Document:

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                                                                   Exhibit 10.17

                             INTERCREDITOR AGREEMENT

                  THIS INTERCREDITOR AGREEMENT (the "Agreement") is entered into
as of the 12th day of July, 2002 by and among CITICORP USA, INC., a Delaware
corporation, in its capacity as "Agent" (the "Agent") under that certain Fifth
Amended and Restated Credit Agreement of even date herewith (as amended and more
particularly described below and herein referred to as the "Credit Agreement")
and under each of (i) that certain Collateral Documents Amendment dated as of
February 18, 2000 (as more particularly described below and herein referred to
as the "Collateral Documents Amendment") and (ii) that certain Second Collateral
Documents Amendment dated as of February 14, 2001 (as more particularly
described below and herein referred to as the "BofA Collateral Documents
Amendment"), CITICORP USA, INC., a Delaware corporation, as holder of the
Warrant (as more particularly described below) ("CUSA"), BANK OF AMERICA, N.A.,
as holder of the BofA Note (as more particularly described below) ("BofA"), and
BENITO QUEVEDO and MARTHA P. QUEVEDO (collectively referred to herein as "BQ"),
as holders of that certain Term Loan Note of even date herewith (as more
particularly described below and herein referred to as the "Quevedo Note"), DON
A. SANDERS ("Sanders"), LJH, LTD., a Texas limited partnership ("Harber"), and
JAMES INVESTMENTS, INC., a Texas corporation ("James"). Capitalized terms used
herein which are defined in the Credit Agreement shall have the meanings herein
as ascribed thereto in the Credit Agreement.

                                                         W I T N E S S E T H:

                  WHEREAS, the Agent, AEROCELL STRUCTURES, INC., an Arkansas
corporation, TRIAD INTERNATIONAL MAINTENANCE CORPORATION, a Delaware
corporation, AIRCRAFT INTERIOR DESIGN, INC., a Florida corporation, and TIMCO
ENGINE CENTER, INC., a Delaware corporation, (the "Borrowers"), TIMCO Aviation
Services, Inc., a Delaware corporation ("AVS"), Citibank, N.A., as Issuing Bank,
and certain financial institutions a party thereto as Lenders have entered into
that certain Fifth Amended and Restated Credit Agreement of even date herewith
(the "Credit Agreement"), pursuant to which certain loans and other financial
accommodations have heretofore been, and will hereafter be, made to the
Borrowers by the Lenders and Issuing Bank;

                  WHEREAS, the Agent, the Borrowers, AVS and certain of AVS'
subsidiaries (the Borrowers, AVS and such subsidiaries of AVS being herein
referred to as the "Grantors") have entered into certain agreements pursuant to
which the Obligations and certain payment and performance guarantees with
respect to such Obligations and Indebtedness made by AVS and such subsidiaries
of AVS (the "Credit Facility Guarantees") are secured by security interests in
the Collateral pursuant to various security documents (the "Collateral
Documents");

                  WHEREAS, CUSA is the holder of a certain Common Stock Warrant
Certificate issued February 18, 2000 by AVS, as amended by Amendment No. 1 to
Common Stock Warrant

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                  Certificate dated as of May 31, 2000, and Amendment No. 2 to
Common Stock Warrant Certificate of even date herewith (the "Warrant");

                  WHEREAS, the Grantors, the Agent and CUSA are parties to that
certain Collateral Documents Amendment dated as of February 18, 2000 (the
"Collateral Documents Amendment"), pursuant to which, inter alia, the Collateral
Documents were amended to provide for the security interests granted thereunder
to secure, inter alia, the Indebtedness of AVS under the Warrant, as one of the
agreements executed and delivered in connection with a certain promissory note
heretofore payable by certain of the Grantors to CUSA;

                  WHEREAS, 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"),
which loan is secured pursuant to the terms of that certain Second Collateral
Documents Amendment dated as of February 14, 2001 (the "BofA Collateral
Documents Amendment"), pursuant to which, inter alia, the Collateral Documents
were further amended to provide for the security interests granted thereunder to
secure all of the Indebtedness of the Grantors under and with respect to such
loan, as re-evidenced by the BofA Note;

                  WHEREAS, each of the Credit Agreement, the Collateral
Documents, the Warrant, the Collateral Documents Amendment, the BofA Note, and
the BofA Collateral Documents Amendment continue in full force and effect as of
the date of this Agreement and the agreements made thereunder have been
reaffirmed;

                  WHEREAS, the Borrowers have executed that certain Term Loan
Note of even date herewith in the principal amount of $1,000,000, a copy of
which is attached hereto as Exhibit A-1 and made a part hereof (the "Quevedo
Note") and the Guarantors (as defined in the Credit Agreement) have executed
that certain Guaranty of even date herewith in respect of the Quevedo, a copy of
which is attached hereto as Exhibit A-2 and made a part hereof (the "Quevedo
Guaranty");

                  WHEREAS, Sanders, Harber and James have guaranteed the payment
and performance of certain of the Indebtedness evidenced by the BofA Note
pursuant to certain agreements executed and delivered by them, copies of which
are attached hereto as Exhibit B and made a part hereof (the "Shareholder
Guarantees");

                  WHEREAS, the Grantors, BQ, Sanders, Harber and James are
parties to that certain Security Agreement of even date herewith, a copy of
which is attached hereto as Exhibit C and made a part hereof (the "Shareholder
Security Agreement") pursuant to which security interests have been granted to
secure the Indebtedness of the Grantors under and with respect to (i) the
Quevedo Note and (ii) in the event that any of Sanders, Harber and James are
subrogated to the rights of BofA with respect to 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

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                  WHEREAS, the Grantors have requested that the Agent, Lenders,
Issuing Bank, CUSA, and BofA consent to the grant of the Liens evidenced by the
Shareholder Security Agreement and, as a condition to such consent, the Agent,
Lenders, Issuing Bank, CUSA and BofA have required that BQ, Sanders, Harber and
James enter into this Agreement to set forth certain agreements with respect to
the rights and obligations of the Agent (on behalf of the Holders), CUSA, BofA,
BQ, Sanders, Harber and James under the Credit Agreement, the Collateral
Documents, the Collateral Documents Amendment, BofA Note, the BofA Collateral
Documents Amendment, the Quevedo Note, any claims of Sanders, Harber, or James
arising by right of subrogation to the claims of BofA under the BofA Note, and
the Shareholder Security Agreement;

                  NOW, THEREFORE, the Agent, CUSA, BofA, BQ, Sanders, Harber and
James hereby agree as follows:

                  SECTION 1. Defined Terms. As used in this Agreement, the
capitalized terms defined in the recitals hereto shall have the meanings
specified therein and the following terms shall have the meanings set forth
below:

                  "BofA Term Note Debt" means the Indebtedness of the Grantors
arising under the BofA Note and the BofA Guaranty.

                  "BofA Term Note Debt Documents" means the BofA Note, the BofA
Guaranty and the BofA Collateral Documents Amendment.

                  "Code" means the Uniform Commercial Code as in effect in the
State of New York.

                  "Collateral" means all of the property and assets (real,
personal, tangible and intangible and whether now or hereafter existing or
arising) and interests in such property and assets of the Grantors and shall be
deemed to include, without limitation, all payments and distributions of assets
of any Grantor, whether in cash or by distribution of any security, instrument
or proceeds from any assets of any Grantor, and proceeds of all extensions of
credit made to or for the benefit of the Grantors under the terms of the Loan
Documents.

                  "Loan Documents" shall mean all of the "Loan Documents", as
defined in the Credit Agreement, together with the Warrant.

                  "Permitted Payment" means (i) monthly interest payments under
the terms of the BQ Note, as in effect on the date hereof or modified with the
consent of the Agent, Requisite Lenders and CUSA and (ii) payments from proceeds
of the transaction described on Schedule 10.02-E to the Credit Agreement, a copy
of which is attached hereto as Exhibit D and made a part hereof, as permitted by
Section 4.01(b)(v) of the Credit Agreement; provided that (i) such payments are
payable and are paid no earlier than one (1) Business Day prior to the date when
the payments are due and (ii) no Potential Event of Default or Event of Default
shall have occurred and be continuing or would result after giving effect to any
such payment.

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                  "Quevedo Term Note Debt" means the Indebtedness of the
Grantors arising under the Quevedo Note and the Quevedo Guaranty.

                  "Satisfaction of the Obligations" means (i) all of the
Obligations, Supplemental Term Loan Liabilities, and BofA Term Note Debt shall
have been paid in full in cash, (ii) all financing arrangements and
accommodations among the Holders and the Grantors shall have been terminated,
and (iii) the Holders have no further obligation to make loans, financial
accommodations or advance funds which would constitute Obligations to any of the
Borrowers.

                  "Shareholder Debt Documents" means the Quevedo Note, the
Quevedo Guaranty and the Shareholder Security Agreement.

                  "Shareholder Subrogation Claims" means the claims against the
Grantors, if any, of Sanders, Harber and James arising in the event any of
Sanders, Harber and James are subrogated to the rights of BofA with respect to
Indebtedness evidenced by the BofA Note by virtue of the performance of their
obligations under the Shareholder Guarantees.

                  "Supplemental Term Loan Liabilities" means all Indebtedness
evidenced by the Warrant.

                  SECTION 2. Reaffirmation of Lien Priorities. Each of BQ,
Sanders, Harber and James acknowledges and agrees that the Agent, (i) for the
benefit of itself, the other Holders and CUSA, has been granted a first priority
lien and security interest in all of the Collateral to secure the Obligations
and the Supplemental Term Loan Liabilities and (ii) for the benefit of BofA, has
been granted a second priority lien and security interest in the Collateral to
secure the BofA Term Note Debt. The Agent and BofA acknowledge and agree that a
lien and security interest in the Collateral has been, or may hereafter be,
granted to BQ, Sanders, Harber and James, as permitted by the terms of the
Credit Agreement, pursuant to the terms of the Shareholder Security Agreement
and other agreements to secure the indebtedness and obligations of the Grantors
to BQ under and with respect to the Quevedo Term Note Debt and to Sanders,
Harber and James with respect to the Shareholder Subrogation Claims, which lien
and security interest is (or, when created, shall be) junior and subordinate to
both (a) that securing the Obligations and Supplemental Term Loan Liabilities as
aforesaid and (b) that securing the BofA Term Note Debt . Each of BQ, Sanders,
Harber and James hereby acknowledges and agrees all liens and security interests
of BQ, Sanders, Harber and James, whether now or hereafter existing or arising,
in any of the Collateral shall be and hereby are subordinated to the rights and
interests of the Agent (for the benefit of itself, the other Holders, CUSA and
BofA) in the Collateral irrespective of the time or order of attachment or
perfection of any liens or security interests, irrespective of the time or order
of filing of any financing statement or other document, and irrespective of any
statute, rule, law, or court decision to the contrary. None of BQ, Sanders,
Harber or James shall have any right to possession of any of the Collateral or
any proceeds thereof, or to foreclose upon any of the Collateral or any proceeds
thereof, whether by judicial action or otherwise, unless and until Satisfaction
of the Obligations has occurred.

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                  SECTION 3. Provisions in Furtherance of Lien Priorities (a) In
the event before Satisfaction of the Obligations, at the request of any Grantor
in connection with the sale or other disposition of the Collateral for fair
value or in accordance with the provisions of the Loan Documents, the Agent
releases any of the Collateral which constitutes part or all of the security for
the Quevedo Term Note Debt and/or the Shareholder Subrogation Claims, BQ,
Sanders, Harber and James, as applicable, shall thereupon execute and deliver to
the Agent such termination statements and releases as the Agent shall request to
release BQ's, Sanders', Harber's and James's respective Liens against such
property of a Grantor.

