Document:

EXHIBIT 10.9

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                              CONSIGNMENT AGREEMENT

                                     Between

                           KELLSTROM INDUSTRIES, INC.

                                       and

                               KAV INVENTORY, LLC

                                December 1, 2000

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                              CONSIGNMENT AGREEMENT

         This Consignment Agreement (this "Agreement") is entered into as of
December 1, 2000 (the "Effective Date") between KAV Inventory, LLC, a Delaware
limited liability company (the "Consignor") and Kellstrom Industries, Inc., a
Delaware corporation (the "Consignee").

                                    RECITALS

         Consignee is engaged in the redistribution of aircraft engines,
aircraft parts and aircraft engine parts through sale, lease and exchange
transactions. Contemporaneous with the execution of this Agreement, Consignor is
purchasing the inventory being consigned hereunder pursuant to that certain
Inventory Purchase Agreement (the "Inventory Purchase Agreement") entered into
as of September 20, 2000 among Consignor, Aviation Sales Company, a Delaware
corporation ("AVS") and Aviation Sales Distribution Services Company, a Delaware
corporation ("AVSD"). In connection therewith, Consignor desires to engage
Consignee to act as its agent, and Consignee desires to serve as Consignor's
agent, in connection with the sale of such inventory on the terms and subject to
the conditions contained in this Agreement.

                               TERMS OF AGREEMENT

         In consideration of the mutual agreements, covenants and promises
hereinafter contained, the Parties hereto agree as follows:

                                    SECTION 1

         Definitions. For purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires, the terms "herein,"
"hereof" and "hereunder" and other words of similar import shall refer to this
Agreement as a whole (including, without limitation, all Exhibits and Schedules
attached to this Agreement) and not to any particular Section or other
subdivision, and references to Sections and Schedules refer to Sections and
Schedules of this Agreement unless otherwise indicated. The following terms have
the following meanings for purposes of this Agreement and such meanings shall be
equally applicable to both the singular and plural forms of the terms defined
herein:

         "Agent" means Bank of America, N.A., as agent for the Lenders under the
Loan Agreement, and any successor thereto.

         "Agreed Upon Standard" means the standard of care set forth in Section
15.

         "Airframe" means an aircraft without the engines but including the QEC
Parts and APU.

         "Approved Vendor" has the meaning given such term in Section 5(e).

         "APU" means an auxiliary power unit.

         "AVS Companies" means AVS, its Subsidiaries, successors and assigns.

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         "Bankruptcy Code" means Chapter 11 of the United States Bankruptcy
Code, 11 U.S.C.ss. 101 et seq., as amended, or any successor thereto, and any
rules and regulations promulgated thereunder.

         "Business Day" means any day other than a Saturday or Sunday or a day
on which commercial banks are required or authorized to close in Miami, Florida.

         "Confirmed Inventory" means (i) all Verified Parts, and (ii) all
Non-Verified Parts that Consignee's records generated after the Effective Date
reflect as having been in the possession or control of Consignee on or after the
Effective Date.

         "Cooperation Agreement" means the Cooperation Agreement of even date
herewith among Consignee, AVS and AVSD.

         "Designated Location" means (i) each location specified under the
heading "Designated Location" on Schedule I, (ii) subject to any restrictions or
requirements contained in the Loan Agreement, each other location that Consignor
hereafter consents upon written request of Consignee to designate as a
Designated Location (which consent shall not be unreasonably withheld or delayed
and which consent shall be deemed given should Consignor not respond within
three (3) Business Days after receipt of written request from Consignee), and
(iii) with respect to a Part that is sent to an Approved Vendor, the location of
such Approved Vendor for the duration of such Part's presence at such Approved
Vendor.

         "Duplicate Parts" means aircraft or engine parts which exist in the KAV
Inventory and the Kellstrom Inventory which are identical in part number and
condition (serviceable, unserviceable, overhauled or new).

         "Exchange Fee" means the price (including, without limitation, any late
fees) charged by the Consignee to a third party in connection with an exchange
transaction (but excluding any amount charged to the third party for repairing
the part exchanged by such third party).

         "Event of Default" has the meaning given such term in Section 14.

         "Event of Loss" means with respect to any Part following transfer
thereof to the Consignee hereunder and prior to any sale thereof to a third
party or return thereof to the Consignor, (i) in the case of any Confirmed
Inventory, any loss of such property or use thereof due to theft, disappearance,
destruction or damage beyond economic repair, (ii) in the case of any KAV
Inventory other than Confirmed Inventory, any loss of such property or use
thereof due to theft, disappearance, destruction or damage beyond economic
repair to the extent that payment is made on account of a claim therefor under
the Property Insurance, (iii) any damage to such property which results in an
insurance settlement with respect to such property under the Property Insurance
on the basis of a total loss or a compromised or constructive total loss, (iv)
the condemnation, confiscation, appropriation or seizure of or requisition of
title to such property or the use of such property by or on authority of any
government or governmental authority to the extent that such loss is a covered
loss under the provisions of the Property Insurance, or compensation is paid by
any government or governmental authority, or (v) ten (10) days following receipt
by Consignee of written notice from the Consignor or the Agent of the removal

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of such property to any location other than a Designated Location (other than in
connection with a sale, lease or exchange transaction) (a "Prohibited
Relocation").

         "Fair Market Value" means with respect to any Part, the amount equal to
the arithmetic mean of the prices in United States dollars at which parts of the
same type and quality as, or of a type and quality similar to or reasonably
interchangeable with the Part, shall have been invoiced for sale by the
Consignee, in arm's length transactions to purchasers who are not affiliated
with, do not control or are not controlled by, or under common control with, the
Consignee during the period commencing three (3) months prior to the sale and
ending on the date of the sale (or such longer period as may be necessary to
have at least three relevant transactions within the relevant period); and, if
no such invoiced prices are available for a Part, the applicable fair market
value shall be the price established by the mutual agreement of Consignor and
Consignee, or in the absence of an agreement, the price determined to be the
fair market value of such Part by a mutually acceptable third-party appraiser.

         "Federal Aviation Act" means those chapters of Title 49 of the United
States Code known as the United States Federal Aviation Act of 1958, as amended,
and all regulations, rulings, interpretations and guidelines published
thereunder and from time to time in effect.

         "FAA" means the Federal Aviation Administration of the United States
and its successors.

         "Gross Sales Price" means, the total invoice price in the case of the
sale of any Parts, the Lease Fee in the case of the lease of any Parts, and the
Exchange Fee in the case of the exchange of any Parts, in each such case, minus
the sum of (a) any insurance, freight, shipping or handling charges charged to a
customer; (b) any Sales Taxes; (c) any customs and duties applicable to such
sales; and (d) any rebates, discounts or allowances.

         "Insured Value" means with respect to any Part, an amount equal to the
Consignor's cost with respect to such Part, at the time in question (which
aggregate Insured Value may decrease as Parts are sold or otherwise disposed of
as permitted herein).

         "Inventory Purchase Agreement" has the meaning given to such term in
the Recitals hereto.

         "KAV Inventory" means all of the Parts consigned by the Consignor to
the Consignee pursuant to this Agreement.

         "KAV Payables" means all amounts payable by the Consignor hereunder
other than (a) any Consignee Commission, (b) any Reimbursable Expenses, (c) any
amounts payable for purchases of Parts by the Consignor pursuant to Section
7(d), and (d) any amounts payable to the Consignee pursuant to Section 9(e).

         "Kellstrom Inventory" means the inventory of aircraft engines, aircraft
parts and aircraft engine parts owned by Consignee and its Subsidiaries from
time to time.

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         "Labor Costs" means the cost of any third-party labor charges paid by
the Consignee which are incurred in the repair, maintenance, overhaul,
refurbishment, certification or modification of any Part in accordance with the
terms of this Agreement.

         "Lease Fee" means the rent (including, without limitation, any late
fees) charged by the Consignee to a third party in connection with a lease
transaction (but excluding any amount charged to the third party for repairing
the part leased to such third party) (provided, however, if the rent payable in
connection with any lease transaction is due less frequently than monthly, then
the Lease Fee shall mean the effective monthly rental charged by the Consignee
to the lessee thereunder).

         "Leasing" or "lease" means the lease or leasing of inventory to the
extent not prohibited by the Loan Agreement or as otherwise consented to by the
Agent, it being acknowledged that the Loan Agreement currently provides that
neither the Consignor nor the Consignee may, without the prior consent of the
Agent: (a) lease any Parts contained in the KAV Inventory other than engines,
(b) lease engines contained in the KAV Inventory for a duration exceeding three
(3) months, or (c) lease engines contained in the KAV Inventory if the number of
engines subject to leases at any one time exceeds twenty-five percent (25%) of
the aggregate number of engines contained in the KAV Inventory at such time.

         "Lender" means each Person that makes one or more loans to the
Consignor under the Loan Agreement.

         "Loan Agreement" means that certain Loan and Security Agreement of even
date herewith among the Consignor, the Agent, and the Lenders party thereto, as
amended from time to time, and any loan agreement entered into by Consignor in
connection with any refinancing of the loan contemplated thereby.

         "Loss Value" means, with respect to any Part suffering an Event of
Loss, the amount equal to the arithmetic mean of the prices in United States
dollars at which parts of the same type and quality as, or of a type and quality
similar to or reasonably interchangeable with, the Part suffering the Event of
Loss (if any) shall have been invoiced for sale by the Consignee, in arms length
transactions to purchasers who are not affiliated with, do not control or are
not controlled by, or under common control with, the Consignee during the period
commencing three (3) months prior to the discovery of such Event of Loss and
ending on the date of the discovery of such Event of Loss (or such longer period
as may be necessary to have at least three relevant transactions within the
relevant period); and, if no such invoiced prices are available for a Part, the
applicable Loss Value shall be the price established by the mutual agreement of
Consignor and Consignee, or in the absence of an agreement, the price determined
to be the fair market value of such Part by a mutually acceptable third-party
appraiser.

         "Material Costs" means the cost charged to Consignee by a third-party
maintenance provider in accordance with the terms of this Agreement for any
material used in the repair, maintenance, overhaul, refurbishment, certification
or modification of any Part.

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         "Net Sales Price" means with respect to any Part or Parts sold, leased
or exchanged by the Consignee, the Gross Sales Price therefor minus the
unreimbursed Reimbursable Expenses with respect to such Part or Parts upon such
sale, lease or exchange.

         "Net Sales Revenue" with respect to the sale, exchange or lease of any
Part means the Net Sales Price less applicable Consignee Commission.

         "Non-Reimbursable Expenses" means all costs and expenses incurred by
the Consignee which are not Reimbursable Expenses, including, without
limitation, all Consignee employee salaries, overhead and costs and expenses
incurred by Consignee in connection with (i) supervision by Consignee employees
of the repair, maintenance, overhaul, refurbishment, certification or
modification of any Parts, (ii) sale, lease or exchange of Parts, (iii) Parts
tracking and accountability, (iv) Parts warehousing, (v) liability insurance on
Parts, (vi) extensions of credit for sales, (vii) except as otherwise set forth
herein, shipping of sold, leased or exchanged Parts, unless such costs have been
previously approved by the Consignor (which approval shall not be unreasonably
withheld or delayed), (viii) provision of the Reports, (ix) records review and
records tracing, (x) payment to the Consignor of amounts owed to it under this
Agreement on a monthly basis, (xi) provision of marketing guidance, and (xii)
other responsibilities as contained in this Agreement, including without
limitation, the Consignee's obligation to pay certain taxes.

         "Non-Verified Parts" means all Parts other than Verified Parts.

         "Orderly Liquidation Value" has the meaning given such term in the Loan
Agreement.

         "Part" means each aircraft engine, each aircraft part and each aircraft
engine part, component, or other item of property, and the Records therefor,
purchased by the Consignor under the Inventory Purchase Agreement and held by
the Consignee hereunder in accordance with the terms hereof, including any
aircraft engine, aircraft part or aircraft engine part, component or other item
of property that is installed in or attached or affixed to any Part in
connection with its repair, maintenance, overhaul, modification, refurbishment,
certification or otherwise, in each case, for so long as such Part shall remain
unsold and subject to this Agreement; provided, however, that (i) any such Part,
component or other item of property sold by the Consignee pursuant to this
Agreement, but entitled to be returned by the purchaser thereof to the Consignee
shall, upon such return to such Consignee as provided herein, automatically and
without further act be deemed to constitute a Part hereunder, (ii) any Part
returned to the Consignor as provided in Section 5(l) shall upon such return or
other disposition automatically and without further act cease to be a Part, and
(iii) any part received by Consignee in an exchange transaction pursuant to
Section 7(f).

         "Payment Date" has the meaning given such term in Section 7(c).

         "Person" means any individual, corporation, partnership, joint venture,
limited liability company, association, joint stock company, trust,
unincorporated organization, governmental body, instrumentality or agency or
other entity.

         "Property Insurance" has the meaning given such term in Section 9.

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         "Property Taxes" means all property, excise, inventory and/or use taxes
assessed with respect to the Parts.

         "QEC Parts" means the Parts which make up a Quick Engine Change Kit.

         "Quick Engine Change Kit" means those Parts which allow an engine to be
connected to an aircraft.

         "Records" means documentation and other records relating to the
maintenance, repair, traceability and/or life limited status of the Parts, and
any other documentation required to be maintained with respect to the Parts by
the Federal Aviation Act and standard industry practices.

         "Reimbursable Expenses" means with respect to any Part, all (i) Labor
Costs, (ii) Material Costs, (iii) any insurance, freight, shipping and handling
charges which are not charged to customers (including, without limitation, any
such charges incurred in connection with the shipment of a Part to or return of
a Part from an Approved Vendor), which in the case of internal costs of
Consignee must be either (A) associated with preparation for shipment and upon
terms no less favorable than could have been obtained from a third party, or (B)
in any other case, approved by Consignor in writing, (iv) amounts assumed or
paid by the Consignee on account of Existing Repair Orders (as defined at
Section 5(e)), and (v) reasonable and competitive in-house engine and airframe
disassembly costs incurred by the Consignee with respect to such Part and not
charged to the purchaser, lessee or exchange recipient of such Part.

         "Reports" means the reports listed on Schedule II, and any other
reports required by the Loan Agreement.

         "Sales Taxes" means any and all sales, use, stamp, value-added,
transfer, recording or other similar taxes and any transfer or other similar
charges incurred or assessed in respect of a sale, lease or exchange of a Part.

         "Senior Credit Facility" means that certain credit facility made
available to Consignor pursuant to the Loan Agreement.

         "Sample Price" means with respect to any Part (in a serviceable or
overhauled condition) the sample price for such Part in the applicable condition
as determined pursuant to Section 4(a) hereof.

