Prior to any Qualifying
Disposition of the Property, Agent may, in its sole discretion, consent to the
lease of all or any part of the Property or, when Agent has Control of the
Property, cause the Owner to lease all or any part of the Property, in each case
subject to the following terms and conditions:

                                       9

<PAGE>

                  (a) With respect to any lease entered into during the Initial
         Sharing Term, the lease shall not restrict or impair the right of any
         AVS Party to purchase the Property in accordance with and subject to
         the terms and conditions set forth in Sections 4(a) and (c) hereof and
         shall not contain a purchase option; if the term of such lease
         (including any renewal or option term) is for a period longer than
         eighteen (18) months, the term of the lease and amount of Rental
         Payments shall be mutually acceptable to Agent and the AVS Investor
         Trustee (acting at the direction of the AVS Investors); all Rental
         Payments received under such lease prior to the consummation of a
         Qualifying Disposition shall be applied first to any Carrying Costs
         incurred with respect to the Property after the date of this Agreement,
         next retained by Agent for application to the Syndicated Obligations
         (until Agent and Pre-Petition Lenders have received $9,000,000 of
         Rental Payments for application to the Syndicated Obligations), next
         turned over to the AVS Investor Trustee for application to the AVS
         Investor Obligations (until the AVS Investors and the AVS Investor
         Trustee have received $8,000,000 of Rental Payments for application to
         the AVS Investor Obligations), and thereafter retained by Agent and the
         Pre-Petition Lenders for application to the Syndicated Obligations; any
         Rental Payments payable under such lease after the consummation of a
         Qualifying Disposition shall become the property of the purchaser of
         the Property pursuant to such Qualifying Disposition; and, pending a
         Qualifying Disposition, such lease shall be subject to the liens of
         Agent with respect to the Property.

                  (b) With respect to any lease entered into after the
         expiration of the Initial Sharing Term, or a lease entered into during
         the Initial Sharing Term but renewed after the expiration of the
         Initial Sharing Term, the lease may be for such a period or periods and
         on such terms and conditions as may be acceptable to Agent in its sole
         discretion, and all Rental Payments received by Agent under such lease
         prior the effective date of a Qualifying Disposition shall be applied
         as set forth in clause (a) above of this Section 9.

                  (c) In no event shall the amount of Rental Payments received
         by Agent or any Pre-Petition Lender and applied to the Syndicated
         Obligations reduce the amount of the Purchase Price required to be paid
         by an AVS Party in connection with the purchase of the Property by an
         AVS Party pursuant to this Agreement, except to the extent that such
         Rental Payments are applied to any Carrying Costs.

                  (d) The amount of Rental Payments received by Agent or any
         Pre-Petition Lender and applied to the Syndicated Obligations (other
         than amounts applied to Carrying Costs) shall be credited against the
         amount that Agent and the Pre-Petition Lenders shall be otherwise
         entitled to receive from Net Cash Proceeds and Net Insurance Proceeds
         pursuant to Sections 6(a)(ii), 8(b), 15(b) and 15(c). The amount of
         Rental Payments received by the AVS Investor Trustee or any AVS
         Investor and applied to the AVS Investor Obligations shall be credited
         against the amount that the AVS Investor Trustee and the AVS Investors
         shall be otherwise entitled to received from Net Cash Proceeds and Net
         Insurance Proceeds pursuant to Sections 6(a)(iii), 6(b)(ii), 7(b),
         8(c), 15(b) and 15(c).

         10. Termination of Various Agreements and Return of AVS Investor Notes.
If and when the applicable amount set forth in Section 6, 7 or 8 is paid (or if
the AVS Investors and the AVS Investor Trustee have otherwise received
$8,000,000 for application to the AVS Investor Obligations, whether from the
receipt of Rental Payments or Net Insurance Proceeds as provided in the
Agreement or otherwise), the AVS Investors and AVS Investor Trustee agree that
(a) the AVS Investor Collateral Assignment, the AVS Investor Negative Pledge and
any related documents and public filings shall be terminated and the AVS
Investors and AVS Investor Trustee shall execute and deliver all terminations
and satisfactions necessary to effectuate such terminations, and (b) the AVS
Investors shall deliver the original AVS Investor Notes to Kellstrom marked
"satisfied." Each of the AVS Investors and the AVS Investor Trustee agree that
their sole recourse to payment on account of the AVS

                                       10

<PAGE>

         Investor Obligations shall be the right to share in the proceeds from
the sale or other disposition of the Property as provided in this Agreement and
that they shall not seek a distribution on account of any claim they may have in
any of the Bankruptcy Cases or otherwise seek payment from any Debtor or any
Debtor's estate in any of the Bankruptcy Cases; provided this Section 10 shall
not prohibit the AVS Investors and the AVS Investor Trustee from exercising the
rights set forth in Section 11(c) of this Agreement.