         (b) Upon any distribution, division, or application, partial or
complete, voluntary or involuntary, by operation of law or otherwise, of all or
any part of any of the Collateral which is made upon or in connection with any
dissolution, recapitalization, distribution, winding up, liquidation,
arrangements, receivership, or reorganization of any Grantor or any other
Person, or upon any assignment of the Collateral for the benefit of creditors or
any other marshaling of the Collateral and/or liabilities of such Grantor or
otherwise, any payment, dividend or distribution of any kind (whether in cash,
securities or other property) other than Permitted Payments, and proceeds of any
sale of all or any part of the Collateral, which would otherwise be payable or
deliverable with respect to the Quevedo Term Note Debt or Shareholder
Subrogation Claims, shall be paid or delivered directly to the Agent for
application (in the case of cash) to, or as collateral (in the case of
securities or other property) for, the Obligations and Supplemental Term Loan
Liabilities, until paid in full in cash, with any balance being available for
delivery to BofA for application to the BofA Term Note Debt until paid in full
in cash.

         (c) In the event that any payment or payments made to (i) any Holder or
CUSA with respect to any of the Obligations or Supplemental Term Loan
Liabilities or otherwise made to the Agent for the benefit of the Holders or
CUSA pursuant to the Loan Documents and/or this Agreement or (ii) BofA with
respect to the BofA Term Note Debt; or any part thereof, are subsequently
invalidated, declared to be fraudulent or preferential, set aside or are
required to be repaid to any trustee, receiver or any other Person under any
bankruptcy statute, state or federal law, common law or equitable cause, then
(A) to the extent of such payment or payments, the obligations or part thereof
intended to be satisfied shall be revived and continued as part of the
Obligations, Supplemental Term Loan Liabilities or BofA Term Note Debt, as
applicable, in full force and effect, as if such payment or payments had not
been made and (ii) the Agent, the other Holders, CUSA, and BofA, as applicable,
shall continue to have all rights and benefits under the Loan Documents, the
BofA Term Note Debt Documents, and this Agreement respecting the Collateral
related to such revived obligations which shall constitute Obligations,
Supplemental Term Loan Liabilities, or BofA Term Note Debt.

         (d) Notwithstanding anything herein or elsewhere to the contrary, (i)
until payment in full of the Obligations and the Supplemental Term Loan
Liabilities, no Grantor may use the Collateral or any part thereof, directly or
indirectly, to acquire, purchase, repurchase, redeem, or otherwise make any
prepayment (mandatory or voluntary) of any principal, premium, if any, or
interest on any of the Quevedo Term Note Debt or Shareholder Subrogation Claims
without the prior written consent of the Agent, the other Holders and CUSA,
which consent shall not be unreasonably withheld; and (ii) after payment in full
of the Obligations and the Supplemental Term Loan Liabilities and until payment
in full of the BofA Term Note Debt, no Grantor may use the Collateral or any
part thereof, directly or indirectly, to acquire, purchase, repurchase,

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redeem, or otherwise make any prepayment (mandatory or voluntary) of any
principal, premium, if any, or interest on any of the Quevedo Term Note Debt or
Shareholder Subrogation Claims without the prior written consent of BofA, which
consent shall not be unreasonably withheld.

         (e) Notwithstanding anything herein or in any of the Quevedo Term Note
Debt Documents or Shareholder Debt Documents to the contrary, BQ agrees that,
until Satisfaction of the Obligations, it will not exercise any rights or
remedies against any of the Collateral as a result of any default with respect
to the Quevedo Term Note Debt or Shareholder Subrogation Claims, or otherwise,
including, without limitation, as a result of any Grantor's failure to make a
Permitted Payment.

         (f) Except for Permitted Payments received by BQ, Sanders, Harber, or
James as and when permitted under this Agreement, should any payment or
distribution of Collateral be received directly or indirectly by BQ, Sanders,
Harber or James from any Grantor upon or with respect to the Quevedo Term Note
Debt or Shareholder Subrogation Claims or any other obligations of any Grantor
to BQ, Sanders, Harber or James secured by the Collateral prior to Satisfaction
of the Obligations, the respective recipient thereof shall receive and hold the
same in trust, as trustee, for the benefit of the Holders, CUSA and BofA, and
shall forthwith deliver the same to the Agent, for the benefit of the Holders,
CUSA and BofA, in precisely the form received (except for the endorsement or
assignment of such recipient where necessary), for application in accordance
with the terms of the Loan Documents (in the case of cash) or to be held as part
of the Collateral for (in the case of securities or other property) any of the
Obligations and Supplemental Term Loan Liabilities until paid in full, with any
balance being delivered to BofA, in precisely the form received (except for the
endorsement or assignment of such recipient where necessary), for application to
the BofA Term Note Debt, in each instance, due or not due, and, until so
delivered, the same shall be held in trust by such recipient as the property of
the Agent for the benefit of the Holders, CUSA, and BofA. In the event of the
failure of BQ, Sanders, Harber or James, as applicable, to make any such
endorsement or assignment to the Agent, the Agent, or any of its officers or
employees, is hereby irrevocably authorized to make the same. Notwithstanding
the foregoing, unless BQ, Sanders, Harber or James, as applicable, has actual
knowledge that a payment purportedly made as a Permitted Payment hereunder was
not in fact a Permitted Payment or shall have received notice from a Grantor or
the Agent of the existence of any condition which would prohibit the receipt of
such payment as a purportedly Permitted Payment by BQ, Sanders, Harber or James
hereunder within one year following the date any payment purportedly made as a
Permitted Payment is received, such recipient shall not be required to deliver
the proceeds of such purportedly Permitted Payment to the Agent.

         (g) In any action or proceeding of the type referenced in clause (b)
above, the Agent (or BofA to the extent the Obligations and Supplemental Term
Loan Liabilities have then been paid in full, in cash) is hereby irrevocably
authorized and empowered, in the Agent's (or BofA's, if then applicable as
aforesaid) discretion, to file, make and present for and on behalf of BQ,
Sanders, Harber and/or James such proofs of claims against any Grantor, if such
Person has not filed the same 10 days before any applicable bar date, on account
of all of any portion of the QuevedoTerm Note Debt or Shareholder Subrogation
Claims and to vote such proofs of claims in issues of the Collateral in any such
proceeding and to receive and collect any and all dividends or other payments or
disbursements made in respect of Collateral in whatever form the same may

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be paid or issued and to apply the same on account of any of the Obligations,
the Supplemental Term Loan Liabilities or BofA Term Note Debt. In voting such
proofs of claim in any proceeding, the Agent (or BofA, if then applicable as
aforesaid) may act in a manner consistent with the sole interests of the
Holders, CUSA and/or BofA in respect of Collateral and shall have no duty to
take any action to maximize any recovery of BQ, Sanders, Harber or James with
respect to its claim. Each of BQ, Sanders, Harber and James authorizes the Agent
(or BofA, if then applicable as aforesaid) to sell such property to such buyers
in accordance with law on such terms as the Agent (or BofA, if then applicable
as aforesaid) shall determine. Each of BQ, Sanders, Harber and James will
execute and deliver to the Agent (or BofA, if then applicable as aforesaid) such
powers of attorney, assignments and other instruments or documents, including
notes and stock certificates (together with such assignments or endorsements as
the Agent (or BofA, if then applicable as aforesaid) shall deem necessary), as
may be requested by the Agent (or BofA, if then applicable as aforesaid) in
order to enable the Agent (or BofA, if then applicable as aforesaid) to enforce
any and all claims upon the Collateral deliverable at any time upon or with
respect to the Quevedo Term Note Debt or Shareholder Subrogation Claims, all for
the Holders', CUSA's and/or BofA's own benefit for application in accordance
with the terms hereof.

                  SECTION 4. Bankruptcy Issues. Each of BQ, Sanders, Harber and
James agrees that the Agent, the other Holders, CUSA, or BofA may consent to the
use of cash collateral or provide financing to any Grantor on such terms and
conditions and in such amounts as such Person, in its sole discretion, and the
applicable court may decide and that, in connection with such cash collateral
usage or such financing. Subject to applicable court orders, each of BQ,
Sanders, Harber and James agrees that each Grantor (or a trustee appointed for
the estate of any or all of them) may grant Liens to the Agent, other Holders,
CUSA or BofA upon all assets of such Grantor, as applicable, which Liens (i)
shall secure payment of all Obligations, the Supplemental Term Loan Liabilities,
or the BofA Term Note Debt, as applicable (whether such Obligations,
Supplemental Term Loan Liabilities or BofA Term Note Debt arose prior to the
filing of the petition for relief or arise thereafter); and (ii) shall be
superior in priority to the Liens, if any, held by BQ, Sanders, Harber or James
on the assets of such Grantor. All allocations of payments constituting
Collateral between (a) BQ, Sanders, Harber and James and (b) the Holders, and/or
CUSA, and/or BofA shall, subject to any court order, continue to be made after
the filing of a petition under the Bankruptcy Code on the same basis that the
payments were to be allocated prior to the date of such filing. Each of BQ,
Sanders, Harber and James agrees that he/it will not object to or oppose a sale
or other disposition of any assets securing the Obligations, Supplemental Term
Loan Liabilities, or BofA Term Note Debt (or any portion thereof) free and clear
of Liens or other claims of BQ, Sanders, Harber and James under Section 363 of
the Bankruptcy Code or any other provision of the Bankruptcy Code if the Agent,
the other Holders, CUSA and, if applicable, BofA and the applicable court have
consented to such sale or disposition of such assets. For purposes of
Satisfaction of the Obligations and applying payments or proceeds of Collateral
to the Obligations, Supplemental Term Loan Liabilities and BofA Term Note Debt,
the Obligations, Supplemental Term Loan Liabilities and BofA Term Note Debt
shall be deemed to include, without limitation, all interest, fees, and other
amounts to be paid on any of the Obligations, Supplemental Term Loan Liabilities
or BofA Term Note Debt pursuant to the terms of any Loan Document or the BofA
Term Note Debt Documents regardless

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of whether any such interest, fees or other amounts are or would be recognized
or allowed as a claim in any bankruptcy or similar proceeding.

                  SECTION 5. Waivers of BQ, Sanders, Harber and James. (a) All
of the Obligations, Supplemental Term Loan Liabilities, and BofA Term Note Debt
shall be deemed to have been made or incurred in reliance upon this Agreement.
Each of BQ, Sanders, Harber and James expressly waives (i) all notice of the
acceptance by the Agent, the other Holders, CUSA and BofA of the lien
subordination and other provisions of this Agreement, (ii) all other notices not
specifically required pursuant to the terms of this Agreement whatsoever, and
(iii) reliance by the Agent, the other Holders, CUSA and BofA upon the lien
subordination and other agreements as herein provided. Each of BQ, Sanders,
Harber and James agrees that it will not interfere with or in any manner oppose
a disposition of any assets securing the Obligations, Supplemental Term Loan
Liabilities or BofA Term Note Debt by the Agent, other Holders, CUSA or BofA.
Each of BQ, Sanders, Harber and James agrees that none of the Holders, CUSA or
BofA has made any warranties or representations with respect to the due
execution, legality, validity, completeness or enforceability of the Loan
Documents or BofA Term Note Debt Documents, or the collectability of the
Obligations, Supplemental Term Loan Liabilities or BofA Term Note Debt, that the
Holders shall be entitled to manage and supervise the Obligations, that CUSA
shall be entitled to manage and supervise the Supplemental Term Loan Liabilities
and that BofA shall be entitled to manage and supervise the BofA Term Note Debt,
in each instance, in accordance therewith, modified from time to time as the
Holders, CUSA or BofA, as applicable, deem appropriate under the circumstances,
and in accordance with applicable law, without regard to the existence of any
rights that BQ, Sanders, Harber and James may now or hereafter have in or to any
of the assets of any Grantor, and that none of the Holders, CUSA or BofA shall
have any liability to any of BQ, Sanders, Harber or James for, and each of BQ,
Sanders, Harber and James waives any claim which he/it may now or hereafter have
against, any Holder, CUSA or BofA arising out of any and all actions which such
Holder, CUSA, BofA or the Agent, on its behalf, in good faith, takes or omits to
take (including, without limitation, actions with respect to the creation,
perfection or continuation of liens or security interests in the Collateral and
other security for the Obligations, Supplemental Term Loan Liabilities and BofA
Term Note Debt, actions with respect to the occurrence of an Event of Default or
Potential Event of Default, actions with respect to the foreclosure upon, sale,
release, or depreciation of, or failure to realize upon, any of the Collateral
and actions with respect to the collection of any claim for all or any part of
the Obligations, Supplemental Term Loan Liabilities or BofA Term Note Debt from
any account debtor, guarantor or any other party) with respect to the Loan
Documents, Warrant, BofA Term Note Debt Documents, or any other agreement
related thereto, or to the collection of the Obligations, Supplemental Term Loan
Liabilities, or BofA Term Note Debt, or the valuation, use, protection or
release of the Collateral and/or other security for the Obligations,
Supplemental Term Loan Liabilities and BofA Term Note Debt.

