Document:

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                                                                    Exhibit 10.9

                                    GUARANTY

     This GUARANTY ("Guaranty") is made as of July 12, 2002, by TIMCO AVIATION
SERVICES, INC., a Delaware corporation formerly known as Aviation Sales Company
(the "Parent"), AVS/M-1, INC., a Delaware corporation, AVIATION SALES PROPERTY
MANAGEMENT CORP., a Delaware corporation, AVIATION SALES DISTRIBUTION SERVICES
COMPANY, a Delaware corporation, AVS/M-2, INC., a Delaware corporation,
WHITEHALL CORPORATION, a Delaware corporation, AVIATION SALES LEASING COMPANY, a
Delaware corporation, AVS/M-3, INC., an Arizona corporation, AVS/CAI, INC., a
Florida corporation, HYDROSCIENCE, INC., a Texas corporation, TIMCO ENGINEERED
SYSTEMS, INC., a Delaware corporation and AVSRE, L.P., a Delaware limited
partnership (each a "Guarantor" and, collectively, the "Guarantors"), in favor
of BANK OF AMERICA, N.A., a national banking association (the "Lender"). Unless
otherwise defined herein, capitalized terms used herein shall have the meanings
ascribed to them in the "Term Notes" (as defined below).

                                   WITNESSETH:

     WHEREAS, the Borrowers have executed and delivered to the Lender those
certain Replacement Term Loan Notes dated of even date herewith (the "Term
Notes"), in renewal and replacement of the indebtedness evidenced by that
certain $13,000,000 Replacement Term Loan Note, from, among others, the
Borrowers in favor of the Lender, and incurred certain indebtedness thereunder
for which the Borrowers continue to be jointly and severally liable;

     WHEREAS, each Guarantor acknowledges that it will benefit from the loans
made to the Borrowers by the Lender evidenced by the Term Notes;

     WHEREAS, as a condition to renewing a portion of the loans evidenced by the
Term Notes to the Borrowers, the Lender has required that the Guarantors execute
and deliver this Guaranty for the benefit of the Lender on the terms and
conditions hereinafter set forth;

     NOW, THEREFORE, in consideration of the premises set forth above, the terms
and conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

     1.  Guaranty.

         (i)  For value received and in consideration of any loan, advance or
financial accommodation of any kind whatsoever heretofore, now or hereafter
made, given or granted to the Borrowers by the Lender under the Term Notes, the
Guarantors, jointly and severally, unconditionally guarantee the full and prompt
payment when due, whether at maturity or earlier, by reason of acceleration or
otherwise, and at all times thereafter, of all of the indebtedness evidenced by
the Term Notes (the "Obligations") (including, without limitation, interest
accruing following the filing of a bankruptcy petition by or against any
Borrower, at the applicable rate specified in the Term Notes, whether or not
such interest is allowed or allowable as a claim in bankruptcy).

         (ii) At any time after the occurrence of an Event of Default, the
Guarantors, jointly and severally, agree to pay to the Lender, on demand and in
immediately available funds, the full

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amount of the Obligations (including any portion thereof which is not yet due
and payable). The Guarantors, jointly and severally, further agree to pay to the
Lender and reimburse the Lender for, on demand and in immediately available
funds, (a) all losses (including, without limitation, lost profits), fees, costs
and expenses (including, without limitation, all court costs and attorneys' and
paralegals' fees, costs and expenses) paid or incurred by the Lender in: (1)
endeavoring to collect all or any part of the Obligations from, or in
prosecuting any action against, any Borrower or Guarantor relating to the Term
Notes, this Guaranty, any other agreements or documents executed and delivered
in connection with the Term Notes or this Guaranty (collectively, the "Loan
Documents"), or the transactions contemplated thereby, (2) taking any action
with respect to any security or collateral securing the Obligations or any
Guarantor's obligations hereunder and under the other Loan Documents to which a
Guarantor is a party; and (3) preserving, protecting or defending the
enforceability of, or enforcing, this Guaranty or its respective rights
hereunder (all such costs and expenses are hereinafter referred to as the
"Expenses") and (b) interest on (1) the Obligations which do not constitute
interest, (2) to the extent permitted by applicable law, the Obligations which
constitute interest, and (3) the Expenses, from the date of demand under this
Guaranty until paid in full at the per annum rate of interest described as the
default rate of interest in the Term Notes (the "Interest Rate"). Each Guarantor
hereby agrees that this Guaranty is an absolute guaranty of payment and is not a
guaranty of collection.

