Document:

<PAGE>

                                                                    EXHIBIT 10.4

                               SUBLEASE AGREEMENT

                  THIS SUBLEASE AGREEMENT (this "SUBLEASE") is entered into as
of April 1, 2003, by and between LJH, LTD, a Texas limited partnership
("SUBLESSOR"), and TRIAD INTERNATIONAL MAINTENANCE CORPORATION, a Delaware
corporation ("SUBTENANT").

                                    RECITALS

         A.       Sublessor is the tenant under that certain Lease Agreement
dated as of July 10, 1997, as amended by undated amendment number one and
amendment number two dated August 16, 2001, and by amendment number three which
is undated but which was approved by the Phoenix City Council on December 18,
2002, wherein the City of Phoenix, a municipal corporation ("LANDLORD") leases
to Sublessor the real property known as Hangars 18 and 52 and additional land
(the "LEASED PREMISES") located at the Phoenix Goodyear Airport in Goodyear,
Arizona. Said Lease Agreement, as it may be amended from time to time as
permitted by this Sublease, is herein referred to as the "MASTER LEASE" and as
amended to date is attached hereto as EXHIBIT A and made a part hereof to the
extent provided below.

         B.       Subtenant desires to sublease from Sublessor, and Sublessor is
willing to sublease to Subtenant, on the terms and conditions set forth herein,
the entire Leased Premises, which are more particularly described in Exhibit A
to the Master Lease.

         NOW,  THEREFORE, in consideration of the mutual covenants and
conditions herein contained, Sublessor and Subtenant (together, the "PARTIES"
and each sometimes a "PARTY") hereby agree and covenant with each other as
follows:

         1.       Demise of Subleased Premises. Sublessor shall sublease and
demise to Subtenant, and Subtenant shall hire and accept from Sublessor, the
Subleased Premises on and subject to the terms and conditions set forth in this
Sublease.

         2.       Term. The initial term of this Sublease (the "INITIAL TERM" or
"TERM") shall commence on the date of this Agreement (the "COMMENCEMENT DATE"),
and expire on April 30, 2006, unless earlier terminated pursuant to the terms
hereof.

         3.       Rent and Security Deposit.

                  3.1      Base Rent. Except as set forth in Section 3.5 hereof,
Subtenant shall pay to Sublessor monthly rental ("RENT") during the Term in the
amount specified in EXHIBIT B attached hereto, which shall be equal to the
amount of the Rent (including all increases and additions provided for in the
Master Lease) to Sublessor required by the Master Lease.

                  3.2      Additional Rent. In addition to Base Rent, Subtenant
shall pay to Sublessor as additional rent ("ADDITIONAL RENT") any other fees,
charges or expenses charged by Landlord to Sublessor under authority of the
Master Lease. Additional Rent shall be payable on or before ten (10) days from
Sublessor's delivery to Subtenant of a written invoice for Additional Rent.

                  3.3      Reimbursement of Certain Expenses as Additional Rent.
Sublessor has expended sums in excess of $100,000 for improvement of the
Premises, including maintenance, repairs and improvements required to bring the
condition of the Premises in compliance with the requirements of the Master
Lease. Subtenant agrees to reimburse

                                      -1-

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SUBLEASE
LJH, LTD./TRIAD INTERNATIONAL MANAGEMENT CORPORATION

Sublessor for those expenditures by paying as Additional Rent the sum of
$100,000 in equal monthly installments for a period of three years, commencing
April 1, 2003 and ending March 1, 2006, or whenever the sum is sooner paid.

                  3.4      Method of Payment. Subtenant shall pay directly to
Landlord that portion of the Rent and Additional Rent which is due Landlord
pursuant to the Master Lease, with proof of payment to be delivered to Sublessor
within ten days of each such payment at Sublessor's address at 377 Neva Lane,
Dennison, Texas 75020 or to such other address provided by Sublessor for notice,
and shall be payable to Landlord without requirement of notice or demand thereof
and without any rights of setoff or deduction whatsoever. Subtenant shall pay
any remaining Rent due directly to Sublessor. Rent for any partial month of the
Term shall be prorated. Anything in this Sublease to the contrary
notwithstanding, Sublessor shall pay all rents and other sums as they become due
under the Master Lease, to the extent not paid by Subtenant directly to
Landlord.

                  3.5      Rent for 2003. The term of this Sublease shall
commence April 15, 2003. The parties have agreed that the rental payments for
the remainder of 2003, that is, from April 15, 2003 to December 31, 2003, shall
total the amount which would have been payable had this Sublease commenced
January 1, 2003. The monthly rental payable for each month, commencing April,
2003 (rent for April 2003 shall be for one-half of a month) through December,
2003, shall be calculated by multiplying the monthly rental calculated according
to Section 3.1 herein by 12 and dividing the result by 8.5. The rental required
by Section 3.1 is $13,500 per month plus a surcharge of $22,488.15 (as provided
in Article III, Section C of the Master Lease as amended), for a total monthly
payment of $35,988.15. The monthly payment due under this Sublease, therefore,
will be $50,806.80, with the payment for April, which will be for one-half
month, to be $25,403.40.

         4.       Master Lease.

                  4.1      Master Lease Inclusions and Exclusions. This Sublease
is subject to all of the terms of the Master Lease with the same force and
effect as if fully set forth herein at length, excepting only as otherwise
specifically provided herein. It is the intention of the parties that, except as
otherwise provided in this Sublease, the relationship between Sublessor and
Sublessee shall be governed by the various articles of the Master Lease as if
they were typed out in this Sublease in full, and the words "Landlord," "Tenant"
and "Lease" as used in the Master Lease shall read, respectively, "Sublessor,"
"Subtenant" and "Sublease."

                  4.2      Sublessee Assumption of Lease Obligations. From and
after the Commencement Date and during the Term hereof, Subtenant will assume,
perform and comply with Sublessor's obligations as "Tenant" under the Master
Lease with respect to the Subleased Premises, including the obligations of
Sublessor to cure certain defaults and obligations of prior tenants of the
Leased Premises to Landlord. Subtenant shall not commit any act or omission that
will violate any of the provisions of the Master Lease.

