Document:

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                                                                   Exhibit 10.13

                  MEMORANDUM OF AGREEMENT OF PURCHASE AND SALE
                (9.5360 Acres, Pearland, Brazoria County, Texas)

THE STATE OF TEXAS              (S)
                                (S)
COUNTY OF BRAZORIA              (S)

         THIS MEMORANDUM OF AGREEMENT OF PURCHASE AND SALE (this "Memorandum")
is made and entered into as of the Effective Date (as hereinbelow defined), by
and between AVIATION SALES DISTRIBUTION SERVICES COMPANY, a Delaware
corporation, as Seller ("Seller"), and THE QUEVEDO FAMILY LIMITED LIABILITY
COMPANY, a Florida limited liability company, as Purchaser ("Purchaser").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         1. Purchase and Sale. Subject to the terms, provisions and conditions
hereof, Seller hereby agrees to sell to Purchaser and Purchaser hereby agrees to
purchase from Seller, on the terms and conditions herein stated, all, but not a
part, of that certain tract of land, and the improvements situated thereon,
located in Pearland, Brazoria County, Texas, as more particularly described on
Exhibit A hereto, together with (i) any and all improvements thereon, (ii) all
rights and appurtenances (including, without limitation, easements appurtenant)
thereto, and (iii) all easements or rights of Seller in adjacent roads and
streets or in any adjacent alleys, strips or gores of land (the "Property"). The
conveyance of the Property shall also include the office/warehouse building and
all other improvements located thereon and further together with all furniture,
fixtures, and equipment located thereon (the "Personal Property").

         2. Purchase Price. The purchase price for the Property (the "Purchase
Price") shall be ONE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS
($1,500,000). The Purchase Price shall be in the form of a credit against
certain reimbursement obligations owed by Seller to Purchaser in connection with
a draw in the amount of $1,500,000 made by Bank of America, N.A. ("Bank of
America") under a $2,500,000 letter of credit issued to Bank of America on
behalf of Benito Quevedo ("Quevedo"), an affiliate of Purchaser, in connection
with Quevedo's personal guaranty of certain obligations of Seller in favor of
Bank of America.

         In addition, at Closing, Seller shall deliver to Purchaser, in cash,
$100,000 of rents previously received by Seller with respect to the Property.

         3. The Closing. The consummation of the sale and purchase of the
Property ("Closing") has occurred on even date with the Effective Date of this
Memorandum.

            (a) Seller Deliveries. Seller has delivered or caused to be
delivered to Purchaser, at Seller's sole cost and expense, the following items
at the times indicated:

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                (1) A Special Warranty Deed (the "Deed") in the form attached
            hereto as Exhibit B and incorporated for reference purposes herein,
            fully executed and acknowledged by Seller, conveying to Purchaser
            good and indefeasible fee simple title to the Property, subject only
            to the Permitted Encumbrances (as defined in Section 3(b) hereof).

                (2) A Bill of Sale and Assignment Agreement (the "Bill of Sale")
            duly executed and acknowledged by Seller and in the form attached
            hereto as Exhibit C and incorporated herein for reference purposes,
            conveying the Personal Property to Buyer free from any and all
            security interests, liens, or judgments, and also conveying all
            other tangible and intangible rights of Seller in and to the
            Property.

                (3) On the Effective Date hereof, the Certificate as to
            Non-Foreign Status described in Section 6 hereof, fully executed and
            sworn to by Seller.

                (4) On the Effective Date hereof, on the Title Company's
            standard form, a "bills paid affidavit" verifying that there are no
            unpaid bills or claims for labor performed or materials furnished
            with respect to the Property prior to Closing, and by which
            affidavit Seller indemnifies and holds harmless Purchaser and the
            Title Company from all loss, liability and expense resulting from or
            incident to claims against the Property for any such matters,
            sufficient in all respect to cause the Title Company to insure
            Purchaser's title against unrecorded mechanic's and materialmen's
            liens.

                (5) On the Effective Date hereof, all other documents required
            by First American Title Insurance Company of Texas, Three Greenway
            Plaza, Suite 1100, Houston, Texas 77046 (Attn: Ms. Kathy Vinson)
            (the "Title Company") in connection with this transaction,
            including, without limitation, a settlement statement, duly executed
            by Seller.

            (b) Seller's Obligations Regarding Issuance of Owner's Policy to
Purchaser. On even date with the Effective Date hereof, Seller shall cause and
has caused the Title Company to issue and deliver to Purchaser a Texas standard
form of Owner's Policy of Title Insurance as prescribed by the Texas State Board
of Insurance (the "Owner's Policy"), dated as of the Closing Date and issued by
the Title Company, insuring Purchaser's fee simple title to the Property in the
full amount of the Purchase Price. The premium for the Owner's Policy shall be
(and has on even date herewith has been) paid by Seller. The Owner's Policy
shall be subject only to (A) the hereinafter described standard policy
pre-printed exceptions (modified as herein required), (B) ad valorem taxes owing
with respect to the Property for the calendar year 2002, and (C) the Permitted
Encumbrances. For purposes hereof, the "Permitted Encumbrances" are only those
items set forth on Exhibit D attached hereto and incorporated herein by
reference. The Owner's Policy shall be subject to the standard pre-printed
exceptions provided for in the standard form of commitment for owner's policy of
title insurance approved by the State Board of Insurance for use in the State of
Texas; provided, however, that:

                    (i) The Owner's Policy shall not contain any exceptions for
                liens of any kind;

                                       -2-

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           (ii)    The standard survey exception (i.e., Item 2 of Schedule B of
     the standard title commitment form) shall be modified to read "shortages in
     area" only at the expense of Purchaser;

           (iii)   The exception for liens for standby fees and taxes shall be
     limited to those accrued for 2002 and subsequent years (and tax roll-backs
     per the standard policy language);

           (iv)    The exception for restrictive covenants shall refer only to
     Permitted Encumbrances that constitute restrictions, if any;

           (v)     There shall be no exception for any matters addressed in
     Schedule C of the Title Commitment; and

           (vi)    Any mandatory arbitration clause in the Owner's Policy shall
     be deleted.

           (c) Adjustments. Ad valorem and similar taxes and assessments
relating to the Property for the calendar year of the Closing shall be prorated
between Seller and Purchaser as of the Closing Date based upon the best
available estimates of the amount of taxes that will be due and payable on the
Property. As soon as the actual amount of taxes and assessments on the Property
for such year is known, Seller and Purchaser shall readjust, if necessary, the
amount of taxes and assessments to be paid by each party with the result that
Seller shall promptly pay for those taxes and assessments attributable to the
period of time through the Closing Date and Purchaser shall promptly pay for
those taxes and assessments attributable to the period of time after the Closing
Date. Any special assessments applicable to the Property for improvements made
prior to the Closing shall be paid by Seller.

           (d) Possession and Closing. Subject to the Permitted Encumbrances
(including any possession or tenancy rights, if any, of Earnest Taylor and/or
Tailored Aviation, Inc.), exclusive possession of the Property shall be
delivered to Purchaser at Closing.

           (e) Costs of Closing. Seller shall pay the recording costs for the
Deed, and one-half (1/2) of any Title Company escrow fee, the premium for the
Owner's Policy, the cost of tax certificates, and the cost of the environmental
site assessment and structural review of the Property conducted by Robert A.
King, Inc. Further, Seller agrees to pay for the cost of Purchaser's attorney's
fees relating to this transaction. Except as set forth above, the parties hereto
shall be responsible for all other fees or expenses incurred by such party in
connection with this transaction.

     4. Express Representations and Warranties of Seller. Seller represents
and warrants to Purchaser as of the Effective Date, except where specific
reference is made herein to the contrary to another date or dates, in which case
such date or dates will apply, as follows:

           (a) Seller has no knowledge of adverse or other parties in possession
or any occupancy of the Property, or of any part thereof, other than Earnest
Taylor and/or Tailored Aviation, Inc.

                                       -3-

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           (b) There are no actions, suits, claims, assessments, or proceedings
pending or, to the knowledge of Seller, threatened that could adversely affect
the ownership, development, maintenance, or operation of the Property or
Seller's ability to perform hereunder. Seller has not received any written
notice from any governmental or quasi-governmental agency or authority requiring
the correction of any condition with respect to the Property or any part
thereof, by reason of a violation of any regulation or otherwise. Seller has not
received any written notice of, and has no other knowledge or information of,
any pending or contemplated condemnation action with respect to the Property, or
any part thereof.