         "Shrinkage Amount" means shrinkage after the Effective Date of the
Non-Verified Parts included in the Confirmed Inventory of up to $750,000.

         "Subsidiary" means any Person in which a party hereto or any Subsidiary
of a party hereto (i) directly or indirectly owns (beneficially or of record) or
has the power to vote fifty percent (50%) or more of the outstanding voting
stock or other equity interests, or (ii) otherwise controls the management or
operation.

         "Term" means the period commencing on the Effective Date and ending on
the Termination Date.

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         "Termination Date" has the meaning given such term in Section 13(b).

         "Termination Event" has the meaning given such term in Section 13(a).

         "Verified Parts" means those parts listed on Schedule III and verified
pursuant to the physical inventory completed in accordance with Section 2(c).

                                    SECTION 2

         Appointment and Acceptance of Agency.

         (a) Subject to the terms and conditions hereof, the Consignor hereby
appoints the Consignee as its agent for the Term and grants Consignee the
exclusive right to market the Parts through sale, lease and exchange
transactions in accordance with the terms and conditions hereof. The Consignee
hereby accepts the above appointment and agrees to market the Parts through
sale, lease and exchange transactions for the Consignor in accordance with the
Agreed Upon Standard. In this regard, the Consignee will acknowledge receipt of
the Verified Parts upon completion of the physical inventory contemplated in
Section 2(c) below. The Consignee agrees to hold the Parts subject to the terms
and conditions of this Agreement.

         (b) Notwithstanding any provision of this Agreement to the contrary,
the Consignee acknowledges and agrees that the Consignee shall not sell,
exchange, lease or otherwise transfer any Parts to the Consignee or any
Subsidiary of the Consignee without the prior written consent of the Consignor,
which consent will not be unreasonably withheld or delayed.

         (c) Consignee and Consignor shall jointly within sixty (60) days after
the Effective Date complete an inventory of the Verified Parts to verify the
physical existence of the Verified Parts. Additionally, Consignee and Consignor
during such period shall jointly establish a "Sample Price" for the sale of
Verified Parts in accordance with Section 4(a). Consignee and Consignor agree to
provide adequate and knowledgeable personnel to complete such inventory within
the time frame established. Until such time as any Verified Part is inventoried
and a Sample Price established for such Verified Part, Consignee may sell such
Verified Part based on Consignee's reasonable determination of then current fair
market value. Consignee will be responsible for any Event of Loss of the
Confirmed Inventory, provided, however, that Consignee shall not be responsible
for losses to the Non-Verified Parts included in the Confirmed Inventory until
the aggregate Loss Value of such losses exceeds the Shrinkage Amount.

         (d) Additionally, sales of Parts by the Consignee will be on an
individual item or lot basis and on such terms and conditions and at such prices
as the Consignee in good faith deems appropriate based on the Consignee's
reasonable determination of then current fair market value of the Parts;
provided, that, for any calendar quarter, if the aggregate Gross Sales Price for
all Verified Parts sold by Consignee during such quarter is less than 90% of the
aggregate applicable Sample Prices for such Verified Parts, then Consignor shall
have the right, exercisable by written notice to Consignee, to require Consignee
to receive the prior consent of Consignor to sell any Verified Part for less
than 90% of the then applicable Sample Price ("Sale Consent"). In the event
Consignee seeks the consent of Consignor (which consent shall not be
unreasonably withheld or delayed), it shall request the consent of Consignor on
any Business Day by speaking

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by telephone or in person with each of Benito Quevedo and Michael Brant (or if
either of them shall leave the employ of AVS, the then current Managers of
Consignor designated by AVS), or either one of them that the Company can reach,
at the telephone numbers set forth in Schedule IV and simultaneously confirming
such request by e-mail to each such person at the e-mail addresses set forth on
Schedule IV. In the event that none of the foregoing representatives of
Consignor respond to such request within four (4) hours after such e-mail is
sent, such request for consent shall be deemed granted. In the event that the
foregoing representatives of Consignor shall respond to any such request either
approving or disapproving a proposed sale transaction, it shall thereafter
confirm its response by return e-mail to the sender of the e-mail request. The
obligation of Consignee to obtain the consent of Consignor with respect to the
sale of Verified Parts shall terminate automatically upon the results of a
succeeding quarter reflecting an aggregate Gross Sales Price for Verified Parts
sold in such quarter greater than or equal to 90% of the aggregate Sample Prices
for such Verified Parts. Such obligation of Consignee to obtain the consent of
Consignor may be reinstated upon a subsequent calendar quarter reflecting that
the aggregate Gross Sales Price for all Verified Parts sold by Consignee during
such quarter is less than 90% of the aggregate applicable Sample Prices for such
Verified Parts upon written notice from Consignor as provided above.

         (e) It is the intent of the Consignee to sell each Part in "AS-IS",
"WHERE-IS" condition without any representations or warranties, express or
implied, except (i) a warranty of good title, and (ii) such representations and
warranties as the Consignee may customarily provide in respect of any repair,
maintenance, overhaul, modification, refurbishment or other work (including,
without limitation, any re-tagging) done on such Part, including, without
limitation, any assignable warranties of the manufacturers of such Part or of
any Person that has overhauled or maintained such Part; provided that the
Consignee shall not make or purport to make on behalf of the Consignor any such
representation or warranty.

                                    SECTION 3

         Representations and Warranties.

         (a)      The Consignor hereby represents and warrants to the Consignee
                  that:

                  (i) the Consignor is a Delaware limited liability company duly
                  organized and existing in good standing under the laws of the
                  State of Delaware and has the power and authority to perform
                  its obligations under this Agreement;

                  (ii) each Part is free and clear of all liens, security
                  interests or other encumbrances, except as explicitly
                  permitted by Section 11(a) hereof;

                  (iii) this Agreement has been duly executed and delivered by
                  the Consignor and, assuming the due authorization, execution
                  and delivery by the Consignee and that the Consignee has full
                  power, authority and legal right to enter into this Agreement,
                  as of the Effective Date, this Agreement constitutes the
                  legal, valid, binding and enforceable obligation of the
                  Consignor, subject to applicable bankruptcy, insolvency,
                  reorganization, moratorium or similar laws affecting the
                  rights of creditors generally, and subject, as to
                  enforceability, to general principles

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                  of equity (regardless of whether enforcement is sought in a
                  proceeding in equity or at law).

         (b)      The Consignee hereby represents and warrants to the Consignor
                  that:

                  (i) the Consignee is a corporation duly organized and existing
                  in good standing under the laws of the State of Delaware and
                  has the corporate power and authority to perform its
                  obligations under this Agreement;

                  (ii) the Parts will on the Effective Date be free and clear of
                  all liens, security interests or other encumbrances arising by
                  or through the Consignee or any of its agents (other than
                  liens of repair shops while Parts are undergoing repair,
                  overhaul, modification, and maintenance or pursuant to Section
                  11(d) hereof);

                  (iii) this Agreement has been duly executed and delivered by
                  the Consignee and, assuming the due authorization, execution
                  and delivery by the Consignor and that the Consignor has full
                  power, authority and legal right to enter into this Agreement,
                  as of the Effective Date, this Agreement constitutes the
                  legal, valid, binding and enforceable obligation of the
                  Consignee, subject to applicable bankruptcy, insolvency,
                  reorganization, moratorium or similar laws affecting the
                  rights of creditors generally, and subject, as to
                  enforceability, to general principles of equity (regardless of
                  whether enforcement is sought in a proceeding in equity or at
                  law); and

                  (iv) the chief executive office (as such term is used in
                  Article 9 of the Uniform Commercial Code) of the Consignee is
                  located in Sunrise, Florida and each location where any Parts
                  will initially be kept and maintained by the Consignee is a
                  Designated Location.

                                    SECTION 4

         Sample Sales Price.

         (a) Within sixty (60) days after the Effective Date, the Consignor and
the Consignee shall jointly agree in writing as to the Sample Price for each
Verified Part (in each case, the applicable "Sample Price"). Consignor and
Consignee agree to provide adequate and knowledgeable personnel (with the
necessary experience and expertise) to establish the Sample Prices within the
established time frame.

         (b) Consignor and Consignee shall meet (the "Review Meeting") on the
last Business Day of each month (or such other day of each month as agreed by
the parties) during the first three months after the Effective Date (or such
longer period as the parties agree) and quarterly thereafter to review
Consignee's standard and ongoing business practices and procedures for the
storage, marketing, repair, overhaul, refurbishment, sale, lease, exchange and
modification of Parts and, in the case of any Parts that the Consignee has
determined are non-saleable due to obsolescence, a condition beyond economic
repair or for other reasons, the sale or other disposition of such Parts as
scrap. At each Review Meeting the parties will also review the Reports. At any
time, the Consignor may object to Consignee's standard practices and

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procedures by giving the Consignee written notice of such objection. The
Consignee will meet with the Consignor to discuss and consider such objections,
promptly following its receipt of such notice.

                                    SECTION 5

         Certain Responsibilities of the Consignee.

         (a) ALL PARTS AND RECORDS DELIVERED TO THE CONSIGNEE HEREUNDER AND HELD
BY THE CONSIGNEE PURSUANT TO THIS AGREEMENT SHALL BE HELD BY THE CONSIGNEE AS A
BAILEE-FOR-HIRE, SUBJECT TO THE TERMS AND CONDITIONS HEREOF, AND THE CONSIGNOR
SHALL AT ALL TIMES RETAIN TITLE TO ALL PARTS AND RECORDS WHEREVER LOCATED
(UNLESS AND UNTIL TITLE TO ANY PART SHALL PASS FROM THE CONSIGNOR TO THE
CONSIGNEE AS PROVIDED IN SECTION 10(a)).

         (b) Without limiting any other provision of this Agreement, the
Consignee shall exercise its commercially reasonable efforts to comply with the
Agreed Upon Standard in the disassembly, storage, warehousing (including
providing appropriate climate control), security, maintenance, shipment,
transportation, insurance, packing or other handling of the Parts and Records.

         (c) Without the prior written consent of the Consignor, the Consignee
shall not, except as otherwise expressly provided herein, locate or maintain any
Part at any location other than a Designated Location or transfer any Part to
any Person (other than in a sale, lease or exchange transaction contemplated
hereunder). The Consignee shall give the Consignor ten (10) days prior written
notice of any change in the location where the Records are located or any
records of the Consignee relating to any Parts are regularly maintained.

         (d) The Consignee shall act on the Agreed Upon Standard to sell, lease
or exchange the Parts, including, without limitation, by listing the Parts for
sale with computerized on-line services in use within the aviation industry,
such as the Inventory Locator Service.

         (e) The Consignee will use its commercially reasonable efforts to
identify Parts for repair, overhaul, refurbishment or modification to enhance
the marketability, salability, leasability or exchangeability of the Parts. The
Consignee will maintain a list of its approved vendors (the "Approved Vendors"),
which Approved Vendors have been and hereafter will be approved by the Consignee
according to an approval process consistent with its quality manual then in
effect. Any Part identified for repair under this Section 5(e) will only be sent
to Approved Vendors. The Approved Vendor listing will be made available to
Consignor at Consignor's request. The Consignee will repair, overhaul, refurbish
or modify, or cause to be repaired, overhauled, refurbished or modified, each
Part which it elects to repair, overhaul, refurbish or modify hereunder in
accordance with this Agreement and with all FAA rules, regulations and standards
then applicable.

         Subject to any of the AVS Companies being an Approved Vendor, any
repairs, overhauls, refurbishments or modifications of a Part for which the AVS
Companies have the capability to repair, overhaul, refurbish and/or modify under
applicable FAA regulations will be sent to the

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appropriate AVS Company for such repair, overhaul, refurbishment or modification
in accordance with the terms and conditions of the Cooperation Agreement.

         Consignee acknowledges that certain of the AVS Companies are, as of the
Effective Date, Approved Vendors (the "Approved AVS Vendors"), and agrees that
Consignee will not remove any AVS Approved Vendor from Consignee's list of
Approved Vendors after the Effective Date unless such AVS Approved Vendor fails
to meet the Consignee's quality control or other requirements as in effect from
time to time which are applicable to repair vendors generally. Further, other
AVS Companies may become Approved Vendors upon the satisfaction of Consignee's
quality control requirements which are applicable to repair vendors generally.

         The Consignor and the Consignee acknowledge that, in connection with
the acquisition of the Parts by the Consignor, the Consignee has agreed to
assume the payment of certain outstanding liabilities relating to Parts which
were sent out for repair, refurbishment, overhaul or modification prior to and
as of the Effective Date and which will not be returned until after the
Effective Date (the "Existing Repair Orders"). In this regard, the Consignor and
the Consignee agree that (i) the amounts so assumed and paid by the Consignee on
account of Existing Repair Orders shall become Reimbursable Expenses incurred by
the Consignee for purposes of this Agreement, and (ii) the Consignee shall be
entitled to obtain reimbursement of such Reimbursable Expenses upon the sale of
any such Part or termination of this Agreement in accordance with the terms of
this Agreement.

         (f) The Consignee shall issue an invoice for each sale or exchange by
it of any Parts hereunder in accordance with its customary practices.

         (g) The Consignee shall (1) collect from the purchaser, lessee or
exchange recipient thereof any and all Sales Taxes, (2) pay all Sales Taxes to
the taxing authorities entitled thereto, (3) file any and all tax returns in
respect of the Sales Taxes in accordance with applicable law, and (4) maintain
records of the foregoing in accordance with all applicable laws and consistent
with its customary business practices. The Consignee shall as reasonably
requested by Consignor provide the Consignor with copies of all receipts,
returns and other records which the Consignee creates and/or receives under this
Section 5(g).

         (h) The Consignee shall physically inspect each Part returned by a
purchaser thereof to the Consignee and shall verify the serial number thereof
(or, if such Part shall have been delivered by the Consignor to the Consignee
hereunder without a serial number, the Consignee shall otherwise identify to its
reasonable satisfaction the property returned as such Part). No Part shall be
accepted for return by the Consignee other than under circumstances customarily
accepted by the Consignee with respect to the part owned and sold by the
Consignee out of the Kellstrom Inventory.

         (i) The Consignee shall provide warehousing and storage facilities for
the Parts delivered to the Consignee (including the Records therefor) consistent
with the facilities used by Consignee for the warehousing and storage of the
Kellstrom Inventory. The Consignee shall locate and store such Parts (including
the Records therefor) as shall from time to time be in the possession of the
Consignee and shall segregate by pallet position the Parts and identify the
Parts as the Consignor's property with prominent signage and appropriate
computer coding unless and

                                       11
<PAGE>

until sold and shipped to a purchaser or returned to, or otherwise disposed of
at the direction of the Consignor, pursuant to Section 5(l). The Consignee will
maintain the security of all Parts (including the Records) in accordance with
the Agreed Upon Standard.