                  4.3      No Assumption by Sublessor. Anything in this Sublease
to the contrary notwithstanding, Sublessor does not assume the obligations of
the Landlord under the Master Lease. However, the failure of Subtenant to
receive the rights and benefits arising from any of the duties of the Landlord
under the Master Lease (e.g., the rental credit and the tenant

                                      -2-

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SUBLEASE
LJH, LTD./TRIAD INTERNATIONAL MANAGEMENT CORPORATION

improvements provided for in section C of the Amendment No. 2 to Master Lease)
shall permit Subtenant to exercise any right or remedy to which it may be
entitled under applicable law, excluding claims against Sublessor (except as
otherwise provided herein). With respect to the performance by Landlord of its
obligations under the Master Lease, Sublessor's shall request the same, on
request in writing by Subtenant, and shall use reasonable efforts to obtain the
same from Landlord.

                  4.4      Landlord Defaults; Consents. Any provision of this
Sublease to the contrary notwithstanding, (a) Sublessor will not be liable or
responsible in any way for any loss, damage, cost, expense, obligation or
liability suffered by Subtenant by reason of or as the result of any breach,
default or failure to perform by the Landlord under the Master Lease, and (b)
whenever the consent or approval of Sublessor and Landlord is required for a
particular act, event or transaction (i) any such consent or approval by
Sublessor will be subject to the consent or approval of Landlord, and (ii)
should Landlord refuse to grant such consent or approval, under all
circumstances, Sublessor will be released from any obligation to grant its
consent or approval.

                  4.5      Termination of Master Lease. If the Master Lease is
terminated for any reason whatsoever, this Sublease will terminate
simultaneously and any unearned Rent paid in advance by Subtenant shall be
refunded to Subtenant. Sublessor shall not agree with Landlord to the voluntary
termination of the Master Lease prior to the expiration of the term of the
Master Lease. Except for any amendment or waiver required by the terms of the
Master Lease, Sublessor shall not agree to any amendment of the Master Lease
that (i) increases Subtenant's Rent in any manner, (ii) imposes upon Subtenant
additional obligations under this Sublease, (iii) materially decreases
Subtenant's rights under this Sublease, or (iv) waives any of Sublessor's rights
or remedies under the Master Lease respecting the Subleased Premises, without
the written consent of the Subtenant. Without limitation upon the foregoing,
Sublessor will not agree to amend the Master Lease to shorten the term of the
Master Lease without the written consent of Subtenant.

         5.       Ownership of Improvements; Removal at Termination. Upon the
termination of this Sublease or Subtenant's right of possession, Subtenant shall
remove from the Subleased Premises its trade fixtures, furniture, moveable
equipment and other personal property which have not become owned by Landlord
pursuant to the terms of the Master Lease (collectively, "trade fixtures").
Subtenant shall repair all damage caused by the installation or removal of any
of the foregoing trade fixtures. If Subtenant does not timely remove such trade
fixtures, then Subtenant shall be conclusively presumed to have, at Sublessor's
election (i) conveyed such trade fixtures to Sublessor without compensation, or
(ii) abandoned such trade fixtures, and Sublessor may dispose of or store any
part thereof in any manner at Subtenant's sole cost, without waiving Sublessor's
right to claim from Subtenant all expenses arising out of Subtenant's failure to
remove the trade fixtures, and without liability to Subtenant or any other
person. Sublessor shall have no duty to be a bailee of such trade fixtures. If
Sublessor elects abandonment, Subtenant shall pay to Sublessor, upon demand, any
expenses incurred for disposition of the trade fixtures.

         6.       Condition of Premises. Subtenant accepts the Subleased
Premises in an "AS IS" and "WITH ALL FAULTS" condition. Without limiting the
foregoing, Subtenant's rights in

                                      -3-

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SUBLEASE
LJH, LTD./TRIAD INTERNATIONAL MANAGEMENT CORPORATION

the Subleased Premises are subject to all local, state and federal laws,
regulations and ordinances governing and regulating the use and occupancy of the
Subleased Premises and subject to all matters now of record.

         7.       Insurance and Indemnity. Subtenant shall obtain and maintain
the insurance required by Article XII, Section I of the Master Lease to the
satisfaction of Landlord, with both Sublessor and Landlord named as additional
insureds. Subtenant specifically agrees to and does indemnify both Landlord and
Sublessor in accordance with the provisions of Article XII, Section I (6) of the
Master Lease.

         8.       Default. The occurrence of any of the following shall
constitute a default (an "EVENT OF DEFAULT") by Subtenant:

                  8.1      Failure to pay Rent or Additional Rent when due and
the failure to cure the same within five (5) days after Sublessor delivers
written notice thereof to Subtenant;

                  8.2      Subtenant defaults in its obligations under the
Master Lease or this Sublease with respect to assignment and subletting;

                  8.3      Subtenant vacates (if such vacation constitutes a
breach under the Master Lease and if such breach does not arise because of
Landlord's or Sublessor's acts or omissions respecting other portions of the
Leased Premises) or abandons the Subleased Premises;

                  8.4      Subtenant fails to observe any other agreement,
covenant, condition or provision of this Sublease to be performed or observed by
Subtenant as and when performance or observance is due and in the case of only
the first two such failures during the Term such failure continues for ten (10)
days after written notice from Sublessor, except that if Subtenant begins to
cure its failure within the ten (10) day period but cannot reasonably complete
its cure within such period, then, so long as Subtenant continues to diligently
attempt to cure its failure, the ten (10) day period shall be extended as is
reasonably necessary to complete the cure;

                  8.5      The filing of a petition by or against Subtenant
under the Federal Bankruptcy Code or any state bankruptcy or insolvency law
(unless, in the case of a petition filed against Subtenant, Subtenant contests
such petition and obtains a dismissal thereof within sixty (60) days after
filing); Subtenant's making any general assignment for the benefit of its
creditors; the appointment of a trustee or receiver to take possession of all or
any portion of Subtenant's assets located at the Subleased Premises or of
Subtenant's interest under this Sublease (unless Subtenant contests such
appointment and obtains repossession of such assets or interest within sixty
(60) days); the attachment, execution or other judicial seizure of all or any
portion of Subtenant's assets located at the Subleased Premises or of
Subtenant's interest under this Sublease; or Subtenant's acknowledgment in
writing that it is insolvent or generally unable to pay its obligations as they
fall due.