           (c) Seller has no knowledge of any existing fact or condition which
would result in the termination of the current access from the Property to any
presently existing highway, street, alley, or road adjoining or situated on the
Property, or to any existing water, sewer, or other utility Property servicing,
adjoining, or situated on the Property.

           (d) Seller has good and indefeasible title to the Property.

           (e) There is no action, suit, proceeding, or claim presently pending
in any court or before any federal, state, county, or municipal department,
commission, board, bureau, or agency or other governmental instrumentality or
before any arbitration tribunal or panel affecting Seller's ability to perform
its obligations under this Memorandum, nor, to the best knowledge of Seller, is
any such action, suit, proceeding, or claim threatened.

           (f) Seller is not aware of any attachments, executions, assignments
for the benefit of creditors, or voluntary or involuntary bankruptcy
proceedings, or proceedings under any debtor relief laws, contemplated by or
pending or threatened against Seller or the Property.

           (g) There are no contracts of construction, employment, management,
service, or supply which will materially and adversely affect the Property after
Closing.

           (h) To the knowledge of Seller, there is no Hazardous Substance or
Solid Waste illegally contaminating the Property, except as may be reflected in
any environmental report(s) obtained by Buyer. The term (as used in this
Memorandum) "Hazardous Substance" has the meaning specified in the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 ("CERCLA"), and
the terms "Solid Waste" and "disposal" (or "disposed") have the meanings
specified in the Resource Conservation and Recovery Act of 1976 ("RCRA"). If
either CERCLA or RCRA is amended to broaden the meaning of any term defined
thereby, the broader meaning shall apply to this paragraph after the effective
date of the amendment.

           (i) There are no unpaid assessments for public improvements against
the Property, and Seller has no knowledge of any proposed assessments against
the Property. The Property is not subject to assessments for any street paving,
curbing, or similar improvements.

           (j) Seller has not received written notice of (1) public plans or
proposals for changes in road grade, access, or other municipal improvements
which would affect the Property

                                       -4-

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or result in any assessment, or (2) any pending tax proceeding for the reduction
or increase of the assessed real estate tax evaluation of the Property or any
portion thereof.

           (k) Seller is duly organized, validly existing, and in good standing
under the laws of the state of its organization and is qualified to transact
business in the state in which the Property is situated. This Memorandum and all
instruments, documents, and agreements to be executed by Seller in connection
herewith are, or when delivered shall be, duly and validly executed and
delivered by Seller to Purchaser and are, or when delivered shall be, legal,
valid, and binding obligations of Seller, enforceable against Seller in
accordance with their respective terms, except as such enforcement may be
limited by bankruptcy, conservatorship, receivership, insolvency, moratorium, or
similar laws affecting creditors' rights generally or by general principles of
equity. Each individual executing this Memorandum on behalf of Seller represents
and warrants to Purchaser that he or she is duly authorized to do so.

           (l) Seller has the capacity and complete authority to enter into and
perform this Memorandum, and no consent, approval, or other action by any other
party or entity will be needed thereafter to authorize Seller's execution and
performance of this Memorandum. The execution and delivery of this Memorandum by
Seller, the consummation by Seller of the transaction contemplated hereby, and
compliance by Seller with any of the provisions hereof will not (1) conflict
with or result in any breach of any provisions of the formation documents of
Seller; (2) result in a violation or breach of, or constitute (with or without
due notice or lapse of time or both) a default (or give rise to any right to
termination, cancellation, or acceleration) under any of the terms, conditions,
or provisions of any note, bond, mortgage, indenture, lease, license, contract,
agreement, or other instrument or obligation to which Seller is a part or by
which Seller or the Property may be bound; or (3) violate any order, writ,
injunction, decree, statute, rule, or regulation applicable to Seller or the
Property; except in the case of clauses (2) or (3) above, for violations,
breaches or defaults (A) that would not in the aggregate have a material adverse
effect on the business or financial condition of Seller and on the effectiveness
of the transaction contemplated hereby or (B) for which waivers or consents have
been or will be obtained prior to the Closing Date (as herein defined).

           (m) Seller is not a "foreign person", "foreign trust", or "foreign
corporation" within the meaning of the United States Foreign Investment and Real
Property Tax Act of 1980 and the Internal Revenue Code of 1986, as subsequently
amended.

           PURCHASER ACKNOWLEDGES, UNDERSTANDS AND AGREES THAT PURCHASER HAS
BEEN GIVEN THE OPPORTUNITY TO MAKE FULL AND COMPLETE INSPECTIONS OF THE PROPERTY
TO PURCHASER'S SATISFACTION. PURCHASER IS RELYING SOLELY ON PURCHASER'S OWN
INVESTIGATIONS OF THE PROPERTY AND NOT ON ANY INFORMATION PROVIDED OR TO BE
PROVIDED BY SELLER, OR ANY AGENT, REPRESENTATIVE OR OTHER PARTY ACTING ON BEHALF
OF SELLER. EXCEPT FOR SELLER'S REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN,
IT IS THE UNDERSTANDING AND INTENTION OF THE PARTIES THAT THE SALE OF THE
PROPERTY FROM SELLER TO PURCHASER IS MADE ON AN "AS IS, WHERE IS" BASIS AND WITH
ALL FAULTS. ACCORDINGLY, EXCEPT AS

                                       -5-

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EXPRESSLY PROVIDED FOR IN THIS MEMORANDUM AND EXCEPT AS TO THE WARRANTY OF
TITLE TO BE CONTAINED IN THE DEED, PURCHASER ACKNOWLEDGES THAT SELLER HAS NOT
MADE, DOES NOT MAKE, AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS,
WARRANTIES, PROMISES, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER
WHATSOEVER, EXPRESS OR IMPLIED, ORAL OR WRITTEN, RELATING TO, CONCERNING OR WITH
RESPECT TO (I) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROPERTY, (II) THE
COMPLIANCE OF OR BY THE PROPERTY WITH ANY LAWS, RULES, REGULATIONS, STATUTES OR
ORDINANCES OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (III) THE
LIABILITY, MERCHANTABILITY, MARKETABILITY, OR PROFITABILITY, SUITABILITY OR
FITNESS FOR A PARTICULAR USE OR PURPOSE OF THE PROPERTY, OR (IV) ANY OTHER
MATTER WITH RESPECT TO THE PROPERTY. SPECIFICALLY, PURCHASER ACKNOWLEDGES THAT,
EXCEPT AS OTHERWISE EXPRESSLY SET OUT IN THIS MEMORANDUM, SELLER HAS NOT MADE,
DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS OR
WARRANTIES REGARDING COMPLIANCE OF THE PROPERTY WITH ANY ENVIRONMENTAL
PROTECTION OR LAND USE LAWS, RULES OR REGULATIONS, ORDERS OR REQUIREMENTS,
INCLUDING, WITHOUT LIMITATION, THOSE PERTAINING TO SOLID WASTE, AS DEFINED BY
U.S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R., PART 261, OR THE
DISPOSAL OR EXISTENCE IN OR ON THE PROPERTY, OF ANY HAZARDOUS SUBSTANCES AS
DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY
ACT OF 1980, AS AMENDED, AND THE REGULATIONS PROMULGATED THEREUNDER. PURCHASER
REPRESENTS TO SELLER THAT PURCHASER SHALL RELY SOLELY UPON ITS OWN
INVESTIGATIONS, INSPECTIONS AND STUDIES OF THE PROPERTY, AND NOT ON ANY
INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER, SELLER'S AGENTS OR CONTRACTORS
OR OTHERWISE GENERATED FROM THIRD PARTY SOURCES. SELLER SHALL NOT BE LIABLE OR
BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR
INFORMATION PERTAINING TO THE PROPERTY OR THE OPERATION THEREOF FURNISHED BY ANY
PARTY PURPORTING TO ACT ON BEHALF OF SELLER. THE STATEMENTS AND DISCLAIMERS MADE
UNDER THIS PARAGRAPH SHALL BE INCLUDED IN THE DEED AND OTHER CLOSING DOCUMENTS
FROM SELLER TO PURCHASER AND SHALL EXPRESSLY SURVIVE THE CLOSING OF THIS
MEMORANDUM.