                  (b) Each of BQ, Sanders, Harber and James agrees that (i)
he/it will not take or cause to be taken any action, the purpose or effect of
which is to make any security interest securing the Quevedo Term Note Debt or
Shareholder Subrogation Claims pari passu with, or to give BQ, Sanders, Harber
or James any preference or priority relative to, any security interest securing
the Obligations, Supplemental Term Loan Liabilities or BofA Term Note Debt; (ii)
he/it will not interfere with, hinder or delay, in any manner, whether by
judicial proceedings or

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otherwise, any sale, transfer or other disposition of the Collateral by the
Agent, any other Holder, CUSA or BofA, or any action taken by or on behalf of
the Agent, any other Holder, CUSA or BofA permitted to be taken by it pursuant
to the Loan Documents or BofA Term Note Debt Documents; (iii) he/it will have no
right to (A) direct the Agent, any other Holder, CUSA or BofA to exercise any
right, remedy or power with respect to the Collateral or pursuant to the Loan
Documents or BofA Term Note Debt Documents or (B) consent to the exercise by the
Agent, any other Holder, CUSA or BofA of any right, remedy or power with respect
to the Collateral or pursuant to the Loan Documents or BofA Term Note Debt
Documents; (iv) he/it will not institute any suit or assert in any suit,
Bankruptcy Proceeding or other proceeding any claim against the Agent, any other
Holder, CUSA or BofA seeking damages from or other relief by way of specific
performance, instructions or otherwise, with respect to, and none of the Agent,
any other Holder, CUSA or BofA shall be liable for, any action taken or omitted
to be taken by the Agent, such other Holder, CUSA or BofA with respect to the
Collateral or pursuant to the Loan Documents or BofA Term Note Debt Documents;
(v) until the Satisfaction of the Obligations, he/it will not make any judicial
or non-judicial claim or demand or commence any judicial or non-judicial
proceedings against any Grantor under or with respect to the Collateral
Documents, the BofA Collateral Documents Amendment, or the Shareholder Security
Agreement seeking payment or damages from or other relief by way of specific
performance, instructions, or otherwise under or with respect to the Collateral
Documents, BofA Collateral Documents Amendment, or Shareholder Security
Agreement (other than the filing of a proof of claim as and to the extent
permitted herein) or exercise any right, remedy or power under or with respect
to, or otherwise take any action to enforce, other than filing of a proof of
claim as and to the extent permitted herein, any Collateral Document, Bof A
Collateral Documents Amendment, or Shareholder Security Agreement; (vi) until
the Satisfaction of the Obligations, he/it will not commence judicial or
non-judicial foreclosure proceedings with respect to, seek to have a trustee,
receiver, liquidator or similar official appointed for or over, attempt any
action to take possession of any Collateral, exercise any right, remedy or power
with respect to, or otherwise take any action to enforce its interest in or
realize upon, the Collateral or pursuant to the Collateral Documents, the BofA
Collateral Documents Amendment, or Shareholder Security Agreement; (vii) he/it
will not seek, and hereby waives any right, to have the Collateral or any part
thereof marshaled upon any foreclosure or other disposition of the Collateral,
and (viii) he/it will not attempt, directly or indirectly, whether by judicial
proceedings or otherwise, to challenge the enforceability of any provision of
this Agreement or any Loan Document or any BofA Term Note Debt Document or the
validity, perfection, priority or enforceability of security interests securing
the Obligations, Supplemental Term Loan Liabilities or BofA Term Note Debt.

                  SECTION 6. Enforcement. To the extent permitted by law, the
right of the Agent, other Holders, CUSA and BofA to enforce the lien
subordination provisions and any other provisions hereof shall not in any way be
prejudiced or impaired by any act or failure to act on the part of the Agent,
any other Holder, CUSA, BofA or any Grantor, or by any noncompliance by any
Grantor, BQ, Sanders, Harber or James with the terms, provisions and covenants
of this Agreement.

                  SECTION 7. Agent's, Holders', CUSA's and BofA's Rights;
Certain Duties. (a) Without notice to BQ, Sanders, Harber or James, and without
affecting or releasing any obligation or agreement of BQ, Sanders, Harber and
James under this Agreement, the Agent, the

                                       9

<PAGE>

other Holders, CUSA and BofA, as applicable, may at any time or times do any of
the following with respect to any of the Obligations, Supplemental Term Loan
Liabilities, and BofA Term Note Debt: (i) waive or rescind any Potential Event
of Default, Event of Default or other default, (ii) exercise any rights or
remedies with respect to the Obligations or Supplemental Term Loan Liabilities
or BofA Term Note Debt, (iii) amend, modify, alter or waive any of the terms of
any of the Loan Documents or BofA Term Note Debt Documents, (iv) renew or extend
the time for payments of all or any part of the Obligations, Supplemental Term
Loan Liabilities or BofA Term Note Debt, (v) increase or decrease the amount of
the Obligations, Supplemental Term Loan Liabilities or BofA Term Note Debt, (vi)
accept additional collateral security or guaranties for all or any part of the
Obligations, Supplemental Term Loan Liabilities or BofA Term Note Debt, and
sell, exchange, fail to perfect, release or otherwise deal with all or any part
of any such collateral or guaranties in connection with a sale or other
disposition, (vii) release any party primarily or secondarily obligated on the
Obligations, Supplemental Term Loan Liabilities or BofA Term Note Debt, (viii)
grant indulgences and take or refrain from taking any action with regard to the
collection or enforcement of all or any part of the Obligations, Supplemental
Term Loan Liabilities, or BofA Term Note Debt, and (ix) take any action which
might otherwise give rise to any claim by BQ, Sanders, Harber or James. Nothing
in this Agreement shall impair any right of the Agent, any other Holder, CUSA or
BofA with respect to any of the Obligations, Supplemental Term Loan Liabilities
or BofA Term Note Debt or any collateral security or guaranties therefor or the
proceeds thereof.

         (b) Neither the Agent nor BofA, if applicable, shall have any duty to
any of BQ, Sanders, Harber or James with respect to the custody, safekeeping or
physical preservation of the Collateral in its possession, whether under Section
9-207 of the Code or otherwise, and shall be entitled to deal with such
Collateral in the same manner as it customarily deals with similar collateral
held by it for its own account.

         (c) The Agent (and, if applicable, BofA) shall not be responsible in
any manner whatsoever for the correctness of any recitals, statements,
representations or warranties contained in the Collateral Documents by any of
the Grantors, all of which are made solely by the Grantors. The Agent and BofA
make no representations as to the value or condition of the Collateral or any
part thereof, or as to the title of the Grantors thereto, or as to the security
afforded by the Collateral Documents, the BofA Collateral Documents Amendment,
the Shareholder Security Agreement, or this Agreement or as to the validity,
execution (except its own execution thereof), enforceability, legality or
sufficiency of the Collateral Documents, the BofA Collateral Documents Amendment
or the Shareholder Security Agreement, or of the Obligations, Supplemental Term
Loan Liabilities, or BofA Term Note Debt and shall incur no liability or
responsibility with respect to any such matters. Neither the Agent nor BofA
shall be responsible for insuring the Collateral or for the payment of taxes,
charges, assessments or liens upon the Collateral or otherwise as to the
maintenance of the Collateral.

         (d) Neither the Agent nor BofA shall be required to ascertain or
inquire as to the performance by any Grantor or any other Person of any of the
covenants or agreements contained in any Collateral Document, the BofA
Collateral Documents Amendment or the Shareholder Security Agreement.

                                       10

<PAGE>

         (e) Neither the Agent nor BofA shall be personally liable for any
action taken or omitted to be taken by it in accordance with this Agreement, any
Collateral Document, the BofA Collateral Documents Amendment. Each of BQ,
Sanders, Harber and James hereby acknowledges that the Agent and its affiliates
and BofA have made and may hereafter make credit extensions to, accept deposits
from and generally engage in business with the Grantors and agree that the Agent
and its affiliates and BofA may continue to do so.

         (f) The Agent and BofA may rely, and shall be fully protected in
acting, upon any resolution, statement, certificate, instrument, opinion,
report, notice, request, consent, order, bond or other paper or document which
it has no reason to believe to be other than genuine and to have been signed or
presented by the proper party or parties or, in the case of telecopies and
telexes, to have been sent by the proper party or parties. The Agent and BofA
may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon any certificates or opinions furnished to
it and conforming to the requirements of this Agreement, the Collateral
Documents, or the BofA Collateral Documents Amendment. The Agent and BofA may
consult with counsel, and any opinion of such counsel (whether in-house counsel
or independent outside counsel) shall be full and complete authorization and
protection in respect of any action taken or suffered by it hereunder in
accordance therewith.

         (g) Neither the Agent nor BofA shall be under any obligation to any of
BQ, Sanders, Harber or James to exercise any of the rights or powers vested in
the Agent by this Agreement, the Collateral Documents or the BofA Collateral
Documents Amendment, unless it shall have been provided adequate security and
indemnity against the costs, expenses and liabilities which may be incurred by
it in compliance with such request or direction, including, without limitation,
such reasonable advances as may be requested by the Agent or BofA, as
applicable.

                  SECTION 8. Representations and Warranties of BQ, Sanders,
Harber and James. Each of BQ, Sanders, Harber and James, as applicable,
represents and warrants to the Agent for the benefit of itself and other Holders
and to CUSA and BofA that each of the following statements are true and correct
in all material respects:

         (a) Such Person has not previously assigned any interest in the Quevedo
Term Note Debt or Shareholder Subrogation Claims owing to such Person or any
security interest in connection therewith, that no other party owns an interest
in such Quevedo Term Note Debt or Shareholder Subrogations Claims or security
therefor other than BQ, Sanders, Harber and James (whether as joint holders of
such Quevedo Term Note Debt or Shareholder Subrogation Claims, participants or
otherwise) and that all of such Quevedo Term Note Debt is owing only to BQ and
Shareholder Subrogation Claims, if any, are owing only to Sanders, Harber or
James, as applicable.

         (b) The Indebtedness owing to BQ under the Quevedo Note as of the date
hereof constitutes, as of the date hereof, all of the now existing liabilities
of any nature whatsoever of the Grantors to BQ under the Quevedo Term Note Debt
Documents. To the knowledge of BQ, there is no event of default or default
existing which with the giving of notice, passage of time or both would
constitute an event of default under the Quevedo Term Note Debt Documents.

                                       11

<PAGE>

         (c) This Agreement has been executed and delivered by or on behalf of
such Person and constitutes the legal, valid and binding obligation thereof,
enforceable in accordance with its terms subject to bankruptcy, insolvency,
moratorium and other laws affecting creditors' rights generally and equitable
principles.

                  SECTION 9. Covenants. (a) Each of BQ, Sanders, Harber and
James agrees that such Person will not accept any collateral security from the
Grantors for any Quevedo Term Note Debt or Shareholder Subrogation Claims,
except to the extent provided in the Shareholder Security Agreement or otherwise
as permitted by the terms of the Credit Agreement and subject to the terms of
this Agreement, without the prior written consent of the Holders, CUSA and BofA.

         (b) Each of BQ, Sanders, Harber and James covenants that all Quevedo
Term Note Debt, Shareholder Subrogation Claims, and collateral therefor shall be
and continue to be held solely for the benefit of BQ, Sanders, Harber and James,
as applicable, and their respective heirs, successors, and assigns, until the
Satisfaction of the Obligations, unless otherwise consented to by the Holders,
CUSA and BofA or unless the transferee agrees to be bound by the terms of this
Agreement.