                  8.6      Acceleration of the indebtedness evidenced by that
certain Fifth Amended and Restated Credit Agreement among the Subtenant, certain
subsidiaries of the

                                      -4-

<PAGE>

SUBLEASE
LJH, LTD./TRIAD INTERNATIONAL MANAGEMENT CORPORATION

Subtenant, Citicorp USA, Inc., as Administrative Agent, and the lenders party
thereto from time to time, as amended (as the same may be refinanced from time
to time).

         9.       Sublessor Default. Sublessor shall not be in default of any of
its obligations hereunder unless and until Sublessor shall have failed to
perform such obligations within thirty (30) days after written notice to
Sublessor from Subtenant, specifically describing such failure. Anything in this
Sublease to the contrary notwithstanding, Sublessor shall also be in default in
the event of the filing of a petition by or against Sublessor under the Federal
Bankruptcy Code or any state bankruptcy or insolvency law (unless, in the case
of a petition filed against Sublessor, Sublessor contests such petition and
obtains a dismissal thereof within sixty (60) days after filing); Sublessor
making any general assignment for the benefit of its creditors; the appointment
of a trustee for or receiver of Sublessor to take possession of the Subleased
Premises or Sublessor's interest under the Sublease (unless Sublessor contests
such appointment and obtains repossession of the same within sixty (60) days);
or Sublessor's acknowledgement in writing that it is insolvent or generally
unable to pay its obligations as they fall due.

         10.      Interruption of Services. In the event that Subtenant is
prevented from using, and does not use, the Subleased Premises or any material
portion thereof essential to Subtenant's operations at the Subleased Premises as
a result of any action by Landlord whether or not in breach of the Master Lease
(each circumstance set forth above to be known as an "Abatement Event"), and
such Abatement Event is not caused by Subtenant's negligence, intentional
misconduct, or breach of this Sublease, then Subtenant shall give Sublessor
written notice of such Abatement Event, and if such Abatement Event continues
for fifteen (15) consecutive business days after Sublessor's receipt of any such
notice (the "Eligibility Period"), then the monthly Base Rent and Subtenant's
obligation to make payments for Subtenant's share of the "Operating Cost Share
Rent" and "Tax Share Rent" under SECTION 3(B) of this Sublease, shall be abated
or reduced, as the case may be, retroactively effective as of the first day of
the Eligibility Period and continuing for such time that Subtenant continues to
be so prevented from using, and does not use, the Subleased Premises or a
material portion thereof; provided, however, in the event that Subtenant is
prevented from conducting, and does not conduct its business from any portion of
the Subleased Premises for a period of time in excess of the Eligibility Period
and the remaining portion of the Subleased Premises is not sufficient to allow
Subtenant to effectively conduct its business therein, and if Subtenant does not
conduct its business from such remaining portion, then for such time during
which Subtenant is so prevented from effectively conducting its business
therein, the monthly Rent and any Additional Rent shall be fully abated for such
time as Subtenant continues to be so prevented from using, and does not use, the
Subleased Premises.

         11.      Notices. Any notice required or permitted to be given
hereunder shall be in writing and delivered to the applicable party personally,
or by United States Postal Service, first class registered or certified mail,
postage prepaid, return receipt requested, in either case to the address
indicated for such party below; and shall be deemed given, delivered and
received only upon such personal delivery or at the time of delivery or
attempted delivery shown upon such receipt:

                                      -5-

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SUBLEASE
LJH, LTD./TRIAD INTERNATIONAL MANAGEMENT CORPORATION

         If to Sublessor:      L.J.H. Limited
                               377 Neva Lane
                               Dennison, Texas 75020

         If to Subtenant:      Triad International Maintenance Corporation
                               623 Radar Road
                               Greensboro, North Carolina 27410
                               Attention:  Roy T. Rimmer, Jr., Chief Executive
                               Officer

         12.      Waivers. The failure or delay of either Party to insist in any
instance upon the strict performance or observance of any obligation or
condition on the part of the other under this Sublease, or to exercise any right
or remedy provided herein, shall not be deemed a waiver of such obligation,
condition, right or remedy, except where this Sublease provides expressly that a
right or remedy must be exercised within a specific time and such time has
elapsed. No waiver by either Party of any right or obligation contained in this
Sublease shall be deemed to have been made, unless made expressly in writing by
the Party entitled to the performance of the obligation, satisfaction of the
condition or exercise of the right in question. Sublessor's acceptance of any
partial payment of Rent due Sublessor hereunder shall not satisfy or discharge
Subtenant's obligation to pay the balance of Rent then due, nor shall
Sublessor's acceptance of any payment of Rent when Subtenant is in breach of any
other obligation or condition under this Sublease be deemed a waiver of such
breach.

         13.      Computation of Time. The term "day" means a calendar day, and
he term "business day" means any day other than a Saturday, Sunday or a bank
holiday under the laws of the United States or the State in which the Leased
Premises are located. Any period of time specified in this Sublease which would
otherwise end upon a non-business day shall be extended to, and shall end upon,
the next following business day.

         14.      Quiet Enjoyment. Subtenant, upon paying the Rent and
performing each of its obligations under this Sublease, shall lawfully and
quietly hold, occupy and enjoy the Subleased Premises, during the Term of this
Sublease without hindrance or molestation of anyone lawfully claiming by,
through or under Sublessor, subject, however, to the provisions set forth in
this Sublease and the Master Lease.