     2.  Obligations Unconditional. Each Guarantor hereby agrees that its
obligations under this Guaranty shall be unconditional, irrespective of:

         (i)   the validity, enforceability, avoidance or subordination of any
of the Obligations or any of the Loan Documents;

         (ii)  the absence of any attempt by, or on behalf of, the Lender to
collect, or to take any other action to enforce, all or any part of the
Obligations whether from or against any Borrower, any other guarantor of the
Obligations or any other person;

         (iii) the election of any remedy by, or on behalf of, the Lender with
respect to all or any part of the Obligations;

         (iv)  the waiver, consent, extension, forbearance or granting of any
indulgence by, or on behalf of, the Lender with respect to any provision of any
of the Loan Documents,

         (v)   the failure of the Lender or any person acting for the benefit of
the Lender to take any steps to perfect and maintain its security interest in,
or to preserve its rights to, any security or collateral for the Obligations;

         (vi)  the election by, or on behalf of, the Lender, in any proceeding
instituted under Chapter 11 of Title 11 of the United States Code (11 U.S.C. 101
et seq.) (the "Bankruptcy Code"), of the application of Section 1111(b)(2) of
the Bankruptcy Code;

         (vii) any borrowing or grant of a security interest by any Borrower, as
debtor-in-possession, under Section 364 of the Bankruptcy Code;

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         (viii) the disallowance, under Section 502 of the Bankruptcy Code, of
all or any portion of the claims of the Lender for repayment of all or any part
of the Obligations or any Expenses; or

         (ix)   any other circumstance which might otherwise constitute a legal
or equitable discharge or defense of any Borrower or any Guarantor.

     3. Limitation of Obligation. Notwithstanding anything contained in this
Guaranty to the contrary, the obligations of each Guarantor hereunder shall in
no event exceed, at any time, the greater of (i) the aggregate amount of
proceeds theretofore received by or for the account of the Guarantor from the
proceeds of the loans, advances or other financial accommodations from time to
time made by the Lender to or for the account of the Borrowers minus the
aggregate of all prior payments made by such Guarantor pursuant to this Guaranty
and (ii) ninety-five percent (95%) of the lowest amount sufficient to (1) render
such Guarantor "insolvent", as that term is defined in Section 101(31) of the
Bankruptcy Code, Section 4 of the Uniform Fraudulent Conveyance Act ("UFCA"),
Section 2 of the Uniform Fraudulent Transfer Act ("UFTX") or any other similar
fraudulent conveyance or transfer law or statute, (2) leave such Guarantor with
"unreasonably small capital", as that term is defined in Section 548(a)(2)(ii)
of the Bankruptcy Code or used in Section 5 of the UFCA or any other similar
fraudulent conveyance or transfer law or statute, (3) leave such Guarantor with
"unreasonably small" assets "in relation to the business or transaction" as
provided in Section 4(a)(2)(i) of the UFTA or (4) leave such Guarantor unable to
pay its debts as they mature within the meaning of Section 548(a)(2)(iii) of the
Bankruptcy Code, Section 6 of the UFCA, Section 4(a)(2)(ii) of the UFTA or any
other similar fraudulent conveyance or transfer law or statute.

     4. Ranking. The obligations evidenced by this Guaranty are secured by a
lien upon some or all of the assets of each Guarantor, and shall constitute
"Senior Debt" of each Guarantor, as defined in that (i) certain Indenture dated
as of February 17, 1998 by and among Parent, certain subsidiaries of Parent, and
SunTrust Bank, Central Florida, National Association as supplemented by that
certain Supplemental Indenture dated as of February 28, 2002 by and among
AVIATION SALES COMPANY, certain subsidiaries of AVIATION SALES COMPANY and
SunTrust Bank (formerly SunTrust Bank, Central Florida, National Association)
(the "SunTrust Indenture") and (ii) that certain Indenture dated February 28,
2002 among AVIATION SALES COMPANY, certain subsidiaries of AVIATION SALES
COMPANY, and HSBC Bank USA, as Trustee (the "HSBC Bank Indenture"), equal in
right of payment and on parity with all other "Senior Debt" of each Guarantor as
defined in the SunTrust Indenture and the HSBC Bank Indenture.