         For purposes hereof, Seller's "knowledge" shall mean and be limited
exclusively to the actual awareness of facts by Roy T. Rimmer, Jr., without any
duty of investigation or inquiry, and shall mean that such named persons are not
actually aware of the untruth of such statement, without being under any
obligation to conduct any inquiry or investigation of such matter for purposes
of attempting to verify the absolute truth or accuracy thereof.

                                       -6-

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         5. Real Estate Commission. Purchaser and Seller each represents to the
other that there are no real estate agents or brokers entitled to a commission
in connection with this purchase and sale of the Property as the result of any
act, deed, promise or agreement of such party. Purchaser hereby agrees to
indemnify, defend and hold harmless Seller from and against any and all claims
of any agent, broker, finder or other similar party claiming through or on
account of an agreement or alleged agreement with Purchaser, and Seller hereby
agrees to indemnify, defend and hold harmless Purchaser from and against any and
all claims of any agent, broker, finder or other similar party claiming through
or on account of an agreement or alleged agreement with Seller.

         6. Seller's Non-Foreign Status. Seller represents and warrants that
Seller is not a "foreign person," as defined in Section 1445 of the Internal
Revenue Code of 1986, as amended, and in the Rules and Regulations promulgated
by the Treasury Department with respect thereto (collectively, "Federal Tax
Law"). Therefore, at the Closing, Seller will deliver to Purchaser a Certificate
of Non-Foreign Status in the form attached hereto as Exhibit E and incorporated
herein for reference purposes, subscribed and sworn to by Seller, complying with
Federal Tax Law (the "Certificate as to Non-Foreign Status"). If Purchaser has
reason to believe that Seller is a "foreign person" or if Seller fails to
deliver the Certificate as to Non-Foreign Status at the Closing, subscribed and
sworn to as described above, then, in either such event, the Title Company is
hereby authorized to withhold from the Purchase Price otherwise payable to
Seller, all sums required to be withheld by Purchaser under Federal Tax Law (and
if the cash portion of the Purchase Price is insufficient for such purpose, then
Seller shall deliver the shortfall in cash into escrow with the Title Company at
Closing), and the Title Company will deliver such amount withheld (and/or
delivered by Seller) to the Internal Revenue Service together with the
appropriate forms prescribed by the U.S. Department of the Treasury, with copies
being contemporaneously sent to both Seller and Purchaser.

         7. Authority. Each party to this Memorandum warrants and represents to
the other that such party has full power and authority to enter into and perform
its obligations under this Memorandum in the names, titles and capacities herein
stated and on behalf of any entities, persons, estates or firms represented or
purported to be represented by such person, and that all approvals, consents and
authorizations necessary or required by any state and/or federal law or private
agreement in order for such party to enter into and perform its obligations
under this Memorandum have been obtained and all legal requirements fully
complied with.

         8. Notices. Any notice, demand or request permitted, required or
desired to be given in connection with this Memorandum shall be in writing and
shall be hand delivered, or be sent by United States certified or registered
mail, return receipt requested, postage prepaid, or be sent by private,
receipted courier guaranteeing same-day or next-day delivery, addressed as
follows:

                If to Seller:     c/o TIMCO Aviation Services, Inc.
                                  623 Radar Road
                                  Greensboro, NC 27410
                                  Attn:  Mr. Roy T. Rimmer, Jr.
                                  Facsimile:  (336) 665-9508

                                       -7-

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                With a copy to:     Boyar & Miller
                                    4265 San Felipe, Suite 1200
                                    Houston, Texas 77027
                                    Attn:  Mr. Patrick Hayes
                                    Facsimile:  (713) 552-1758

                If to Purchaser:    c/o Aero Technologies, Inc.
                                    2200 NW 84th Ave.
                                    Miami, FL 33122
                                    Attn:  Mr. Ben Quevedo
                                    Facsimile:  (305) 436-5464 (x239)

                With a copy to:     Mr. John Bolen
                                    M.D. Gibson & Associates, P.C.
                                    2500 West Loop South, Suite 400
                                    Houston, Texas 77027
                                    Facsimile:  (713) 965-9173

Notices shall be deemed properly delivered and received when and if either: (i)
personally delivered; (ii) delivered by nationally-recognized overnight courier;
(iii) when deposited in the U.S. Mail, by registered or certified mail, return
receipt requested, postage prepaid; or (iv) sent via facsimile transmission with
confirmation mailed by regular U.S. mail. Any party may change its notice
address for purposes hereof to any address within the continental United States
by giving written notice of such change to the other parties hereto at least
fifteen (15) days prior to the intended effective date of such change.

         9. Entire Agreement. This Memorandum represents the entire agreement by
and between Purchaser and Seller with regard to the subject matter dealt with
herein, and it may not be modified except by written amendment executed by
Purchaser and Seller.

         10. Successors and Assigns. The terms and provisions of this Memorandum
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective heirs, personal representatives, successors and permitted
assigns.

         11. Governing Law. The terms, provisions and conditions of this
Memorandum shall be governed by and construed in accordance with the laws of the
State of Texas. Venue for all suits and actions arising out of or in connection
with this Memorandum shall be proper only in the state and federal courts
sitting in Brazoria County, Texas, and each party hereby consents to the
assertion of personal jurisdiction by such courts over such party for the
limited purposes of such suit but does not waive requirement for service of
process in the manner prescribed by law.

         12. Severability. If any provision of this Memorandum shall, for any
reason, be held to be illegal, invalid or unenforceable, then the other
provisions of this Memorandum shall not be rendered invalid or otherwise
affected thereby, all of which remaining provisions shall continue in full force
and effect to the maximum extent permitted by applicable law.

                                       -8-

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         13. Survival of Representations and Warranties; Further Assurances. The
representations and warranties of Seller contained in this Memorandum shall
survive the Closing for a period of one (1) year. Seller and Purchaser each
agree to execute and deliver such other documents, on or after the Closing Date,
as are reasonably necessary to give effect to and carry out the transaction
herein contemplated.

         14. Exhibits. All exhibits referenced in this Memorandum are attached
hereto and incorporated herein by this reference and shall constitute a part of
the terms, covenants, conditions and provisions hereof, as if set forth herein
verbatim.

         15. Notice to Purchaser. The Texas Real Estate License Act requires
that Purchaser be advised that he should either (i) have an attorney examine an
abstract of title to the Property, or (ii) obtain a title insurance policy
covering the Property. Notice to that effect is, therefore, hereby given to and
acknowledged by Purchaser.

         16. Headings; Construction. The headings contained in this Memorandum
are for reference purposes only and shall not modify or affect this Memorandum
in any manner whatsoever. Wherever required by the context, any gender shall
include any other gender, the singular shall include the plural, and the plural
shall include the singular. All references in this Memorandum to "herein",
"hereunder" or "hereby" shall refer to this entire Memorandum rather than any
particular section, paragraph, subparagraph, clause or provision, unless
specifically stated otherwise.

         17. WAIVER OF CONSUMER RIGHTS. BUYER HEREBY WAIVES ITS RIGHTS UNDER THE
DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT, SECTION 17.41 ET SEQ. OF
THE TEXAS BUSINESS & COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS
AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF BUYER'S OWN SELECTION,
BUYER VOLUNTARILY CONSENTS TO THIS WAIVER.

         18. Effective Date. The "Effective Date" of this Memorandum is defined
as the date on which fully executed originals of this Agreement and the Closing
Documents are delivered to the Title Company.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       -9-

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         EXECUTED by the parties on the respective dates set forth below, to be
effective as of the Effective Date set forth herein.