         15.      Surrender. At the expiration or termination of this Sublease,
Subtenant shall surrender immediate possession of the Leased Premises in good
condition subject to reasonable wear and tear, changes and alterations, damage
by fire, casualty and the elements, and other repairs which are Sublessor's
obligation. Any holding over by Subtenant shall not operate, except by written
agreement, to extend or renew this Lease or to imply or create a new lease, but
in case of any such holdover, Sublessor's remedies shall be limited to either
the immediate termination of Subtenant's occupancy or the treatment of
Subtenant's occupancy as a month to month tenancy, any custom or law allowing
other remedies or damages or which may be to the contrary notwithstanding.

         16.      Entire Agreement; Modification; Binding Effect. This Sublease
constitutes the entire agreement between the Parties pertaining to the subject
matter hereof and supersedes all prior agreements, understandings and
representations of the Parties with respect to the subject

                                      -6-

<PAGE>

SUBLEASE
LJH, LTD./TRIAD INTERNATIONAL MANAGEMENT CORPORATION

matter hereof. This Sublease may not be modified, amended, supplemented or
otherwise changed, except by a writing executed by both Parties. Except as
otherwise expressly provided herein, this Sublease shall bind and inure to the
benefit of the Parties and their respective successors and assigns.

         17.      Attorneys' Fees. Should either Party institute any action or
proceeding to enforce any provision of this Sublease or for damages by reason of
an alleged breach of any provision hereof, the prevailing Party shall be
entitled to receive all costs and expenses (including reasonable attorneys'
fees) incurred by such prevailing Party in connection with such action or
proceeding.

         18.      Execution in Counterparts. This Sublease may be executed in
two counterparts, and by each Party on a separate counterpart, each of which
when so executed and delivered shall be deemed an original, and both of which
when taken together shall constitute but one and the same instrument.

         19.      Governing Law. This Sublease shall be governed by and
interpreted in accordance with the laws of the State of Arizona.

         20.      Warranty of Signers. Each individual executing and delivering
this Sublease Agreement on behalf of a Party hereby represents and warrants that
he or she is authorized and empowered to make such execution and delivery.

         21.      Partial Invalidity. If any term or provision of this Sublease
or the application thereof to any person or circumstance shall, to any extent,
be invalid or unenforceable, the remainder of this Sublease, or the application
of such term or provision to persons or circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby, and
each such term and provision of this Sublease shall be valid and enforced to the
fullest extent permitted by law.

         22.      Captions. The captions appearing within the body of this
Sublease have been inserted as a matter of convenience and for reference only
and in no way define, limit or enlarge the scope or meaning of this Sublease or
of any provision thereof.

         23.      Limitation. In no event shall Sublessor or Subtenant (or any
of their respective affiliates) be liable for any special, consequential,
incidental, punitive or exemplary damages.

         24.      Conditions of Effectiveness. Anything in this Sublease to the
contrary notwithstanding, it is understood and agreed that Sublessor's and
Subtenant's obligations under this Sublease shall not become effective unless
and until Sublessor obtains the written consent of the Landlord for this
Sublease in a form reasonably satisfactory to Sublessor and Subtenant (which
consent shall be evidenced by Sublessor's and Subtenant's execution of the
Landlord's consent form).

         25.      No Pledge. Sublessor may not pledge the Rents due hereunder to
any party.

                                      -7-

<PAGE>

SUBLEASE
LJH, LTD./TRIAD INTERNATIONAL MANAGEMENT CORPORATION

                      REMAINDER OF PAGE INTENTIONALLY BLANK

                                      -8-

<PAGE>

SUBLEASE
LJH, LTD./TRIAD INTERNATIONAL MANAGEMENT CORPORATION

         IN WITNESS WHEREOF, Sublessor and Subtenant have executed this Sublease
as of the date first written above.

                                     SUBLESSOR:

                                     LJH, LTD., a Texas limited partnership

                                     By: DLH MANAGEMENT, L.L.C., a Texas limited
                                         liability company

                                     By: /s/
                                         ---------------------------------------
                                     Name:______________________________________
                                     Title:_____________________________________

                                     SUBTENANT:

                                     TRIAD INTERNATIONAL MAINTENANCE
                                       CORPORATION, a Delaware corporation

                                     By: /s/
                                         ---------------------------------------
                                     Name:______________________________________
                                     Title:_____________________________________

                                      -9-<PAGE>

                                                                    Exhibit 10.5

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT ("Agreement"), dated as of the 20th day of
March, 2002, by and between TIMCO AVIATION SERVICES, INC., a Delaware
corporation (the "Company"), and ROY T. RIMMER, JR. (the "Employee").

         In consideration of the mutual representations, warranties, covenants
and agreements contained in this Agreement and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

    1.   EMPLOYMENT.

         (a) RETENTION. The Company agrees to employ Employee as its Chairman
and Chief Executive Officer. Further, Employee shall serve pursuant to this
Agreement as an officer and director of each Company subsidiary and Affiliate
(defined below). Notwithstanding the foregoing, with the consent of the Board of
Directors the Employee may in the future relinquish his position as CEO and
continue as Chairman.

         (b) EMPLOYMENT PERIOD. Subject to the terms and conditions set forth
herein and unless sooner terminated as hereinafter provided, Company shall
employ Employee and Employee agrees to serve as an employee of Company for a
three year period, from the date hereof to and including the third anniversary
of the date of this Agreement, which initial term shall automatically renew for
consecutive one year periods, unless terminated by either party by twelve (12)
months notice prior to the expiration of the initial term or any renewal term
(the "Employment Term"). For purposes of this Agreement, the Employment Term and
any renewal term thereof are collectively referred to herein as the "Employment
Period."

         (c) DUTIES AND RESPONSIBILITIES. During the Employment Period, the
Employee shall serve as Chairman and Chief Executive Officer of the Company and
its subsidiaries. In such role, Employee shall have such authority and
responsibility and perform such duties as may be assigned to him from time to
time by the Board of Directors of the Company, and in the absence of such
assignment, such duties as are customary to Employee's office and as are
necessary or appropriate to the business and operations of the Company and its
subsidiaries. During the Employment Period, the Employee's employment shall be
full time, Employee shall perform his duties honestly, diligently, in good faith
and in the best interests of the Company and its subsidiaries, and Employee
shall use his best efforts to promote the interests of the Company and its
subsidiaries.