         (c) Promptly upon obtaining knowledge thereof, BQ, Sanders, Harber and
James shall deliver written notice to the Agent and BofA of the occurrence of an
event of default or default which with the giving of notice, passage of time or
both would constitute an event of default existing under any of the Shareholder
Debt Documents, together with a description of the nature thereof.

         (d) None of BQ, Sanders, Harber or James shall not initiate or
prosecute or encourage any other Person to initiate or prosecute any claim,
action or other proceeding (i) challenging the enforceability or priority of the
Agent, other Holders', CUSA's or BofA's respective claims to the Collateral, or
(ii) challenging the enforceability or priority of any liens or security
interests in the Collateral.

         (e) Each of BQ, Sanders, Harber and James hereby agrees to pay,
indemnify and hold the Agent and BofA harmless from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect
to the execution, delivery, enforcement, performance and administration of this
Agreement. Notwithstanding the foregoing, the Agent shall not be indemnified
under this clause to the extent such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements are
determined by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of the Agent.

                  SECTION 10. Continuing Nature of Agreement. This Agreement
shall be effective and may not be terminated or otherwise revoked by BQ,
Sanders, Harber or James until the Satisfaction of the Obligations. In the event
BQ, Sanders, Harber or James shall have any right under applicable law otherwise
to terminate or revoke this Agreement which right cannot be waived, such
termination or revocation shall not be effective until written notice of such
termination or revocation, signed by BQ, Sanders, Harber or James, as
applicable, is actually

                                       12

<PAGE>

received by the Agent in accordance with the notice provisions of this Agreement
set forth in Section 13. In the absence of the circumstances described in the
immediately preceding sentence, this is a continuing agreement as to the lien
subordination and other provisions hereof and the Agent, the other Holders, and
BofA may continue, at any time and without notice to BQ, Sanders, Harber or
James, to extend credit or other financial accommodations and loan monies to or
for the benefit of the Grantors on the faith hereof. Any termination or
revocation described hereinabove shall not affect this Agreement in relation to
(a) any of the Obligations, Supplemental Term Loan Liabilities or Bof A Term
Note Debt which arose prior to receipt thereof or (b) any of the Obligations,
Supplemental Term Loan Liabilities, or BofA Term Note Debt created after receipt
thereof, if such Obligations, Supplemental Term Loan Liabilities or BofA Term
Note Debt were incurred for the purpose of protecting any collateral or in
respect of enforcement costs, expenses, and attorneys' and paralegals' fees,
whensoever made, advanced or incurred by the Holders, CUSA or BofA in connection
with the Obligations, Supplemental Term Loan Liabilities or BofA Term Note Debt.
If, in reliance on this Agreement, any Holder, CUSA or BofA makes loans or other
advances to or for the benefit of the Grantors or takes other action under the
Loan Documents after such aforesaid termination or revocation by BQ, Sanders,
Harber or James, but prior to the receipt by the Agent of said written notice as
set forth above, the rights of the Agent, the other Holders, CUSA and BofA
hereunder shall be the same as if such termination or revocation had not
occurred.

                  SECTION 11. Remedies; Severability. (a) The Agent's, other
Holders', CUSA's, and BofA's rights and remedies under this Agreement shall be
cumulative and nonexclusive of any other rights and remedies which the Agent,
other Holders, CUSA or BofA may have under any other agreement, by operation of
law or otherwise.

                  (b) If any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby (it being understood
that the invalidity of a particular provision in a particular jurisdiction shall
not in and of itself affect the validity of such provision in any other
jurisdiction).

                  SECTION 12. Execution in Counterparts; Binding Effect. (a)
This Agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed to be an original and all of which taken together
shall constitute but one and the same instrument. Delivery of an executed
counterpart of this Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Agreement.

                  (b) This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and each of the Holders and their
respective successors and assigns, and nothing herein or in the Collateral
Documents, the BofA Collateral Documents Amendment, or Shareholder Security
Agreement is intended or shall be construed to give any other person any right,
remedy or claim under, to or in respect of this Agreement or the Collateral.

                  SECTION 13. Notices. All notices, requests, demands and other
communications provided for or permitted hereunder shall be in writing
(including telecopy or e-

                                       13

<PAGE>

mail communications) and shall be sent by mail, telecopier, hand delivery or
e-mail delivery as follows:

                  (a) if to Agent, at its address at 388 Greenwich Street, 19th
Floor, New York, New York 10013, Attn: Keith R. Gerding, Telecopy No.
212-816-2613, e-mail address: keith.r.gerding@citi.com, with a copy to Sidley
Austin Brown & Wood, Bank One Plaza, 10 South Dearborn Street, Chicago, Illinois
60603, Attn: Michael D. Wright, Telecopy No. 312-853-7036, e-mail address:
mwright@sidley.com

                  (b) if to CUSA, at its address at 388 Greenwich Street, 19th
Floor, New York, New York 10013, Attn: Keith R. Gerding, Telecopy No.
212-816-2613, e-mail address: keith.r.gerding@citi.com, with a copy to Sidley
Austin Brown & Wood, Bank One Plaza, 10 South Dearborn Street, Chicago, Illinois
60603, Attn: Michael D. Wright, Telecopy No. 312-853-7036, e-mail address:
mwright@sidley.com

                  (c) if to BofA, at its address at 700 Louisiana, 6th Floor,
Houston, Texas 77002, Attn: Samantha Kennedy, Telecopy No. 713-247-7150, e-mail
address: samantha.kennedy@bankofamerica.com, with a copy to Porter & Hedges,
L.L.P., 700 Louisiana, Suite 3500, Houston, Texas 77002, Attn: Neal M. Kaminsky,
Telecopy No. 713-226-0298, e-mail address: NKaminsky@porterhedges.com

or, in each instance, at such other address as shall be designated by it in a
written notice to the other party to this Agreement. All such notices, requests,
demands and communications shall be deemed to have been duly given or made, if
sent by mail, five (5) days after deposit (as evidenced by the postmark
appearing thereon) in the U.S. mails, postage prepaid; if sent by telecopy or
e-mail, as of the time of such telecopy or e-mail transmission; and, if
delivered by hand, when so delivered.

                  SECTION 14. Governing Law; Consent to Jurisdiction. (a) This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.

         (b) Each of the parties hereto hereby irrevocably and unconditionally
submits to the non-exclusive jurisdiction of any New York State court or Federal
court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, any Collateral Document, the BofA Collateral
Documents Amendment, or the Shareholder Security Agreement or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that, to the extent permitted by applicable law, all
claims in respect of any such action or proceeding may be heard and determined
in such New York State or, to the extent permitted by law, Federal court. Each
of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.

         (c) Each of the parties hereto hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection that it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of our relating to this

                                       14

<PAGE>

Agreement in any New York State or Federal court. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

         (d) Each of the parties hereto irrevocably consents to service of
process in the manner provided for notices in Section 13. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

         (e) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT. EACH PARTY HERETO CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

                  SECTION 16.  Headings.  Section headings in this Agreement
are included herein for convenience of reference only and shall not constitute
a part of this Agreement for any other purpose.

                                       15

<PAGE>

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

CITICORP USA, INC.,                         CITICORP USA, INC.,
as Agent                                    as holder of the Warrant

By /s/ Keith R. Gerding                     By /s/ Keith R. Gerding
  ----------------------------                ----------------------------
  Keith R. Gerding                            Keith R. Gerding
  Vice President                              Vice President

BANK OF AMERICA, N.A.                       /s/ Benito Quevedo
                                            ------------------------------
                                            Benito Quevedo

By /s/ Samantha Kennedy                     /s/ Martha P. Quevedo
  ----------------------------              ------------------------------
  Samantha Kennedy                          Martha P. Quevedo
  Vice President
                                            /s/ Don A. Sanders
                                            ------------------------------
                                            Don A. Sanders

LJH, LTD.                                   JAMES INVESTMENTS, INC.
By  DLH Management, L.L.C.,
    General Partner

                                            By /s/ Robert Alpert
                                              ----------------------------
                                              Robert Alpert
By /s/ Lacy J. Harber                         President
  ----------------------------
  Lacy J. Harber
  President

                                       16

<PAGE>

Acknowledged and agreed as of the 12th day of July, 2002.

AVIATION SALES DISTRIBUTION SERVICES COMPANY
AEROCELL STRUCTURES, INC.
AVS/M-2, INC.
WHITEHALL CORPORATION
TRIAD INTERNATIONAL MAINTENANCE CORPORATION
AVS/M-3, INC.
AIRCRAFT INTERIOR DESIGN, INC.
AVS/CAI, INC.
TIMCO AVIATION SERVICES, INC.
AVIATION SALES LEASING COMPANY
TIMCO ENGINE CENTER, INC.
AVS/M-1, INC.
AVIATION SALES PROPERTY MANAGEMENT CORP.
HYDROSCIENCE, INC.
AVSRE, L.P.
         By Aviation Sales Property Management
                 Corp., as general partner

TIMCO ENGINEERED SYSTEMS, INC.

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

                                       17<PAGE>

                                                                   Exhibit 10.18

                        POST-CLOSING RESOLUTION AGREEMENT

     This Post-Closing Resolution Agreement (this "Agreement") is entered into
as of June 10, 2002 among Kellstrom Industries, Inc., a Delaware corporation
(debtor-in-possession) ("Kellstrom"), TIMCO Aviation Services, Inc., a Delaware
corporation, formerly known as Aviation Sales Company ("AVS"), and Aviation
Sales Distribution Services Company, a Delaware corporation (the "Company").

                                    RECITALS

     The parties are parties to an Asset Purchase Agreement dated September 20,
2000 (as amended, the "Asset Purchase Agreement"). Out of the Asset Purchase
Agreement have arisen a number of issues, claims, rights and obligations by and
among the parties hereto. In an effort to avoid the costs and expenses
associated with protracted litigation or arbitration over such matters, the
parties hereto intend that this Agreement shall constitute an overall settlement
of such issues, claims, rights and obligations on the terms and subject to the
conditions contained in this Agreement. Initial capitalized terms used herein
but not otherwise defined herein shall have the meanings given to them in the
Asset Purchase Agreement.

                               TERMS OF AGREEMENT

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

                                    ARTICLE I

                                   DEFINITIONS

     1.1  Defined Terms. As used herein, the following terms shall have the
following meanings:

          "Actual Related Unpaid Assumed Payables" means those Related Unpaid
          Assumed Payables that remain unpaid as of December 31, 2001, as set
          forth on Exhibit "A", which, in the aggregate, equal $3,642.

          "Actual Settled RMA Amount" means the sum of the credits issued, or
          agreed by Kellstrom to be issued, in respect of Settled RMAs as of
          December 31, 2001 to the extent set forth on Exhibit "B", which, in
          the aggregate, equals $892,691.54.

          "Actual Unpaid Receivables" means the Purchased Receivables that
          remain unpaid or unsatisfied as of December 31, 2001, as set forth on
          Exhibit "C", as adjusted on the Resolution Closing Date for changes
          through such date.

<PAGE>

          "Actual Unpaid Receivables Amount" means the sum of Actual Unpaid
          Receivables, which, in the aggregate, equals $5,238,141.86, which
          amount shall be adjusted on the Resolution Closing Date for changes
          through such date.

          "Amendment to Non-Competition Agreement" means that certain First
          Amendment to Non-Competition Agreement, in the form attached as
          Exhibit "D" hereto.

          "AVS DTs" means certain of those amounts due and owing by Kellstrom to
          AVS and its Affiliates (other than in connection with the Asset
          Purchase Agreement, the Inventory Purchase Agreement or the agreements
          and transactions contemplated thereby) as of December 31, 2001, as set
          forth on Exhibit "E" hereto, that the parties have agreed will be
          resolved pursuant to this Agreement, which, in the aggregate, equal
          $1,069,742.

          "Bankruptcy Court" means the United States Bankruptcy Court for the
          District of Delaware having jurisdiction over the bankruptcy
          proceeding (the "Bankruptcy Proceeding") commenced by Kellstrom and
          certain of its subsidiaries under Title 11 of the United States Code
          (Case No. 02-10536).