                                  SELLER:

Date: July 12, 2002               AVIATION SALES DISTRIBUTION
                                  SERVICES COMPANY,
                                  a Delaware corporation

                                  By: /s/ Timothy D. Nolan
                                     -------------------------------------------

                                  Name:  Timothy D. Nolan
                                        ----------------------------------------

                                  Title:  Treasurer
                                         ---------------------------------------

                                  PURCHASER:

                                  THE QUEVEDO FAMILY LIMITED LIABILITY COMPANY,
                                  a Florida limited liability company

Date: July 12, 2002               By:   /s/
                                     -------------------------------------------

                                  Name:
                                       -----------------------------------------

                                  Title:
                                        ----------------------------------------

EXHIBITS:

Exhibit A  -  Description of the Property
Exhibit B  -  Form of Special Warranty Deed
Exhibit C  -  Form of Bill of Sale and Assignment Agreement
Exhibit D  -  Permitted Encumbrances
Exhibit E  -  Form of Certificate of Non-Foreign Status

                                       -10-<PAGE>

                                                                   Exhibit 10.14

                               SECURITY AGREEMENT

                  THIS SECURITY AGREEMENT (this "Agreement"), dated as of July
12, 2002, is executed by and among AEROCELL STRUCTURES, INC., an Arkansas
corporation ("Aerocell"), TRIAD INTERNATIONAL MAINTENANCE CORPORATION, a
Delaware corporation ("TIMCO"), AIRCRAFT INTERIOR DESIGN, INC., a Florida
corporation ("Design"), TIMCO ENGINE CENTER, INC., a Delaware corporation
("TIMCO Engine") (Aerocell, TIMCO, Design, and TIMCO Engine being collectively
referred to as the "Borrowers" and each, individually, a "Borrower"), AVIATION
SALES DISTRIBUTION SERVICES COMPANY, a Delaware corporation ("Distribution"),
AVS/M-2, INC., a Delaware corporation ("Kratz-Wilde") WHITEHALL CORPORATION, a
Delaware corporation ("Whitehall"), AVS/M-3, INC., an Arizona corporation
("Apex"), AVS/CAI, INC., a Florida corporation ("Caribe"), AVIATION SALES
LEASING COMPANY, a Delaware corporation ("Leasing"), AVS/M-1, INC., A Delaware
corporation ("Manufacturing"), AVSRE, L.P., a Delaware limited partnership
("AVSRE"), AVIATION SALES PROPERTY MANAGEMENT CORP., a Delaware corporation
("Property Management"), HYDROSCIENCE, INC., a Texas corporation
("Hydroscience"), TIMCO ENGINEERED SYSTEMS, INC., a Delaware corporation
("Engineered Systems"), and TIMCO AVIATION SERVICES, INC., a Delaware
corporation ("Parent") (Distribution, Kratz-Wilde, Whitehall, Apex, Caribe,
Leasing, Manufacturing, AVSRE, Property Management, Hydroscience, Engineered
Systems and Parent being collectively referred to as the "Guarantors"), each
having its chief executive office at 623 Radar Road, Greensboro, North Carolina
27410, and BENITO QUEVEDO AND MARTHA QUEVEDO, his wife (collectively,
"Quevedo"), JAMES INVESTMENTS, INC., a Texas corporation ("JII"), LJH, Ltd., a
Texas limited partnership ("LJH"), and Don A. Sanders ("Sanders") (Quevedo, JII,
LJH and Sanders being collectively referred to as the `Secured Parties" and
each, individually, a "Secured Party"). Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to them in that certain Fifth
Amended and Restated Credit Agreement of even date herewith (the "Credit
Agreement") among the Parent, certain subsidiaries of the Parent, as borrowers,
the institutions from time to time party thereto, as lenders, the institutions
from time to time party thereto, as lenders, and Citicorp USA, Inc., as Agent
(the "Agent").

                              W I T N E S S E T H:

                  WHEREAS, Bank of America, N.A. ("BofA") has heretofore made a
certain loan to, inter alia, the Borrowers and the outstanding principal balance
of such loan has been re-evidenced by (i) that certain Replacement Term Loan
Note in the principal amount of $5,000,000 of even date herewith and (ii) that
certain Replacement Term Loan Note in the principal amount of $2,500,000 of even
date herewith (such Replacement Term Loan Notes being collectively referred to
as the "BofA Note"); and

                  WHEREAS, the Borrowers have executed that certain Term Loan
Note of even date herewith in favor of Quevedo in the principal amount of
$1,000,000 (the "Quevedo Note")

<PAGE>

and the Guarantors have executed that certain Guaranty of even date herewith in
respect of the Quevedo Note (the "Quevedo Guaranty");

                  WHEREAS, Sanders, LJH and JII have guaranteed the payment and
performance of certain of the indebtedness evidenced by the BofA Note pursuant
to those certain Limited Guarantees identified on Exhibit A attached hereto and
made a part hereof (the "Shareholder Guarantees");

                  WHEREAS, the Secured Parties have required in connection with
the Quevedo Note and the Shareholder Guarantees that the Borrowers and the
Guarantors (collectively, the "Grantors") grant security interests in favor of
each of the Secured Parties in order to secure the indebtedness of the Grantors
under and with respect to (i) the Quevedo Note, and (ii) in the event Sanders,
LJH and/or JII are subrogated to the rights of BofA with respect to the
indebtedness evidenced by the BofA Note by virtue of the performance of their
obligations under the Shareholder Guarantees, their resultant claims against the
Grantors; and

                  WHEREAS, the Grantors have agreed to grant such security
interests in favor of the Secured Parties in accordance with the terms and
conditions set forth below.

                  NOW, THEREFORE, in consideration of the premises set forth
herein and in order to induce (i) Quevedo to grant the loan evidenced by the
Quevedo Note, and (ii) Sanders, LJH and JII to enter into the Shareholder
Guarantees, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby conclusively acknowledged, each Grantor hereby
agrees with the Secured Parties, for each of their benefit, as follows:

                  SECTION 1. Grant of Security. Each Grantor hereby grants to
each of the Secured Parties, as security for (i) the indebtedness of the
Borrowers under the Quevedo Note, and (ii) in the event Sanders, LJH and/or JII
are subrogated to the rights of BofA with respect to the indebtedness evidenced
by the BofA Note by virtue of the performance of their obligations under the
Shareholder Guarantees, their resultant claims against the Grantors
(collectively, the "Obligations"), a third priority security interest
(subordinate to the the first priority security interest granted to the Agent
for the benefit of the Holders and Citicorp USA, Inc. and to the second priority
security interest granted to the Agent for the benefit of BofA) in all of such
Grantor's right, title and interest in and to the following, in each case
whether now owned or existing or hereafter acquired by it or arising and however
and wherever arising or located (the "Collateral"):

                  (a)  Equipment;

                  (b)  Inventory;

                  (c)  Receivables;

                  (d)  General Intangibles;

                                       2

<PAGE>

                  (e) all chattel paper, all instruments, including, without
limitation, all notes evidencing intercompany loans, and all bills of lading,
warehouse receipts and other documents of title;

                  (f) all Property and interests in property of such Grantor
which may now be in or may hereafter come into the possession, custody or
control of any of the Secured Parties, or any agent or affiliate of any of the
Secured Parties, in any way or for any purpose (whether for safekeeping,
deposit, custody, pledge, transmission, collection or otherwise), and all rights
and interests of such Grantor in respect of any and all (i) drafts, letters of
credit, stocks, bonds, and debt and equity Securities and investment property,
whether or not certificated, and warrants, options, puts and calls and other
rights to acquire or otherwise relating to the same, (ii) interest rate,
currency exchange, and hedging contract agreements, including, without
limitation, cap, collar, floor, forward and similar agreements and interest rate
protection agreements, (iii) cash and cash equivalents, and (iv) proceeds of
loans, advances and other financial accommodations, including, without
limitation, the loan represented by the Quevedo Note, and all other personal
property and interests in personal property of such Grantor not specifically
included in Sections 1(a) through 1(e) above; and

                  (g) all accessions and additions to, substitutions and
documents for, and replacements, proceeds and products of any of the foregoing
Collateral, and all payments under insurance (whether or not any Secured Party
is the loss payee thereof), and any indemnity, warranty or guaranty, payable by
reason of loss or damage to or otherwise with respect to any of the foregoing
Collateral, to the extent not otherwise included.

                  Without limiting the generality of the foregoing, the Liens
and security interests granted in this Agreement secure, without limitation, the
payment of all amounts which constitute part of the Obligations and would be
owed by any Grantor to any Secured Party, but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving such Grantor.

                  Notwithstanding anything herein to the contrary, it is
expressly understood and agreed that nothing herein or in any other agreement
between the parties shall be deemed to grant the Secured Parties a security
interest in and to any collateral subject to a lien under the TROL Documents,
including but not limited to any fixtures, or any personal property that may be
deemed fixtures, situated at the premises located at 3601/3701 Flamingo Road,
Miramar, Florida.