         (d) OTHER ACTIVITIES. Except upon the prior written consent of the
Company, the Employee, during the Employment Period, will not accept any other
employment. The Employee shall be permitted to serve in ventures such as passive
real estate investments, serving on charitable and civic boards and
organizations, and similar activities, so long as such activities do not
materially interfere with or detract from the performance of Employee's duties
or constitute a breach of any of the provisions contained in this Agreement.

<PAGE>

    2.   COMPENSATION.

         (a) BASE SALARY. In consideration for the Employee's services hereunder
and the restrictive covenants contained herein, the Employee shall be paid an
annual base salary of $425,000 (the "Salary"), which salary shall be payable
commencing as of January 1, 2002 and shall be payable in accordance with the
Company's customary payroll practices. Notwithstanding the foregoing, Employee's
annual Salary may be increased at anytime and from time to time to levels
greater than the level set forth in the preceding sentence at the discretion of
the Compensation Committee of the Board of Directors of the Company to reflect
merit or other increases.

         (b) BONUS. In addition to the Salary, the Employee shall be eligible to
receive an annual bonus ("Bonus") equal to 100% of the Employee's Base Salary.
The Bonus shall be based on the achievement of corporate goals and objectives as
established by the Compensation Committee of the Board of Directors. The
achievement of said goals and objectives shall be determined by the Compensation
Committee of the Board of Directors. With respect to any Fiscal Year during
which the Employee is employed by the Company for less than the entire Fiscal
Year, the Bonus shall be prorated for the period during which the Employee was
so employed. The Bonus shall be payable within thirty (30) days after the
Company completes the audit of its financial statements for the previous Fiscal
Year. The term "Fiscal Year" as used herein shall mean each period of twelve
(12) calendar months commencing on January 1st of each calendar year during the
Employment Period and expiring on December 31st of such year.

         (c) MERIT AND OTHER BONUSES. Employee shall be entitled to such other
bonuses, payments and benefits may be determined by the Board of Directors of
the Company or by a committee of the Board of Directors as determined by the
Board of Directors, in its sole discretion.

         (d) STOCK OPTIONS. On the Effective Date, the Company shall issue to
the Employee a five-year option to purchase 800,000 shares of the Company's
authorized but unissued common stock, which option shall be issued outside of
the Plan and pursuant to an option agreement the form of which is Exhibit "A"
hereto (collectively, the "Options"). The Options shall be at an exercise price
equal to the last closing price of the common stock on the date immediately
prior to the Effective Date ($1.02 per share). The Options shall vest 1/3 on
date of grant, 1/3 on the first anniversary of the Effective Date and 1/3 on the
second anniversary of the Effective Date. The Employee shall also be entitled to
participate and receive option grants in the future, as may be determined by the
Compensation Committee of the Board of Directors of the Company.

         (e) OTHER COMPENSATION PROGRAMS. The Employee shall be entitled to
participate in the Company's incentive and deferred compensation programs and
such other programs as are established and maintained generally for the benefit
of the Company's employees or executive officers, subject to the provisions of
such plans or programs.

                                      -2-

<PAGE>

         (f) VACATIONS. The Employee shall be entitled to four weeks of vacation
on an annual basis. Employee shall be entitled to be reimbursed annually for any
accrued and unused vacation time from the previous year.

         (g) OTHER BENEFITS. During the term of this Agreement, the Employee
shall also be entitled to participate in any other health insurance programs,
life insurance programs, disability programs, stock option plans, bonus plans,
pension plans and other fringe benefit plans and programs as are from time to
time established and maintained for the benefit of the Company's employees or
executive officers, subject to the provisions of such plans and programs.
Further, the Company shall provide Employee with the use of an automobile while
he is in Greensboro, N.C., such make and model of automobile to be reasonably
acceptable to Employee.

         (h) ANNUAL PHYSICAL. The Company shall pay all direct costs of
Employee's annual executive physical at the Mayo Clinic.

         (i) EXPENSES. The Employee shall be reimbursed for all out-of-pocket
expenses reasonably incurred by him on behalf of or in connection with the
business of the Company, pursuant to the normal standards and guidelines
followed from time to time by the Company.

    3.   TERMINATION.

         (a) FOR CAUSE. The Company shall have the right to terminate this
Agreement and to discharge the Employee for Cause (as defined below), at any
time during the term of this Agreement. Termination for Cause shall mean, during
the term of this Agreement, (i) Employee's conduct that would constitute under
federal or state law either a felony or a misdemeanor involving moral turpitude,
or a determination by the Company's Board of Directors, after consideration of
all available information and following the procedures set forth below, that
Employee has willfully violated Company policies or procedures involving
discrimination, harassment, alcohol or substance abuse, or work place violence
causing material injury to the Company, (ii) Employee's actions or omissions
that constitute fraud, dishonesty or gross misconduct, (iii) Employee's knowing
and intentional breach of any fiduciary duty that causes material injury to the
Company, and (iv) Employee's inability to perform his material duties, after
reasonable notice and an opportunity to resolve the issues, due to alcohol or
other substance abuse. Any termination for Cause pursuant to this Section shall
be given to the Employee in writing and shall set forth in detail all acts or
omissions upon which the Company is relying to terminate the Employee for Cause.

         Upon any determination by the Company that Cause exists to terminate
the Employee, the Company shall cause a special meeting of the Board of
Directors to be called and held at a time mutually convenient to the Board of
Directors and Employee, but in no event later than ten (10) business days after
Employee's receipt of the notice that the Company intends to terminate the
Employee for Cause. Employee shall have the right to appear before such special
meeting of the Board of Directors with legal counsel of his choosing to refute
such allegations and shall

                                      -3-

<PAGE>

have a reasonable period of time to cure any actions or omissions which provide
the Company with a basis to terminate the Employee for Cause (provided that such
cure period shall not exceed 30 days). A majority of the members of the Board of
Directors must affirm that Cause exists to terminate the Employee. No finding by
the Board of Directors will prevent the Employee from contesting such
determination through appropriate legal proceedings provided that the Employee's
sole remedy shall be to sue for damages, not reinstatement, and damages shall be
limited to those that would be paid to the Employee if he had been terminated
without Cause. In the event the Company terminates the Employee for Cause, the
Company shall only be obligated to continue to pay in the ordinary and normal
course of its business to the Employee his Salary plus accrued but unused
vacation time through the termination date and the Company shall have no further
obligations to Employee from and after the date of termination.