     5. Enforcement, Application of Payment. Upon the occurrence of an Event of
Default, the Lender may proceed directly and at once, without notice, against
the Guarantors to obtain performance of and to collect and recover the full
amount, or any portion, of the Obligations, without first proceeding against any
Borrower or any other person, or against any security or collateral for the
Obligations. Subject only to the terms and provisions of the Term Notes, the
Lender shall have the exclusive right to determine the application of payments
and credits, if any, from the Guarantors, any Borrower or from any other person
on account of the Obligations or any other liability of the Guarantors to the
Lender.

     6. Waivers.

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         (i)  Each Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of receivership or
bankruptcy of any Borrower, protest or notice with respect to the Obligations,
all setoffs and counterclaims and all presentments, demands for performance,
notices of nonperformance, protests, notices of protest, notices of dishonor and
notices of acceptance of this Guaranty, the benefits of all statutes of
limitation, and all other demands whatsoever (and shall not require that the
same be made on any Borrower as a condition precedent to such Guarantor's
obligations hereunder), and covenants that this Guaranty will not be discharged,
except by complete payment (in cash) and performance of the Obligations and any
other obligations contained herein. Each Guarantor further waives all notices of
the existence, creation or incurrence of new or additional indebtedness, arising
either from additional loans extended to the Borrowers or otherwise, and also
waives all notices that the principal amount, or any portion thereof, and/or any
interest on any instrument or document evidencing all or any part of the
Obligations is due, notices of any and all proceedings to collect from the
maker, any endorser or any other guarantor of all or any part of the
Obligations, or from any other person, and, to the extent permitted by law,
notices of exchange, sale, surrender or other handling of any security or
collateral given to or for the benefit of the Lender to secure payment of all or
any part of the Obligations.

         (ii) Each Guarantor understands that if all or any part of the
Obligations is secured by real property, the Guarantors shall be liable for the
full amount of their liability under this Guaranty, notwithstanding foreclosure
of such real property by trustee sale or any other reason impairing the right of
the Guarantors or the Lender to proceed against any Borrower or any Borrower's
property. Each Guarantor hereby waives, to the fullest extent permitted by law,
all rights and benefits under Section 2809 of the California Civil Code (or any
similar law in any other jurisdiction) purporting to reduce a guarantor's
obligation in proportion to the principal obligation. Each Guarantor hereby
waives, to the fullest extent permitted by law, all rights and benefits under:
(a) Section 580a of the California Code of Civil Procedure (or any similar law
in any other jurisdiction) purporting to limit the amount of any deficiency
judgment which might be recoverable following the occurrence of a trustee's sale
under a deed of trust, (b) Section 580b of the California Code of Civil
Procedure (or any similar law in any other jurisdiction) providing that no
deficiency may be recovered on a real property purchase money obligation, (c)
Section 580d of the California Code of Civil Procedure (or any similar law in
any other jurisdiction) providing that no deficiency may be recovered on a note
secured by a deed of trust on real property in case such real property is sold
under the power of sale contained in such deed of trust, and (d) Section 726 of
the California Code of Civil Procedure (or any similar law in any other
jurisdiction) providing that only one form of action may be maintained to
enforce a mortgage on real property or indebtedness secured by a mortgage on
real property, if such sections, or any of them, have any application hereto or
any application to the Guarantors. In addition, each Guarantor hereby waives, to
the fullest extent permitted by law, without limiting the generality of the
foregoing or any other provision hereof, all rights and benefits under
California Civil Code Sections 2810, 2819, 2839, 2845, 2849, 2850, 2899, and
3433 (or any similar law in any other jurisdiction). The Guarantor waives all
rights and defenses arising out of an election of remedies by the Lender, even
though that election of remedies, such as a nonjudicial foreclosure with respect
to security for a guaranteed obligation, has destroyed such Guarantor's rights
of subrogation and reimbursement against the Borrowers by the operation of
Section 580d of the California Code of Civil Procedure or otherwise.

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         (iii) The Lender, either itself or acting through any of its agents or
representatives, is hereby authorized, without notice or demand and without
affecting the liability of the Guarantors hereunder, from time to time, (a) to
renew, extend, accelerate or otherwise change the time for payment of, or other
terms relating to, all or any part of the Obligations, or to otherwise modify,
amend, change, restate or supplement the terms of any of the Loan Documents; (b)
to accept partial payments on all or any part of the Obligations, (c) to take
and hold security or collateral for the payment of all or any part of the
Obligations, this Guaranty, or any other guaranties of all or any part of the
Obligations or other liabilities of the Borrowers, (d) to exchange, enforce,
waive and release any such security or collateral, (e) to apply such security or
collateral and direct the order or manner of sale thereof as in their discretion
they may determine; (f) to settle, release, exchange, enforce, waive, compromise
or collect or otherwise liquidate all or any part of the Obligations, this
Guaranty, any other guaranty of all or any part of the Obligations, and any
security or collateral for the Obligations or for any such guaranty. Any of the
foregoing may be done in any manner, without affecting or impairing the
obligations of any Guarantor hereunder.