          "Bill of Sale, Assignment and Assumption" means a bill of sale,
          assignment and assumption agreement executed by Kellstrom, AVS and the
          Company, pursuant to which Kellstrom shall assign, and the Company
          shall assume, the Actual Related Unpaid Assumed Payables, and
          Kellstrom shall transfer the Actual Unpaid Receivables to the Company.

          "Closing" has the meaning given to such term in Section 9.1 hereof.

          "Equipment" shall have the meaning given to it in the Equipment Lease.

          "Equipment Bill of Sale" means a bill of sale executed by the Company
          in form reasonably satisfactory to Kellstrom pursuant to which the
          Company shall convey title to the Equipment to Kellstrom, wherein the
          Company shall represent and warrant to Kellstrom that the Company has
          good and marketable title to the Equipment free and clear of any
          liens, with full power to sell the Equipment; provided, however, that
          the representations (except as to title) contained in such bill of
          sale shall not survive beyond the

                                       2

<PAGE>

          survival of the representations of the Company with respect to
          conveyed assets contained in the Asset Purchase Agreement.

          "Equipment Lease" means that certain Equipment Lease Agreement dated
          December 1, 2000 among AVS, the Company and Kellstrom, as supplemented
          by the Equipment Option Letter.

          "Equipment Option Letter" means that certain letter agreement dated
          December 1, 2000, among the parties with respect to the Equipment
          Lease.

          "Inventory Purchase Agreement" means that certain Inventory Purchase
          Agreement dated September 20, 2000, among AVS, the Company and KAV.

          "KAV" means KAV Inventory, LLC, a Delaware limited liability company.

          "Kellstrom DTs" means certain of those amounts due and owing by AVS
          and its Affiliates to Kellstrom and its Affiliates (other than in
          connection with the Asset Purchase Agreement or the agreements and
          transactions contemplated thereby), as of December 31, 2001, as set
          forth on Exhibit "F" hereto, that the parties have agreed will be
          resolved pursuant to this Agreement, which, in the aggregate, equal
          $1,769,609.

          "Miramar Documents" means the First Amendment to Lease, in the form
          attached as Exhibit "G" hereto (the "Miramar Amendment"), the Amended
          and Restated Memorandum of Lease, in the form attached as Exhibit "H"
          hereto, the Amended and Restated Subordination, Non-Disturbance and
          Attornment Agreement, in the form attached as Exhibit "I" hereto, a
          Subordination, Non-Disturbance and Attornment Agreement similar to
          Exhibit "I" (but with such changes as shall be reasonably requested by
          the Successor Party) but executed by the Successor Party as tenant,
          and the Consent to Lease Amendment, in the form attached as Exhibit
          "J" hereto.

          "Miramar Facility" means the facility located at 3701 Flamingo Road,
          Miramar, FL 33027.

          "Miramar Lease" means that certain Lease dated as of December 1, 2000
          by and between AVS and Kellstrom.

                                       3

<PAGE>

          "Open RMA" means an RMA issued to a customer for which Kellstrom has
          not issued a credit or agreed to issue a credit as of the Closing.

          "Related Unpaid Assumed Payables" means those Assumed Payables that
          were acquired by Kellstrom pursuant to the Asset Purchase Agreement
          that are due to an account that has an Actual Unpaid Receivable.

          "Resolution Closing Date" has the meaning given to such term in
          Section 9.1 hereof.

          "Resolution Transaction Documents" means:

            .  the Bill of Sale, Assignment and Assumption;
            .  the Equipment Bill of Sale;
            .  the RMA Acknowledgment (hereinafter defined);
            .  the Kellstrom DT Acknowledgment (hereinafter defined);
            .  the AVS DT Acknowledgment (hereinafter defined);
            .  the Amendment to Non-Competition Agreement;
            .  the Miramar Documents;
            .  the Actual Cash Purchase Price Certificate (as defined in Section
               3.1); and
            .  any other document required to be executed in connection
               herewith.

          "RMA" means a Return Materials Authorization issued by Kellstrom or
          AVS (as to AVS, prior to December 1, 2000) to a customer in connection
          with equipment subject to a Purchased Receivable.

          "Settled RMA" means an RMA pursuant to which Kellstrom has issued, or
          agreed to issue, a credit to the customer as set forth on Exhibit "B"
          hereto.

          "Successor Party" means KIAC, Inc., a Delaware corporation, the
          successful bidder for the assets of Kellstrom (as
          debtor-in-possession) as approved by the Bankruptcy Court and
          subsequently reflected in an order of such court.

                                       4

<PAGE>

                                   ARTICLE II

                             EXERCISE OF PUT OPTIONS

     2.1  Exercise of Equipment Put Option. Notwithstanding any notice or timing
requirements set forth in the Equipment Option Letter, the parties agree and
consent to the exercise by the Company, effective as of the Resolution Closing
Date, of that certain option set forth in the Equipment Option Letter thereby
requiring Kellstrom to purchase the Equipment pursuant to the terms of the
Equipment Option Letter, as supplemented and/or modified by this Agreement.

     2.2  Exercise of Purchased Receivables Put Option. The parties acknowledge
that on or about December 27, 2001, Kellstrom exercised its option pursuant to
Section 6.18 of the Asset Purchase Agreement to require the Company to purchase
the Actual Unpaid Receivables (to the extent unpaid through December 1, 2001).
The purchase of the Actual Unpaid Receivables shall be consummated on the
Resolution Closing Date pursuant to the terms of the Asset Purchase Agreement,
as supplemented and/or modified by this Agreement. From the date hereof until
the earlier to occur of (a) the Resolution Closing Date or (b) the termination
of this Agreement, Kellstrom shall forbear from exercising its rights under the
Asset Purchase Agreement to collect the sum of the Actual Unpaid Receivables
from the Company or AVS.

                                   ARTICLE III

                          RESOLUTION OF PURCHASE PRICE
                         UNDER ASSET PURCHASE AGREEMENT

     3.1  Resolution of Purchase Price Under Asset Purchase Agreement. The
parties hereto acknowledge and agree that the Company and Kellstrom have
determined the Actual Cash Purchase Price on or prior to the date hereof, as set
forth in an Actual Cash Purchase Price Certificate (the "Actual Cash Purchase
Price Certificate"), a copy of which is attached hereto as Attachment I and
which shall be executed at Closing, and as a result, the sum of $680,823 is
owing to Kellstrom by the Company (the "Actual Cash Purchase Price Adjustment").
Effective as of the Resolution Closing Date, Kellstrom, on the one hand, and AVS
and the Company, on the other, release one another from any and all claims,
causes of action, liabilities, obligations and damages, whether now, or later
known, which they ever had, or now have, or may have in the future arising out
of Section 2.6 of the Asset Purchase Agreement, provided, however, that such
release shall not affect or release any of the obligations of the parties set
forth in this Agreement or any other obligations of the parties set forth in the
Asset Purchase Agreement including, without limitation, with respect to
Indemnifiable Damages (as defined in the Asset Purchase Agreement) unrelated to
Section 2.6 thereof.

                                       5

<PAGE>

                                   ARTICLE IV

                                   PURCHASE OF
                      EQUIPMENT SUBJECT TO EQUIPMENT LEASE
                    AND PURCHASE OF ACTUAL UNPAID RECEIVABLES

     4.1  Purchase of Equipment. Pursuant to the exercise by the Company of the
option set forth in the Equipment Option Letter as set forth in Section 2.1
above, at the Closing (as defined in Section 9.1) the Company shall sell,
convey, transfer, assign and deliver to Kellstrom, and Kellstrom shall purchase,
the Equipment, free and clear of any Liens. The parties acknowledge and agree
that the purchase price for the Equipment is $7,738,567 (the "Equipment Purchase
Price").

     4.2  Purchase of Actual Unpaid Receivables. Pursuant to the exercise by
Kellstrom of the option contained in Section 6.18 of the Asset Purchase
Agreement as set forth in Section 2.2 above, at the Closing, Kellstrom shall
sell, convey, transfer, assign and deliver to the Company, and the Company shall
purchase, the Actual Unpaid Receivables, free and clear of any Liens. The
parties acknowledge and agree that the purchase price for the Actual Unpaid
Receivables is $6,127,191.40, constituting the Actual Unpaid Receivables Amount
(as of December 31, 2001), less the Actual Related Unpaid Assumed Payables, plus
the Actual Settled RMA Amount (the "Unpaid Receivables Purchase Price").
Notwithstanding the terms of Section 6.18(c) of the Asset Purchase Agreement,
the parties acknowledge and agree that such amount shall not be subject to the
credit toward the purchase of services from AVS and its Affiliates equal to the
Receivables Credit Amount.

     4.3  Assumed Payables. The Company and AVS agree jointly and severally to
assume and pay, discharge and perform all of the obligations, duties and
liabilities of Kellstrom with respect to the Actual Related Unpaid Assumed
Payables after Closing and hereby indemnify Kellstrom from and against any
obligation thereunder.

     4.4  Release; Audit Rights. From and after the Resolution Closing Date, (a)
the parties hereby release each other from their respective obligations pursuant
to Section 6.18 of the Asset Purchase Agreement, and (b) AVS and the Company
hereby release Kellstrom from any obligations it may have under the Asset
Purchase Agreement with respect to Actual Related Unpaid Assumed Payables.
Kellstrom acknowledges and agrees that the Company shall have the right, until
the Resolution Closing Date (during normal business hours, upon reasonable prior
notice and without unreasonably disrupting Kellstrom's operations), in which to
conduct and complete a review (at the Company's sole cost and expense) of the
Purchased Receivables (including the Actual Unpaid Receivables), and the Actual
Related Unpaid Assumed Payables to confirm (a) the application of proceeds
received by Kellstrom with respect to the Purchased Receivables and (b) the
validity and existence of the Actual Unpaid Receivables and the Actual Related
Unpaid Assumed Payables. Kellstrom shall cooperate fully in connection with any
such review and shall promptly respond to all requests for, and promptly
provide, any and all information and/or documentation in its possession, custody
or control that are relevant to any of the foregoing, provided that the same
does not unreasonably disrupt Kellstrom's operations.

                                       6

<PAGE>

                                    ARTICLE V

                            AVS DTs AND KELLSTROM DTs

     5.1  Settlement of AVS DTs. Kellstrom acknowledges and agrees that the AVS
DTs are due and owing to AVS as of the date hereof. At the Closing, AVS shall
acknowledge in writing that the AVS DTs have been satisfied (the "AVS DT
Acknowledgement").

     5.2  Settlement of Kellstrom DTs. The Company and AVS acknowledge and agree
that the Kellstrom DTs are due and owing to Kellstrom as of the date hereof. At
the Closing, Kellstrom shall acknowledge in writing that the Kellstrom DTs have
been satisfied (the "Kellstrom DT Acknowledgement").

                                   ARTICLE VI

                                  MIRAMAR RENT

     6.1  Payment of Miramar Rent. The parties agree that (notwithstanding the
terms of the Miramar Lease) from February 18, 2002, until the earlier to occur
of: (a) the Closing; or (b) the termination of this Agreement pursuant to
Section 15.1 hereof (the "Interim Rental Period"), Kellstrom shall pay a monthly
amount (the "Interim Rental Amount") equal to the lesser of (i) $384,037.50, or
(ii) 81.4% of the Debt Service (as defined below), in either case, plus
applicable sales taxes, to AVS for the lease of the Miramar Facility, and, if
Kellstrom pays each such Interim Rental Amount when due under the Miramar Lease,
AVS shall be estopped during the Interim Rental Period from claiming any
defaults or taking any action against Kellstrom under the Miramar Lease as a
result of any claims that any other or additional rent may become due during the
Interim Rental Period. For purposes of this Section, the term "Debt Service"
shall mean the accrued interest payments required to be paid by AVS under the
terms of the loan financing secured by the Miramar Facility in effect on
February 18, 2002. In the event that the loan financing secured by the Miramar
Facility shall be refinanced, the term "Debt Service" shall mean the regularly
scheduled monthly installment of principal and interest on such loan; provided,
however, that, notwithstanding the actual terms of such loan, in no event shall
any such installment exceed the amount of a monthly installment of principal and
interest that would be payable pursuant to a 25 year fully amortized loan in the
principal amount of the new loan secured solely by the Miramar Facility (which
new principal amount shall be deemed not to exceed the outstanding principal
amount of the loan financing secured by the Miramar Facility on February 18,
2002) upon commercially reasonable terms. The Interim Rental Amount shall be
prorated for any period of the Interim Rental Period that is less than a full
calendar month based on the actual number of days during such month falling
within the Interim Rental Period.