         11.      Limitations Upon Foreclosure Rights of Parties.

                  (a) Notices by Agent. Prior to the expiration of the Initial
         Sharing Term, Agent shall give the AVS Investor Trustee copies of any
         written notices of foreclosure, exercise of remedies and any other
         written notice of a like nature relating to the Property, including,
         without limitation, any such notice which may be given under or
         pursuant to the terms of the Syndicated Loan Documents or pursuant to
         law, which Agent hereafter may give to any Debtor or Owner,
         concurrently with, or as soon as practicable after, the giving of such
         notice to such Debtor or Owner. No failure of Agent to give a copy of
         such notice to the AVS Investor Trustee as provided herein shall in any
         event affect the sharing arrangement set forth herein.

                  (b) Termination of Foreclosure by Agent. If Agent has
         commenced an Enforcement Action with respect to the Property prior to
         the expiration of the Initial Sharing Term, Agent agrees that it will
         discontinue prosecution of such Enforcement Action if, prior to the
         expiration of the Initial Sharing Term and prior to the completion of
         such Enforcement Action, an AVS Party consummates the purchase of the
         Property for a cash amount at least equal to the Purchase Price. Agent
         agrees that, prior to the expiration of the Initial Sharing Term, it
         will not complete any foreclosure sale of the Property that is a
         Qualifying Disposition unless in connection with such Qualifying
         Disposition the AVS Investors receive, in the aggregate, an amount of
         Net Cash Proceeds at least equal to the remainder of $8,000,000 minus
         the Aggregate Carrying Costs.

                  (c) No Enforcement Action by AVS Investor Trustee or AVS
         Investors. For so long as any of the Syndicated Obligations are
         outstanding, the AVS Investor Trustee and each AVS Investor agrees that
         it will not take any Enforcement Action with respect to any Debtor or
         Owner or the whole or any part of the Property. If the AVS Investor
         Trustee or any AVS Investor, in violation of the terms hereof,
         initiates any Enforcement Action against any Debtor or Owner or any of
         the Property, Agent may interpose this Agreement as a defense thereto
         and shall be entitled to specific performance of the terms hereof.
         Nothing herein shall be construed to limit, restrict or impair Agent's
         right to take any Enforcement Action with respect to any of the
         Property or the AVS Investors' right (i) to object to any sale or other
         disposition of the Property under Section 363 of the Bankruptcy Code to
         which Agent has also objected, (ii) to object to the terms of a
         Bankruptcy Plan that is not an Acceptable Bankruptcy Plan, or (iii) to
         raise any claims the AVS Investors may have against the Debtors as a
         defense or offset to any claims brought against the AVS Investors by
         any Debtor.

         120 Conditions Precedent. The effectiveness of this Agreement is
subject to the satisfaction of each of the following conditions precedent on or
before July 31, 2002 (or such later date as may be agreed to in writing by the
parties hereto), in form and substance satisfactory, unless satisfaction thereof
is specifically waived in writing by the parties hereto:

                  (a) The Bankruptcy Court shall have issued a final order
         authorizing Sellers' execution and performance of the Post-Closing
         Resolution Agreement and the other documents and transactions
         contemplated thereby, and with respect to such final order (i) the time
         to appeal or to seek certiorari or

                                       11

<PAGE>

         review has expired and as to which no appeal or petition for
         certiorari or review has been timely filed, or (ii) any timely-filed
         appeal or petition for certiorari or review has been finally determined
         or dismissed;

                  (b) AVS, ASDSC and Kellstrom shall have entered into the
         Post-Closing Resolution Agreement and the other documents contemplated
         thereby and performed all of their respective obligations under the
         Post-Closing Resolution Agreement and such other documents that are to
         be performed on the Resolution Closing Date (as defined in the
         Post-Closing Resolution Agreement);

                  (c)      The Bankruptcy  Court shall have issued an order
         approving the Asset Sale Agreement and the other documents and
         transactions contemplated thereby;

                  (d) Buyer and Sellers shall have executed and delivered all of
         the documents contemplated by the Asset Sale Agreement and performed
         all of their respective obligations under the Asset Sale Agreement and
         such other documents that are to be performed on the Closing Date (as
         defined in the Asset Sale Agreement);

                  (e)      The parties to the AVS Investor Release shall have
         executed and delivered the AVS Investor Release;

                  (f)      The parties to the AVS/ASDSC Release shall have
         executed and delivered the AVS/ASDSC Release; and

                  (g)      The parties to the KAV Release shall have executed
         and delivered the KAV Release.