         (j) The Consignee shall maintain accurate and complete records for all
Verified Parts and shall continue to maintain records for all Non-Verified Parts
based upon the records provided to Consignee by the Consignor (and not by an
inventory) including, without limitation, inventory records, and maintenance and
repair records, and update the Records in connection with the repair or overhaul
of Parts hereunder in accordance with all applicable FAA rules, regulations and
standards and with the Agreed Upon Standard. The Consignee shall (i) maintain
all licenses and permits as may be required by the FAA or other regulatory
authority to perform the undertakings contemplated by this Agreement, and (ii)
use only third-party maintenance providers that it reasonably believes to have
all licenses and permits necessary to perform the repairs for which the
Consignee has contracted with such maintenance providers.

         (k) As soon as practicable after the Effective Date and during the Term
of this Agreement, Consignee shall provide to Consignor complete and correct
copies of such records and Reports in computer readable form reasonably
acceptable to Consignor and consistent with industry standards.

         (l) On any Termination Date arising from (i) a Termination Event
described in Section 13(a)(i), (1) the agency of the Consignee hereunder shall
cease; (2) the Consignor shall have the right to enter the premises of the
Consignee, or any Designated Location or any other location where any Part may
then be located, and repossess any such Part (and related Records) then subject
to this Agreement; and (3) the Consignee shall continue to hold and make
available to the Consignor for repossession all Parts (and related Records) then
in the possession and control of the Consignee in accordance with and subject to
the terms and conditions of this Agreement until such Parts have been so
repossessed but in no event longer than three (3) calendar months after the end
of the Term; (ii) a Termination Event described in Section 13(a)(iv), (1) the
agency of the Consignee hereunder shall cease; (2) the Agent shall have the
right to enter the premises of the Consignee, or any Designated Location or any
other location where any Part may then be located, and repossess any such Part
(and related Records) then subject to this Agreement; and (3) the Consignee
shall continue to hold and make available to the Agent for repossession all
Parts (and related Records) then in the possession and control of the Consignee
in accordance with and subject to the terms and conditions of this Agreement
until such Parts have been so repossessed, but in no event longer than three (3)
calendar months after the end of the Term; or (iii) any other Termination Event,
or to the extent that the Consignor and/or the Agent have not exercised their
right to enter the premises as described in clauses (i) and (ii) above, (1) the
agency of the Consignee hereunder shall cease; (2) the Consignee shall continue
to hold all Parts (and related Records) then in the possession and control of
the Consignee in accordance with and subject to the terms and conditions of this
Agreement for a period of up to three (3) calendar months after the end of the
Term; (3) during such three-month period, the Consignee shall return to the
Consignor, or at the Consignor's request dispose of, the Parts remaining subject
to this Agreement as of the date on which the Term shall end (together with all
Records and any and all records of the Consignee relating to such Parts
described in Section 5(j)) in such manner and at such locations in the United
States of America as the Consignor shall direct from time to time; and (4) prior
to the end of such three-month period, the

                                       12
<PAGE>

Consignee and the Consignor shall conduct a final accounting of all proceeds
payable pursuant hereto. Notwithstanding the foregoing, the Consignor and
Consignee may mutually elect to extend the Term and the agency hereunder with
respect to any Part and, if so extended, all of the provisions of this Agreement
will continue with respect to such Part until it is sold and the rights and
provisions of Section 7 are satisfied hereunder. From and after any Termination
Date, all reasonable and documented out-of-pocket, third-party costs incurred in
connection with the return, disposal or other disposition of any Parts, Records
or other records pursuant to this Section 5(l) shall be paid by the Consignor,
including shipping costs and such costs and expenses as are directly allocable
to relocation or disposal of the Parts.

         Upon the sale, disposal or return of all Parts to the Consignor
pursuant to this Section 5(l), the Consignor shall promptly pay to the Consignee
all Reimbursable Expenses for which the Consignee has not received reimbursement
from the Consignor under Section 7 hereof. For the avoidance of doubt, it is
hereby agreed that the Consignor shall have no responsibility for, and the
Consignee shall have no right to reimbursement with respect to, Non-Reimbursable
Expenses.

         (m) The Consignee shall not take title to any Part in any jurisdiction
other than Florida, Oklahoma and Texas or other Designated Location in which a
sale would be exempt from Sales Tax without either: (i) obtaining the
Consignor's written consent, or (ii) providing a certificate of resale or
analogous document for such jurisdiction, in form and substance reasonably
satisfactory to the Consignor.

         (n) On a quarterly basis, the Consignee shall furnish to the Consignor,
for its approval, a list of Parts that the Consignee has determined to be ready
for breakdown for scrap or are non-saleable due to obsolescence or being beyond
economic repair (other than as a result of an Event of Loss) or for other
reasons and, to the extent that the Consignor consents (which consent shall not
be unreasonably withheld or delayed), such Parts shall be sold or otherwise
disposed of for scrap.

                                    SECTION 6

         Certain Responsibilities of Consignor.

         (a) The Consignor shall (i) reimburse Consignee for any and all
Property Taxes required to be paid to any taxing authorities on or in connection
with the KAV Inventory, (ii) file any and all tax returns in respect of Property
Taxes in accordance with applicable law, and (iii) maintain records of the
foregoing in accordance with all applicable laws and prudent business practice.
The Consignor shall, as reasonably requested by Consignee, provide the Consignee
with copies of all receipts, returns and other records which the Consignor
creates and/or receives under this Section 6(a).

                                       13
<PAGE>

                                    SECTION 7

         Commissions and Payments.

         (a) The Consignee shall be entitled to payment from the Consignor of a
commission in accordance with the terms of this Agreement for any and all Parts
sold, exchanged or leased (the "Consignee Commission"). The Consignee shall pay
to the Consignor an amount equal to the Net Sales Revenue (until payment in full
of all amounts outstanding under the Loan Agreement and the termination of
commitments to extend credit thereunder, without deduction or set off for any
amounts which are or may be due the Consignee hereunder or otherwise, other than
the Consignee Commission) by wire transfer of immediately available funds to one
or more bank accounts designated from time to time by the Consignor by written
notice to the Consignee. Until payment in full of all amounts outstanding under
the Loan Agreement and the termination of all commitments to extend credit
thereunder, the Consignee's obligation to pay the Net Sales Revenue and all
rights of the Consignor therein and thereto, shall be absolute, unconditional
and irrevocable and shall not be affected by any circumstance whatsoever.

         (b) The Net Sales Price for each Part sold, exchanged or leased by the
Consignee hereunder shall be distributed as follows:

             (i) initially, eighty percent (80%) of the Net Sales Price to
             Consignor and twenty percent (20%) of the Net Sales Price (the
             "Initial Sales Commission Rate") to Consignee (as its Consignee
             Commission), until such time as Consignor shall have paid all
             amounts outstanding under (A) the Loan Agreement, together with all
             accrued interest thereon and all other amounts due thereunder, in
             full, and (B) the KAV Senior Subordinated Note A and the KAV Senior
             Subordinated Note - B (each as defined in the Inventory Purchase
             Agreement), together with all accrued interest thereon and all
             amounts due thereon in full; and

             (ii) Thereafter, sixty-five percent (65%) of the Net Sales Price to
             Consignor and thirty-five (35%) of the Net Sales Price (the "Second
             Sales Commission Rate") to Consignee (as its Consignee Commission).

         (c) Consignee shall be responsible for all invoicing procedures and
accounts receivable collections for the sale, exchange or lease of the Parts.
The Consignor's distributive share of such Net Sales Price shall be remitted
monthly to Consignor no later than the fifteenth (15th) day of the month
following the month in which, (a) in the case of sales, the Part is shipped, (b)
in the case of leases, the date that is thirty (30) days after the date on which
the Part is shipped, and each successive monthly anniversary thereof (for a
number of months equal to the duration of the respective lease), and (c) in the
case of exchanges, the date the exchanged Part is shipped to the customer (each
such date being referred to herein as a "Payment Date"), whether or not
Consignee has been paid for such Part by the purchaser, lessee or exchange
recipient thereof.

         (d) No later than the relevant Payment Date, the Consignor will pay to
the Consignee (without deduction or set off for any amounts which are or may be
due the Consignor hereunder or otherwise): (i) any amounts previously remitted
to the Consignor for any Parts sold by the

                                       14
<PAGE>

Consignee and returned by the purchaser thereof in accordance with the terms of
the sale during the calendar month to which such Payment Date relates, (ii) any
amounts incurred by Consignee in connection with the Property Insurance provided
at Section 9(a)(i), and (iii) other amounts due to Consignee under this
Agreement.

         (e) Notwithstanding any other provision of this Agreement to the
contrary, if at any time any Part is sold by Consignee to Consignor or
Consignee, or any Subsidiary of the Consignor or Consignee, the Part so sold
shall be deemed to have been sold by the Consignee for a Net Sales Price equal
to the Fair Market Value of such Part. The Consignor shall make payments to the
Consignee in respect of any Part deemed sold to the Consignor pursuant to this
Section 7(e) in the amount and manner specified in Section 7(a).

         (f) The Consignee may enter into exchange transactions with third-party
customers. Upon an exchange of a Part for another part or parts, title to the
Part being exchanged shall pass to the Consignee pursuant to Section 10(a)
hereof and title to the part or parts received by the Consignee shall
automatically pass to the Consignor (and the Consignee shall provide all
documentation the Consignor may reasonably request to evidence such title
passage) and thereafter each such part shall be considered a "Part" for all
purposes of this Agreement. The Consignee shall repair and overhaul each such
Part so received so that it is in the same as or better condition than the Part
so exchanged and no portion of the cost thereof shall be deemed a Reimbursable
Expense hereunder. Each such part so received shall have attributed to it the
amount of the Reimbursable Expenses allocable to the Part exchanged by the
Consignee. If the Consignee receives an Exchange Fee in addition to another
part, then such Exchange Fee shall be treated as Net Sales Price to be allocated
and distributed pursuant to Section 7(a) and 7(b) hereof. If the Consignee
scraps any part received in an exchange and treats the same as a sale of the
exchanged Part to the exchange customer, such sale shall be treated as a sale of
such Part hereunder and the proceeds of such sale shall be allocated pursuant to
Section 7(a) hereof.

                                    SECTION 8

         Review and Reporting.

         Consignee recognizes the obligations of the Consignor to maintain
active control of the KAV Inventory.

         (a) On every Payment Date, the Consignee shall provide to the Consignor
and the Agent the report described in Item 1 of Schedule II hereto relating to
the month immediately preceding such Payment Date. The Consignee shall use its
commercially reasonable best efforts to provide to the Consignor and the Agent
all other Reports by the twentieth (20th) day of the month, but in no event
later than the earlier of (i) three (3) Business Days before the applicable
Review Meeting, or (ii) the last day of the month. Consignor, and until the
payment in full of all amounts outstanding under the Loan Agreement and the
termination of all commitments to extend credit thereunder, the Agent, shall
have the right to inspect KAV Inventory from time to time, upon prior written
notice, during Consignee's normal business hours, such inspections to be
arranged so as not to interfere with the operations of Consignee, but with
respect to the Consignor in no event more than four (4) times per calendar year
(unless there shall have occurred an Event of Default).

                                       15
<PAGE>

         (b) The Consignee agrees to use its commercially reasonable best
efforts to provide the Consignor with on-line computer access to the following
information relating to the KAV Inventory: (i) the repair, maintenance,
overhaul, refurbishment or modification of any Parts, (ii) sales, leases and
exchanges of any KAV Inventory, and (iii) returns of any Parts. If Consignee is
unable to provide Consignor using commercially reasonable efforts on-line access
to such information, the Consignee shall upon request of Consignor provide
Consignor with daily or weekly batch reports setting forth such information.

         (c) The Consignee will periodically review with Consignor its standard
operating procedures for the disassembly, repair, maintenance, overhaul,
refurbishment and modification of Parts, any proposed modifications or
amendments thereto and the status of the sales, leases and exchanges of KAV
Inventory and the Kellstrom Inventory that are determined to be Duplicate Parts,
taking into account any customer preference (which such preference may be
evidenced by a notation on the applicable purchase order), to ensure that the
aggregate Duplicate Parts sales, lease and exchange revenue from the Kellstrom
Inventory and the KAV Inventory are managed such that the aggregate sales, lease
and exchange revenue on account of sales, leases and exchanges of Duplicate
Parts during any calendar quarter is substantially equal, subject to any
requirements relating to any other consignment inventories managed by the
Consignee as of the Effective Date of this Agreement. If the aggregate sales,
lease and exchange revenue of the KAV Inventory and the Kellstrom Inventory
during any calendar quarter is not substantially equal, the Consignee shall in
the next ensuing calendar quarter manage the sales, lease and exchange process
by emphasizing sales, leases and exchanges from the deficient party's inventory
on an ongoing basis to obtain and maintain the substantially equal revenue
status from Duplicate Parts. For purposes of this section, the sales, lease and
exchange revenue arising from the sales, lease and exchange of Kellstrom
Inventory and KAV Inventory shall mean the Gross Sales Price of such inventory.

         (d) The Consignor shall review the Reports and, no later than ten (10)
Business Days after receiving each Report, notify the Consignee of any
objections to the Reports thereto in writing including, without limitation, the
Consignee's failure to abide by Section 15 hereof for the preceding reporting
period, specifying in reasonable detail the grounds for such objection, (the
"Objection"). The Consignee shall no later than five (5) Business Days after
receipt by it of any Objection, by written notice to the Consignor, accept or
reject such Objection, specifying in reasonable detail the grounds for any
rejection thereof. If the Consignee accepts any Objection, the net amounts
payable to the Consignor hereunder in respect of the reporting period shall be
adjusted giving effect to such Objection, and the Consignee shall promptly pay
the Consignor such additional amounts as shall be required to be paid the
Consignor as a result of such adjustments. If the Consignee rejects any
Objection, the parties will meet within five (5) Business Days after the
Consignee notifies the Consignor of such rejection to discuss any such
Objection.