     6.2  Additional Miramar Rent. At the Closing, as set forth in Section 7.1,
Kellstrom shall pay to AVS an amount (the "Additional Interim Rent") that is
equal to the sum of 100% of the actual Debt Service paid by AVS for each month
of the Interim Rental Period minus the Interim Rental Amount actually paid by
Kellstrom for each such month of the Interim Rental Period. The prorated amount
of the actual Debt Service paid by AVS shall be used to determine the portion of
the Additional Interim Rent due for any period less than a full month during the

                                       7

<PAGE>

Interim Rental Period. In addition, should the actual Debt Service paid by AVS
during any month of the Interim Rental Period exceed the amount of $384,037.50,
then the amount of $384,037.50 shall be the amount used in lieu of the actual
Debt Service paid by AVS in determining the portion of the Additional Interim
Rent due for such monthly period. In addition to the above, at the Closing, as
set forth in Section 7.1, Kellstrom shall pay to AVS an amount equal to $68,498
representing the additional rent amounts claimed by AVS to be due under the
Miramar Lease and not previously paid by Kellstrom for the period from December
31, 2001 through February 28, 2002 (the "Miramar Supplemental Rent").

     6.3  Reservation of Rights. Subject to the provisions of Section 15.2
hereof, in the event that this Agreement is terminated, the provisions of
Sections 6.1 and 6.2 hereof shall not constitute any waivers of any of the
parties' rights relating to any amounts that may be claimed to be due and
payable under the Miramar Lease.

                                   ARTICLE VII

                                  SETTLEMENT OF
                                   ALL AMOUNTS

     7.1  Settlement. The parties hereby agree that at the Closing, in
settlement of all of the disputes with respect to the amounts set forth in this
Agreement, including (i) the Equipment Purchase Price, (ii) the Unpaid
Receivables Purchase Price, (iii) the AVS DTs, (iv) the Kellstrom DTs, (v) the
Miramar Supplemental Rent, and (vi) the Actual Cash Purchase Price Adjustment,
all such obligations shall be reconciled by the payment from Kellstrom to AVS
(notwithstanding the actual sums due with respect to the foregoing stated
elsewhere herein or otherwise) of an amount equal to: (A) the Miramar
Supplemental Rent, plus (B) the Additional Interim Rent (which the parties
acknowledge is $99,487.42 as of May 31, 2002), plus (C) the lesser of (1)
$230,685.60 or (2) the sum of Purchased Receivables collected by Kellstrom
between December 1, 2001 and the Resolution Closing Date (which Kellstrom
acknowledges is $175,522.02 as of May 20, 2002).

                                  ARTICLE VIII

                            TERMINATION OF AGREEMENTS

     8.1  Termination of Cooperation Agreement. The parties hereby agree and
consent that, pursuant to Article V of that certain Cooperation Agreement dated
as of December 1, 2000 (the "Cooperation Agreement") among Kellstrom, AVS and
the Company, the Cooperation Agreement is hereby terminated effective as of the
Resolution Closing Date.

     8.2  Termination of Sub-Sublease. The parties hereby acknowledge and agree
that the Sub-Sublease dated as of August 1, 2001 by and between Kellstrom and
AVS has been terminated effective as of December 31, 2001.

                                       8

<PAGE>

                                   ARTICLE IX

                                     CLOSING

     9.1  The Closing. Subject to the terms and conditions of this Agreement,
the closing of the transactions contemplated herein (the "Closing") shall take
place at the offices of Akerman, Senterfitt & Eidson, P.A., Ft. Lauderdale,
Florida on the date that the conditions set forth in Articles XIII and XIV of
this Agreement have been satisfied or waived (the "Resolution Closing Date").

     9.2  Closing Deliveries. At the Closing, the following shall occur:

          (a)  Kellstrom shall transfer the Actual Unpaid Receivables to the
               Company, together with all documentation related to such Actual
               Unpaid Receivables (including, without limitation, all invoices,
               shipping documents, proof of delivery, and customer
               correspondence) to the extent that the same was provided by the
               Company to Kellstrom and/or generated/received by Kellstrom
               following the Closing under the Asset Purchase Agreement;

          (b)  Kellstrom shall acknowledge in writing that the Actual Unpaid
               Receivables made the subject of the Settled RMAs included in the
               Actual Settled RMA Amount have ceased to be an unpaid Purchased
               Receivable and that Kellstrom shall assume and remain responsible
               for any and all Open RMAs at Closing and any RMAs that may be
               issued by Kellstrom after the Closing (the "RMA Acknowledgment");

          (c)  Kellstrom shall transfer the Actual Related Unpaid Assumed
               Payables to the Company (the "Transferred Payables");

          (d)  Kellstrom shall execute and deliver the Kellstrom DT
               Acknowledgment, and AVS shall execute and deliver the AVS DT
               Acknowledgment;

          (e)  Kellstrom, the Company and AVS shall execute the Resolution
               Transaction Documents to which each is party; and

          (f)  The parties shall execute and deliver, or cause to be executed
               and delivered, such other documents as each is required by this
               Agreement to execute and deliver, or cause to be executed and
               delivered.

                                       9

<PAGE>

                                    ARTICLE X

                        REPRESENTATIONS AND WARRANTIES OF
                               THE COMPANY AND AVS

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

     10.1 Corporate Status. Each of the Company and AVS is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has the requisite power and authority to own or lease its
properties and to carry on its business as now being conducted. There is no
pending or threatened proceeding for the dissolution, liquidation, insolvency or
rehabilitation of the Company or AVS.

     10.2 Power and Authority. Each of the Company and AVS has the corporate
power and authority to execute and deliver this Agreement and each of the
Resolution Transaction Documents to which the Company and/or AVS is a party, to
perform its respective obligations hereunder and thereunder and to consummate
the transactions contemplated hereby and thereby. Each of the Company and AVS
has taken all corporate action necessary to authorize the execution and delivery
of this Agreement and each of the Resolution Transaction Documents to which the
Company and/or AVS is a party, the performance of its obligations hereunder and
thereunder and the consummation of the transactions contemplated hereby and
thereby.

     10.3 Enforceability. This Agreement has been duly executed and delivered,
and each of the Resolution Transaction Documents to which the Company and/or AVS
is a party, when executed and delivered by each of the Company and AVS, will be
duly executed and delivered, and constitutes (or will constitute, as applicable)
the legal, valid and binding obligation of each of them, enforceable against
each of them in accordance with their terms, except as the same may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors' rights generally and general equitable
principles regardless of whether such enforceability is considered in a
proceeding at law or in equity.

     10.4 No Violation/Consents. Except as set forth on Schedule 10.4, none of
the execution or delivery of this Agreement by the Company or AVS and each of
the Resolution Transaction Documents to which the Company and/or AVS is a party,
the performance by the Company or AVS of their respective obligations hereunder
and thereunder or the consummation by the Company or AVS of the transactions
contemplated hereby or thereby will (i) contravene any provision of the
Certificate of Incorporation or Bylaws (or other organizational documents), as
amended to date, of the Company or AVS, (ii) violate or conflict with any Legal
Requirement or any decree, writ, injunction, judgment or order of any
Governmental Authority or of any arbitration award which is either applicable
to, binding upon or enforceable against the Company or AVS, (iii) conflict with,
result in any breach of, or constitute a default (or an event which would, with
the passage of time or the giving of notice or both, constitute a default)
under, or give rise to a right to terminate, amend, modify, abandon or
accelerate, any Contract, (iv) result in or require the creation or imposition
of any Lien upon or with respect to the Equipment, or

                                       10

<PAGE>

(v) require the consent, approval, authorization or permit of, or filing with or
notification to, any Governmental Authority, any court or tribunal or any other
Person, except any SEC filings required to be made by the parties.

     10.5 Litigation. There is no action, suit, or other legal or administrative
proceeding or governmental investigation pending or Threatened by or against the
Company, AVS or any of the Equipment which relates to or questions the validity
or enforceability of this Agreement and the Resolution Transaction Documents or
the transactions contemplated hereby and thereby. There are no outstanding
orders, decrees or stipulations issued by any Governmental Authority in any
proceeding to which the Company is or was a party which have not been complied
with in full by the Company or which continue to impose any material obligations
on the Company or which may have a Material Adverse Effect on the Equipment.

     10.6 Good Title to Equipment. Except as set forth on Schedule 10.6, the
Company has good and marketable title to all of the Equipment. As of the
Resolution Closing Date, the Company will own the Equipment and AVS and/or the
Company will own the accounts and any other rights comprising the AVS DTs, free
and clear of any Liens, with full power to sell, transfer, set-off and assign
the same to and with Kellstrom free and clear of any Liens.

     10.7 No Commissions. None of AVS, the Company or any other Affiliate of AVS
has incurred any obligation for any finder's or broker's or agent's fees or
commissions or similar compensation in connection with the transactions
contemplated hereby, other than fees which will be paid by, and are the sole
obligation of, AVS, the Company or any other Affiliate of AVS.

                                   ARTICLE XI

                   REPRESENTATIONS AND WARRANTIES OF KELLSTROM

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

     11.1 Corporate Status. Kellstrom is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has
the requisite power and authority to own or lease its properties and to carry on
its business as now being conducted, subject to the provisions of the U.S.
Bankruptcy Code and the Federal Rules of Bankruptcy Procedure.

     11.2 Power and Authority. Kellstrom has the corporate power and authority
to execute and deliver this Agreement and each of the Resolution Transaction
Documents to which it is a party, to perform its obligations hereunder and
thereunder and to consummate the transactions contemplated hereby and thereby,
subject to the approval of the Bankruptcy Court ("Bankruptcy Court Approval").
Kellstrom has taken all corporate action necessary to authorize the execution
and delivery of this Agreement and each of the Resolution Transaction Documents
to which it is a party, the performance of its obligations hereunder and
thereunder and the consummation of the transactions contemplated hereby and
thereby.

                                       11

<PAGE>

     11.3 Enforceability. This Agreement has been duly executed and delivered,
and each of the Resolution Transaction Documents to which Kellstrom is a party,
when executed and delivered by Kellstrom, will be duly executed and delivered,
and upon receipt of Bankruptcy Court Approval will constitute the legal, valid
and binding obligation of Kellstrom, enforceable against Kellstrom in accordance
with their terms.

     11.4 No Violation/Consents. Except as set forth on Schedule 11.4, none of
the execution or delivery of this Agreement by Kellstrom and each of the
Resolution Transaction Documents to which Kellstrom is a party, the performance
by Kellstrom of its obligations hereunder and thereunder or the consummation by
Kellstrom of the transactions contemplated hereby or thereby will (i) contravene
any provision of the Certificate of Incorporation or Bylaws (or other
organizational documents), as amended to date, of Kellstrom, (ii) violate or
conflict with any Legal Requirement or any decree, writ, injunction, judgment or
order of any Governmental Authority or of any arbitration award which is either
applicable to, binding upon or enforceable against Kellstrom, subject to any
Bankruptcy Court Approval which may be necessary under the U.S. Bankruptcy Code,
(iii) conflict with, result in any breach of, or constitute a default (or an
event which would, with the passage of time or the giving of notice or both,
constitute a default) under, or give rise to a right to terminate, amend,
modify, abandon or accelerate, any Contract, (iv) result in or require the
creation or imposition of any Lien upon or with respect to the Actual Unpaid
Receivables or Transferred Payables, or (v) require the consent, approval,
authorization or permit of, or filing with or notification to, any Governmental
Authority, any court or tribunal or any other Person, except any SEC filings
required to be made by the parties, Bankruptcy Court Approval and any motion and
related filings with respect thereto.