         130 Mutual Releases. Promptly after satisfaction of the conditions
precedent set forth in clauses (a), (b), (c) and (d) of Section 12 of this
Agreement, (i) Agent and each Pre-Petition Lender shall each execute one or more
counterparts of the AVS Investor Release and deliver them to the AVS Investor
Trustee, and the AVS Investors and the AVS Investor Trustee shall each execute
one or more counterparts of the AVS Investor Release and deliver them to the
Agent, (ii) Agent and each Pre-Petition Lender shall each execute one or more
counterparts of the AVS/ASDSC Release and deliver them to the other parties
thereto, and (iii) Agent and each Pre-Petition Lender shall each execute one or
more counterparts of the KAV Release and deliver them to the other parties
thereto.

         140 Receipt of Monies by AVS Investors and AVS Investor Trustee. Each
AVS Investor and the AVS Investor Trustee agrees that should it receive any
monies from the sale, liquidation, casualty, lease or other disposition of, or
as a result of its security interest in or lien upon any of the Property at any
time prior to payment to Agent, for its benefit and the benefit of the
Pre-Petition Lenders, of all of the Syndicated Obligations, it shall promptly
turn such monies over to Agent for application as provided in Section 4, 6, 7,
8, 9 or 15 hereof, as applicable.

                                       12

<PAGE>

         150      Provisions Concerning Insurance.

                  (a) Each of Agent and AVS Investor Trustee agrees that the
         other party shall be entitled to request loss payee endorsements and
         additional insured status with respect to any and all policies of
         insurance now or hereafter obtained by any Owner insuring casualty or
         other loss to any of the Property. Agent alone shall be authorized to
         file claims, settle disputes, make adjustments and take any and all
         other actions in regard thereto which it may then deem advisable with
         respect to any insured loss with respect to any of the Property. Agent,
         in its sole discretion, may authorize the Owner's use of all or any
         part of the proceeds of property insurance for the repair or
         replacement of any damage to the Property.

                  (b) In the event that any Net Insurance Proceeds are received
         during the Initial Sharing Period, then (i) first, Agent, for its
         benefit and the benefit of the Pre-Petition Lenders, shall be entitled
         to retain from such Net Insurance Proceeds an amount equal to Carrying
         Costs incurred after the date of this Agreement, (ii) second, Agent,
         for its benefit and the benefit of the Pre-Petition Lenders, shall be
         entitled to retain the next $5,500,000 of the Net Insurance Proceeds
         for application to the Syndicated Obligations, (iii) third, the AVS
         Investor Trustee, for the benefit of the AVS Investors, shall be
         entitled to receive the next Net Insurance Proceeds in an amount not to
         exceed the remainder of $8,000,000 minus the Carrying Costs incurred
         after the date of this Agreement, for application to the AVS Investor
         Obligations, and (iv) fourth, Agent, for its benefit and the benefit of
         the Pre-Petition Lenders, shall be entitled to retain all remaining Net
         Insurance Proceeds for application to the Syndicated Obligations.

                  (c) In the event that any Net Insurance Proceeds are received
         after the expiration of the Initial Sharing Period, then (i) first,
         Agent, for its benefit and the benefit of the Pre-Petition Lenders,
         shall be entitled to retain from such Net Insurance Proceeds an amount
         equal to the Carrying Costs incurred after the date of this Agreement,
         (ii) second, Agent, for its benefit and the benefit of the Pre-Petition
         Lenders, shall be entitled to retain from such Net Insurance Proceeds
         the next $9,000,000, for application to the Syndicated Obligations,
         (iii) third, the AVS Investor Trustee, for the benefit of the AVS
         Investors, shall receive payment of the next $8,000,000 from Net
         Insurance Proceeds, for application to the AVS Investor Obligations,
         and (iv) fourth, Agent, for its benefit and the benefit of the
         Pre-Petition Lenders, shall be entitled to retain all remaining Net
         Insurance Proceeds, for application to the Syndicated Obligations.

                  (d) The amount of Net Insurance Proceeds received by Agent or
         any Pre-Petition Lender and applied to the Syndicated Obligations
         pursuant to Section 15(b)(ii) or Section 15(c)(ii) (other than amounts
         applied to Carrying Costs) shall be credited against the amount that
         Agent and the Pre-Petition Lenders shall be otherwise entitled to
         receive from Net Cash Proceeds and Rental Payments pursuant to Sections
         6(a)(ii), 8(b) and 9(a). The amount of Net Insurance Proceeds received
         by the AVS Investor Trustee or any AVS Investor and applied to the AVS
         Investor Obligations pursuant to Section 15(b)(iii) or Section
         15(c)(iii) shall be credited against the amount that the AVS Investor
         Trustee and the AVS Investors shall be otherwise entitled to receive
         from Net Cash Proceeds or Rental Payments pursuant to Sections
         6(a)(iii), 6(b)(ii), 7(b), 8(c) and 9(a).