         (b) RESIGNATION BY EMPLOYEE. If the Employee shall resign or otherwise
terminate his employment with the Company at anytime during the term of this
Agreement (other than for Good Reason (defined below) within two years after a
Change of Control (defined below), the Employee shall only be entitled to
receive his accrued and unpaid Salary through the termination date, and the
Company shall have no further obligations under this Agreement from and after
the date of resignation.

         (c) TERMINATION BY COMPANY WITHOUT CAUSE. At any time during the term
of this Agreement the Company shall have the right to terminate this Agreement
and to discharge the Employee without Cause effective upon delivery of written
notice to the Employee. Upon any such termination by the Company without Cause,
the Company shall pay to the Employee all of the Employee's accrued but unpaid
Salary through the date of termination, and continue to pay to or provide for
the Employee (a) his Salary payable in accordance with Section 2(a) for three
(3) years from the date of termination, when and as the same would have been due
and payable hereunder but for such termination, (b) all health benefits in which
Employee was entitled to participate at any time during the 12-month period
prior to the date of termination, until the earliest to occur of the second
anniversary of the date of termination, the Employee's death, or the date on
which the Employee becomes covered by a comparable health benefit plan by a
subsequent employer; provided, however, that in the event that Employee's
continued participation in any health benefit plan of the Company is prohibited,
the Company will arrange to provide Employee with benefits substantially similar
to those which Employee would have been entitled to receive under such plan for
such period on a basis which provides Employee with no additional after tax
cost, (c) all stock option grants, or other stock grants issued during the term
of this Agreement, will immediately vest and such options will remain
exercisable for the lesser of the unexpired term of the option without regard to
the termination of Employee's employment or two (2) years from the date of
termination of employment and (d) all long term incentive cash grants and
bonuses provided to the Employee shall immediately vest as if all targets and
conditions had been met and shall be paid by the Company to the Employee at such
times as the Company would have been required to make such payments if this
Agreement had remained in effect, provided, however, that in the case of
incentives partially or completely contingent on the providing of service for a
specific period of time, the total amount to be paid by the Company shall be
equal to the maximum amount payable if all conditions were met, multiplied by a
fraction, the numerator of which is the period of service that would have been
served if the Employee's employment had terminated as of the last day of the
fiscal year in which his employment was terminated, and the denominator of which
is the total period of time

                                      -4-

<PAGE>

specified as a condition to the incentive (collectively, the foregoing
consideration payable to the Employee shall be referred to herein as the
"Severance Payment"). Other than the Severance Payment, the Company shall have
no further obligation to the Employee except for the obligations set forth in
Section 12 of this Agreement after the date of such termination; provided,
however, that the Employee shall only be entitled to continuation of the
Severance Payments as long as he is in compliance with the provisions of
Sections 6 and 7 of this Agreement.

         (d) DISABILITY OF THE EMPLOYEE. This Agreement may be terminated by the
Company upon the Disability of the Employee. "Disability" shall mean any mental
or physical illness, condition, disability or incapacity which prevents the
Employee from reasonably discharging his duties and responsibilities under this
Agreement for a period of 180 consecutive days. In the event that any
disagreement or dispute shall arise between the Company and the Employee as to
whether the Employee suffers from any Disability, then, in such event, the
Employee shall submit to the physical or mental examination of a physician
licensed under the laws of the State of North Carolina, who is mutually
agreeable to the Company and the Employee, and such physician shall determine
whether the Employee suffers from any Disability. In the absence of fraud or bad
faith, the determination of such physician shall be final and binding upon the
Company and the Employee. The entire cost of such examination shall be paid for
solely by the Company. In the event the Company has purchased Disability
insurance for Employee, the Employee shall be deemed disabled if he is
completely (fully) disabled as defined by the terms of the Disability policy. In
the event that at any time during the term of this Agreement the Employee shall
suffer a Disability and the Company terminates the Employee's employment for
such Disability, such Disability shall be considered to be a termination by the
Company without Cause and the Severance Payments shall be paid to the Employee
to the same extent and in the same manner as provided for in paragraph (c)
above, except that payment of the Salary in accordance with said paragraph shall
be mitigated to the extent payments are made to the Employee pursuant to
disability insurance programs maintained by the Company.

         (e) DEATH OF THE EMPLOYEE. In the event of the death of Employee, the
employment of the Employee by the Company shall automatically terminate on the
date of the Employee's death and the Company shall only be obligated to pay
Employee's estate Employee's accrued and unpaid Salary through the termination
date plus accrued but unused vacation time through the termination date and the
Company shall have no further obligations to Employee from and after the date of
termination. The Company agrees to maintain a term life insurance policy on the
life of the Employee in the face amount of $4.0 million payable to a beneficiary
designated by Employee (assuming Employee is insurable).

    4.   TERMINATION OF EMPLOYMENT BY EMPLOYEE FOR CHANGE OF CONTROL.

         (a) TERMINATION RIGHTS. Notwithstanding the provisions of Section 2 and
Section 3 of this Agreement, in the event that there shall occur a Change of
Control (as defined below) of the Company and within two years after such Change
of Control the Employee's employment hereunder is terminated by the Company
without Cause, or within such two year period the Employee terminates his
employment with the Company for Good Reason), then the Company shall be required
to pay to the Employee (i) the Severance Payment provided in Section 3(c),
except that such Severance Payment shall be paid in a single lump sum in full,
and (ii) the product of three multiplied by the maximum Bonus that Employee
received in the Fiscal

                                      -5-

<PAGE>

Year prior to the Fiscal Year in which such termination occurs, assuming that
all performance objectives are met, in a single lump sum. The foregoing payments
shall be made no later than 10 days after the Employee's termination pursuant to
this Section 4. To the extent that payments are owed by the Company to the
Employee pursuant to this Section 4, they shall be made in lieu of payments
pursuant to Section 3, and in no event shall the Company be required to make
payments or provide benefits to the Employee under both Section 3 and Section 4.