         If the parties fail to reach agreement on an Objection at such meeting,
or at any mutually agreed postponements and adjournments thereof, the Consignor
may at its option, by written notice to the Consignee, either (i) withdraw such
Objection (in which case no adjustments in respect of such withdrawn objections
shall be made to such report), or (ii) pursue the Objection by requiring the
Reports delivered during the preceding monthly or quarterly reporting period to
be examined and verified by the Independent Accountants (as defined in the
Inventory Purchase

                                       16
<PAGE>

Agreement) which shall review and resolve the Objection. The Consignor and the
Consignee shall cooperate fully with such accountants and shall provide such
accountants (if reasonably necessary to address the Objection) such records,
invoices, accounts, documents and other information relating to this Agreement
and the Parts as such accountants shall request in connection with their
examination and verification of such Reports. The Consignee shall provide such
accountants all information related to the KAV Inventory reasonably necessary to
allow accountants to verify, if applicable to the Objection, the following with
respect to the most recent quarterly period: (A) the frequency of sales, leases
and exchanges of Parts meeting the Agreed Upon Standard; (B) that the Labor
Costs and Material Costs assessed as Reimbursable Expenses are (i) accurately
reflected in the Reports, and (ii) if such Labor Costs and Material Costs were
incurred by an AVS Company or the Consignee or a Subsidiary of Consignee, that
they are equal to or less than the prices charged to independent third parties
for similar work; (C) the repaired Parts are selling, leasing or exchanging for
prices that reflect the added value of the Reimbursable Expenses incurred with
respect to such repairs and rebuilds; (D) the data in the invoices covering the
most recent quarterly period is accurately reflected in the applicable Reports;
and (E) the sales prices, Lease Fees and Exchange Fees of Parts have been
charged on the Agreed Upon Standard when compared with sales, leases and
exchanges of similar parts sold, leased or exchanged by the Consignee during the
most recent quarterly period (or, in the absence of sales, leases or exchanges
of similar parts sold, leased or exchanged in such three (3) month period, a
price determined by an appraiser acceptable to both Consignor and Consignee).
The criteria set forth in the foregoing clauses (A) through (E) are hereinafter
referred to as the "Accounting Criteria". The accountants shall review the
Accounting Criteria taking into account the Consignee's commercially reasonable
business discretion, operational parameters and contract commitments. The
resolution of the Objection and the amounts so calculated by such accountants
shall be accepted by the Consignee and the Consignor as final and conclusive for
the purpose of determining all amounts payable hereunder in respect of all Parts
sold, leased or exchanged or deemed sold, leased or exchanged during the
reporting period subject to the Objection. The Consignee and the Consignor agree
that they shall, within five (5) Business Days following receipt by the
Consignee and the Consignor of the final report by such independent accounts,
make such payments, if any, as shall be required to be made by the Consignee or
the Consignor, as the case may be, as a result of such final report.

         (e) If, as a result of the examination and verification by any such
independent accountants of any Report, the Consignee shall be required to pay
the Consignor an amount in excess of 5% of the amount originally payable by the
Consignee to the Consignor in respect of the period covered by such Report, all
such fees and expenses shall be paid solely by the Consignee. If, the results of
the examination and verification by any such independent accountants of any
report reflect that the amount paid by Consignee to Consignor was accurate, or
was inaccurate by 5% or less of the amount originally payable by the Consignee
to the Consignor in respect of the period covered by such report, all such fees
and expenses shall be paid solely by AVS.

         (f) In addition to any examination and verification provided for in
Section 8(d) herein, on or prior to each anniversary of the Effective Date, the
Consignee, at the Consignor's prior written request and cost, shall permit the
Consignor or the Agent to jointly verify any of the Accounting Criteria
specified by the Consignor with respect to the Parts during the preceding twelve
months, using the same standard of evaluation specified in Section 8(d) hereof.
The

                                       17
<PAGE>

Consignor and the Consignee shall cooperate fully with the Consignor and the
Agent, and the Consignee shall provide the Consignor and the Agent on demand
with such records, invoices, accounts, documents and other information relating
to this Agreement and the Parts as they shall request in connection with their
examination. Any unreconciled differences between the Confirmed Inventory and
the inventory of Confirmed Inventory conducted by the Consignor and the Agent
shall be treated as Events of Loss hereunder.

         (g) The Consignor and the Consignee hereby agree that all Reports and
all other information provided by and relating to this Agreement, the Parts or
any of the transactions contemplated hereby shall be treated as confidential,
shall be used solely for the purpose of performing their respective obligations
hereunder and shall not be disclosed to any third party, except to prospective
and permitted transferees of the Consignor or the Consignee, or the Consignor's
or the Consignee's or the aforementioned transferee's counsel, accountants,
lenders, the Agent, Lenders, insurance brokers or other agents who agree to keep
such information confidential or the extent required to be disclosed by
judicial, regulatory or administrative process in connection with any action,
suit, proceeding or claim or otherwise by applicable law.

                                    SECTION 9

         Insurance and Events of Loss.

         (a) The Consignee shall keep in full force and effect for the term of
this Agreement, and any extensions hereto, the following insurance coverages
with insurers used by Kellstrom or other insurers of recognized reputation and
responsibility:

             (i) All risk property, including in-transit insurance with respect
             to the Parts in an amount equal to the Insured Value (the "Property
             Insurance"). Insofar as the relevant policies cover Parts delivered
             hereunder, the Consignor shall be named as additional insured and,
             until the payment in full of all amounts outstanding under the Loan
             Agreement and the termination of all commitments to extend credit
             thereunder, the Lenders (or the Agent for the benefit of the
             Lenders) shall be named as sole loss payee as their interests may
             appear, under the policy without imposing any obligation on the
             Consignor or the Lenders to pay the premiums thereof, and the
             insurer shall waive all rights of subrogation with respect to the
             Consignor and the Lenders.

             (ii) Comprehensive general liability insurance in an amount not
             less than $100,000,000 and products liability insurance in an
             amount not less than $500,000,000, in each case combined single
             limit bodily injury and property damage per occurrence/aggregate.
             The Consignor and, until the payment in full of all amounts
             outstanding under the Loan Agreement and the termination of all
             commitments to extend credit thereunder, the Lenders (or the Agent
             for the benefit of the Lenders) shall be named as additional
             insureds, under the policy without imposing any obligation on the
             Consignor or the Lenders to pay the premiums thereof. This policy
             will include broad-form contractual liability subject to the terms
             and conditions of the policy. This policy shall operate with
             respect to each additional insured as though a separate policy were
             issued to each,

                                       18
<PAGE>

             provided that such provisions shall not operate to increase the
             insurer's limit of liability.

             (iii) Workers Compensation and Employers Liability required by all
             applicable laws, regulations and statutes.

             (iv) Nothing in this Section 9 shall prohibit the Consignor, or
             until the payment in full of all amounts outstanding under the Loan
             Agreement and the termination of all commitments to extend credit
             thereunder, the Agent for the benefit of the Lenders, from
             obtaining (A) the insurance coverages of Sections 9(a) (i), (ii)
             and (iii) should the Consignee fail to do so, or (B) additional
             insurance in respect of any Parts consigned hereunder so long as
             such additional insurance shall in no manner invalidate any
             insurance maintained by the Consignee in accordance with the
             provisions of this Section 9.

         (b) Policies described in Sections 9(a)(i) and 9(a)(ii) shall be
endorsed to include breach of warranty protection in favor of the Consignor and,
until the payment in full of all amounts outstanding under the Loan Agreement
and the termination of all commitments to extend credit thereunder, the Agent
for the benefit of the Lenders, and said insurance shall be primary insurance
over any such insurance carried by the Consignor or, until the payment in full
of all amounts outstanding under the Loan Agreement and the termination of all
commitments to extend credit thereunder, the Agent for the benefit of the
Lenders.

         (c) The Consignee shall provide certificates of insurance from its
independent insurance broker or underwriters to the Consignor and, until the
payment in full of all amounts outstanding under the Loan Agreement and the
termination of all commitments to extend credit thereunder, the Agent evidencing
the coverages in this Section upon execution of this Agreement, upon any
increase in coverage or amount of any insurance required by this Agreement, and
upon policy renewal thereafter for the term of this Agreement. The certificate
shall provide for a thirty (30) day notice to the Consignor and, until the
payment in full of all amounts outstanding under the Loan Agreement and the
termination of all commitments to extend credit thereunder, to the Agent for the
benefit of the Lenders of cancellation or material change to the insurances
required hereby.

         (d) Consignor shall be responsible for and shall reimburse Consignee
for the cost of the Property Insurance allocable to the incremental costs
incurred to insure the KAV Inventory to the extent in excess of the cost to
Consignee to insure the Kellstrom Inventory generally. Consignee shall be
responsible for and shall pay the costs of insurance provided at Section
9(a)(ii) and (iii). Any deductible for Property Insurance shall be the sole
responsibility of the Consignor. Any deductibles required by the insurance
described in Sections 9(a)(ii) and (iii) shall be the sole responsibility of the
Consignee.

         (e) Within ten (10) Business Days of the discovery of an Event of Loss
with respect to a Part, the Consignee shall give the Consignor and until the
payment in full of all amounts outstanding under the Loan Agreement and the
termination of all commitments to extend credit thereunder, the Agent for the
benefit of the Lenders, written notice of such occurrence. Upon receipt by
Consignee of any insurance proceeds or condemnation awards relating to any Event
of

                                       19
<PAGE>

Loss, the Consignee shall pay the amount of such insurance proceeds or
condemnation awards net of Reimbursable Expenses and Consignee Commission, to
the Agent, or upon the payment in full of all amounts outstanding under the Loan
Agreement and the termination of all commitments to extend credit thereunder, to
the Consignor, as appropriate, by wire transfer of immediately available funds
to one or more bank accounts designated by the Consignor or the Agent, as
applicable, by notices to the Consignee. Upon the occurrence of a Prohibited
Relocation of any Part, the Consignee shall pay an amount equal to the Loss
Value of such Part, net of Reimbursable Expenses and Consignee Commission, to
the Agent, or upon payment in full of all amounts outstanding under the Loan
Agreement and the termination of all commitments to extend credit thereunder to
the Consignor, as appropriate, by wire transfer of immediately available funds
to one or more bank accounts designated by the Consignor or the Agent, as
applicable, by notices to the Consignee. Such payments shall be treated
identically to a payment by the Consignee to the Consignor of the Net Sales
Price with respect to the Part suffering such Event of Loss, and accordingly
such payment shall be allocated pursuant to Section 7(a) hereof. In the event
that any insurance proceeds or condemnation awards on account of any Event of
Loss with respect to any Part shall be paid directly to the Agent or the
Consignor, then the Agent or the Consignor, as applicable, shall promptly remit
to Consignee the Reimbursable Expenses and Consignee Commission with respect to
such Part upon the submission of a request therefor accompanied by reasonable
evidence thereof.

                                   SECTION 10

         Passage of Title Upon Sale; Warranties and Disclaimer by the Consignor;
         No Authority as to Warranties, Etc.

         (a) Title to each Part (and its related Records) will automatically
pass from the Consignor to the Consignee, free and clear of all liens and
encumbrances, upon shipment of such Part by such Consignee to the purchaser or
exchange recipient thereof, as provided herein. Prior to shipment, title to each
Part (and its related Records) shall remain in Consignor.

         (b) All Parts delivered to the Consignee hereunder are delivered by the
Consignor AS-IS WHERE-IS WITH ALL FAULTS. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED
IN THIS AGREEMENT, THE CONSIGNOR HAS NOT AND SHALL NOT BE DEEMED TO HAVE MADE AT
ANY TIME (WHETHER BY VIRTUE OF HAVING ACQUIRED OR DELIVERED THE PARTS, OR HAVING
TRANSFERRED TITLE TO ANY PART AS PROVIDED IN THIS SECTION 10 OR OTHERWISE OR
HAVING DONE OR FAILED TO DO ANY ACT, OR HAVING ACQUIRED OR FAILED TO ACQUIRE ANY
STATUS UNDER OR IN RELATION TO THIS AGREEMENT OR OTHERWISE), AND THE CONSIGNOR
HEREBY SPECIFICALLY DISCLAIMS, ANY REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED, AS TO THE VALUE, AIRWORTHINESS, CONDITION, MANUFACTURE, DESIGN,
OPERATION, MERCHANTABILITY, FREEDOM FROM CLAIMS OF INFRINGEMENT OR THE LIKE, OR
FITNESS FOR USE FOR ANY PURPOSE OF THE PARTS, OR AS TO THE QUALITY OF THE
MATERIAL OR WORKMANSHIP OF THE PARTS, THE ABSENCE THEREFROM OF LATENT OR OTHER
DEFECTS, WHETHER OR NOT DISCOVERABLE, OR THE ACCURACY OR COMPLETENESS OF THE
RECORDS OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED
(INCLUDING ANY IMPLIED

                                       20
<PAGE>

WARRANTY ARISING FROM A COURSE OF PERFORMANCE OR DEALING OR USAGE OF TRADE),
WITH RESPECT TO THE PARTS; AND THE CONSIGNEE HEREBY WAIVES, RELEASES, RENOUNCES
AND DISCLAIMS EXPECTATION OF OR RELIANCE UPON ANY SUCH REPRESENTATION OR
WARRANTY OR ANY OTHER REPRESENTATION AND WARRANTY WHATSOEVER.

         (c) Except as otherwise expressly set forth herein, (a) the Consignee
shall not make or purport to make on behalf of the Consignor any representation
or warranty of any nature whatsoever, express or implied, regarding any Part
sold by the Consignee pursuant to this Agreement, and (b) the Consignee shall
not assume or purport to assume on behalf of the Consignor any other obligation
or liability in connection with any sale or return of any Part.

                                   SECTION 11

         Liens.

         (a) From time to time, the Consignor may secure any obligation with
security interests, liens, assignments, and other encumbrances encumbering the
Parts, any accessions thereto, and any interests therein or under this Agreement
(including any proceeds payable hereunder), including, but not limited to liens
securing obligations owed by the Consignor to the Lenders, and upon doing so,
the Consignor will give the Consignee notice thereof; provided, however, that so
long as no Event of Default has occurred, the holder of any such security
interest, lien, assignment or other encumbrance will not have the right to
interfere unreasonably with the rights of the Consignee under this Agreement,
including (without limitation) the right to possess, sell, and exchange the
Parts in accordance with this Agreement. Neither the Agent nor any Lender will
assume, or be deemed to have assumed, any obligation of the Consignor hereunder,
absent the Agent's or such Lender's express written assumption of such
obligation. Upon the request of the Consignor, the Consignee will promptly take
all actions reasonably requested by the Consignor with respect to effectuating,
evidencing, or perfecting any such security interest, lien, assignment, or other
encumbrance or as otherwise requested by Consignor with respect thereto,
including (without limitation) by signing and delivering subordination
agreements subordinating any right, title, or interest that the Consignee may
have in such Parts; financing statements; estoppel certificates; consents;
notices to persons having security interests in and other encumbrances on any
property of (or in the possession of) the Consignee; terminations and
disclaimers by secured creditors of the Consignee or other entrustors of the
Consignee with respect to any rights, titles, and interests in, or encumbrances
on, the Parts, and any proceeds therefrom; insurance policy endorsements and
certificates; and other documents, in forms and of contents as are acceptable to
the Consignors and the holders of such obligations.