     11.5 Litigation. There is no action, suit, or other legal or administrative
proceeding or governmental investigation pending or Threatened by or against
Kellstrom or the Actual Unpaid Receivables which relates to or questions the
validity or enforceability of this Agreement and the Resolution Transaction
Documents or the transactions contemplated hereby and thereby. Except in
connection with the Bankruptcy Proceeding, there are no outstanding orders,
decrees or stipulations issued by any Governmental Authority in any proceeding
to which Kellstrom is or was a party which have not been complied with in full
by Kellstrom or which continue to impose any material obligations on Kellstrom
or which may have a Material Adverse Effect on the Actual Unpaid Receivables.

     11.6 Good Title. Except as set forth on Schedule 11.6, Kellstrom has good
and marketable title to all of the Actual Unpaid Receivables. Kellstrom will as
of the Resolution Closing Date own the Actual Unpaid Receivables and the
accounts and any other rights comprising the Kellstrom DTs free and clear of any
Liens, with full power to sell, transfer, set-off and assign the same to and
with the Company or AVS, as applicable, free and clear of any Liens. Kellstrom
makes no representation or warranty whatsoever regarding the collectibility of
the Actual Unpaid Receivables.

     11.7 No Commissions. Kellstrom has not incurred any obligation for any
finder's or broker's or agent's fees or commissions or similar compensation in
connection with the

                                       12

<PAGE>

transactions contemplated hereby, other than fees which will be paid by, and are
the sole obligation of, Kellstrom.

                                   ARTICLE XII

                              ADDITIONAL AGREEMENTS

     12.1 Further Assurances. Each party shall execute and deliver such
additional instruments and other documents and shall take such further actions
as may be necessary or appropriate to effectuate, carry out and comply with all
of the terms of this Agreement and the Resolution Transaction Documents and the
transactions contemplated hereby and thereby.

     12.2 Compliance with Covenants. At the Closing, the Company and AVS
covenant and agree to deliver to Kellstrom the documents required to be
delivered to Kellstrom pursuant to Articles IX and XIII, and Kellstrom covenants
and agrees to deliver to the Company and AVS the documents required to be
delivered to the Company and AVS pursuant to Articles IX and XIV.

     12.3 Cooperation. Each of the parties agrees to use its commercially
reasonable best efforts to cooperate with the others in the preparation and
filing of all forms, notifications, reports and information, if any, including
the motion to obtain Bankruptcy Court approval of this Agreement and the
Resolution Transaction Documents and any related filings, required or deemed
advisable pursuant to any law, rule or regulation (including, without
limitation, any rules or regulations of any securities exchange upon which the
securities of Kellstrom or AVS may be listed or traded) in connection with the
transactions contemplated by this Agreement and the Resolution Transaction
Documents, and to use its best efforts to agree jointly on a method to overcome
any objections by any Governmental Authority to any such transactions.

     12.4 Other Actions. Each of the parties hereto shall (i) take all
appropriate reasonable actions to do, or cause to be done, all things necessary,
proper or advisable under any applicable laws, rules and regulations and
contracts to which each is a party to consummate and make effective the
transactions contemplated herein, including, without limitation, obtaining all
licenses, permits, consents, approvals, authorizations, qualifications and
orders of any Governmental Authority, the Bankruptcy Court, and parties to
Contracts to which each is a party as are necessary for it to consummate the
transactions contemplated hereby, (ii) use commercially reasonable efforts to
make on a prompt and timely basis all governmental or regulatory notifications
and filings required to be made by it to consummate and make effective the
transactions contemplated hereby, (iii) defend all lawsuits or other legal
proceedings brought against it which challenge this Agreement or the
consummation of the transactions contemplated hereby, and (iv) take all actions
necessary or advisable to lift or rescind any injunction or restraining order or
other order adversely affecting its ability to consummate the transactions
contemplated hereby.

     12.5 Delivery of Property Received by Kellstrom After Closing. From and
after the Closing, the Company shall have the right and authority to collect,
for the account of the Company, all Actual Unpaid Receivables and other items
which shall be transferred to the

                                       13

<PAGE>

Company as provided in this Agreement, and to endorse with the name of the
Company on any checks or drafts received on account of any such receivables.
Kellstrom agrees that it will transfer or deliver to the Company, promptly after
the receipt thereof, any cash or other property which Kellstrom may receive
after the Resolution Closing Date in respect of any Actual Unpaid Receivables
transferred to the Company hereunder. Kellstrom further agrees and acknowledges
that from and after the Resolution Closing Date (i) it has no legal or
beneficial interest of any kind or nature in any cash or other property which it
may come to receive or possess related to or arising out of the Actual Unpaid
Receivables transferred to the Company hereunder, and (ii) if it comes to
receive or possess any cash or other property related to or arising out of the
Actual Unpaid Receivables transferred to the Company hereunder, it receives or
possesses such cash or property solely as agent and in trust for the Company,
and shall, immediately remit such cash or other property, in the form received,
to the Company. The Company shall have the right to take any and all actions
that it may deem necessary in order to collect the Actual Unpaid Receivables
transferred to it hereunder. As a matter of clarification, any reference in this
Section 12.5 to "Actual Unpaid Receivables" is a reference to Actual Unpaid
Receivables as adjusted on the Resolution Closing Date for changes through such
date.

     12.6  Execution of Further Documents. The parties shall from and after the
Closing execute, acknowledge and deliver all such further deeds, bills of sale,
assignments, transfers, conveyances, notices to account debtors, powers of
attorney and assurances as may be requested by the other to convey and transfer
to the other and protect its right, title and interest in all of the assets
being transferred hereunder and to carry out the transactions contemplated by
this Agreement and the other Resolution Transaction Documents.

     12.7  Lien Releases and Estoppel Letters. At or prior to Closing, the
parties shall deliver to each other such UCC-3 termination statements,
satisfactions, estoppel letters or other appropriate releases as shall be
necessary to transfer the Equipment and the Actual Unpaid Receivables, and to
provide for the set-off of the AVS DTs and the Kellstrom DTs, free and clear of
all liens and encumbrances whatsoever.

     12.8  Performance of Obligations Under and Extension of the Termination
Date of Equipment Lease. Notwithstanding section 365(d)(10) of the Bankruptcy
Code or any other language contained herein to the contrary, Kellstrom shall
timely perform any and all obligations arising from or under the Equipment Lease
as they become due from and after the commencement of the Bankruptcy Proceeding
until the Termination Date (as defined in the Equipment Lease). Notwithstanding
the terms of the Equipment Lease or the Equipment Option Letter, the parties
hereby consent and agree that the term "Termination Date" (as defined in the
Equipment Lease) of the Equipment Lease is hereby amended to mean the earlier to
occur of (a) the Resolution Closing Date or (b) August 31, 2002.

     12.9  Execution of Resolution Transaction Documents. Prior to or at
Closing, Kellstrom, the Company and AVS shall enter into each of the Resolution
Transaction Documents to which it is a party.

     12.10 Certain KAV Engine. In the event that AVS obtains title to that
certain Pratt & Whitney model JT8-7B aircraft engine bearing manufacturer's
serial number 655220, currently

                                       14

<PAGE>

owned by KAV and located in Oscoda, Michigan, in satisfaction of repair costs
incurred by AVS, Kellstrom hereby waives applicability of the Non-Competition
Agreement to the sale by AVS of such engine as a whole engine and any such sale
shall not be included in the sublimit established by section (b) of the
definition of "Permitted Activities" contained in the Amendment to
Non-Competition Agreement.

     12.11 Certain Landing Gear. As soon as AVS provides Air Alliance Materials
with an appropriate credit for the return of a certain landing gear cylinder
(part number 015T1504-82 as sold under order number R331255 and bearing serial
number 7304) returned by Air Alliance Materials, Kellstrom shall assign its
rights to such landing gear cylinder to AVS and AVS may resell the landing gear
free of any restriction contained in the Non-Competition Agreement and any such
sale shall not be included in the sublimit established by section (b) of the
definition of "Permitted Activities" contained in the Amendment to
Non-Competition Agreement.

                                  ARTICLE XIII

                   CONDITIONS TO THE OBLIGATIONS OF KELLSTROM

     The obligations of Kellstrom to effect the transactions contemplated hereby
shall be subject to the fulfillment at or prior to the Resolution Closing Date
of the following conditions, any or all of which may be waived in whole or in
part in writing by Kellstrom (except as otherwise set forth herein):

     13.1  Compliance with Obligations. The Company and AVS shall have performed
and complied with all of their respective obligations required by this Agreement
and in each of the Resolution Transaction Documents to which the Company and/or
AVS are parties to be performed or complied with at or prior to the Resolution
Closing Date. The Company and AVS shall have delivered to Kellstrom a
certificate, dated as of the Resolution Closing Date, duly signed by their
respective President and Chief Financial Officer, certifying that all such
obligations have been performed and complied with.

     13.2  Consents. The Company, AVS and Kellstrom shall each have received all
necessary consents to the transactions contemplated hereby from any Person from
whom such consent or waiver is required or pursuant to any Legal Requirement.

     13.3  No Adverse Litigation. There shall not be pending any action or
proceeding by or before any court or other governmental body which shall seek to
restrain, prohibit, invalidate or collect damages arising out of the
transactions contemplated hereby.

     13.4  Delivery of Purchased Assets. The Company shall have duly executed
and delivered to Kellstrom the Equipment Bill of Sale and such other instruments
of transfer of title as are reasonably necessary in the opinion of Kellstrom to
transfer to Kellstrom good and marketable title to the Equipment, in each case,
in form and substance reasonably satisfactory to Kellstrom. The Company shall
deliver the Equipment to Kellstrom free and clear of any Liens.

     13.5  Delivery of Lien Releases and Estoppel Letters. The Company and AVS
shall

                                       15

<PAGE>

have delivered to Kellstrom the lien releases and other documents referred to in
Section 12.7 hereof.

     13.6  Execution and Delivery of Resolution Transaction Documents. Each of
the parties (other than Kellstrom) to the Resolution Transaction Documents shall
have executed and delivered the Resolution Transaction Documents to which it is
a party.

     13.7  Consent of Kellstrom Lenders. Kellstrom shall have received the prior
written consent of Bank of America, N.A., as agent, under the Pre-Petition
Credit Facility (as defined in Schedule 11.4) and the DIP Facility (as defined
in Schedule 11.4). This condition shall not be waivable by Kellstrom except with
the prior written consent of Bank of America, N.A.

     13.8  Approval of the Bankruptcy Court. The Bankruptcy Court shall have
issued a final (unless otherwise agreed) order approving this Agreement, the
Resolution Transaction Documents and the transactions contemplated hereby and
thereby, and an order requiring the Miramar Lease (as amended by the Miramar
Amendment) to be assumed by Kellstrom and assigned to the Successor Party. As a
matter of clarification, approval by the Bankruptcy Court of this Agreement, the
Resolution Transaction Documents and the transactions contemplated hereby and
thereby shall not be deemed to require Kellstrom to enter into the Miramar
Amendment or to assume the Miramar Lease (as so amended), absent the
satisfaction of the conditions identified in the first sentence of this Section
13.8, and the other conditions set forth herein.

     13.9  Closing of Asset Purchase Transaction. Kellstrom (as
debtor-in-possession) shall have consummated a transaction approved by the
Bankruptcy Court for the purchase of its assets with the Successor Party that
includes the assumption by Kellstrom and assignment to the Successor Party of
the Miramar Lease (as amended by the Miramar Amendment) and the purchase of the
Equipment. This condition shall not be waivable by Kellstrom except with the
prior written consent of Bank of America, N.A.

                                   ARTICLE XIV

                        CONDITIONS TO THE OBLIGATIONS OF
                               THE COMPANY AND AVS

     The obligations of the Company and AVS to effect the transactions
contemplated hereby shall be subject to the fulfillment at or prior to the
Resolution Closing Date of the following conditions, any or all of which may be
waived in whole or in part in writing by the Company or AVS:

     14.1  Compliance with Obligations. Kellstrom shall have performed and
complied with all of its obligations required by this Agreement and in each of
the Resolution Transaction Documents to which it is a party to be performed or
complied with by it at or prior to the Resolution Closing Date. Kellstrom shall
have delivered to the Company a certificate, dated as of the Resolution Closing
Date, and signed by its President and Chief Financial Officer, certifying that
all such obligations have been complied with and performed.