                  SECTION 2. Grantor Remains Liable. Anything herein to the
contrary notwithstanding, (a) each Grantor shall remain liable under the
contracts and agreements included in the Collateral to the extent set forth
therein to perform all of its duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (b) the exercise by any
Secured Party of any of the rights hereunder shall not release any Grantor from
any of its duties or obligations under the contracts and agreements included in
the Collateral, and (c) none of the Secured Parties shall have any obligation or
liability under the contracts and agreements included in the Collateral by
reason of this Agreement, nor shall any of the Secured Parties be obligated to
perform any of the obligations or duties of any Grantor thereunder or to take
any action to collect or enforce any claim for payment in which a security
interest is granted hereunder.

                                        3

<PAGE>

                  SECTION 3. Representations and Warranties. Each Grantor
represents and warrants as follows with respect to itself and the Collateral
pledged hereunder:

                  (a) All of its Inventory and Equipment is located at the
places specified on Exhibit B attached hereto and made a part hereof, except for
Inventory in transit and Inventory and Equipment at other locations for repair,
overhaul or modification, provided that Inventory and Equipment may be moved to
other locations in accordance with Section 5(a). All of its Inventory which is
imported from a location outside the United States arrives at one of the ports
or other locations identified on Exhibit B, if any. If any location of its
Inventory or Equipment is subject to a lease or license, or any sublease,
mortgage or similar instrument, the name and address of each licensor, lessor,
sublessor, mortgagor, lessee, licensee, sublessee and/or mortgagee (other than
such Grantor) is set forth on Exhibit B below the address of such location or on
a notice delivered to the Secured Parties pursuant to Section 5(a). The name and
address of each bailee, processor, warehouseman, consignee or other Person in
possession of any of the Inventory or Equipment (each such Person being a
"Bailee") on the date hereof, other than carriers and shippers of Inventory in
transit and Inventory and Equipment at other locations for repair, overhaul or
modification, is set forth on Exhibit B, together with the address of the
location where such Inventory or Equipment is or may be held. Except as
otherwise indicated on Exhibit B, no Bailee (other than a Bailee identified on
Exhibit B as being a consignee or a Bailee in possession of its Inventory or
Equipment for purposes of repair, overhaul or modification) in possession of any
of the Inventory or Equipment conducts a business at the location of such
Inventory or Equipment other than a business in the nature of warehousing or
transporting goods for others. In the event that any of its Inventory is in the
possession of a Bailee, such Inventory shall not be evidenced by a negotiable
instrument or document.

                  (b) The principal place of business and chief executive office
of each Grantor are located at the address first specified above for each
Grantor or at such other address as a respective Grantor may designate in
accordance with Section 6, and all records concerning its Receivables are
located at the addresses specified on Exhibit C attached hereto and made a part
hereof or at such other addresses as any Grantor may designate in accordance
with Section 6. Each Grantor will hold and preserve such records and will permit
representatives of the Secured Parties at any time to inspect, copy and make
abstracts of such records. The originals of all chattel paper that evidence
Receivables have been delivered to the Secured Parties.

                  (c) Each Grantor has good, indefeasible and merchantable title
to its respective Collateral. Each Grantor is the legal and beneficial owner of
its respective Collateral free and clear of any Lien, except for the security
interest created by this Agreement and Liens permitted under Section 10.03 of
the Credit Agreement. Except as identified on Exhibit D attached hereto and made
a part hereof, no financing statement or other instrument similar in effect
covering all or any part of the Collateral is on file in any recording office on
the date hereof, except such as may have been filed in favor of the Agent
relating to the Credit Agreement or in favor of the Secured Parties relating to
this Agreement.

                  (d) The correct name of each Grantor on the date hereof is
that set forth on the signature pages hereof and no Grantor has any other
corporate or fictitious name and has not, during the five (5) years immediately
preceding the date of this Agreement, (i) except as set forth on Exhibit E
attached hereto and made a part hereof, been known by or used any other
corporate

                                        4

<PAGE>

or fictitious name in the ordinary course of its business; (ii) merged or
consolidated with any other Person which is or was known by or uses or used any
other corporate, partnership or fictitious name in the ordinary course of its
business; or (iii) except as set forth on Exhibit E, acquired assets from any
other Person or operating division thereof which is or was known by or uses or
used any other corporate, partnership or fictitious name to the extent that the
transfer of such assets by such Person or operating division is outside of the
ordinary course of such Person's or operating division's business. No Grantor
will change its name, identity or corporate structure in any manner unless it
shall have given the Secured Parties the same notice required to be given to the
Agent as described in Section 10.14 of the Credit Agreement and certified to the
Secured Parties that all filings reflecting such new name, identity or corporate
structure have been made which are necessary or appropriate to preserve the
perfection of the security interests described herein.

                  (e) This Agreement, together with the financing statements
listed on Exhibit F attached hereto and made a part hereof filed in the
jurisdictions identified on Exhibit F, upon the giving of value for the benefit
of the Grantors by the Secured Parties, creates a valid and perfected third
priority security interest in the Collateral (except for Collateral held by a
Bailee for purposes of repair, overhaul or modification), securing the payment
and performance of the Obligations, and all such filings and other actions
necessary or desirable to perfect and protect such security interest have been
duly made or taken.

                  (f) No consent of any other Person and no authorization,
approval or other action by, and no notice to or filing with, any Governmental
Authority is required (i) for the grant by any Grantor of the security interest
granted hereby or for the execution, delivery or performance of this Agreement
by any Grantor, (ii) for the perfection or, except for the filing of the
appropriate continuation statements with respect to the financing statements
listed on Exhibit F, maintenance of the security interest created hereby
(including the maintenance of the first priority nature of such security
interest) or (iii) for the exercise by the Secured Parties of their respective
rights and remedies hereunder.

                  SECTION 4.  Further Assurances.

                  (a) Each Grantor agrees that from time to time, at the expense
of such Grantor, such Grantor will promptly execute and deliver all further
instruments and documents (including, without limitation, control agreements in
form and substance reasonably satisfactory to a majority of the Secured Parties
with respect to all letter of credit rights, electronic chattel paper, deposit
accounts, and accounts with securities intermediaries), and take all further
action which may be necessary or desirable in the opinion of a majority of the
Secured Parties or their respective counsel, or that a majority of the Secured
Parties may reasonably request, in order to perfect and protect any security
interest granted or purported to be granted hereby and enable the Secured
Parties to exercise and enforce their respective rights and remedies hereunder
with respect to any Collateral, and such Grantor shall in any event take such
action as may be required to maintain the truthfulness and accuracy of the
representations and warranties contained in Section 3. Without limiting the
generality of the foregoing: (i) each Grantor shall mark conspicuously each
"document," as defined in Section 9-102(a)(30) of the Uniform Commercial Code of
the state in which the collateral is located or deemed located, included in the
Inventory and each chattel paper included in the Receivables and, at the request
of a majority of the

                                        5

<PAGE>

Secured Parties, each of its records pertaining to the Collateral with a legend,
in form and substance satisfactory to a majority of the Secured Parties,
indicating that such document, chattel paper or other Collateral is subject to
the security interest granted hereby; (ii) in the event any Grantor acquires any
Collateral with respect to which a lien may be recorded with the Federal
Aviation Administration or any successor or replacement agency, such Grantor
shall immediately notify the Secured Parties and such Grantor shall, at the
request of a majority of the Secured Parties, promptly execute and deliver to
the Secured Parties, such notices, security agreements and other documents as
may be required (as determined by a majority of the Secured Parties in their
sole discretion) to evidence, record and perfect the Secured Parties' Lien with
respect to such Collateral; (iv) in the event that any Grantor has accounts with
respect to which the account debtor is the United States of America or any
department, agency or instrumentality thereof (all such accounts being
hereinafter referred to as "Government Receivables"), such Grantor shall, at the
request of a majority of the Secured Parties, with respect to such Government
Receivables, promptly comply with the Assignment of Claims Act of 1940, as
amended (31 U.S.C. ss. 3727 et seq.), and shall promptly deliver to the Secured
Parties evidence of such compliance, which evidence shall be in form and
substance satisfactory to a majority of the Secured Parties in their sole
discretion; (v) each Grantor shall execute and file such financing and
continuation statements, and amendments thereto, and such other instruments or
notices, as may be necessary or desirable, or as a majority of the Secured
Parties may request, in order to perfect and preserve the security interest
granted or purported to be granted hereby; and (vi) each Grantor shall obtain
and deliver to the Secured Parties notices, agreements (including, without
limitation, subordination agreements) and other documents reasonably requested
by a majority of the Secured Parties for the purpose of giving advice of and
perfecting the Liens granted to the Secured Parties for their respective benefit
and establishing the senior priority, if any, of the Secured Parties' respective
security interest over such other parties' rights and interests in respect of
Equipment, Inventory or other Collateral held in the possession of, Bailees,
licensors, lessors, mortgagees or other third parties, and shall use its best
efforts to cause such third parties (collectively, "Third Parties") to
acknowledge or consent to such notices, agreements and other documents.