     7. Setoff. At any time after all or any part of the Obligations have become
due and payable (by acceleration or otherwise), the Lender may, without notice
to any Guarantor and regardless of the acceptance of any security or collateral
for the payment hereof, appropriate and apply toward the payment of all or any
part of the Obligations (i) any indebtedness due or to become due from the
Lender to any Guarantor, and (ii) any moneys, credits or other property
belonging to any Guarantor, at any time held by or coming into the possession of
the Lender or any of their respective affiliates.

     8. Financial Information. Each Guarantor hereby assumes responsibility for
keeping itself informed of the financial condition of the Borrowers and any and
all endorsers and/or other guarantors of all or any part of the Obligations, and
of all other circumstances bearing upon the risk of nonpayment of the
Obligations, or any part thereof, that diligent inquiry would reveal, and each
Guarantor hereby agrees that the Lender shall have no duty to advise the
Guarantors or any of them of information known to the Lender regarding such
condition or any such circumstances. In the event the Lender, in its sole
discretion, undertakes at any time or from time to time to provide any such
information to any Guarantor, the Lender shall be under no obligation (i) to
undertake any investigation not a part of its regular business routine, (ii) to
disclose any information which the Lender, pursuant to accepted or reasonable
commercial finance or banking practices, wishes to maintain confidential or
(iii) to make any other or future disclosures of such information or any other
information to any Guarantor.

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     9.  No Marshalling, Reinstatement. Each Guarantor consents and agrees that
neither the Lender nor any person acting for or on behalf of the Lender shall be
under any obligation to marshall any assets in favor of any Guarantor or against
or in payment of any or all of the Obligations. Each Guarantor further agrees
that, to the extent that any Borrower, any Guarantor or any other guarantor of
all or any part of the Obligations makes a payment or payments to the Lender, or
the Lender receives any proceeds of any collateral for the Obligations, which
payment or payments or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside and/or required to be repaid to such
Borrower, such Guarantor, such other guarantor or any other person, or their
respective estates, trustees, receivers or any other party, including, without
limitation, such Guarantor, under any bankruptcy law, state or federal law,
common law or equitable cause, then, to the extent of such payment or repayment,
the part of the Obligations which has been paid, reduced or satisfied by such
amount shall be reinstated and continued in full force and effect as of the time
immediately preceding such initial payment, reduction or satisfaction.

     10. Subrogation. Until the Obligations have been paid in full, in cash, (i)
no Guarantor shall have any right of subrogation with respect to such
Obligations and (ii) each Guarantor waives any right to enforce any remedy which
the Lender now has or may hereafter have against any Borrower, any endorser or
any guarantor of all or any part of the Obligations or any other person, and
each Guarantor waives any benefit of, and any right to participate in, any
security or collateral given to or for the benefit of the Lender to secure the
payment or performance of all or any part of the Obligations.

     11. Enforcement, Amendments, Waivers. No delay on the part of any of the
Lender in the exercise of any right or remedy arising under this Guaranty, the
Term Notes, any of the other Loan Documents or otherwise with respect to all or
any part of the Obligations or any other guaranty of or security for all or any
part of the Obligations shall operate as a waiver thereof, and no single or
partial exercise by any such person of any such right or remedy shall preclude
any further exercise thereof. No modification or waiver of any of the provisions
of this Guaranty shall be binding upon the Lender, except as expressly set forth
in a writing duly signed and delivered by the party making such modification or
waiver. Failure by the Lender at any time or times hereafter to require strict
performance by any Borrower, any Guarantor, any other guarantor of all or any
part of the Obligations or any other person of any of the provisions,
warranties, terms and conditions contained in any of the Loan Documents now or
at any time or times hereafter executed by such persons and delivered to the
Lender shall not waive, affect or diminish any right of the Lender at any time
or times hereafter to demand strict performance thereof and such right shall not
be deemed to have been waived by any act or knowledge of the Lender, or its
agents, officers or employees, unless such waiver is contained in an instrument
in writing, directed and delivered to such Borrower or such Guarantor, as
applicable, specifying such waiver, and is signed by the party or parties
necessary to give such waiver under the Term Notes. No waiver of any Event of
Default by the Lender shall operate as a waiver of any other Event of Default or
the same Event of Default on a future occasion, and no action by the Lender
permitted hereunder shall in any way affect or impair the Lender's rights and
remedies or the obligations of any Guarantor under this Guaranty. Any
determination by a court of competent jurisdiction of the amount of any
principal and/or interest owing by the Borrowers to the Lender shall be
conclusive and binding on the Guarantors irrespective of whether any Guarantor
was a party to the suit or action in which such determination was made.