                                       16

<PAGE>

     14.2  No Adverse Litigation. There shall not be pending any action or
proceeding by or before any court or other governmental body, which shall seek
to restrain, prohibit, invalidate or collect damages arising out of the
transactions contemplated hereby.

     14.3  Delivery of Purchased Assets. Kellstrom shall have duly executed and
delivered to the Company and AVS the Bill of Sale, Assignment and Assumption and
such other instruments of transfer as are reasonably necessary in the opinion of
the Company to transfer to the Company good and marketable title to the Actual
Related Unpaid Assumed Payables and Actual Unpaid Receivables, in each case, in
form and substance reasonably satisfactory to the Company.

     14.4  Delivery of Lien Releases and Estoppel Letters. Kellstrom shall have
delivered to the Company the lien releases and other documents referred to in
Section 12.7 hereof.

     14.5  Execution and Delivery of Certain Resolution Transaction Documents.
Each of the parties (other than AVS and the Company) to the Resolution
Transaction Documents shall have executed and delivered the Resolution
Transaction Documents to which it is a party.

     14.6  Consents. The Company and AVS shall have received consents to the
transactions contemplated hereby from any Person from whom such consent is
required or pursuant to any other Legal Requirement.

     14.7  Consent of AVS Senior Lenders. AVS shall have received any consent
required to be obtained from its lenders under (a) that certain Fourth Amended
and Restated Credit Agreement dated May 31, 2000, as amended, between AVS and
Citicorp USA, Inc., as Agent, and (b) that certain Participation Agreement dated
as of December 17, 1998 (the "Participation Agreement"), as amended, by and
among AVS, as construction agent, AVS, as lessee, First Security Bank, National
Association, not individually, except as expressly stated therein, but solely as
Owner trustee under the Aviation Sales Trust 1998-1, the various banks and other
lending institutions which parties thereto from time to time, as the holders,
and the various banks and other lending institutions which are parties thereto
from time to time, as the lenders, and NationsBank, National Association, as
Administrative Agent for the lenders, as amended.

     14.8  Extension of Financing/Lease on Miramar Facility. The term of the
Lease between Wells Fargo Bank Northwest, National Association, f/k/a First
Security Bank, National Association, as Lessor, and Aviation Sales Company, as
Lessee, dated as of December 17, 1998 for property including that located at
3701 Flamingo Road, Miramar, Florida 33027 and the maturity date of the
Operative Agreements (as that term is defined in the Participation Agreement)
shall have been extended upon terms reasonably satisfactory to AVS.

     14.9  Payment of Rent Obligations. Kellstrom shall be current on all rent
and other obligations due and owing under the Equipment Lease and the Miramar
Lease (as modified by Sections 6.1 and 6.2 hereof) through the month in which
the Closing occurs.

     14.10 Approval of the Bankruptcy Court. The Bankruptcy Court shall have
issued a

                                       17

<PAGE>

final (unless otherwise agreed) order approving this Agreement, the Resolution
Transaction Documents and the transactions contemplated hereby and thereby.

     14.11 KAV. KAV shall have: (i) executed and delivered the Amendment to
Non-Competition Agreement, (ii) consented in writing to the provisions of
Section 12.10 and 12.11 hereof, and (iii) acknowledged in writing that the
Actual Purchase Price (as such term is defined in the Inventory Purchase
Agreement) is equal to the Estimated Purchase Price (as such term is defined in
the Inventory Purchase Agreement), and that no adjustments to the purchase price
are required under the Inventory Purchase Agreement pursuant to Section 2.5
thereof, which acknowledgement shall contain a mutual release between KAV and
the Company with respect to obligations under Section 2.5 of the Inventory
Purchase Agreement.

                                   ARTICLE XV

                                   TERMINATION

     15.1  Termination. This Agreement may be terminated at any time prior to
the Resolution Closing Date: (a) by mutual written consent of the parties hereto
at any time prior to the Resolution Closing Date; or (b) by Kellstrom in the
event of a material breach by AVS or the Company of any provision of this
Agreement which material breach is not cured within five (5) days of the
delivery to AVS or the Company of written notice thereof from Kellstrom pursuant
to the terms of Section 16.1 hereof or which breach by its nature cannot be
cured prior to Resolution Closing Date; or (c) by AVS or the Company in the
event of a material breach by Kellstrom of any provision of this Agreement which
material breach is not cured within five (5) days of the delivery to Kellstrom
of written notice thereof from AVS or the Company pursuant to the terms of
Section 16.1 hereof or which breach by its nature cannot be cured prior to the
Resolution Closing Date; or (d) by Kellstrom in the event that the Bankruptcy
Court shall have denied the sale motion with respect to the sale of Kellstrom's
assets to the Successor Party; or (e) by any of Kellstrom, AVS or the Company
immediately upon delivery of written notice to the other parties if the Closing
shall not have occurred by August 31, 2002.

     15.2  Effect of Termination. In the event of termination of this Agreement
pursuant to Section 15.1, this Agreement shall forthwith become void and of no
further force and effect and the parties shall be released from any and all
obligations hereunder, except with respect to the provisions of Section 6.1,
Section 12.8, Section 12.10, Article XV and Article XVI; provided, however, that
nothing herein shall relieve any party from liability for the willful breach of
any of its representations, warranties, covenants or agreements set forth in
this Agreement. In addition, in the event that this Agreement is terminated
pursuant to Section 15.1(b), the Interim Rental Period shall be deemed to be
extended through August 31, 2002.

                                   ARTICLE XVI

                               GENERAL PROVISIONS

     16.1  Notices. All notices, requests, demands, claims, and other
communications hereunder shall be in writing and shall be delivered by certified
or registered mail (first class

                                       18

<PAGE>

postage pre-paid), guaranteed overnight delivery, or facsimile transmission if
such transmission is confirmed by delivery by certified or registered mail
(first class postage pre-paid) or guaranteed overnight delivery, to the
following addresses and telecopy numbers (or to such other addresses or telecopy
numbers which such party shall designate in writing to the other party):

           (a)  if to Kellstrom to:

                Kellstrom Industries, Inc.
                3701 Flamingo Road
                Miramar, FL 33027
                Attn: Zivi R. Nedivi, President
                Telecopy: (954) 538-7669

                with a copy to:

                Akerman, Senterfitt & Eidson, P.A.
                350 East Las Olas Boulevard, Suite 1600
                Fort Lauderdale, Florida 33301
                Attn: Bruce I. March, Esq.
                Telecopy: (954) 463-2224

                                       19

<PAGE>

           (b)  if to the Company and/or AVS to:

                TIMCO Aviation Services, Inc.
                623 Radar Road
                Greensboro, North Carolina 27410
                Attn: Roy T. Rimmer, Jr., Chairman and Chief Executive Officer
                Telecopy: (336) 664-0339

                with a copy to:

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

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

     16.2  Entire Agreement. This Agreement and the Resolution Transaction
Documents (including the exhibits and schedules attached hereto and thereto) and
the other documents delivered pursuant hereto and thereto and in connection
herewith and therewith 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 including, without limitation, those certain Post-Closing
Resolution Agreements dated as of February 18, 2002 and April 26, 2002, among
the parties. The exhibits and schedules constitute a part of the document to
which they are attached as though set forth in full thereon.

     16.3  Expenses. AVS shall pay the fees and expenses incurred by it and the
Company, including accounting and counsel fees, in connection with this
Agreement and the Resolution Transaction Documents and the transactions
contemplated hereby and thereby, and Kellstrom shall pay its own fees and
expenses, including accounting and counsel fees, incurred in connection with
this Agreement and the Resolution Transaction Documents and the transactions
contemplated hereby and thereby.

     16.4  Amendment; Waiver. This Agreement may not be modified, amended,
supplemented, canceled or discharged, except by written instrument executed by
all parties. Any provision that, by its terms, may not be waived by Kellstrom
without the consent of Bank of America, N.A., may not be modified, amended,
supplemented, canceled or discharged, except with the prior written consent of
Bank of America, N.A. 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

                                       20

<PAGE>

exercise of any other right, power or privilege. No waiver of any breach of any
provision shall be deemed to be a waiver of any preceding or succeeding breach
of the same or any other provision, nor shall any waiver be implied from any
course of dealing between the parties. No extension of time for performance of
any obligations or other acts hereunder or under any other agreement shall be
deemed to be an extension of the time for performance of any other obligations
or any other acts. Except as otherwise provided herein, the rights and remedies
of the parties under this Agreement and the Resolution Transaction Documents are
in addition to all other rights and remedies, at law or equity, which they may
have against each other.

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

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

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

     16.8  No Severability. Each phrase, sentence, clause, section, subsection
or provision of this Agreement is dependent on the other and if any such phrase,
sentence, clause, subsection, or provision as applied to any party or to any
circumstance is adjudged by a court to be invalid or unenforceable, then this
entire Agreement, and any and all documents executed or delivered
contemporaneously with the Closing, shall be deemed null and void, and invalid
and unenforceable.

     16.9  Governing Law; Jurisdiction. This Agreement shall be construed in
accordance

                                       21

<PAGE>

with and governed for all purposes by the laws of the State of Florida
applicable to contracts executed and to be wholly performed within such State.
Except as otherwise provided in an order entered by the Bankruptcy Court
approving this Agreement or any order confirming a Chapter 11 Plan in the
Bankruptcy Proceeding, any suit, action or proceeding against Kellstrom, the
Company or AVS arising out of, or with respect to, this Agreement shall be
brought in the courts of Broward County, Florida or in the U.S. District Court
for the Southern District of Florida and each party hereby irrevocably (a)
accepts and consents to the exclusive personal jurisdiction of such courts for
the purpose of any suit, action or proceeding, (b) waives, to the fullest extent
permitted by law, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this
Agreement or any judgment entered by any court in respect thereof brought in
such courts, (c) waives any claim that any suit, action or proceedings brought
in such courts has been brought in an inconvenient forum, and (d) agrees that
service of process, summons, notice or document by U.S. registered mail in
accordance with this Agreement shall be effective service of process for any
action, suit or proceeding brought against a party in any such court.

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

     16.11 Bankruptcy Court Approval. NOTWITHSTANDING ANYTHING TO THE CONTRARY
CONTAINED HEREIN, THIS AGREEMENT SHALL NOT BE EFFECTIVE AGAINST KELLSTROM UNTIL
THE BANKRUPTCY COURT SHALL HAVE ISSUED AN ORDER APPROVING THIS AGREEMENT, THE
RESOLUTION TRANSACTION DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       22

<PAGE>

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

                                KELLSTROM INDUSTRIES, INC., a Delaware
                                corporation

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

                                TIMCO AVIATION SERVICES, INC., a Delaware
                                corporation

                                By: /s/ Roy T. Rimmer, Jr.
                                   --------------------------------------
                                   Roy T. Rimmer, Jr.
                                   Chairman and Chief Executive Officer

                                AVIATION SALES DISTRIBUTION SERVICES COMPANY, a
                                Delaware corporation

                                By: /s/ Roy T. Rimmer, Jr.
                                   --------------------------------------
                                   Roy T. Rimmer, Jr.
                                   Chairman and Chief Executive Officer

                                       23

<PAGE>

                         LIST OF EXHIBITS AND SCHEDULES

Exhibit A         Actual Related Unpaid Assumed Payables
Exhibit B         Actual Settled RMA Amount
Exhibit C         Actual Unpaid Receivables
Exhibit D         Amendment to Non-Competition Agreement
Exhibit E         AVS DTs
Exhibit F         Kellstrom DTs
Exhibit G         Form of First Amendment to Lease
Exhibit H         Form of Amended and Restated Memorandum of Lease
Exhibit I         Form of Amended and Restated Subordination, Non-Disturbance
                  and Attornment Agreement
Exhibit J         Consent to Lease Amendment

Schedule 10.4     AVS/Company Violations/Consents
Schedule 10.6     Liens on Equipment
Schedule 11.4     Kellstrom Violations/Consents
Schedule 11.6     Liens on Actual Unpaid Receivables

Attachment I      Form of Actual Cash Purchase Price Certificate

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