                  (b) Each Grantor hereby authorizes the Secured Parties to file
one or more financing and continuation statements, and amendments thereto,
relating to all or any part of the Collateral without the signature of such
Grantor. Each Grantor hereby agrees that a photocopy or other reproduction of
this Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law.

                  (c) Each Grantor hereby agrees that, upon the occurrence and
during the continuation of an Event of Default, the Grantor will not, without
the prior written consent of a majority of the Secured Parties, except in the
ordinary course of business and for amounts which are not material to such
Grantor in the aggregate, (i) grant any extension of the time of payment of any
of the Collateral or compromise, compound or settle the same for less than the
full amount thereof; (ii) release, wholly or partly, any Person liable for the
payment thereof; or (iii) allow any credit or discount whatsoever thereon other
than trade discounts granted in the ordinary course of business.

                  (d) Each Grantor hereby agrees to advise the Secured Parties
promptly, in reasonable detail, of (i) all material Liens and claims made by or
asserted against any or all of the

                                        6

<PAGE>

Collateral (other than Liens listed on Exhibit D hereto), and (ii) the
occurrence of any other event which would have a material adverse effect on the
Secured Parties' Liens on, or interest in, the Collateral or would otherwise
have a Material Adverse Effect.

                  SECTION 5.  Covenants Regarding Equipment and Inventory.

                  (a) Each Grantor shall keep its Equipment and Inventory,
except for Inventory in transit and Inventory and Equipment at other locations
for repair, overhaul or modification, at the locations specified on Exhibit B
or, provided that ten (10) Business Days' prior written notice has been
delivered to the Secured Parties, at such other places in jurisdictions where
all actions required by Section 4 shall have been taken with respect to such
Equipment and Inventory.

                  (b) If any Equipment or Inventory is in the possession or
control of any Third Party or any of agent of a Grantor, such Grantor shall
notify such Third Party or agent of the Secured Parties' security interest in
such Equipment or Inventory and, upon the request of a majority of the Secured
Parties following the occurrence and during the continuation of an Event of
Default, direct such Third Party or agent to hold all such Equipment or
Inventory for the Secured Parties' account and subject to the Secured Parties'
instructions.

                  SECTION 6. Covenants Regarding Receivables and General
Intangibles. Each Grantor shall keep its chief place of business and chief
executive office and the office where it keeps its records concerning the
Receivables and the General Intangibles at the location(s) specified on Exhibit
C or, provided that thirty (30) days' prior written notice has been delivered to
the Secured Parties, at any other locations in a jurisdiction where all actions
required by Section 4 shall have been taken with respect to its Receivables and
General Intangibles.

                  SECTION 7. Secured Parties Appointed Attorney-in-Fact. Each
Grantor hereby irrevocably appoints the Secured Parties as its attorney-in-fact,
with full authority in the place and stead of such Grantor and in the name of
such Grantor or otherwise, from time to time in the discretion of a majority of
the Secured Parties, to take any action and to execute any instrument which a
majority of the Secured Parties may deem necessary or advisable to accomplish
the purposes of this Agreement, including, without limitation, upon the
occurrence and during the continuation of an Event of Default:

                  (a) to ask, demand, collect, sue for, recover, compromise,
receive and give acquittance and receipts for moneys due and to become due under
or in connection with any of the Collateral;

                  (b) to receive, endorse, and collect any drafts or other
instruments, documents and chattel paper, in connection with clause (a) above;

                  (c) to file any claims or take any action or institute any
proceedings which a majority of the Secured Parties may deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce
the rights of the Secured Parties with respect to any of the Collateral;

                  (d) to receive, open and dispose of all mail addressed to such
Grantor; and

                                        7

<PAGE>

                  (e) to take any other action necessary to operate such
Grantor's business.

Each Grantor hereby ratifies all that such attorney-in-fact shall lawfully do or
cause to be done by virtue hereof. This power of attorney is coupled with an
interest and shall be irrevocable.

                  SECTION 8. Secured Parties May Perform. If any Grantor fails
to perform any agreement contained herein, the Secured Parties may themselves
perform, or cause performance of, such agreement, and the expenses of the
Secured Parties incurred in connection therewith shall be payable by such
Grantor to the relevant Secured Party upon demand by such Secured Party.

                  SECTION 9. The Secured Parties' Rights and Duties. The powers
conferred on the Secured Parties hereunder are solely to protect their interest
in the Collateral and shall not impose any duty upon any of them to exercise any
such powers. Except for the safe custody of any Collateral in their possession
and the accounting for moneys actually received by them hereunder, none of the
Secured Parties shall have any duty as to any Collateral. Any action taken or
omitted to be taken by the Secured Parties or any one of them in connection with
any of the Collateral shall not result in any liability of any Secured Party to
any Grantor unless such action or omission shall be determined by a court of
competent jurisdiction to have arisen solely out of the gross negligence or
willful misconduct of such Secured Party. The Secured Parties may exercise any
of their respective rights and execute any of their respective duties hereunder
by or through agents or employees and shall be entitled to advice of counsel
concerning all matters pertaining to its rights and duties hereunder.

                  SECTION 10.  Insurance and Insurance Proceeds.

                  (a) Each Grantor shall maintain in full force and effect the
insurance policies and programs listed on Schedule 1 hereto or substantially
similar policies and programs or other policies and programs as are acceptable
to a majority of the Secured Parties. All such policies and programs shall be
maintained with insurers acceptable to a majority of the Secured Parties. Each
certificate and policy relating to Property damage, boiler and machinery and/or
business interruption coverage shall contain an endorsement, in form and
substance acceptable to the Secured Parties, showing loss payable as their
interests may appear to the Secured Parties, and naming the Secured Parties as
additional insureds under such policy. Each certificate and policy relating to
coverage other than the foregoing shall, if required by a majority of the
Secured Parties, contain an endorsement naming the Secured Parties as additional
insureds under such policy. Such endorsement or an independent instrument
furnished to the Secured Parties shall provide that the insurance companies will
give the Secured Parties at least thirty (30) days' written notice before any
such policy or policies of insurance shall be altered adversely to the interests
of the Secured Parties or canceled and that no act, whether willful or
negligent, or default of any Grantor or any other Person shall affect the right
of the Secured Parties to recover under such policy or policies of insurance in
case of loss or damage. In the event any Grantor at any time or times hereafter
shall fail to obtain or maintain any of the policies or insurance required
herein or to pay any premium in whole or in part relating thereto, then the
Secured Parties, without waiving or releasing any of the Obligations, or
resulting Event of Default, may at any time or times thereafter (but shall be
under no obligation to do so) obtain and maintain such policies of insurance and
pay such premiums and take any other action with respect thereto

                                        8

<PAGE>

which a majority of the Secured Parties deems advisable. All sums so disbursed
by the Secured Parties shall be part of the Obligations, secured by the terms of
this Agreement.