         (b) CHANGE OF CONTROL OF THE COMPANY DEFINED. For purposes of this
Agreement, a "Change of Control of the Company" shall be deemed to have occurred
if:

             (i) Any "person" (as such term is defined in Sections 13(d)(3) and
Section 14(d)(3) of the Exchange Act), other than the Company, any
majority-owned subsidiary of the Company, any compensation plan of the Company,
any majority-owned subsidiary of the Company or Lacy J. Harber and his
affiliates, becomes the "beneficial owner" (as such term is defined in Rule
13d-3 of the Exchange Act), directly or indirectly, of securities of the Company
representing more than 50% of the combined voting power of the Company; or

             (ii) The shareholders of the Company approve (1) a reorganization,
merger, or consolidation with respect to which persons who were the shareholders
of the Company immediately prior to such reorganization, merger, or
consolidation do not immediately thereafter own more than 50% of the combined
voting power entitled to vote generally in the election of the directors of the
reorganized, merged or consolidated entity; (2) a liquidation or dissolution of
the Company; or (3) the sale of all or substantially all of the assets of the
Company or of a subsidiary of the Company that accounts for more than 66 2/3% of
the consolidated revenues of the Company, but not including a reorganization,
merger or consolidation of the Company.

         (c) GOOD REASON DEFINED. For purposes of this Agreement, "Good Reason"
shall mean a termination by Employee of his employment with the Company after a
Change of Control based upon a significant demotion or material adverse change
in Employee's duties and responsibilities, unless such change has previously
been agreed to in writing by Employee.

    5.   SUCCESSOR TO COMPANY. The Company shall require any successor, whether
direct or indirect, to all or substantially all of the business, properties and
assets of the Company whether by purchase, merger, consolidation or otherwise,
prior to or simultaneously with such purchase, merger, consolidation or other
acquisition to execute and to deliver to the Employee a written instrument in
form and in substance reasonably satisfactory to the Employee pursuant to which
any such successor shall agree to assume and to timely perform or to cause to be
timely performed all of the Company's covenants, agreements and obligations set
forth in this Agreement (a "Successor Agreement"). The failure of the Company to
cause any such successor to execute and deliver a Successor Agreement to the
Employee shall constitute a material breach of the provisions of this Agreement
by the Company.

    6.   RESTRICTIVE COVENANTS. In consideration of his employment and the
other benefits arising under this Agreement, the Employee agrees that during the
term of this Agreement, and for a period of one (1) year following the
termination of this Agreement, the Employee shall not directly or indirectly:

                                      -6-

<PAGE>

         (a) alone or as a partner, joint venturer, officer, director, member,
employee, consultant, agent, independent contractor or stockholder of, or lender
to, any company or business, engage in any business which competes, directly or
indirectly, with any business of the Company; provided, however, that the
beneficial ownership of less than one percent (1%) of the shares of stock of any
corporation having a class of equity securities actively traded on a national
securities exchange or over-the-counter market shall not be deemed, in and of
itself, to violate the prohibitions of this Section; or

         (b) for any reason, (i) induce any customer of the Company or any of
its subsidiaries or affiliates to patronize any business directly or indirectly
in competition with the businesses conducted by the Company or any of its
subsidiaries or affiliates in any market in which the Company or any of its
subsidiaries or affiliates does business; (ii) canvass, solicit or accept from
any customer of the Company or any of its subsidiaries or affiliates any such
competitive business; or (iii) request or advise any customer or vendor of the
Company or any of its subsidiaries or affiliates to withdraw, curtail or cancel
any such customer's or vendor's business with the Company or any of its
subsidiaries or affiliates; or

         (c) for any reason, employ, or knowingly permit any company or business
directly or indirectly controlled by him, to employ, any person who was employed
by the Company or any of its subsidiaries or affiliates at or within the prior
six months, or in any manner seek to induce any such person to leave his or her
employment.

    7.   CONFIDENTIALITY. The Employee agrees that at all times during the term
of this Agreement and after the termination of employment for as long as such
information remains non-public information, the Employee shall (i) hold in
confidence and refrain from disclosing to any other party all information,
whether written or oral, tangible or intangible, of a private, secret,
proprietary or confidential nature, of or concerning the Company or any of its
subsidiaries or affiliates and their business and operations, and all files,
letters, memoranda, reports, records, computer disks or other computer storage
medium, data, models or any photographic or other tangible materials containing
such information ("Confidential Information"), including without limitation, any
sales, promotional or marketing plans, programs, techniques, practices or
strategies, any expansion plans (including existing and entry into new
geographic and/or product markets), and any customer lists, (ii) use the
Confidential Information solely in connection with his employment with the
Company or any of its subsidiaries or affiliates and for no other purpose, (iii)
take all precautions necessary to ensure that the Confidential Information shall
not be, or be permitted to be, shown, copied or disclosed to third parties,
without the prior written consent of the Company or any of its subsidiaries or
affiliates, and (iv) observe all security policies implemented by the Company or
any of its subsidiaries or affiliates from time to time with respect to the
Confidential Information. In the event that the Employee is ordered to disclose
any Confidential Information, whether in a legal or regulatory proceeding or
otherwise, the Employee shall provide the Company or any of its subsidiaries or
affiliates with prompt notice of such request or order so that the Company or
any of its subsidiaries or affiliates may seek to prevent disclosure. In
addition to the foregoing the Employee shall not at any time libel, defame,
ridicule or otherwise disparage the Company.