                  (e) In no event shall the amount of Net Insurance Proceeds
         received by Agent or any Pre-Petition Lender and applied to the
         Syndicated Obligations reduce the amount of the Purchase Price required
         to be paid by an AVS Party in connection with the purchase of the
         Property by an AVS Party pursuant to this Agreement, except to the
         extent that such Net Insurance Proceeds are applied to any Carrying
         Costs.

                                       13

<PAGE>

         160 No Assumption of Liabilities or Duties. Neither this Agreement nor
any action taken by Agent or any Pre-Petition Lender pursuant to the terms
hereof or any of the Syndicated Loan Documents shall constitute an assumption by
Agent or any Pre-Petition Lender of any obligations to pay any Carrying Costs.
Unless and until an AVS Party consummates the purchase of the Property, neither
this Agreement nor any action taken by any AVS Party pursuant to the terms
hereof or any of the AVS Investor Loan Documents shall constitute an assumption
by any AVS Party of any obligations to pay any Carrying Costs. None of the
parties hereto assumes (and shall not have) any liability to any other party to
market, sell, lease, insure, repair, maintain, safeguard or otherwise dispose of
any of the Property. Except as expressly set forth in this Agreement, Agent
shall have no duty or obligation to cause or consent to any sale or lease of any
of the Property.

         170 Notices. All notices, requests and demands to or upon a party
hereto shall be in writing and shall be sent by certified or registered mail,
return receipt requested, personal delivery against receipt or by telecopier or
other facsimile transmission and, unless otherwise expressly provided herein,
shall be deemed to have been validly served, given or delivered when delivered
against receipt or three Business Days after deposit in the U.S. mail, postage
prepaid, or, in the case of facsimile transmission, when received at the office
of the noticed party, addressed as follows:

            (A)      If to any AVS
                     Investor or the AVS
                     Investor Trustee:J. William Boyar, Trustee

                     4265 San Felipe, Suite 1200

                                          Houston, Texas 77027
                                          Telephone:  (713) 850-7766
                                          Fax:  (713) 552-1758

                     with a copy to:      Boyar & Miller
                                          4265 San Felipe, Suite 1200
                                          Houston, Texas 77027
                                          Attention:  Patrick Hayes
                                          Telephone:  (713) 850-7766
                                          Fax:  (713) 552-1758

            (B)      If to Agent:         Bank of America, N.A.
                                          600 Peachtree Street, N.E.
                                          5th Floor
                                          Atlanta, Georgia  30308
                                          Attn.:  Robert J. Walker,
                                                  Business Credit
                                          Telephone:  (404) 607-5387
                                          Fax:  (404) 607-6281

                     with a copy to:      Parker, Hudson, Rainer & Dobbs LLP
                                          285 Peachtree Center Avenue, N.E.,
                                          Suite 1500
                                          Atlanta, Georgia 30303
                                          Attn: C. Edward Dobbs
                                          Telephone:  (404) 523-5300
                                          Fax:  (404) 522-8409

                                       14

<PAGE>

or to such other address as each party (or any successor Owner) may designate
for itself by like notice given in accordance with this Section 17. Any written
notice that is not sent in conformity with the provisions hereof shall
nevertheless be effective on the date that such notice is actually received by
the noticed party.

         180 Relationship of Parties. This Agreement is entered into solely for
the purposes set forth herein, and, except as is expressly provided otherwise
herein, no party assumes any responsibility to the other parties to advise such
other parties of information known to such party regarding the financial
condition of any Debtor or regarding the Property, or of any other circumstances
bearing upon the risk of nonpayment of the obligations of any Debtor under the
Syndicated Loan Documents or the AVS Investor Loan Documents. Each party shall
be responsible for managing its relationship with each Debtor and no party shall
be deemed the agent of any other party for any purpose. The AVS Investors, the
AVS Investor Trustee and the Agent and Pre-Petition Lenders each may alter,
amend, supplement, release, discharge or otherwise modify any terms of the AVS
Investor Loan Documents or of the Syndicated Loan Documents, respectively,
without the consent of the other.

         190 No Debt Subordination. Nothing in this Agreement shall be construed
to be or operate as a subordination of any of the Syndicated Obligations to the
AVS Investor Obligations, or vice versa.

         200 Term of Agreement. This Agreement shall continue in full force and
effect and shall be irrevocable by any party hereto until the earlier to occur
of the following: (i) the parties hereto in writing mutually agree to terminate
this Agreement; or (ii) a Qualifying Disposition has occurred and all Net Cash
Proceeds are distributed by Agent as provided in this Agreement.

         210 Governing Law. This Agreement shall be interpreted, and the rights
and obligations of the parties hereto determined, in accordance with the laws of
the State of Georgia.