                  (b) Each Grantor hereby directs all insurers under policies of
Property damage, boiler and machinery and business interruption insurance
relating to the Property to pay all proceeds payable under such policies
directly to the Secured Parties. In no case shall such proceeds be payable to
any Grantor or any Grantor and the Secured Parties. The Secured Parties shall,
upon receipt of such proceeds, apply all of the proceeds so received in
repayment of the Obligations in the manner set forth in that certain Agreement
of even date herewith amongst the Secured Parties. Notwithstanding the
foregoing, in the event proceeds of insurance received by the Secured Parties
under property damage, boiler and machinery policies or business interruption
insurance policies (i) are less than $500,000 or (ii) constitutes Replacement
Proceeds, Secured Parties shall, provided that no Potential Event of Default or
Event of Default shall have occurred and be continuing unwaived, upon receipt of
such proceeds, remit the amount so received to the applicable Grantor.

                  SECTION 11. Inspection of Property; Books and Records;
Discussions. Each Grantor shall permit any authorized representative(s)
designated by the Secured Parties to visit and inspect, whether by access to
such Grantor's MIS or otherwise, any of the Property, to examine, audit, check
and make copies of such Grantor's financial and accounting records, books,
journals, orders, receipts and any correspondence (other than privileged
correspondence with legal counsel) and other data relating to its business or
the transactions contemplated or referenced in the Credit Agreement (including,
without limitation, in connection with environmental compliance, hazard or
liability) and to discuss its affairs, finances and accounts with its management
personnel and independent certified public accountants, all upon reasonable
written notice and at such reasonable times during normal business hours, as
often as may be reasonably requested by a majority of the Secured Parties. Each
such visitation and inspection shall be at such Grantor's expense. Each Grantor
shall keep and maintain in all material respects on its MIS and otherwise proper
books of record and account in which entries in conformity with GAAP shall be
made of all dealings and transactions in relation to its business and
activities, including, without limitation, transactions and other dealings with
respect to the Collateral. If an Event of Default has occurred and is continuing
and the Obligations have been accelerated pursuant to Section 12.02(a) of the
Credit Agreement, each Grantor, upon request by a majority of the Secured
Parties in connection with efforts to enforce the rights and remedies of the
Secured Parties in respect of the Obligations shall turn over any such records
to the Secured Parties or its representatives; provided, however, that the
Grantors may, in their discretion, retain copies of such records.

                  SECTION 12. Remedies. Subject to the terms of the
Intercreditor Agreement (as defined below), if any Event of Default shall have
occurred and be continuing:

                  (a) The Secured Parties may exercise in respect of the
Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party upon
default under the Uniform Commercial Code in effect in the State of Florida at
that time (the "Uniform Commercial Code") (whether or not the Uniform Commercial
Code applies to the affected Collateral). The Secured Parties also may (i)
without notice, demand or legal process of any kind, all of which each Grantor
hereby waives to the

                                        9

<PAGE>

extent permitted by applicable law, at any time or times enter such Grantor's
premises and either (x) take physical possession of the Collateral and maintain
such possession on such Grantor's premises and continue the operation of such
Grantor's business at such premises, at no cost to the Secured Parties, or (y)
remove the Collateral or any part thereof, to such other places as the Secured
Parties may desire, (ii) require the Grantors to, and each Grantor hereby agrees
that it will at its own expense and upon request of a majority of the Secured
Parties forthwith, assemble all or part of the Collateral as directed by the
Secured Parties and make it available to the Secured Parties at a place to be
designated by the Secured Parties which is reasonably convenient to both
parties, and (iii) without notice, except as specified below, sell, lease,
assign, grant an option or options to purchase or otherwise dispose of the
Collateral or any part thereof in one or more parcels at public or private sale,
at any of the Secured Parties' offices or elsewhere, for cash, on credit or for
future delivery, and upon such other terms as the Secured Parties may deem
commercially reasonable. The Secured Parties agree that they will notify the
applicable Grantor of the intended disposition of any of the Collateral owned by
it within a commercially reasonable time prior to such intended disposition, the
time of delivery of which notice the parties agree shall in no event be required
to be greater than five (5) Business Days. The Secured Parties shall not be
obligated to make any sale of Collateral regardless of notice of sale having
been given. The Secured Parties may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so
adjourned. The Secured Parties are hereby granted a license or other right to
use, without charge, the Grantors' trademarks, registered trademarks, trademark
applications, service marks, registered service marks, service mark
applications, patents, patent applications, trade names, rights of use of any
name, labels, fictitious names, inventions, designs, trade secrets, computer
programs, software, printouts and other computer materials, goodwill,
registrations, copyrights, copyright applications, permits, licenses,
franchises, customer lists, credit files, correspondence, and advertising
materials, and any Property of a similar nature, as it pertains to the
Collateral, or any rights to any of the foregoing, in completing production of,
advertising for sale, and selling any Collateral or in operating any Grantor's
business, and any Grantor's rights under all leases, licenses, consignment, and
franchise agreements shall inure to the Secured Parties' benefit.

                  (b) TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH GRANTOR
HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR TO
THE EXERCISE BY THE SECURED PARTIES OF THEIR RIGHTS TO (I) REPOSSESS THE
COLLATERAL WITHOUT JUDICIAL PROCESS OR (II) REPLEVY, ATTACH OR LEVY UPON SUCH
COLLATERAL WITHOUT PRIOR NOTICE OR HEARING.

                  (c) Any cash held by the Secured Parties as Collateral and all
cash proceeds received by the Secured Parties in respect of any sale of,
collection from, or other realization upon all or any part of the Collateral
may, in the discretion of the Secured Parties, be held by the Secured Parties as
Cash Collateral for, and/or then or at any time thereafter be applied in whole
or in part by the Secured Parties for their benefit, all or any part of the
Obligations, subject to the provisions of the Credit Agreement and the
Intercreditor Agreement governing such cash, proceeds, or other realization upon
the Collateral and the application thereof.

                                       10

<PAGE>

                  (d) The Secured Parties shall have the right, upon notice to
the applicable Grantor of its intention to do so, to notify the account debtors
or obligors under any Receivables of the assignment of such Receivables to the
Secured Parties and to direct such account debtors or obligors to make payment
of all amounts due or to become due to such Grantor thereunder directly to the
Secured Parties and, upon such notification and at the expense of such Grantor,
to enforce collection of any such Receivables, and to adjust, settle or
compromise the amount or payment thereof, in the same manner and to the same
extent as such Grantor might have done. After receipt by any Grantor of the
notice from the Secured Parties referred to in the preceding sentence, (i) all
amounts and proceeds (including instruments) received by such Grantor in respect
of such Receivables shall be received in trust for the benefit of the Secured
Parties hereunder, shall be segregated from other funds of such Grantor and
shall be forthwith paid over to the Secured Parties in the same form as so
received (with any necessary endorsement) to be held as Cash Collateral and
shall be applied as provided by Section 12(c) above, and (ii) no Grantor shall
adjust, settle or compromise the amount or payment of any Receivable, release
wholly or partly any account debtor or obligor thereof, or allow any credit or
discount thereon. In any suit, proceeding or action brought by the Secured
Parties under any account comprising part of the Collateral, each Grantor will
save, indemnify and keep the Secured Parties harmless from and against all
expense, loss or damages suffered by reason of any defense, setoff,
counterclaim, recoupment or reduction of liability whatsoever of the obligor
thereunder, arising out of a breach by any Grantor of any obligation or arising
out of any other agreement, Indebtedness or liability at any time owing to or in
favor of such obligor or its successors from any Grantor, and all such
obligations of the Grantors shall be and shall remain enforceable against and
only against the Grantors and shall not be enforceable against the Secured
Parties.

                  SECTION 13. Amendments, Etc. No amendment or waiver of any
provision of this Agreement, and no consent to any departure by any Grantor
herefrom, shall in any event be effective unless the same shall be in writing
and signed by parties hereto, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

                  SECTION 14. Notices, Etc. All notices and other communications
provided for hereunder shall be given in the manner set forth in the Credit
Agreement to the addresses provided by the parties to one another from time to
time, except that any notice provided by a Grantor to a Secured Party hereunder
shall be effective only upon receipt thereof by such Secured Party.