         (b) The Consignee shall at all times keep all Parts subject to this
Agreement free and clear of all liens, security interests or other encumbrances
arising by or through the Consignee or with respect to any obligations that are
to be paid or discharged by the Consignee pursuant to this Agreement, except any
inchoate materialmen's, mechanics', repairmen's or other like liens arising in
the ordinary course of business and for amounts the payment of which is not yet
delinquent, provided that the Consignee removes any such lien not later than the
date on which payment is due with respect to the underlying obligation that is
the basis for the lien, unless the payment of

                                       21
<PAGE>

such amounts are being contested in good faith, and further provided, that such
liens do not involve a material danger of the sale, forfeiture or loss of any
Part.

         (c) The Consignee shall give the Consignor thirty (30) days prior
written notice of any proposed change in the location of its chief executive
office (as such term is used in Article 9 of the Uniform Commercial Code).

         (d) To secure the Consignor's obligations hereunder, the Consignor
hereby mortgages, pledges and assigns all of its right, title and interest in
and to the KAV Inventory to Consignee, and grants to Consignee a continuing
security interest in and a continuing lien upon all of its right, title and
interest in and to the KAV Inventory. The security interest granted herein shall
be subordinate and subject to the prior rights of the Agent and the Lenders
party to the Loan Agreement.

                                   SECTION 12

         Indemnification.

         (a) The Consignee hereby agrees to indemnify, defend and hold harmless
the Consignor, the Lenders, their officers, employees, agents and
representatives (each a "Consignor Indemnitee") from and against any and all
claims, damages, losses, liabilities, obligations, demands, actions, suits,
judgments, causes of action (including without limitation, reasonable costs,
legal fees and expenses) imposed on, incurred by, or asserted against any
Consignor Indemnitee by any Person (including the Consignee), whether or not
such Consignor Indemnitee shall also be indemnified by any Person other than the
Consignee, arising out of or resulting from: (i) any breach of the
representations and warranties made by Consignee in this Agreement, (ii) any
breach of the covenants and agreements made by Consignee in this Agreement,
(iii) an Event of Default hereunder, or (iv) any liability for Sales Taxes
(collectively "Indemnifiable Damages") (provided, however, that the Consignee
shall have no obligations hereunder to a Consignor Indemnitee with respect to
Indemnifiable Damages arising out of the gross negligence or willful misconduct
of such Consignor Indemnitee). The Consignee's obligation to defend hereunder
shall include third party claims or lawsuits against Consignor Indemnitees for
losses, damages or liabilities to the extent, in whole or in part, alleged
therein by the third party to be caused by acts or omissions of the Consignee
(or any subcontractor thereof) for which Consignor Indemnitees would be
indemnified hereunder assuming such allegations were true.

         (b) The Consignor hereby agrees to indemnify, defend and hold harmless
the Consignee, its officers, employees, agents and representatives (each a
"Consignee Indemnitee") from and against any and all claims, damages, losses,
liabilities, obligations, demands, actions, suits, judgments, causes of action
(including without limitation, reasonable costs, legal fees and expenses)
imposed on, incurred by, or asserted against any Consignee Indemnitee by any
Person (including the Consignor), whether or not such Consignee Indemnitee shall
also be indemnified by any Person other than the Consignor, arising out of or
resulting from (i) any breach of the representations and warranties made by
Consignor in this Agreement, (ii) any breach of the covenants and agreements
made by the Consignor in this Agreement, or (iii) any liability for Property
Taxes (also, collectively "Indemnifiable Damages") (provided, however, that the
Consignor shall have no obligations hereunder to a Consignee Indemnitee with
respect to

                                       22
<PAGE>

Indemnifiable Damages arising out of the gross negligence or willful misconduct
of such Consignee Indemnitee). The Consignor's obligation to defend hereunder
shall include third party claims or lawsuits against Consignee Indemnitees for
losses, damages or liabilities to the extent, in whole or in part, alleged
therein by the third party to be caused by acts or omissions of the Consignor
(or any subcontractor thereof) for which Consignee Indemnities would be
indemnified hereunder assuming such allegations were true.

         (c) NOTWITHSTANDING ANY PROVISION IN THIS AGREEMENT TO THE CONTRARY,
NEITHER THE CONSIGNEE NOR THE CONSIGNOR SHALL BE LIABLE FOR SPECIAL, INCIDENTAL
OR CONSEQUENTIAL DAMAGES WHICH MAY RESULT FROM PERFORMANCE OR FAILURE TO PERFORM
UNDER THIS AGREEMENT.

         (d) All the obligations of the Consignee and Consignor under this
Section 12 are expressly undertaken by the Consignee and Consignor for the
benefit of, and shall be enforceable by, each of the Consignor Indemnitees and
Consignee Indemnitees.

                                   SECTION 13

         Termination.

         (a) The term "Termination Event," wherever used herein, means any of
the following events or conditions (whatever the reason for such Termination
Event and whether it shall be voluntary or involuntary or come about or be
effected by operation of law or pursuant to or in compliance with any
governmental rule or government action):

             (i)     the occurrence of an Event of Default;

             (ii)    the sale or other disposition by the Consignee of all
                     Parts hereunder;

             (iii)   the later of the fifth (5th) anniversary of the
                     Effective Date or the date which (A) the Senior Credit
                     Facility and (B) KAV Senior Subordinated Note - A and
                     the KAV Senior Subordinated Note - B are paid in full
                     and all commitments to extend credit thereunder have
                     been terminated; or

             (iv)    the payment of all principal amount of and interest
                     accrued under the Loan Agreement shall have been
                     accelerated following the occurrence of an Event of
                     Default (as such term is defined in the Loan
                     Agreement).

         (b) Upon the occurrence of any Termination Event described in (a)(i)
above, the Consignor shall have the right at any time upon written notice to the
Consignee to terminate the Term. Upon the occurrence of any Termination Event
described in (a)(ii) or (a)(iii) above, the Consignor and the Consignee shall
each have the right at any time upon ninety (90) days prior written notice to
the other to terminate the Term. Upon the occurrence of any Termination Event
described in (a)(iv) above, the Agent shall have the right upon written notice
to the Consignor and the Consignee to terminate the Term in accordance with the
terms of the Loan Agreement. Until the payment in full of all amounts
outstanding under the Loan Agreement and the termination of all commitments to
extend credit thereunder, neither the Consignor nor the Consignee shall exercise
its right to terminate the Term pursuant to this Section 13 unless and

                                       23
<PAGE>

until the Agent shall have consented thereto in writing. The date on which the
Term shall be terminated hereunder shall be referred to herein as the
"Termination Date". On the Termination Date, the Term shall end and the
provisions of Section 5(l) shall apply.

         (c) At any time that the Orderly Liquidation Value of the then
remaining KAV Inventory is at or below 15% of the Orderly Liquidation Value of
the KAV Inventory existing as of the Effective Date and (i) the Senior Credit
Facility is paid in full and all commitments to extend credit thereunder have
been terminated, or (ii) the proceeds from the purchase hereinafter described in
this Section 13(c) shall equal or exceed all amounts outstanding under the
Senior Credit Facility, Consignee shall have the right and the option to
purchase the Parts then in the KAV Inventory, for a purchase price equal to 75%
of the Fair Market Value of such Parts, as defined below, by delivery of written
notice to Consignor. In the event Consignee elects to purchase the KAV
Inventory, it shall deliver to Consignor written notice of such election, which
notice shall advise Consignor of such election, and which shall specify a
closing date and time, which closing shall occur no later than ninety (90) days
after the date of such notice (unless more time is required by law). The closing
shall be held at offices of Consignee's counsel or at any other location
designated by the parties hereto. "Fair Market Value" of the KAV Inventory for
purposes of this Section 13 shall be as mutually agreed by the parties. Failing
such agreement, the parties shall mutually agree on a valuation expert,
knowledgeable in the valuation of inventories similar to the KAV Inventory, to
determine its Fair Market Value. If the parties cannot agree on a valuation
expert, such expert shall be selected pursuant to the mutual agreement of the
respective independent public accountants of the Consignee and Consignor. Such
expert shall determine the Fair Market Value of the KAV Inventory assuming the
orderly sale of the KAV Inventory over a two (2) year time period. No Consignee
Commission shall be payable pursuant to a purchase pursuant to this Section
13(c).

         (d) The Agent shall be deemed to be an intended third-party beneficiary
of this Section 13.

                                   SECTION 14

         Events of Default.

         (a) The term "Event of Default," wherever used herein, means any of the
following events or conditions (whatever the reason for such Event of Default
and whether it shall be voluntary or involuntary or come about or be effected by
operation of law or pursuant to or in compliance with any governmental rule or
governmental action):

             (i) The Consignee shall fail to make any payment not in dispute
             (any and all undisputed portions shall be timely paid) when due
             under this Agreement and such payment shall remain overdue for a
             period of three (3) Business Days after receipt of written notice
             from Consignor of such failure to pay;

             (ii) The Consignee shall fail to obtain or maintain in full force
             any insurance required under the provisions of Section 9 ten (10)
             days after receipt of written notice from Consignor;

                                       24
<PAGE>

             (iii) The failure by the Consignee to reasonably satisfy the
             Consignor's written objections to the manner in which the Consignee
             markets, offers, sells, leases and exchanges Parts pursuant to
             Section 2(d) and 4(b) which failure could reasonably be expected to
             have a material adverse effect upon Consignor and the Consignor
             giving the Consignee written notice of such failure and Consignor
             and Consignee being unable to resolve Consignor's objections within
             sixty (60) days, provided, however, that such cure period shall be
             extended if Consignee shall have made good faith efforts during
             such cure period to cure the default but shall not have completed
             the cure, provided that the Consignee is reasonably capable of
             completing such cure and continues to make good faith efforts to
             cure such default, but in no event shall such additional cure
             period extend for greater than thirty (30) days;

             (iv) The Consignee shall fail to perform or observe any other
             material covenant, condition or agreement to be performed or
             observed by it pursuant to or in connection with this Agreement
             (including, without limitation, the Consignee's obligation to
             provide the Reports and to maintain accurate and complete records
             for the Parts under Section 5(j) hereof) and such failure shall
             continue for a period of thirty (30) days after written notice and
             thereof is given by the Consignor to the Consignee, provided,
             however, that such cure period shall be extended if Consignee shall
             have made good faith efforts during such cure period to cure the
             default but shall not have completed the cure, provided that the
             Consignee is reasonably capable of completing such cure and
             continues to make good faith efforts to cure such default, but in
             no event shall such additional cure period extend for greater than
             thirty (30) days;

             (v) The Consignee shall make or permit any unauthorized assignment
             or transfer of this Agreement or any interest therein or
             intentionally use or permit the use of any Part for an illegal
             purpose;

             (vi) A petition against the Consignee shall be filed in a
             proceeding or case under the Federal bankruptcy laws or other
             Federal insolvency laws as now or hereafter constituted, or any
             other applicable Federal bankruptcy, insolvency or other similar
             law, or a case is commenced under any such Federal law to appoint a
             receiver, liquidator, assignee, custodian, trustee, sequestrator
             (or similar official) of the Consignee or for all or substantially
             all of its property, or to wind-up or liquidate its affairs, and in
             any of such cases, such petition or case shall not be withdrawn or
             dismissed within sixty (60) days thereafter;

             (vii) Any judgment, decree or order for relief shall be entered by
             a court having jurisdiction in respect of the Consignee in an
             involuntary case under any applicable state bankruptcy, insolvency
             or other similar law, or appointing a sequestrator (or similar
             official) of the Consignee or for all or substantially all of its
             property, or ordering the winding-up or liquidation of its affairs
             and any such judgment, decree or order shall continue unstayed and
             in effect for a period of thirty (30) days after the entry thereof;

                                       25
<PAGE>

             (viii) The Consignee shall commence a voluntary case under the
             Federal bankruptcy laws, as now constituted or hereafter amended,
             or any other applicable Federal or State bankruptcy, insolvency,
             corporate winding up or reorganization provisions or other similar
             law, or the Consignee shall consent to the appointment of or taking
             possession by a receiver, liquidator, assignee, trustee, custodian,
             sequestrator (or other similar official) of the Consignee or for
             all or substantially all of its property, or the Consignee shall
             make any assignment for the benefit of creditors; or

             (ix) The Consignee suspends all or a substantial portion of its
             operations related to the redistribution of aircraft parts and
             engine parts.

         (b) Upon the occurrence and continuance of any Event of Default, and
without limiting the terms of Section 13, the Consignor may exercise any and all
rights it may now or hereafter have under applicable law, whether existing at
law or in equity, including, without limitation, the right to enter the premises
of the Consignee, or any Designated Location or any other location where any
Part may then be located, and repossess any such Part then subject to this
Agreement and to proceed by appropriate court action to enforce the terms hereof
and, subject to the provisions of Section 12 to recover damages for the breach
hereof. No remedy referred to herein is intended to be exclusive, but each shall
be cumulative and in addition to any other remedy referred to herein or
otherwise available to the Consignor at law or in equity; and the exercise or
beginning of exercise by the Consignor of any one or more such remedies shall
not preclude the simultaneous or later exercise by the Consignor of any or all
such other remedies. No express or implied waiver by the Consignor of any Event
of Default hereunder shall in any way be, or be construed to be, a waiver of any
future or subsequent Event of Default.

                                   SECTION 15

         Agreed Upon Standard.

         (a) The Consignee shall in good faith use its commercially reasonable
efforts to give the Parts the Consignee's equal priority in marketing, sales,
leasing and exchanges, such that the Consignee, in each potential transaction,
will sell, lease or exchange a Part, if available and appropriate for such
transaction and taking into account any customer preference (which such
preference may be evidenced by a notation on the applicable purchase order), on
an equal basis with any other part in the Kellstrom Inventory or any other
consignment inventories managed by the Consignee, subject to the requirements of
any such consignment agreement in effect as of the Effective Date of this
Agreement. Consignee further agrees that upon acquiring any parts that are
Duplicate Parts during the term of this Agreement, such part may not be sold,
leased or exchanged until the Parts that are the Duplicate Parts are sold
(unless such Parts that are Duplicate Parts are unavailable for sale because
such Parts are subject to a pending lease or exchange transaction), leased or
exchanged. Should the Consignee sell a part that is acquired after the Effective
Date that is also a Duplicate Part, then Consignee shall immediately purchase an
equal Part from the KAV Inventory and remit to Consignor the higher of (i) the
Consignee's Gross Sales Price for such Part sold by Consignee, or (ii) an amount
equal to the Fair Market Value for such Part sold by Consignee, in each such
case, less the applicable Consignee Commission.