         220 No Third Party Beneficiaries. Nothing contained in this Agreement
shall be deemed to indicate that this Agreement has been entered into for the
benefit of any Person other than the parties hereto. No Person other than a
party hereto shall be deemed a beneficiary hereof or be authorized to enforce
any of the terms of this Agreement.

         230 Conflict with Loan Documents. The provisions of this Agreement are
intended by the parties to control any conflicting provisions in the Syndicated
Loan Documents or the AVS Investor Loan Documents.

         240 Section Titles; Severability. The section titles contained in this
Agreement are and shall be deemed to be without substantive meaning or content
of any kind whatsoever and are not a part of the Agreement between the parties
hereto. Wherever possible, each provision of this Agreement shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective only to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

         250 Execution in Counterparts; Telecopied Signatures. This Agreement
may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which counterparts taken together shall
constitute but one and the same instrument. In proving this Agreement in any
judicial proceeding, it shall not be necessary to produce or account for more
than one such counterpart signed by the party against whom such enforcement is
sought. Any signature delivered by a party by facsimile transmission shall be
deemed to be an original signature hereto.

                                       15

<PAGE>

         260 Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and assigns. In no event, however, shall any party hereto transfer or assign any
security interest or lien that it may have in or upon any of the Property or any
rights under this Agreement to any other Person.

                  [Remainder of page intentionally left blank]

                                       16

<PAGE>

         270 Entire Agreement; Amendments. This Agreement expresses the entire
understanding and agreement of the parties hereto with respect to the subject
matter hereof and supersedes all prior understandings and agreements of the
parties regarding the same subject matter, including, without limitation, the
Prior Intercreditor Agreement. This Agreement may not be amended or modified
except by a writing signed by the parties hereto.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                            AGENT:

                                            BANK OF AMERICA, N.A.

                                            By: /s/
                                               ---------------------------------

                                            Title:______________________________

                                            Name:_______________________________

                            [SIGNATURE PAGES OMITTED]

<PAGE>

                                    EXHIBIT A

                             DESCRIPTION OF PROPERTY

Parcel 1:

A portion of Parcel "C", SAWGRASS INTERNATIONAL CORPORATE PARK, according to the
Plat thereof, as recorded in Plat Book 137, Page 28, of the Public Records of
Broward County, Florida, more particularly described as follows:

COMMENCING at the Southeast corner of said Parcel "C", thence North 00 degrees
07 minutes 53 seconds West along the East line of said Parcel "C", 660.20 feet
to the POINT OF BEGINNING; thence North 88 degrees 50 minutes 05 seconds West;
747.82 feet to the East Right of Way line of International Parkway as recorded
in Official Records Book 16136, Page 976 and Official Records Book 17671, Page
829, Public Records of Broward County, Florida; thence North 26 degrees 33
minutes 54 seconds East, along said East Right of Way line, a distance of 924.48
feet to the beginning of a curve concave to the Northwest; thence Northeasterly,
along said East Right of Way line and along the arc of said curve having a
radius of 1128.43 feet, a delta of 11 degrees 02 minutes 06 seconds, and an arc
distance of 217.33 feet to a point; thence South 88 degrees 50 minutes 05
seconds East, a distance of 253.96 feet to the East line of said Parcel "C";
thence South 00 degrees 07 minutes 53 seconds East, along said East line 1039.45
feet to the POINT OF BEGINNING.

Said lands situate, lying and being in Broward County, Florida.

Parcel 2:

A portion of Parcel "C", SAWGRASS INTERNATIONAL CORPORATE PARK, according to the
Plat thereof, recorded in Plat Book 137, Page 28, of the Public Records of
Broward County, Florida, being more fully described as follows:

COMMENCING at the Southeast corner of said Parcel "C", thence North 00 degrees
07 minutes 53 seconds West, on the East line of said Parcel "C", a distance of
1699.65 feet to the POINT OF BEGINNING; thence continuing North 00 degrees 07
minutes 53 seconds West, on the East line, a distance of 390.93 feet; thence
North 88 degrees 50 minutes 05 seconds West, a distance of 212.06 feet; thence
South 00 degrees 07 minutes 53 seconds East, on the East Right-of-Way line of
International Parkway, a distance of 85.36 feet to a point of curve; thence
Southwesterly on the said East Right-of-Way, and on a curve to the right, with a
radius of 1128.43 feet and a central angle of 15 degrees 39 minutes 41 seconds,
an arc distance of 308.45 feet; thence South 88 degrees 50 minutes 05 seconds
East, a distance of 253.96 feet to the POINT OF BEGINNING.