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     12. Effectiveness, Termination. This Guaranty shall become effective upon
its execution by the Guarantors. This Guaranty shall continue in full force and
effect and may not be terminated or otherwise revoked until the Obligations
shall have been fully paid (in cash) and discharged and the Term Notes
cancelled. If, notwithstanding the foregoing, any Guarantor shall have any right
under applicable law to terminate or revoke this Guaranty, such Guarantor agrees
that such termination or revocation shall not be effective until a written
notice of such revocation or termination, specifically referring hereto, signed
by such Guarantor, is actually received by the Lender. Such notice shall not
affect the obligations of any other guarantor or any right or power of the
Lender to enforce rights against such Guarantor arising prior to receipt thereof
by the Lender. If the Lender grants loans or takes other action after any
Guarantor terminates or revokes this Guaranty as aforesaid, but before the
Lender receives such written notice, the rights of the Lender with respect
thereto shall be the same as if such termination or revocation had not occurred.

     13. Successors and Assigns. This Guaranty shall be binding upon each
Guarantor and upon the successors and assigns of each Guarantor and shall inure
to the benefit of the Lender and its successors and assigns; all references
herein to any Borrower and any Guarantor shall be deemed to include their
respective successors and assigns. The successors and assigns of any Guarantor
and any Borrower shall include, without limitation, their respective receivers,
trustees and debtors-in-possession. All references to the singular shall be
deemed to include the plural where the context so requires.

     14. Officer Authority. The undersigned hereby certifies that he has all
necessary authority to grant and execute this Guaranty on behalf of the
respective Guarantors.

     15. Governing Law. THIS GUARANTY SHALL BE INTERPRETED, AND THE RIGHTS AND
LIABILITIES OF THE PARTIES HERETO DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS.

     16. Personal Jurisdiction.

         (i) EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS,
FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF ANY TEXAS STATE
COURT OR FEDERAL COURT SITTING IN TEXAS AND ANY COURT HAVING JURISDICTION OVER
APPEALS OF MATTERS HEARD IN SUCH COURTS, IN ANY ACTION OR PROCEEDING ARISING OUT
OF, CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
AMONG THEM IN CONNECTION WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, WHETHER
ARISING IN CONTRACT, TORT, EQUITY OR OTHERWISE, OR FOR RECOGNITION OR
ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURT OR, TO THE EXTENT
PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH GUARANTOR IRREVOCABLY DESIGNATES
AND APPOINTS BOYAR & MILLER, P.C., 4265 SAN FELIPE, SUITE 1200, HOUSTON, TEXAS
77027, AS ITS AGENT (THE "PROCESS AGENT") FOR SERVICE OF ALL PROCESS IN ANY SUCH
PROCEEDING IN ANY SUCH COURT, SUCH SERVICE BEING HEREBY ACKNOWLEDGED TO BE
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT. EACH OF THE PARTIES HERETO
AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR
IN ANY OTHER

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MANNER PROVIDED BY LAW. EACH GUARANTOR WAIVES IN ALL DISPUTES ANY OBJECTION THAT
IT MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE.

         (ii) EACH GUARANTOR AGREES THAT THE LENDER SHALL HAVE THE RIGHT TO
PROCEED AGAINST SUCH GUARANTOR OR ITS PROPERTY IN A COURT IN ANY LOCATION TO
ENABLE THE AGENT TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF
THE LENDER. EACH GUARANTOR AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE
COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY THE LENDER TO REALIZE ON THE
COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS OR TO ENFORCE A JUDGMENT OR
OTHER COURT ORDER IN FAVOR OF THE LENDER. EACH GUARANTOR WAIVES ANY OBJECTION
THAT IT MAY HAVE TO THE LOCATION OF THE COURT IN WHICH THE LENDER MAY COMMENCE A
PROCEEDING DESCRIBED IN THIS SECTION.