                                       26
<PAGE>

         (b) The Consignee shall perform all of its obligations under this
Agreement, including, without limitation, supervision of Consignee employees,
Part overhauls and rebuilds (including speculative Part overhauls and rebuilds),
inventory tracking and accountability, Part warehousing and storage (including
by location); retention of property and liability insurance on Parts; extensions
of credit for sales; application of rebates, discounts, returns, credits and
allowances; shipping of sold Parts; and provision of marketing guidance, in the
same manner (which shall, at a minimum, be a commercially reasonable manner) as
the Consignee acts with respect to all other aircraft engines, aircraft parts
and aircraft engine parts, components and other items of property from time to
time in the Consignee's possession (whether as part of the Kellstrom Inventory,
as consignment goods from another consignor or otherwise) such that, during any
calendar quarter, there shall have been no pattern of discrimination (or, in the
case of sales, leases and exchanges, any deviation from the Consignee's equal
priority commitment) in which the Parts hereunder are (i) sold, leased or
exchanged equally with similar parts in the Consignee's possession, (ii) sold,
leased or exchanged for less consideration than similar parts in the Consignee's
possession, (iii) repaired in a different manner, or at higher prices, than
other parts in the Consignee's possession, or (iv) in any other manner treated
less favorably than other parts in the Consignee's possession.

                                   SECTION 16

         Miscellaneous.

         (a) All indemnities, representations and warranties contained in this
Agreement or any document, report, certificate or other instrument delivered
pursuant hereto or in connection herewith, the obligations of the Consignee to
dispose of the Parts upon termination to the extent provided herein and the
obligations of the Consignor, Consignee and AVS set forth in Sections 5(l), 6,
7, 8, 11, 12 and 14, shall survive the expiration or termination of the Term and
any cancellation or termination of this Agreement.

         (b) Each party shall promptly and duly execute and deliver such further
documents and assurances and take such further action as the other party may
from time to time reasonably request or deem proper or advisable in order to
more effectively carry out the intent and purpose of this Agreement and to
establish and protect the rights and remedies created or intended to be created
in favor of such party hereunder, including, without limitation, the execution
and delivery of supplements or amendments hereto in recordable form and the
recording or filing of counterparts hereof and of financing statements and
continuation statements relating hereto, in accordance with the laws of any
appropriate jurisdiction, and the obtaining or effecting of any governmental
consents, licenses, authorizations, approvals, declarations, filings or
registrations as may be necessary for the performance of any of the terms and
conditions of this Agreement.

         (c) Except as otherwise specifically provided herein, all notices,
reports and other communications hereunder must be in English and in writing and
shall be deemed given if delivered personally, mailed by registered, certified
mail (return receipt requested), or overnight courier or sent by facsimile to
the parties at the following addresses (or at such other address for a party as
may be specified by like notice):

                                       27
<PAGE>

                  If to the Consignee:

                           Kellstrom Industries, Inc.
                           1100 International Parkway
                           Sunrise, Florida 33323
                           Attention:    President
                           Facsimile:    (954) 858-2449

                  If to the Consignor:

                           Kellstrom Industries, Inc.
                           1100 International Parkway
                           Sunrise, Florida 33323
                           Attention:    President
                           Facsimile:    (954) 858-2449

                  and to:

                           Aviation Sales Company
                           3601 Flamingo Road
                           Miramar, Florida 33027
                           Attention:    President
                           Facsimile:    (954) 538-6610

         (d) Each of the Consignor and the Consignee shall bear its own costs
and expenses (including, without limitation, the fees and disbursements of its
counsel) incurred by it in connection with the preparation, negotiation,
execution and delivery of this Agreement and (except as otherwise provided
herein) the performance by it of all conditions, covenants or agreements to be
performed by it hereunder.

         (e) Each of the Consignee and AVS acknowledges that while the Consignor
is obligated to make certain payments hereunder on account of KAV Payables, the
ability of the Consignor to make such payments is limited by certain covenants
contained in the Loan Agreement.

         (f) This Agreement constitutes the entire agreement and understanding
of the parties hereto with respect to the transactions contemplated hereby and
supersedes any and all prior agreements and understandings related to the
subject matter hereof and thereof. This Agreement may not be modified or amended
except by written instrument signed by each of the parties hereto. The Schedules
to this Agreement form an integral part of this Agreement.

         (g) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF FLORIDA.

         (h) This Agreement will inure to the benefit of, and be binding upon,
the respective successors and the permitted assigns of the parties hereto.
Neither party may assign any right, title, or interest hereunder without the
prior written consent of the other; provided, however, that notwithstanding
anything to the contrary contained in this Agreement, (1) either party may

                                       28
<PAGE>

assign any or all of its rights and privileges under this Agreement to its
lenders (or any agent on behalf thereof) from time to time, without the consent
of the other party, provided that any such assignee shall take such assignment
subject to all of the terms, conditions and limitations set forth in the
Agreement, and (2) Consignee may assign its rights and delegate its obligations
under this Agreement to any direct or indirect wholly owned subsidiary of
Consignee, 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 Consignee, Consignee shall remain fully responsible and liable for
all of its obligations hereunder.

         (i) This Agreement may be executed in any number of separate
counterparts, each of which will be deemed to be an original, but all of which
together shall constitute one and the same instrument. A facsimile signature on
any counterpart hereto will be deemed an original for all purposes hereof.

         (j) The section numbering and headings contained in this Agreement are
inserted for convenience of reference only and will not affect the meaning or
interpretation of this Agreement.

         (k) If any term, clause or provision contained herein is declared or
held invalid by any court of competent jurisdiction, such declaration or holding
shall not affect the validity of any other term, clause or provision herein
contained.

         (l) The Consignor and the Consignee will comply with all applicable
laws, rules and regulations with respect to the performance of their respective
obligations hereunder.

         (m) The relationship between the Consignor and the Consignee is solely
that of principal and agent. Except as specifically set forth herein, neither
party will have the authority to enter into contracts on behalf of or to bind
the other party in any respect.

                   [REST OF PAGE IS INTENTIONALLY LEFT BLANK]

                                       29
<PAGE>

         IN WITNESS WHEREOF, each party hereto has caused its duly authorized
officer to execute and deliver this Agreement on its behalf as of the day and
year first above written.

                                            CONSIGNEE:

                                            KELLSTROM INDUSTRIES, INC., a
                                            Delaware corporation

                                            By: /s/ Zivi R. Nedivi
                                               ---------------------------------
                                                Zivi R. Nedivi
                                                President

                                            CONSIGNOR:

                                            KAV INVENTORY, LLC, a Delaware
                                            limited liability company

                                            By: /s/ Zivi R. Nedivi
                                               ---------------------------------
                                                Zivi R. Nedivi, Manager

                                            By: /s/ Oscar Torres
                                               ---------------------------------
                                                Oscar Torres, Manager

                                            By: /s/ Michael C. Brant
                                               ---------------------------------
                                                Michael C. Brant, Manager

                                            By: /s/ Benito Quevedo
                                               ---------------------------------
                                                Benito Quevedo, Manager

                                       30
<PAGE>

                                     JOINDER

Aviation Sales Company hereby joins in the foregoing Consignment Agreement
solely for purposes of agreeing to be bound by the provisions expressly
applicable to it and agrees that its consent shall not be required for any
amendment of the Consignment Agreement unless such amendment affects any
provision expressly applicable to it.

                                       AVIATION SALES COMPANY, a
                                       Delaware corporation

                                       By: /s/ Dale Baker
                                          ---------------------------------
                                           Dale Baker
                                           Chairman and Chief Executive Officer

                                       31EXHIBIT 10.10

                            EQUIPMENT LEASE AGREEMENT

                  This EQUIPMENT LEASE AGREEMENT (the "Lease") by and among
AVIATION SALES DISTRIBUTION SERVICES COMPANY, a Delaware corporation (the
"Lessor"), whose principal address is 3601 Flamingo Road, Miramar, Florida
33027, AVIATION SALES COMPANY, a Delaware corporation ("AVS"), whose principal
address is 3701 Flamingo Road, Miramar, Florida 33027, and KELLSTROM INDUSTRIES,
INC., a Delaware corporation (the "Lessee"), whose principal address is 1100
International Parkway, Sunrise, Florida 33323, is made this 1st day of December,
2000 (the "Effective Date").

                  WHEREAS, Lessee desires to enjoy the exclusive use of the
Equipment (as hereafter defined); and

                  WHEREAS, Lessor is willing to provide such Equipment for
Lessee's exclusive use under this Lease;

                  WHEREAS, AVS is the parent of Lessor and joins in the
execution of this Agreement for the purposes stated herein;

                  NOW, THEREFORE, in consideration of the foregoing recitals,
the rental payments made hereunder, and the representations, warranties and
covenants herein contained, Lessor and Lessee agree as follows, intending to be
legally bound:

                  Section 1. Leasing and Purpose.

                  1.1 Lessor agrees to lease to Lessee and Lessee agrees to
lease from Lessor the equipment more particularly described on Schedule 1.1 (the
"Equipment"). Lessor represents that the Equipment does not include any
"equipment" as defined in that certain Participation Agreement dated as of
December 17, 1998 among AVS, as construction agent and lessee; First Security
Bank, N.A., f/k/a First Security Bank of Utah, N.A., not individually, except as
expressly stated in such Participation Agreement, but solely as Owner Trustee
under the Aviation Sales Trust 1998-1; the various banks and other financial
institutions a party thereto from time to time, as holders and lenders
thereunder; and Nationsbank, N.A., as administrative agent for the lenders (the
"TROL Equipment") and, in addition thereto, does not include any equipment that
is located in the Ardmore Facilities (as defined in that certain Transition
Services Agreement dated as of the date hereof among Lessor, Lessee and AVS (the
"Transition Services Agreement")), such equipment being referred to as the
"Ardmore Equipment". At such time as Lessor ceases operations at the Ardmore
Facilities in accordance with Article III of the Transition Services Agreement,
the Ardmore Equipment shall become part of the Equipment and the Rent (as
defined below) shall be adjusted in the manner described in Section 3.2 below.

                  1.2 Lessee agrees that the Equipment will be used by the
Lessee only for lawful purposes and in the normal and ordinary course of
Lessee's business. Lessee understands and agrees

<PAGE>

that it acquires no right of ownership or equity in the Equipment solely as a
result of the payment of Rent (as defined below) hereunder.

                  Section 2. Acknowledgment. The parties acknowledge and agree
that Lessor has made no representation or warranty of any kind, express or
implied, with respect to such Equipment, except as provided in Section 1.1 above
and Section 4 below.

                  Section 3. Term, Rent, Options, Additional Consideration and
Audit.

                  3.1 The term of this Lease shall run from the Effective Date
through the date which is twelve (12) months from and after the Effective Date,
unless earlier terminated pursuant to the terms of this Lease (such period of
time being hereinafter referred to as the "Term"). The last day of the Term
hereof shall be hereinafter referred to as the "Termination Date." Any use of
the Equipment by Lessee beyond the Termination Date shall be deemed an extension
of the original Term on a month-to-month basis and all obligations of Lessee
under this Lease (including the obligation to pay Rent) shall continue until the
Equipment is returned to Lessor as provided under Section 12. For purposes
hereof, the term "Senior Loan Agreement" means that certain Amended and Restated
Loan and Security Agreement dated as of December 14, 1998 among Lessee and
certain subsidiaries of Lessee, as borrowers, and Bank of America, N.A., certain
other lenders and other parties thereto, as amended through the date hereof.

                  3.2 During the twelve (12) month Term hereof, Lessee agrees to
pay to Lessor monthly rental (the "Rent") for the Equipment, in an amount equal
to one percent (1.0%) of the net book value of the Equipment as shown on
Schedule 1.1 (the "Net Book Value"). The initial Rent hereunder shall be in the
amount of Seventy Seven Thousand Three Hundred Eighty-Five and 67/100 Dollars
($77,385.67) per month. After the Lessor ceases operations at the Ardmore
Facilities in accordance with Article III of the Transition Services Agreement,
and the Ardmore Equipment becomes part of the Equipment pursuant to Section 1.1
above, the Rent shall be adjusted to take into consideration the Net Book Value
of the Ardmore Equipment. The Rent to be paid hereunder is due and payable on a
monthly basis in advance, the first such payment being due and payable on the
Effective Date and each subsequent payment being due and payable on the first
day of each month of the Term, all without demand. In the event the Lease does
not begin on the first day of the month or end on the last day of the month, the
first and last lease payments hereunder may be prorated for the actual number of
days the Lease is outstanding during the first and last month. Lessee agrees to
pay the Rent and all other payments to Lessor at the address referred to in
Section 15 below, or where Lessor may otherwise require. This Lease is a NET
Lease, under which Lessee's obligations are to pay all Rent and other sums
payable hereunder, and Lessee shall pay all costs, expenses and obligations of
every kind and nature relating to the Equipment other than claims relating to
indebtedness incurred by Lessor or claims arising at any time that are
attributable to Lessor. Net Book Value, as used herein, shall not be altered
from the amount set forth on Schedule 1.1 hereof, notwithstanding the passage of
time or other circumstances which might change the net book value of the
Equipment for accounting purposes; however, Net Book Value may be reduced in the
event that any of the Equipment is lost, damaged or taken and paid for by Lessee
pursuant to Section 8.2. Any such reduction in the aggregate Net Book Value of
all the Equipment shall be in an amount of the Net Book Value for the particular
equipment lost, damaged or taken (and paid for by Lessee in accordance with
Section 8.2).

                                      -2-
<PAGE>

                  3.3 Lessee acknowledges and agrees that Lessor may sell all or
part of the Equipment to a third party purchaser (a "Supplemental Purchaser").
In the event that Lessor sells all or part of the Equipment to a Supplemental
Purchaser (such sold Equipment hereinafter referred to as the "Sold Equipment"),
such sale shall be subject to the terms and conditions contained in this Lease.
Thereafter, Lessee shall continue to pay Rent hereunder in the same amount as
prior to such sale to a Supplemental Purchaser, however, the Rent payments shall
be divided in accordance with written instructions jointly provided to Lessee by
Lessor and such Supplemental Purchaser. Any Equipment sold to a Supplemental
Purchaser shall continue to be subject to the Equipment Purchase Agreement, and
such Supplemental Purchaser's purchase of the Equipment shall be subject to the
Equipment Purchase Agreement.

                  3.4 The Lessor and Lessee shall conduct a joint inventory of
the Equipment, to be completed within ninety (90) days of the Effective Date.
Upon completion of such audit, the parties will prepare and attach hereto an
amended Schedule 1.1 hereto, whereupon the Net Book Value and the Rent
calculated therefrom shall each be adjusted to reflect the findings of the
audit. Any overage or underage in payments of Rent made hereunder prior to
completion of the audit shall be applied toward the next scheduled payment date
after audit completion.

                  Section 4. Representations and Warranties of Lessor.