Said lands situate, lying and being in Broward County, Florida.<PAGE>

                                                                   Exhibit 10.26

                                 MUTUAL RELEASE

         This MUTUAL RELEASE (this "Release") is made this 17/th/ day of July,
2002, among JAMES VENTURES, L.P., a Texas limited partnership, ROBERT BELFER, an
individual resident of the State of New York, LJH LTD., a Texas limited
partnership and success-in-interest to LJH Corporation, and DON A. SANDERS, an
individual resident of the State of Texas (collectively, the "AVS Investors,"
and individually an "AVS Investor"); J. WILLIAM BOYAR, an individual resident of
the State of Texas not individually but solely as trustee for the AVS Investors
(the "AVS Investor Trustee"); BANK OF AMERICA, N.A. ("BofA"), in its capacity as
"Agent" (as defined below); each of the Lenders identified on the signature
pages below (each a "Lender" and, collectively, the "Lenders"); and BANC OF
AMERICA SECURITIES LLC, in its capacity as "Syndication Agent" (as defined
below).

                                    Preamble:

         Kellstrom Industries, Inc. ("Kellstrom") and certain of its
subsidiaries (together with Kellstrom, the "Borrowers") entered into a certain
Amended and Restated Loan and Security Agreement dated as of December 14, 1998
(as amended, the "Loan Agreement"), with various financial institutions as
lenders (the "Lenders"), BofA as agent for the Lenders (in such capacity, the
"Agent"), and Banc of America Securities LLC as syndication agent (in such
capacity, the "Syndication Agent"), pursuant to which Lenders from time to time
made loans to Borrowers secured by all or substantially all of each Borrower's
assets. To induce Lenders to make loans to Borrowers pursuant to the terms of
the Loan Agreement, AVS Investors procured certain standby letters of credit for
Agent as beneficiary, for itself and for the ratable benefit of Lenders, in the
aggregate face amount of $8,000,000 (the "AVS Investor Letters of Credit").

         On or about October 17 and 18, 2001, BofA submitted draw requests under
each of the AVS Investor Letters of Credit, with the result that the aggregate
amount of $8,000,000 was received by BofA for the ratable benefit of Lenders and
applied to the obligations then outstanding under the Loan Agreement. AVS
Investors contend that BofA's draws under the AVS Investor Letters of Credit
were not authorized. BofA, in turn, denies such contention by the AVS Investors.

         Kellstrom, TIMCO Aviation Services, Inc., a Delaware corporation
formerly known as Aviation Sales Company ("AVS"), and Aviation Sales
Distribution Services Company, a Delaware corporation ("AVSDC"), are parties to
a certain Post-Closing Resolution Agreement dated as of June 10, 2002 (as at any
time amended, the "Resolution Agreement"), pursuant to which, subject to the
approval of the United States Bankruptcy Court for the District of Delaware and
satisfaction of all conditions precedent set forth therein, the parties have
agreed to settle various claims that each party thereto may have against the
others.

         In connection with the Resolution Agreement, Agent, Syndication Agent,
Lenders, AVS Investors and AVS Investor Trustee are entering into a Proceeds
Sharing Agreement dated July ___, 2002 (the "Sharing Agreement"). A condition to
the effectiveness of the agreements contained in the Sharing Agreement is the
execution and delivery of this Release by the parties hereto.

         Agent, Syndication Agent and Lenders, on the one hand, and AVS
Investors and AVS Investor Trustee, on the other hand, desire that the Sharing
Agreement become effective and, therefore, are willing to execute and

<PAGE>

deliver this Release to release, among things, all disputes and claims arising
from or relating to the AVS Investor Letters of Credit.

         NOW, THEREFORE, in consideration of the premises and the mutual
releases and covenants contained herein, the parties hereto, intending to be
legally bound hereby, agree as follows:

         Section 1. Definitions. As used herein, the following terms shall have
the following meanings ascribed to them:

                  "AVS Investor Indebtedness" shall mean indebtedness of any
         Borrower to any AVS Investor under or with respect to any AVS Investor
         Letter of Credit Document.

                  "AVS Investor Intercreditor Agreement" shall mean the
         intercreditor agreement dated as of December 1, 2000, between Agent and
         AVS Investors with respect to the liens of AVS Investors arising from
         the AVS Investor Letter of Credit Documents, as at any time amended.

                  "AVS Investor Letter of Credit Documents" shall mean all
         documents executed and/or delivered in connection with any AVS Investor
         Letter of Credit, including, without limitation, that certain Purchase
         and Sale Agreement between AVS Investor Trustee and Kellstrom dated
         December 1, 2000, and all reimbursement agreements, warrants,
         promissory notes, credit agreements, certificates and other documents
         with respect thereto, in each case as amended from time to time.

                  "AVSDC Asset Purchase Agreement" shall mean that certain Asset
         Purchase Agreement among Kellstrom, AVS and AVSDC dated as of September
         20, 2000, as amended by four letter agreements dated as of September
         20, 2000, a letter agreement dated as of November 14, 2000, a letter
         agreement dated as of November 17, 2000, and a letter agreement dated
         as of December 1, 2000.