     17. Service of Process. EACH GUARANTOR IRREVOCABLY CONSENTS TO THE SERVICE
OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING
BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE
PREPAID, TO THE PROCESS AGENT OR THE GUARANTORS' NOTICE ADDRESS SPECIFIED BELOW,
SUCH SERVICE TO BECOME EFFECTIVE UPON RECEIPT. EACH GUARANTOR IRREVOCABLY WAIVES
ANY OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF
VENUE OR BASED UPON THE GROUNDS OF FORUM NON CONVENIENS) WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING WITH RESPECT TO
THIS GUARANTY OR ANY OTHER LOAN DOCUMENT IN ANY JURISDICTION SET FORTH ABOVE.
NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE LENDER TO BRING PROCEEDINGS
AGAINST THE GUARANTOR IN THE COURTS OF ANY OTHER JURISDICTION.

     18. Waiver of Jury Trial. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY
OTHER LOAN DOCUMENT. ANY OF THE PARTIES HERETO MAY FILE AN ORIGINAL COUNTERPART
OR A COPY OF THIS GUARANTY WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
THE PARTIES HERETO TO THE WAIVER OF SUCH PARTY'S RIGHT TO TRIAL BY JURY.

     19. Advice of Counsel. Each Guarantor confirms that it has obtained its own
counsel with respect to the terms of this Guaranty and represents and warrants
to the Lender that it has discussed this Guaranty with its counsel.

     20. Waiver of Bond. Each Guarantor waives the posting of any bond otherwise
required of the Lender in connection with any judicial process or proceeding to
realize on any collateral or other security for the Obligations, to enforce any
judgment or other court order entered in favor of the Lender, or to enforce by
specific performance, temporary restraining order, or preliminary or permanent
injunction, this Guaranty or any other agreement or document between the Lender
and any Guarantor.

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     21. Notices. Any notice or other communication herein required or permitted
to be given shall be in writing and may be personally served, sent by facsimile
transmission or courier service or United States certified mail and shall be
deemed to have been given when delivered in person or by courier service, upon
transmission thereof in the case of a facsimile transmission, or four (4)
Business Days after deposit in the United States mail with postage prepaid and
properly addressed. Notices to the Lender shall not be effective until received
by the Lender. For purposes hereof, the addresses of the parties hereto shall be
as set forth below, or at such other address as may be designated by such party
in a written notice to the Lender.

         If to the Borrowers:

         c/o TIMCO Aviation Services, Inc.
         623 Radar Road
         Greensboro, North Carolina 27410
         Attn: Chief Financial Officer
         Facsimile:  336-665-9011

         with a copy to:

         Akerman, Senterfitt & Edison, P.A.
         One South East 3rd Avenue, 28th Floor
         Miami, Florida 33131-1704
         Attn: Phillip B. Schwartz
         Facsimile:  305-374-5095

         If to the Lender:

         Bank of America, N.A.
         Private Bank
         700 Louisiana, 6/th/ Floor
         Houston, Texas 77002
         Attn: Samantha Kennedy
         Facsimile:  713-247-7150

         with a copy to:

         Porter & Hedges, L.L.P.
         700 Louisiana, Suite 3500
         Houston, Texas 77002
         Attn: Neal M. Kaminsky
         Facsimile:  713-226-0298

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     22. Severability. Wherever possible, each provision of this Guaranty shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Guaranty shall be prohibited by or invalid under
such law, such provision shall be ineffective to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or the
remaining provisions of this Guaranty.