                  4.1 Other than Permitted Liens (as defined in that certain
Asset Purchase Agreement by and between Lessor, Lessee, and AVS (the "Asset
Purchase Agreement")), Lessor has good and marketable title to all of the
Equipment. Lessor will as of the Effective Date own the Equipment free and clear
of any Liens (as defined in the Asset Purchase Agreement) other than Permitted
Liens, with full power to lease the same to Lessee free and clear of any Liens
(other than Permitted Liens). The Equipment, taken as a whole, is in good
operating condition, normal wear and tear excepted. Schedule 1.1 represents all
of the Furniture, Fixtures and Equipment line items of the Base Balance Sheet
(as defined in the Asset Purchase Agreement), except that Schedule 1.1 does not
contain the Ardmore Equipment or the TROL Equipment. If the Lessee pays the Rent
as provided hereunder, and observes all other material terms, covenants and
conditions hereof, it may peaceably and quietly have, hold and enjoy the
Equipment during the Term.

                  4.2 NOTWITHSTANDING ANYTHING CONTAINED IN THIS SECTION OR ANY
OTHER PROVISION HEREOF, IT IS THE EXPLICIT INTENT OF EACH PARTY HERETO THAT THE
LESSOR AND THE LESSEE ARE NOT MAKING ANY REPRESENTATION OR WARRANTY WHATSOEVER,
EXPRESS OR IMPLIED, BEYOND THOSE EXPRESSLY GIVEN IN THIS SECTION 4 OR IN ANY
TRANSACTION DOCUMENTS (AS DEFINED IN THE ASSET PURCHASE AGREEMENT), INCLUDING,
BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OR REPRESENTATION AS TO CONDITION,
MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE AS TO ANY OF
THE EQUIPMENT, AND EXCEPT AS EXPRESSLY SET FORTH HEREIN AND IN THE TRANSACTION
DOCUMENTS, IT IS UNDERSTOOD THAT LESSEE IS LEASING ALL OF THE EQUIPMENT ON AN
"AS-IS" "WHERE-IS" BASIS.

                                      -3-
<PAGE>

                  Section 5. Title, Identification, Inspection and Reports.
Lessee acknowledges and agrees that unless and until the Equipment is sold
pursuant to the Equipment Purchase Agreement (a) ownership of and title to the
Equipment and all accessions thereto remain with Lessor (or a Supplemental
Purchaser to the extent applicable); (b) Lessee will make no claim or assert any
right to any such Equipment inconsistent with Lessor's ownership, and will make
appropriate entries upon the books and records disclosing Lessor's title to the
Equipment; (c) if Lessor so requests, Lessee will specifically identify the
Equipment in a manner reasonably acceptable to Lessor as being owned and leased
by the Lessor, (d) Lessee, at its expense, will protect and defend Lessor's
title to the Equipment from and against all claims, encumbrances, liens and
legal processes other than those arising out of indebtedness incurred by Lessor
or otherwise attributable to Lessor; (e) Lessee will, whenever requested by
Lessor, execute and deliver to Lessor all agreements, instruments and documents
necessary to fully consummate all of the transactions contemplated herein and
necessary for the protection of Lessor's title to the Equipment; (f) Lessee will
allow Lessor to inspect the Equipment at reasonable times; (g) Lessee agrees to
provide to Lessor at least thirty (30) days prior written notice in the event
any portion of the Equipment shall be moved to a location other than as is set
forth on Schedule 5 attached hereto; and (h) Lessee agrees not to move any
portion of the Equipment that remains subject to the Lease out of the United
States.

                  Section 6. Use and Maintenance.

                  6.1 Lessee's use and operation of the Equipment shall be in
compliance with the provisions of all applicable Insurance Policies (as
hereafter defined) and all pertinent rules, regulations, permits, certification,
ordinances and laws of all governmental or regulatory bodies having jurisdiction
over Lessee, the Equipment or the use or operation thereof by Lessee. Lessee
will use and operate the Equipment in compliance with normal, safe operating
procedures for such Equipment and in conformance with applicable operating
manuals. Lessee, at its expense, will pay for all required operating services,
materials, maintenance and repair and will keep the Equipment in good, safe and
satisfactory repair and in the same good and safe operating condition and
appearance as when received, excepting only reasonable wear and tear.

                  6.2 Lessee shall not materially alter, modify, make additions
or make improvements to the Equipment without prior written approval of Lessor
(which shall not be unreasonably withheld). Lessee shall promptly notify Lessor
in writing of the nature of any such material change to the Equipment and, if
Lessor's approval is given, Lessee shall subsequently notify Lessor that the
required work has been accomplished in accordance with Lessor's approval. All
such Lessor-approved alterations, modifications, additions and improvements made
to the Equipment shall become the property of Lessor and Lessee shall be in
default under this Lease if Lessee shall make any material alterations,
modifications, or additions to the equipment that have not been approved in
writing by Lessor.

                  Section 7. Insurance. Lessee will, at its expense, at all
times during the Term, and until the Equipment is returned pursuant to Section
12 or purchased pursuant to the Equipment Purchase Agreement, procure and
maintain insurance covering the Equipment, and such insurance shall be of the
type, in the amount and with the insurers currently used by Lessee or other
insurers of recognized reputation and responsibility. In no event shall such
insurance be in amounts less

                                      -4-
<PAGE>

than the applicable Net Book Value for the Equipment. A description of all
insurance policies covering the Equipment is set forth on Schedule 7 attached
hereto (the "Insurance Policies"). All Insurance Policies shall name Lessor and
Lessor's assignee (if any) as additional insured and additional loss payee, as
their interests may appear, and shall provide that the policies may be altered
or cancelled by Lessee or insurer only after 30 days' prior written notice to
Lessor, and, within 15 days prior to the expiration of any insurance policy,
Lessee shall furnish Lessor with a copy of each replacement insurance policy
written with respect to Equipment and with evidence that the required insurance
remains current and in full force and effect and has been renewed for the
applicable period. Any operation of the Equipment by Lessee while required
insurance is not in full force and effect will constitute a default by Lessee
under this Lease. The insurance policy or policies evidencing coverage against
loss or damage to the Equipment shall also provide that any insurance proceeds
payable by such insurer pursuant thereto shall be payable jointly to Lessee and
Lessor (or to Lessor's Assignee). Lessee hereby irrevocably appoints Lessor as
Lessee's attorney-in-fact coupled with an interest to make claim for, receive
payment of, and execute and endorse all instruments, documents, checks or drafts
received in payment for loss or damage under insurance policies. Notwithstanding
any provision to the contrary contained herein, Lessor shall only be entitled to
receive insurance proceeds to the extent of its interest in the Equipment;
accordingly, in the event of loss or damage to any of the Equipment, Lessor
shall be entitled to receive no more than the applicable Net Book Value of the
applicable Equipment.

                  Section 8. Loss or Damage.

                  8.1 Lessee, during the Term or any other period in which
Lessee is in possession of the Equipment, assumes and shall bear the entire risk
of loss, destruction, theft, or taking of, or damage to the Equipment from any
cause whatsoever (other than attributable to Lessor). Lessee will promptly
report to Lessor in writing any material loss, destruction, theft, taking of,
damage to, the Equipment, and shall promptly provide Lessor with copies of all
reports or documents made by it relating thereto.

                  8.2 In the event that any of the Equipment shall have been
lost, destroyed, stolen, or damaged to such an extent that repair thereof is
impractical, or in the event of a total taking, which term includes without
limitation, seizure, hijacking, condemnation, requisition or taking of
possession of any Equipment by any governmental authority, domestic or foreign,
or any agency or political subdivision thereof, Lessee shall pay to Lessor or to
its assignee or mortgagee the Net Book Value of the applicable Equipment upon
the sooner to occur of sixty (60) days after such loss, destruction, theft,
damage or taking or three (3) days following the receipt of insurance proceeds
therefor. Until such time as the Net Book Value of the applicable Equipment is
paid for either directly by Lessee or by the insurer, Lessee shall continue to
pay the applicable Rent for such Equipment, as well as all other sums payable
under this Lease relating to such Equipment. Unless otherwise agreed to in
writing by Lessor, any nonpayment of insurance proceeds that may be due
hereunder will not excuse Lessee from its obligations to pay Lessor as set forth
hereinabove.

                  8.3 To the extent that any such loss, damage or taking is
covered by insurance, all proceeds of such insurance shall be first applied by
Lessee toward satisfaction of the payment required to be made to Lessor or its
assignee or mortgagee pursuant to Section 8.2. Upon receipt of the payment in
full, as required by Section 8.2, the Term of the Lease for the Equipment so
lost,

                                      -5-
<PAGE>

destroyed, damaged, taken or stolen shall terminate and the Rent for the
remaining Equipment shall be reduced in accordance with the rental formula
contained in Section 3.2 above. In such event, Lessee shall become entitled to
(a) all remaining proceeds of insurance pertaining to such Equipment; and (b)
all of Lessor's rights, title, duties and interest with regard to such Equipment
as they exist at the time of termination, without warranty, express or implied,
as to any matter whatsoever. Lessor agrees to deliver to Lessee such duly
executed instruments as may be required, and to take such other action necessary
to transfer any of the foregoing to the Lessee, and Lessee agrees to accept such
transfer.

                  8.4 If the Equipment or any part, component or material
thereof shall suffer any loss, destruction, damage or taking, to such an extent
that repair remains practicable, Lessee shall, at its own expense (which shall
be reimbursable upon completion from any insurance proceeds or, with the written
consent of Lessor, shall be made with insurance proceeds), promptly restore such
Equipment to good and safe condition, repair and working order, including
without limitation, replacing all equipment, parts, components, or materials of
such Equipment as shall have been lost, destroyed, damaged or taken with
manufacturer approved Equipment, parts, components, or materials of equal or
greater value.

                  8.5 Other than with respect to Equipment that is paid for in
accordance with Section 8.2 above, no loss, theft, destruction or damage to, or
taking of, the Equipment, however occurring and whether or not the same is
covered by insurance, shall relieve Lessee of any of its obligations under this
Lease.

                  Section 9. General Indemnities. Lessee assumes liability for,
and hereby agrees to indemnify, protect, save and keep harmless Lessor, its
agents, employees, officers, directors, successors and assigns from and against
any and all liabilities, obligations, losses, damages, penalties, claims,
actions, suits, costs and expenses, including legal fees and expenses, of
whatsoever kind and nature imposed on, incurred by or asserted against Lessor,
its agents, employees, officers, directors, successors and assigns, in any way
relating to or arising out of this Lease or the Equipment (other than as relates
to the use or ownership of the Equipment prior to the Effective Date or any
indebtedness incurred by Lessor with respect to the Equipment or otherwise
attributable to Lessor), including, without limitation, the ownership,
possession, use, selection, delivery, leasing, operation, maintenance, return or
condition of the Equipment or any failure on the part of Lessee to perform or
comply with any of the terms of this Lease. The assumptions of liability and
indemnities contained in this Section 9 shall remain in full force and effect at
all times, shall survive the expiration or other termination of this Lease and
shall terminate only upon the applicable passage of time outlined in the Asset
Purchase Agreement for continuing obligations of the parties thereto. Payments
hereunder shall be due on demand.

                  Section 10. Licenses, Certificates, Permits, Fees and Taxes.
Lessee agrees during its possession of the Equipment, at its expense, to procure
and maintain in effect all licenses, certificates, permits and other approvals
and consents required by municipal, state, federal or foreign laws and
regulations in connection with the possession, use and operation of the
Equipment. Lessee shall pay promptly when due all registration, title, license,
permit and certificate fees, assessments, sales, use, gross receipts, property
and any and all other taxes or other charges of whatever nature incurred on or
after the Effective Date (hereinafter collectively called

                                      -6-
<PAGE>

"impositions") and by whomever payable (except federal taxes levied on Lessor's
net income), now or hereafter imposed during the Term or prior to the return of
the Equipment to Lessor, by any state, federal, local or foreign government upon
use, ownership, rental, shipment, transportation, delivery or operation of the
Equipment or upon or measured by any payments due hereunder or by virtue of any
additions, modifications or repairs to the Equipment. In the event any of such
impositions and any penalties or interest thereon shall be paid by Lessor or if
Lessor is required to collect and pay the foregoing, Lessee shall promptly
reimburse Lessor upon demand for such sums and for any expenses incurred
therein. Lessor agrees that if Lessee determines in good faith that a claim
exists to all or a portion of any such imposition in respect to which Lessee has
made payment to Lessor as aforesaid, Lessor shall, upon request and at the
expense of the Lessee, take all such legal or other appropriate action in order
to sustain such claim. Lessor shall not be obligated to take any such legal or
other appropriate action unless Lessee shall first have indemnified Lessor for
all liabilities and expenses which may be entailed therein, and shall have
furnished Lessor with such reasonable security therefor as may be requested.
Lessee shall be entitled to the proceeds of the successful prosecution of any
such claim.

                  Section 11. Default and Remedies.

                  11.1 An event of default shall occur if (a) Lessee fails to
pay when due any installment of Rent or any other sum payable hereunder;
provided, however, no event of default shall be deemed to have occurred on
account of this clause (a) unless and until Lessor has provided Lessee five (5)
days written notice of such payment failure and Lessee has failed to cure the
payment failure during the five (5) day period; and provided, further, that
Lessee shall only be entitled to such notice and five (5) day non default period
an aggregate of twice during the Term and no notice of payment default need be
given by Lessor thereafter; (b) either party fails to perform or observe in any
material respect any covenant, condition or agreement to be performed or
observed by it hereunder, and such failure continues for a period of fifteen
(15) days after written notice of such failure (other than the requirement to
maintain insurance for which no period of grace shall apply); (c) either party
ceases doing business as a going concern, makes an assignment for the benefit of
creditors, admits in writing its inability to pay its debts as they become due
or such fact is determined by judicial proceedings, files a voluntary petition
in bankruptcy, is adjudicated a bankrupt or an insolvent, files a petition
seeking for itself any reorganization, rearrangement, composition, readjustment,
liquidation, dissolution, or similar arrangement under any present or future
statute, law or regulation, or files an answer admitting the material
allegations of a petition filed against it in any such proceedings, consents to
or acquiesces in the appointment of a trustee, receiver, or liquidator of, all
or any substantial part of its assets or properties; (d) Lessee attempts to
move, remove, sell, transfer, encumber, part with possession or sublet the
Equipment or any item thereof in breach of this Lease; or (e) Lessee fails to
maintain the insurance required hereunder.

                  11.2 Upon the occurrence of an event of default, Lessor or
Lessee, as applicable, at its option, may take one or more of the following
actions: (a) proceed by appropriate court action or actions either at law or in
equity to enforce performance by the other party of the applicable covenants and
terms of this Lease or to recover from the applicable party, any and all damages
or expenses including reasonable attorneys' fees, which the such party shall
have sustained by reason of the defaulting party in any covenant or covenants of
this Lease or on account of such party's enforcement of its remedies hereunder;
(b) in the event Lessee has brought about the event of

                                      -7-
<PAGE>

default, terminate Lessee's rights under this Lease whereupon Lessee, at its
sole cost and expense, shall cause the Equipment to be delivered to Lessor in
accordance with Section 12 hereinbelow; or (c) in the event that Lessee has
brought about the event of default, take possession of all of the Equipment
leased hereunder, and thereupon Lessee's right to the possession thereof shall
terminate. Notwithstanding the foregoing, in the event of repossession of the
Equipment, Lessor shall not be entitled to receive more than is provided in
Section 11.3 below.