                  "AVSDC Asset Purchase Documents" shall mean, collectively, the
         AVSDC Asset Purchase Agreement, the KAV Consignment Agreement and each
         other agreement, instrument, certificate or other document executed
         and/or delivered in connection with the AVSDC Asset Purchase Agreement.

                  "AVSDC Leased Assets" shall mean certain assets of AVSDC
         consisting of real estate, equipment and fixtures which was leased by
         AVSDC to Kellstrom.

                  "Bank Group Members" shall mean Agent, Syndication Agent and
         Lenders, and, for purposes of Section 2 of this Release, their
         respective officers, directors, agents, attorneys, shareholders,
         subsidiaries, affiliates, successors and assigns.

                  "Claim" shall mean (i) a right to payment, whether or not such
         right is reduced to judgment, liquidated, unliquidated, fixed,
         contingent, matured, unmatured, disputed, undisputed, legal, equitable,
         secured or unsecured; or (ii) a right to an equitable remedy for breach
         of performance if such breach gives rise to a right to payment, whether
         or not such right to an equitable remedy is reduced to judgment, fixed,
         contingent, matured, unmatured, disputed, undisputed, secured or
         unsecured.

                  "KAV" shall mean KAV Inventory, LLC, a Delaware limited
         liability company.

                  "KAV Consignment Agreement" shall mean that certain
         Consignment Agreement between Kellstrom and KAV dated as of December 1,
         2000, as at any time amended.

                                     Page 2

<PAGE>

                  "Party" shall mean a person or entity who is a party to this
         Release.

                  "Sunrise Purchase Documents" shall mean that certain Purchase
         and Sale Agreement between AVS Investor Trustee and Kellstrom dated
         December 1, 2000, and all documents executed and/or delivered in
         connection therewith.

                  "VRDN Real Estate" shall mean Kellstrom's owned real property
         located at 1100 International Parkway, Sunrise, Florida.

         Section 2. Release of Bank Group Members. Each of the AVS Investors and
the AVS Investor Trustee, for himself or itself (as appropriate) and its or his
respective heirs, representatives, successors and assigns, hereby releases,
acquits and forever discharges each of the Bank Group Members of and from any
and all Claims of any nature whatsoever arising prior to or on the date hereof,
which any of the AVS Investors or the AVS Investor Trustee ever had, now have or
claim to have against the Bank Group Members, or any one or more of them, or
which any of the AVS Investors or the AVS Investor Trustee at any time hereafter
acquires, by reason of any matter, cause, or thing arising out of or relating to
(i) any of the AVS Investor Letters of Credit, the AVS Investor Letter of Credit
Documents, the AVSDC Asset Purchase Documents, the AVS Investor Intercreditor
Agreement, the KAV Consignment Agreement, or the Sunrise Purchase Documents, or
any action or failure to act by any of the Bank Group Members under or in
connection with any of the aforesaid documents; (ii) any of the AVS Investor
Indebtedness; or (iii) the efforts by AVS Investors and AVS Investor Trustee, or
any of them, to purchase the VRDN Real Estate from Kellstrom; provided, however,
that the foregoing provisions of this Section 2 shall not be deemed in any
manner whatsoever to release, waive, or otherwise affect any liability of any
Bank Group Member in respect of any Claim arising solely under this Release or
under the Proceeds Sharing Agreement.

         Section 3. Release of AVS Investors and AVS Investor Trustee. Each of
the Bank Group Members, for itself and its respective successors and assigns,
hereby releases, acquits and forever discharges each of the AVS Investors and
the AVS Investor Trustee of and from any and all Claims of any nature whatsoever
arising prior to or on the date hereof, which any of the Bank Group Members ever
had, now have or claim to have against the AVS Investors and the AVS Investor
Trustee, or any one or more of them, or which any of the Bank Group Members at
any time hereafter acquires, by reason of any matter, cause, or thing arising
out of or relating to (i) any of the AVS Investor Letters of Credit, the AVS
Investor Letter of Credit Documents, the AVSDC Asset Purchase Documents, the AVS
Investor Intercreditor Agreement, the KAV Consignment Agreement, or the Sunrise
Purchase Documents, or any action or failure to act by any of the AVS Investors
or the AVS Investor Trustee under or in connection with any of the aforesaid
documents; (ii) any of the AVS Investor Indebtedness; or (iii) the efforts by
AVS Investors and AVS Investor Trustee, or any of them, to purchase the VRDN
Real Estate; provided, however, that the foregoing provisions of this Section 3
shall not be deemed in any manner whatsoever to release, waive or otherwise
affect any liability of any AVS Investor or the AVS Investor Trustee in respect
of any Claim arising solely under this Release or under the Proceeds Sharing
Agreement.