     23. Subordination. Each Guarantor agrees that any and all claims of such
Guarantor against any Borrower, any endorser or any other guarantor of all or
any part of the Obligations, or against any of their respective properties,
shall be subordinate and subject in right of payment to the prior payment, in
full and in cash, of all Obligations (including, without limitation, interest
accruing following the filing of a bankruptcy petition by or against any
Borrower, at the Interest Rate, whether or not such interest is allowed as a
claim in bankruptcy). Notwithstanding any right of any Guarantor to ask, demand,
sue for, take or receive any payment from any Borrower, all rights, liens and
security interests of such Guarantor, whether now or hereafter arising and
howsoever existing, in any assets of any Borrower (whether constituting part of
the collateral or other security given to secure payment of all or any part of
the Obligations or otherwise) shall be and hereby are subordinated to the rights
of the Lender in those assets. No Guarantor shall have any right to possession
of any such asset or to foreclose upon any such asset, whether by judicial
action or otherwise, unless and until all of the Obligations shall have been
fully paid and satisfied and all financing arrangements between the Borrowers
and the Lender have been terminated. If all or any part of the assets of any
Borrower, or the proceeds thereof, are subject to any distribution, division or
application to the creditors of any Borrower, whether partial or complete,
voluntary or involuntary, and whether by reason of liquidation, bankruptcy,
arrangement, receivership, assignment for the benefit of creditors or any other
action or proceeding, or if the business of any Borrower is dissolved or if
substantially all of the assets of any Borrower are sold, then, and in any such
event, any payment or distribution of any kind or character, either in cash,
securities or other property, which shall be payable or deliverable upon or with
respect to any indebtedness of such Borrower to any Guarantor ("Borrower
Indebtedness") shall be paid or delivered directly to the Lender for application
on any of the Obligations, due or to become due, until the Obligations shall
have first been fully paid and satisfied in cash. Each Guarantor irrevocably
authorizes and empowers the Lender to demand, sue for, collect and receive every
such payment or distribution and give acquittance therefor and to make and
present for and on behalf of such Guarantor such proofs of claim and take such
other action, in the Lender's own name or in the name of such Guarantor or
otherwise, as the Lender may deem necessary or advisable for the enforcement of
this Guaranty. The Lender may vote such proofs of claim in any such proceeding,
receive and collect any and all dividends or other payments or disbursements
made thereon in whatever form the same may be paid or issued and apply the same
on account of any of the Obligations. Should any payment, distribution, security
or instrument or proceeds thereof be received by any Guarantor upon or with
respect to the Borrower Indebtedness prior to the satisfaction of all of the
Obligations and the termination of all financing arrangements between the
Borrower and the Lender, such Guarantor shall receive and hold the same in
trust, as trustee, for the benefit of the Lender and shall forthwith deliver the
same to the Lender, in precisely the form received (except for the endorsement
or assignment of such Guarantor where necessary), for application to the
Obligations, due or not due, and, until so delivered, the same shall be held in
trust by such Guarantor as the property of the Lender. If any Guarantor fails to
make any such endorsement or assignment to the Lender, the Lender or any of its
officers or employees are hereby irrevocably authorized to make

                                       10

<PAGE>

the same. Each Guarantor agrees that until the Obligations have been paid in
full (in cash) and satisfied and all financing arrangements between the
Borrowers and the Lender have been terminated, no Guarantor will assign or
transfer to any person any claim such Guarantor has or may have against any
Borrower.

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

     25. NO ORAL AGREEMENTS. A LOAN TRANSACTION IN WHICH THE AMOUNT INVOLVED
EXCEEDS $50,000 IN VALUE IS NOT ENFORCEABLE UNLESS THE AGREEMENT IS IN WRITING
AND SIGNED BY THE PARTY TO BE BOUND OR BY THAT PARTY'S AUTHORIZED
REPRESENTATIVE. THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE
DETERMINED SOLELY FROM WRITTEN AGREEMENTS, DOCUMENTS, AND INSTRUMENTS, AND ANY
PRIOR ORAL AGREEMENTS BETWEEN THE PARTIES ARE SUPERSEDED BY AND MERGED INTO SUCH
WRITINGS. THIS GUARANTY (AS AMENDED IN WRITING FROM TIME TO TIME) AND THE OTHER
WRITTEN LOAN DOCUMENTS EXECUTED BY THE BORROWERS, THE LENDER OR THE GUARANTORS
(OR BY THE BORROWERS OR THE GUARANTORS FOR THE BENEFIT OF THE LENDER) REPRESENT
THE FINAL AGREEMENT BETWEEN THE BORROWERS, THE GUARANTORS, AND THE LENDER AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS BY THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