                  11.3 In the event of any such repossession as provided in
11.2(c) above, Lessor may either lease the Equipment or any portion thereof for
such period and rental, and to such persons as Lessor may elect, or sell the
Equipment or any portion thereof at public or private sale and without demand or
notice of intention to sell or of sale, or presence of the same at the place of
sale. If any Equipment is sold, leased or otherwise disposed of pursuant to this
Subsection 11.3, Lessee shall be liable to Lessor for, and Lessor may recover
from Lessee, as liquidated damages for the breach of this Lease but not as a
penalty, the amount by which the proceeds of such lease, sale or other
disposition (less the expense of retaking, servicing, repairing, demonstrating,
storing, leasing, selling or other disposition) is less than the sum of (a) all
due and unpaid rent for such Equipment; (b) the Net Book Value of the Equipment
repossessed; (c) an amount equal to due and payable impositions, and other
amounts payable hereunder by Lessee with respect to such Equipment; and (d)
interest at the lesser of one and one-half percent (1-1/2%) per month or the
highest legal rate permitted to be contracted for, charged, paid, taken or
received under applicable law (the "Maximum Rate") on each of the foregoing and
on all sums not paid when due under any provision of this Lease. If on the date
of such termination or repossession any Equipment shall be damaged, lost, stolen
or destroyed, or be subject to any levy, seizure, assignment, application for
sale for or by any creditor or governmental agency, other than damages caused by
or attributable to Lessor or its agents, Lessee shall also be liable to Lessor
as provided in Section 8 with regard to such Equipment, less the amount of any
insurance recovery received by Lessor in connection therewith.

                  11.4 No right or remedy conferred upon or reserved to Lessor
by this Lease shall be exclusive of any other right or remedy herein or by law
provided; all rights and remedies of Lessor conferred upon Lessor by this Lease
or by law shall be cumulative and in addition to every other right and remedy
available to Lessor.

                  11.5 In the event of any default, the defaulting party shall
pay to the non defaulting party a reasonable sum for attorneys' fees and such
costs and expenses as shall have been incurred by the non defaulting party in
the enforcement of any right or privilege hereunder.

                  Section 12. Return of Equipment.

                  12.1 Prior to the expiration or other termination of this
Lease, unless otherwise agreed in writing, Lessee will schedule an inspection of
the Equipment to be performed and completed immediately prior to the return of
the Equipment to Lessor jointly by Lessee and Lessor, and Lessee, at its sole
cost and expense, will pay for all work determined by such inspection to be
necessary to enable Lessee to return the Equipment to Lessor at a location
reasonably specified by Lessor free from all advertising or insignia placed
thereon by Lessee and in the same condition and appearance as when first
received by Lessee, reasonable wear and tear only excepted. In the event

                                      -8-
<PAGE>

Lessee and Lessor are not able to mutually agree with respect to the foregoing
by the date the Equipment is due to be returned to Lessor, Lessor shall, subject
to Lessee's approval (which shall not be unreasonably denied), appoint an
appropriate service and repair facility to inspect the Equipment and perform the
work described above. In the event any required work, repairs or services should
delay the return of the Equipment to Lessor beyond the expiration date of the
Lease or other termination date, Lessee shall continue to pay Rent in the same
manner as if there had been no expiration or other termination of the Lease
until all such required work, repair, or servicing has been completed and the
Equipment returned to Lessor as provided hereinabove.

                  12.2 Unless Lessee has purchased the Equipment pursuant to the
Equipment Purchase Agreement, then in the event Lessee does not return the
Equipment to Lessor in the condition described in Section 12.1 above, Lessor
may, without limiting its remedies hereunder on account of such failure, make
any repairs or replacements reasonably necessary to restore such Equipment to
said condition, and Lessee shall immediately reimburse Lessor on demand for the
expense of any such repairs or restoration and until all such work has been
satisfactorily completed and Lessor reimbursed for any expense in connection
therewith, Lessee shall continue to pay Rent in the same manner as if there has
been no expiration or termination of the Lease with respect to such Equipment.

                  Section 13. Assignment, Sublease and Mortgage.

                  13.1 Lessee acknowledges and understands that the terms and
conditions of this Lease have been fixed by Lessor to permit Lessor, at its sole
election, to sell all or any portion of the Equipment to a Supplemental
Purchaser, so long as any such purchaser purchases the Equipment subject to the
terms of this Lease and assumes the obligations of Lessor hereunder. Any such
purchaser is expected to rely and shall be entitled to the benefit of the
provisions of this Section 13.1. In connection therewith, Lessor agrees to
provide to Lessee not less than fifteen (15) days prior written notice of any
such assignment. In consideration of the provisions hereof, Lessee agrees with
Lessor and with such purchaser and/or such other party (for whose benefit this
covenant is expressly made) to do as follows: (a) to recognize any such
assignment; (b) to accept the directions or demands of such assignee in place of
those of Lessor in accordance with the terms of this Agreement (or in addition
to those of Lessor if the Supplemental Purchaser purchases only a portion of the
Equipment); (c) to surrender any Equipment only to such assignee in accordance
with the terms of this Agreement; (d) to pay all rent payable hereunder and to
do any and all things required of Lessee hereunder; and (e) to execute any
documents (or consents to the assignment) which Lessor may reasonably request in
order to effectuate the foregoing. In addition to the foregoing, this Lease may
be assigned by Lessor to any successor of Lessor, no matter how such successor
is brought about. HOWEVER, NOTHING HEREINABOVE SHALL RELIEVE LESSOR FROM ITS
OBLIGATIONS TO LESSEE HEREUNDER; AND ANY SUCH ASSIGNMENT OR TRANSFER SHALL BE
SUBJECT AND SUBORDINATE TO THE TERMS AND PROVISIONS OF THIS LEASE AND THE RIGHTS
AND INTERESTS OF LESSEE HEREUNDER.

                  13.2 Lessee may not, without prior written consent by Lessor,
assign any part of this Lease or sublease all or any part of the Equipment
included herein; provided, however, Lessee may upon prior written notice to
Lessor assign all or any part of this Lease to any direct or indirect

                                      -9-
<PAGE>

subsidiary of Lessee. In the event Lessee desires to do any of the foregoing,
Lessee shall provide Lessor with a list of the Equipment to be subleased, along
with the name and address of the proposed sublessee or assignee. Such sublessee
or assignee shall cooperate with Lessor in matters relating to credit worthiness
of the sublessee, and Lessor shall have reasonable discretion as to whether to
permit the sublease or assignment, except as provided above. In the event Lessor
desires to permit Lessee to sublease the Equipment or assign the Lease, Lessor
shall be permitted to impose reasonable requirements upon the sublessee,
including the making by sublessee of the representations contained in Section 16
hereof. Even if Lessor permits such sublease or assignment, Lessee shall remain
liable for all obligations of the sublessee under this Lease.

                  Section 14. Personal Property; Expenses; Further Assurances.
The Equipment shall remain personal property regardless of whether it becomes
affixed or attached to real property or any improvement thereof. Lessee will not
permit any Equipment to become so related to any particular real estate so as to
become a fixture on such real estate or to be installed in or affixed to other
goods so as to become an accession to such other goods, except as may already be
the case. Lessee agrees to execute all such agreements and other documents, and
to obtain the execution thereof by other persons as Lessor may request, in
recordable form, by all parties having an interest in any real property to which
any of the Equipment is related, with respect to the identity of the Equipment
as personal property, and the disclaimer of any interest in the Equipment by
such other persons. Lessee consents to the recordation of all such agreements
and documents. Lessee agrees to pay all out-of-pocket costs and expenses
(including legal fees and expenses) of Lessor in connection with the enforcement
of this Lease.

                  Section 15. Notices. All notices, requests, consents and other
communications hereunder shall be given in the manner and to the addresses
described in the Asset Purchase Agreement.

                  Section 16. Additional Representations, Warranties and
Covenants. Each of Lessor and Lessee represents, warrants and covenants to each
other all of the following: (a) such party is a corporation or other legal
entity duly organized, validly existing and in good standing under the laws of
the state in which it is incorporated or domiciled, and is duly qualified and
authorized to do business wherever the nature of its activities or the ownership
of its properties require such qualification and authorization; (b) such party
has the full power, authority and legal right to execute, deliver and perform
the terms of this Lease; and this Lease has been duly authorized by all
necessary corporate or other applicable action of such party and constitutes a
valid and binding obligation of such party, enforceable in accordance with its
terms; (c) there is no law, nor any charter or bylaw provision of such party,
nor any provision in any existing mortgage, indenture, contract or agreement
binding upon such party which would be contravened by the execution, delivery or
performance by such party of this Lease; (d) no consent of the shareholders, or
of any trustee or holder of any indebtedness of such party is or will be
required as a condition to the validity of this Lease, or if required, all such
consents have been obtained and duly certified copies thereof shall be delivered
to the other party; and (e) no registration with, or approval of, any
governmental agency or commission is necessary for the execution, delivery or
performance by such party of the terms of this Lease or for the validity and
enforceability thereof or with respect to the obligations of such party
hereunder, or if required, all such registrations and approvals have

                                      -10-
<PAGE>

been or will be duly made or obtained and certified copies thereof shall be
delivered to the other party.

                  Section 17. Conditions Precedent to Obligations of Lessor. The
obligations of Lessor hereunder are subject to the conditions precedent that
Lessor shall have received all of the documents and items set forth below in
form and substance satisfactory to Lessor.

                  17.1 Lessor shall have received resolutions of the Board of
Directors of Lessee certified by its Secretary or an Assistant Secretary, which
authorize the execution, delivery and performance by Lessee of this Agreement
and any other documents relating hereto.

                  17.2 Lessor shall have received a certificate of incumbency
certified by the Secretary or an Assistant Secretary of Lessee certifying the
names of the officers of Lessee authorized to sign the Lease and the other
documents to be executed in connection herewith, together with specimen
signatures of such officers.

                  17.3 Lessor shall have received such Uniform Commercial Code
financing statements evidencing the Lease, executed by Lessee, as Lessor may
request.

                  17.4 Lessor shall have received copies of all Insurance
Policies required by Section 7, together with loss payable endorsements in favor
of Lessor with respect to all insurance policies covering the Equipment.

                  17.5 Lessor shall have received an opinion of Akerman,
Senterfitt & Eidson, P.A., legal counsel to Lessee.

                  Section 18. Conditions Precedent to Obligations of Lessee. The
obligations of Lessee hereunder are subject to the conditions precedent that
Lessee shall have received all of the documents and items set forth below in
form and substance satisfactory to Lessee.

                  18.1 Lessee shall have received resolutions of the Board of
Directors of Lessor certified by its Secretary or an Assistant Secretary, which
authorize the execution, delivery and performance by Lessor of this Agreement
and any other documents relating hereto.

                  18.2 Lessee shall have received a certificate of incumbency
certified by the Secretary or an Assistant Secretary of Lessor certifying the
names of the officers of Lessor authorized to sign the Lease and the other
documents to be executed in connection herewith, together with specimen
signatures of such officers.

                  Section 19. Further Assurance. From time to time, each party
shall execute and deliver to the other such additional documents and will
provide such additional information as shall be reasonably requested to carry
out the terms of this Agreement.

                  Section 20. Governing Law. THIS LEASE HAS BEEN EXECUTED,
DELIVERED AND ACCEPTED PURSUANT TO A TRANSACTION NEGOTIATED, CONSUMMATED, AND TO
BE PERFORMED IN FLORIDA AND IS INTENDED TO BE

                                      -11-
<PAGE>

A CONTRACT MADE UNDER THE LAWS OF THE STATE OF FLORIDA AND TO BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA. LESSEE HEREBY WAIVES ALL
OBJECTIONS TO THE VENUE OF ANY STATE COURT SITTING IN BROWARD COUNTY, FLORIDA OR
FEDERAL COURT FOR THE SOUTHERN DISTRICT OF FLORIDA, IN ANY ACTION INSTITUTED BY
LESSOR (OR ANY ASSIGNEE OF LESSOR) BY REASON OF ENFORCEMENT OF THIS LEASE OR ANY
OF THE DOCUMENTS RELATED THERETO.

                  Section 21. Miscellaneous. (a) This Lease may not be amended
except in writing and shall be binding upon and inure to the benefit of the
parties hereto and their permitted successors and assigns; (b) any forbearance
or indulgence by any party hereunder shall not constitute a waiver of any of its
rights or remedies; (c) any provision of this Lease which is unenforceable in
any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction; (d) Section headings are for convenience only and do not
define or limit the terms thereof; (e) if Lessee fails to pay or perform any
obligations payable or performable under this Lease, Lessor, at its option, may
cure such failure at Lessee's expense; (f) this Lease is non-cancelable except
as provided herein; and (g) except as otherwise set forth herein, all sums
payable by Lessee under this Lease not paid when due shall accrue interest at
the lesser of the Maximum Rate or at the rate of one percent (1%) per month,
whichever is lesser. This Lease shall become binding on Lessor only upon
Lessor's execution thereof and delivery of a counterpart hereof to Lessee.

                  This Lease consists of the foregoing and all Schedules and
addenda (if any) attached hereto and executed by the parties and correctly sets
forth the entire agreement of the parties as to the subject matter hereof. By
execution hereof, the signers certify that they have read this Lease and that
they are duly authorized to execute it in the capacity set forth below.

                        [REMAINDER OF THIS PAGE IS BLANK]

                                      -12-
<PAGE>

                    EXECUTED this 1st day of December, 2000.

                                        LESSOR:

                                        AVIATION SALES DISTRIBUTION
                                        SERVICES COMPANY

                                        By: /s/ Benito Quevedo
                                           -------------------------------------
                                           Name: Benito Quevedo
                                                --------------------------------
                                           Title: President
                                                 -------------------------------

                                        LESSEE:

                                        KELLSTROM INDUSTRIES, INC.

                                        By: /s/ Oscar Torres
                                           -------------------------------------
                                           Name: Oscar Torres
                                                --------------------------------
                                           Title: Chief Financial Officer
                                                 -------------------------------

                                        AVS:

                                        AVIATION SALES COMPANY

                                        By: /s/ Benito Quevedo
                                           -------------------------------------
                                           Name: Benito Quevedo
                                                --------------------------------
                                           Title: President and C.O.O.
                                                 -------------------------------

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