         Section 4. Covenant Not To Sue. Each Party, for and on behalf of such
Party and for each of such Party's respective successors, assigns, and personal
representatives, covenants and agrees never to commence, aid in any way,
prosecute or cause to be commenced or prosecuted, or permit any of its
subsidiaries or affiliates to commence or prosecute, against any other Party
hereto, any action, suit or other proceeding based upon a Claim that has been
released pursuant to the terms of this Release.

                                     Page 3

<PAGE>

         Section 5.  Representations and Warranties. Each Bank Group Member
hereby represents and warrants to each of the AVS Investors and the AVS Investor
Trustee that such Bank Group Member is duly authorized and empowered to execute
this Release; that it has taken such actions as may be required to obtain
corporate or shareholder approval for the execution and delivery of this
Release; that the individual signing on its behalf below is duly authorized and
empowered to execute this Release; and that it has not sold, assigned,
transferred, conveyed, or otherwise disposed of any Claim relating to any matter
covered by this Release. Each of the AVS Investors hereby represents and
warrants to each Bank Group Member that such AVS Investor is duly authorized and
empowered to execute this Release; that, in the case of any AVS Investor that is
a corporation, it has taken such actions as may be required to obtain corporate
or shareholder approval for the execution and delivery of this Release; that, in
the case of each AVS Investor that is a corporation or limited partnership, the
individual signing on its behalf below is duly authorized and empowered to
execute this Release; that, in the case of each AVS Investor that is an
individual, such individual is competent to execute and deliver this Release;
and that such AVS Investor has not sold, assigned, transferred, conveyed, or
otherwise disposed of any Claim relating to any matter covered by this Release.
The AVS Investor Trustee hereby represents and warrants to each Bank Group
Member that the AVS Investor Trustee is duly authorized and empowered to execute
this Release; that AVS Investor Trustee is competent to execute and deliver this
Release; and that AVS Investor Trustee has not sold, assigned, transferred,
conveyed, or otherwise disposed of any Claim relating to any matter covered by
this Release. Each of the Parties represents and warrants to each of the other
Parties hereto that such representing and warranting Party has freely and
voluntarily entered into and executed this Release, with the benefit of advice
of counsel of such Party's own selection.

         Section 6.  No Admission. This Release is made without admission or
concession by any Party of any liability whatsoever on the part of such Party to
any other Party. Without limiting the generality of the foregoing, each Bank
Group Member expressly disputes the existence of any Claim in favor of any AVS
Investor or the AVS Investor Trustee arising out of or relating to Agent's draws
upon any of the AVS Investor Letters of Credit.

         Section 7.  Acknowledgments. Each Party acknowledges and agrees that no
other consideration has been or will be paid or furnished to such Party on
account of or in connection with such Party's execution and delivery of this
Release and that such Party has not made or relied upon any other warranty or
representation or promise except as expressly set forth in this Release and the
Sharing Agreement.

         Section 8.  Mistake of Fact. If any fact with respect to which this
Release is executed is hereafter found to be other than or different from what
is now believed by any Party to be true, each Party hereto accepts and assumes
the risk of such possible difference in fact and agrees that this Release shall
be and remain effective, notwithstanding such difference in facts.

         Section 9.  Complete Defense. This Release shall be a full and complete
defense to and may be used as the basis for an injunction against any action,
suit, or other proceeding that may be instituted, prosecuted or attempted in
breach of this Release.

         Section 10. Execution; Effectiveness; Waiver of Jury Trial. This
Release may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed and delivered
shall be deemed to be an original and all of which counterparts taken together
shall constitute but one and the same instrument. In proving this Release in any
judicial proceeding, it shall not be necessary to produce or account for more
than one such counterpart signed by the party against whom such

                                     Page 4

<PAGE>

enforcement is sought. Any signature delivered by a party by facsimile
transmission shall be deemed to be an original signature hereto. The
effectiveness of this Release is subject to the execution and delivery of this
Release by each Party shown on the signature pages hereof. Each of the Parties
hereby waives any right that such Party may have to a trial by jury in respect
of any litigation based hereon, or arising out of, under or in connection with
this Release, and this provision is material inducement for this Release.

                  [Remainder of page intentionally left blank]

                                     Page 5

<PAGE>

         Section 11. Miscellaneous. This Agreement, together with the Sharing
Agreement, expresses the entire understanding of the Parties with respect to the
subject matter hereof and thereof and supersedes any and all prior agreements or
understandings, written or oral, express or implied; may not be amended except
by written agreement of the Parties; shall be binding upon the parties hereto
and their respective successors and assigns; and shall be governed in all
respects by and construed in accordance with the internal laws of the State of
Georgia.

         IN WITNESS WHEREOF, the Parties have caused this Release to be signed,
sealed, and delivered on the day and year first above written.

                                     Page 6

                [Signature Pages to Avs Investor Release Omitted]

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