                  SECTION 15. Continuing Security Interest; Termination;
Payments Set Aside. This Agreement shall create a continuing security interest
in the Collateral and shall (i) remain in full force and effect until
indefeasible payment in full in cash of the Obligations and the Grantors'
obligations with respect to the Quevedo Note and the Shareholder Guarantees or
otherwise terminated, in writing, by the Secured Parties, (ii) be binding upon
the Grantors and the Secured Parties, and their respective successors and
assigns, and (iii) inure to the benefit of, and be enforceable by, the Grantors,
the Secured Parties, and their respective successors, transferees and assigns.
Upon the indefeasible payment in full in cash of the Obligations, the security
interest granted hereby shall terminate and all rights to the Collateral shall
revert to such Grantor. To the extent that any Grantor makes a payment or
payments to the Secured Parties or any of them or the Secured Parties or any of
them enforces its security interests or exercises its

                                       11

<PAGE>

rights of set-off, and such payment or payments or the proceeds of such
enforcement or set-off or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside and/or required to be
repaid to a trustee, receiver or any other party under any bankruptcy law, state
or federal law, common law or equitable cause, then, to the extent of such
recovery, the obligation or part thereof originally intended to be satisfied,
and all Liens, rights and remedies therefor, shall be revived and continued in
full force and effect as if such payment had not been made or such enforcement
or set-off had not occurred.

                  SECTION 16. Intercreditor Agreement; Subordination. This
Agreement is expressly subject and subordinate to the rights of the Agent and
the Lenders under the Credit Agreement and the security interests arising
therefrom. Notwithstanding anything in this Agreement to the contrary, each of
the Secured Parties acknowledges and agrees that all of their respective rights
and remedies in and to the Collateral shall be subject in all respects to that
certain Intercreditor Agreement of even date herewith between the Secured
Parties, the Agent, Citicorp USA, Inc., and BofA (the "Intercreditor
Agreement"), and none of the Secured Parties shall take any actions against the
Collateral or any part thereof in contravention of the terms of the
Intercreditor Agreement.

                  SECTION 17. Survival of Representations and Warranties. Each
Grantor covenants, warrants, and represents to the Secured Parties that all
representations and warranties of the Grantors contained in this Agreement are
true at the time of the Grantors' execution of this Agreement, shall survive the
execution, delivery and acceptance hereof by the parties hereto and shall
continue in effect until all of the Obligations have been paid in full in cash
or otherwise terminated or cancelled.

                  SECTION 18.  Governing Law; Terms; Severability.

         (a) This Agreement shall be interpreted, and the rights and liabilities
of the parties hereto, determined in accordance with, the laws of the State of
Florida, except as required by mandatory provisions of law and except to the
extent that the validity or perfection of the security interest hereunder, or
any of the remedies hereunder, in respect of any particular Collateral, may be
governed by the laws of a jurisdiction other than the State of Florida.

         (b) Unless otherwise defined herein or in the Credit Agreement, terms
used in Article 9 of the Uniform Commercial Code are used herein as therein
defined.

         (c) If any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

                  SECTION 19. No Waiver; Remedies. No failure on the part of the
Secured Parties to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

                                       12

<PAGE>

                  SECTION 20. Marshalling; Recourse to Security. None of the
Secured Parties shall be under any obligation to marshall any assets in favor of
any Grantor or any other party or against or in payment of any or all of the
Obligations. Recourse to security shall not be required at any time.

                  SECTION 21.   Construction.

                  (a) The works "hereof", "herein" and "hereunder" and words of
like import when used in this Agreement shall refer to this Agreement as a whole
and not to any particular provision of this Agreement and section references are
to this Agreement unless otherwise specified.

                  (b) All terms defined in this Agreement in the singular shall
have comparable meanings when used in the plural, and vice versa, unless
otherwise specified.

                  (c) Except as otherwise explicitly provided in this Agreement,
to the extent a conflict or inconsistency exists between the terms and
provisions of this Agreement and the terms and provisions of the Intercreditor
Agreement, the terms and provisions of the Intercreditor Agreement shall govern.

                  (d) Except as provided in subsection (c) above, this Agreement
represents the final agreement of the Grantors and the Secured Parties with
respect to the matters contained herein, subject to the terms of the
Intercreditor Agreement, and may not be contradicted by evidence of prior or
contemporaneous agreements, or subsequent oral agreements, between any Grantor
and any of the Secured Parties.

                  SECTION 22. Headings. Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement or be given any substantive effect.

                  SECTION 23. Counterparts. This Agreement may be executed in
any number of counterparts, each of which when so executed and delivered shall
be deemed an original, but all such counterparts together shall constitute one
and the same agreement.

                           {Signature Pages to follow}

                                       13

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

                                            AEROCELL STRUCTURES, INC.

                                            By:  /s/ Timothy D. Nolan
                                               ---------------------------------
                                                 Timothy D. Nolan
                                                 Treasurer

                                            AIRCRAFT INTERIOR DESIGN, INC.

                                            By:  /s/ Timothy D. Nolan
                                               ---------------------------------
                                                 Timothy D. Nolan
                                                 Treasurer

                                            TRIAD INTERNATIONAL MAINTENANCE
                                            CORPORATION

                                            By:  /s/ Timothy D. Nolan
                                               ---------------------------------
                                                 Timothy D. Nolan
                                                 Treasurer

                                            TIMCO ENGINE CENTER, INC.

                                            By:  /s/ Timothy D. Nolan
                                               ---------------------------------
                                                 Timothy D. Nolan
                                                 Treasurer

                                            AVIATION SALES DISTRIBUTION SERVICES
                                            COMPANY

                                            By:  /s/ Timothy D. Nolan
                                               ---------------------------------
                                                 Timothy D. Nolan
                                                 Treasurer

<PAGE>

                                            AVS/M-1, INC.

                                            By:  /s/ Timothy D. Nolan
                                               ---------------------------------
                                                 Timothy D. Nolan
                                                 Treasurer

                                            AVS/M-2, INC.

                                            By:  /s/ Timothy D. Nolan
                                               ---------------------------------
                                                 Timothy D. Nolan
                                                 Treasurer

                                            AVS/M-3, INC.

                                            By:  /s/ Timothy D. Nolan
                                               ---------------------------------
                                                 Timothy D. Nolan
                                                 Treasurer

                                            AVS/CAI, INC.

                                            By:  /s/ Timothy D. Nolan
                                               ---------------------------------
                                                 Timothy D. Nolan
                                                 Treasurer

                                        2

<PAGE>

                                    AVIATION SALES LEASING COMPANY

                                    By:  /s/ Timothy D. Nolan
                                       ---------------------------------
                                         Timothy D. Nolan
                                         Treasurer

                                    WHITEHALL CORPORATION

                                    By:  /s/ Timothy D. Nolan
                                       ---------------------------------
                                         Timothy D. Nolan
                                         Treasurer

                                    AVIATION SALES PROPERTY
                                    MANAGEMENT CORP.

                                    By:  /s/ Timothy D. Nolan
                                       ---------------------------------
                                         Timothy D. Nolan
                                         Treasurer

                                    AVSRE, L.P.
                                    by Aviation Sales Property Management Corp.,
                                         its General Partner

                                    By:  /s/ Timothy D. Nolan
                                       ---------------------------------
                                         Timothy D. Nolan
                                         Treasurer

                                    HYDROSCIENCE, INC.

                                    By:  /s/ Timothy D. Nolan
                                       ---------------------------------
                                         Timothy D. Nolan
                                         Treasurer

                                       3

<PAGE>

                              TIMCO ENGINEERED SYSTEMS, INC.

                              By:  /s/ Timothy D. Nolan
                                 ---------------------------------
                                   Timothy D. Nolan
                                   Treasurer

                              TIMCO AVIATION SERVICES, INC.

                              By:  /s/ Timothy D. Nolan
                                 ---------------------------------
                                   Timothy D. Nolan
                                   Treasurer

                              JAMES INVESTMENTS, INC.

                              By: /s/ Robert Alpert
                                 ---------------------------------
                              Name: Robert Alpert
                                   -------------------------------
                              Title: President
                                    ------------------------------

                              LJH, LTD.

                                   By: DLH Management, LLC, its general
                                   partner

                                   By: /s/ Lacy J. Harber
                                      ----------------------------
                                   Name: Lacy J. Harber
                                        --------------------------
                                   Title: President
                                         -------------------------

                                   /s/ Benito Quevedo
                                   -------------------------------
                                   Benito Quevedo, Individually

                                   /s/ Martha Quevedo
                                   -------------------------------
                                   Martha Quevedo, Individually

                                   /s/ Don A. Sanders
                                   -------------------------------
                                   Don A. Sanders, Individually

                                        4

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