    8.   SPECIFIC PERFORMANCE; INJUNCTION. The parties agree and acknowledge
that the restrictions contained in Sections 6 and 7 are reasonable in scope and
duration and are necessary

                                      -7-

<PAGE>

to protect the Company or any of its subsidiaries or affiliates. If any
provision of Section 6 or 7 as applied to any party or to any circumstance is
adjudged by a court to be invalid or unenforceable, the same shall in no way
affect any other circumstance or the validity or enforceability of any other
provision of this Agreement. If any such provision, or any part thereof, is held
to be unenforceable because of the duration of such provision or the area
covered thereby, the parties agree that the court making such determination
shall have the power to reduce the duration and/or area of such provision,
and/or to delete specific words or phrases, and in its reduced form, such
provision shall then be enforceable and shall be enforced. The Employee agrees
and acknowledges that the breach of Section 6 or 7 will cause irreparable injury
to the Company or any of its subsidiaries or affiliates and upon breach of any
provision of such Sections, the Company or any of its subsidiaries or affiliates
shall be entitled to injunctive relief, specific performance or other equitable
relief, without being required to post a bond; provided, however, that, this
shall in no way limit any other remedies which the Company or any of its
subsidiaries or affiliates may have (including, without limitation, the right to
seek monetary damages).

    9.   NOTICES. All notices, requests, demands, claims and other
communications hereunder shall be in writing and shall be deemed given if
delivered by hand delivery, by certified or registered mail (first class postage
pre-paid), guaranteed overnight delivery or facsimile transmission if such
transmission is confirmed by delivery by certified or registered mail (first
class postage pre-paid) or guaranteed overnight delivery to, the following
addresses and telecopy numbers (or to such other addresses or telecopy numbers
which such party shall designate in writing to the other parties): (a) if to the
Company, at its principal executive offices, addressed to the President and
Chief Operating Officer, with a copy to Philip B. Schwartz, Esq., Akerman,
Senterfitt & Eidson, P.A., One Southeast Third Avenue, Miami, Florida 33156; and
(b) if to the Employee, at the address listed on the signature page hereto.

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

    11.  ASSIGNMENT; THIRD PARTY BENEFICIARY. This Agreement, and the
Employee's rights and obligations hereunder, may not be assigned or delegated by
him. The Company may assign its rights, and delegate its obligations, hereunder
to any affiliate of the Company, or any successor to the Company or its Aviation
Services Business, specifically including the restrictive covenants set forth in
Section 6 hereof. The rights and obligations of the Company under this Agreement
shall inure to the benefit of and be binding upon its respective successors and
assigns.

                                      -8-

<PAGE>

    12.  SEVERABILITY; SURVIVAL. In the event that any provision of this
Agreement is found to be void and unenforceable by a court of competent
jurisdiction, then such unenforceable provision shall be deemed modified so as
to be enforceable (or if not subject to modification then eliminated herefrom)
to the extent necessary to permit the remaining provisions to be enforced in
accordance with the parties intention. The provisions of Sections 6 and 7 will
survive the termination for any reason of the Employee's relationship with the
Company.

    13.  INDEMNIFICATION. The Company agrees to indemnify the Employee
during the term and after termination of this Agreement in accordance with the
provisions of the Company's certificate of incorporation and bylaws and the
Delaware General Corporation Law.

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

    15.  GOVERNING LAW. This Agreement shall be construed in accordance with
and governed for all purposes by the laws of the State of North Carolina
applicable to contracts executed and to be wholly performed within such State.

    16.  ENTIRE AGREEMENT. This Agreement contains the entire understanding
of the parties in respect of its subject matter and supersedes all prior
agreements and understandings (oral or written) between or among the parties
with respect to such subject matter.

    17.  HEADINGS. The headings of Paragraphs and Sections are for
convenience of reference and are not part of this Agreement and shall not affect
the interpretation of any of its terms.

    18.  CONSTRUCTION. This Agreement shall be construed as a whole
according to its fair meaning and not strictly for or against any party. The
parties acknowledge that each of them has reviewed this Agreement and has had
the opportunity to have it reviewed by their respective attorneys and that any
rule of construction to the effect that ambiguities are to be resolved against
the drafting party shall not apply in the interpretation of this Agreement.

    19.  RESOLUTION OF DISPUTES. Any disputes arising under or in connection
with this Agreement shall be resolved by third party mediation of the dispute
and, failing that, by binding arbitration to be held in Greensboro, North
Carolina in accordance with the rules and procedures of the American Arbitration
Association. Judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof.

    20.  ATTORNEY'S FEES. If at any time during the term of this Agreement
or afterwards there should arise any dispute as to the validity, interpretation
or application of any term or condition of this agreement, the Company agrees,
upon written demand by the Employee (and Employee shall be entitled upon
application to any court of competent jurisdiction, to the entry of a mandatory
injunction, without the necessity of posting any bond with respect thereto,
compelling the Company) to promptly provide sums sufficient to pay on a current
basis (either directly or by reimbursing Employee) Employee's costs and
reasonable attorneys' fees (including expenses of investigation and
disbursements for the fees and expenses of experts, etc.) incurred

                                      -9-

<PAGE>

by the Employee in connection with any such dispute or any litigation, provided
that Employee shall repay any such amounts paid or advanced if Employee is not
the prevailing party with respect to at least one material claim or issue in
such dispute or litigation. The provisions of this Section 19, without
implication as to any other section hereof, shall survive the expiration or
termination of this Agreement and Employee's employment hereunder.

    21.  WITHHOLDING. All payments made to the Employee shall be made net of
any applicable withholding for income taxes and the Employee's share of FICA,
FUTA or other taxes. The Company shall withhold such amounts from such payments
to the extent required by applicable law and remit such amounts to the
applicable governmental authorities in accordance with applicable law.

    IN WITNESS WHEREOF, the parties have executed this Agreement effective
as of the date first above written.

                                               TIMCO AVIATION SERVICES, INC., a
                                               Delaware corporation

                                               By: /s/ Gil West
                                                   -----------------------------
                                                   Gil West, President and COO

                                               EMPLOYEE:

                                               /s/ Roy T. Rimmer, Jr.
                                               ---------------------------------
                                               ROY T. RIMMER, JR.

                                               Address for Notices:
                                               [intentionally omitted]

                                      -10-

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