     26. ARBITRATION. ANY CONTROVERSY OR CLAIM BETWEEN THE GUARANTORS AND THE
LENDER INCLUDING BUT NOT LIMITED TO THOSE ARISING OUT OF OR RELATING TO THIS
GUARANTY OR ANY OTHER LOAN DOCUMENT, INCLUDING ANY CLAIM BASED ON OR ARISING
FROM AN ALLEGED TORT, SHALL BE DETERMINED BY BINDING ARBITRATION IN ACCORDANCE
WITH THE FEDERAL ARBITRATION ACT (OR IF NOT APPLICABLE, THE APPLICABLE STATE
LAW). THE RULES OF PRACTICE AND PROCEDURE FOR THE ARBITRATION OF COMMERCIAL
DISPUTES OF JUDICIAL ARBITRATION AND MEDIATION SERVICES, INC. (J.A.M.S.), AND
THE "SPECIAL RULES" SET FORTH BELOW. IN THE EVENT OF ANY INCONSISTENCY, THE
SPECIAL RULES SHALL CONTROL. JUDGMENT UPON ANY ARBITRATION AWARD MAY BE ENTERED
IN ANY COURT HAVING JURISDICTION. THE GUARANTORS OR THE LENDER MAY BRING AN
ACTION, INCLUDING A SUMMARY OR EXPEDITED PROCEEDING, TO COMPEL ARBITRATION OF
ANY CONTROVERSY OR CLAIM TO WHICH THIS GUARANTY APPLIES IN ANY COURT HAVING
JURISDICTION OVER SUCH ACTION.

         (1) SPECIAL RULES. THE ARBITRATION SHALL BE CONDUCTED IN THE CITY OF
     THE BORROWER'S DOMICILE AT THE TIME OF THE EXECUTION OF THIS GUARANTY AND
     ADMINISTERED BY J.A.M.S. WHO WILL APPOINT AN ARBITRATOR; IF J.A.M.S. IS
     UNABLE OR LEGALLY PRECLUDED FROM ADMINISTERING THE ARBITRATION, THEN THE
     AMERICAN ARBITRATION ASSOCIATION WILL SERVE. ALL ARBITRATION HEARINGS WILL
     BE COMMENCED WITHIN 90 DAYS OF THE DEMAND FOR ARBITRATION; FURTHER, THE
     ARBITRATOR SHALL ONLY, UPON A SHOWING OF CAUSE, BE PERMITTED TO EXTEND THE
     COMMENCEMENT OF SUCH HEARING FOR UP TO AN ADDITIONAL 60 DAYS.

                                       11

<PAGE>

         (2) RESERVATION OF RIGHTS. NOTHING IN THIS SECTION 26 SHALL BE DEEMED
     TO (i) LIMIT THE APPLICABILITY OF ANY OTHERWISE APPLICABLE STATUTES OF
     LIMITATION OR REPOSE AND ANY WAIVERS CONTAINED IN THIS GUARANTY; OR (ii) BE
     A WAIVER BY THE LENDER OF THE PROTECTION AFFORDED TO IT BY 12 U.S.C. SEC.
     91 OR ANY SUBSTANTIALLY EQUIVALENT STATE LAW; OR (iii) LIMIT THE RIGHT OF
     THE LENDER (A) TO EXERCISE SELF HELP REMEDIES SUCH AS (BUT NOT LIMITED TO)
     SETOFF, OR (B) TO FORECLOSE AGAINST ANY REAL OR PERSONAL PROPERTY
     COLLATERAL; OR (C) TO OBTAIN FROM A COURT PROVISIONAL OR ANCILLARY REMEDIES
     SUCH AS (BUT NOT LIMITED TO) INJUNCTIVE RELIEF, WRIT OF POSSESSION OR THE
     APPOINTMENT OF A RECEIVER. THE LENDER MAY EXERCISE SUCH SELF HELP RIGHTS,
     FORECLOSE UPON SUCH PROPERTY, OR OBTAIN SUCH PROVISIONAL OR ANCILLARY
     REMEDIES BEFORE, DURING OR AFTER THE PENDENCY OF ANY ARBITRATION PROCEEDING
     BROUGHT PURSUANT TO THIS GUARANTY. NEITHER THE EXERCISE OF SELF HELP
     REMEDIES, NOR THE INSTITUTION OR MAINTENANCE OF AN ACTION FOR FORECLOSURE
     OR PROVISIONAL OR ANCILLARY REMEDIES, SHALL CONSTITUTE A WAIVER OF THE
     RIGHT OF ANY PARTY, INCLUDING THE CLAIMANT IN ANY SUCH ACTION, TO ARBITRATE
     THE MERITS OF THE CONTROVERSY OR CLAIM OCCASIONING RESORT TO SUCH REMEDIES.

     27. Replacement Guaranty. This Guaranty is issued as a replacement for (but
not a novation of) the Guaranty dated May 24, 2001, executed by certain of the
Guarantors in favor of the Lender (the "Existing Guaranty"). Notwithstanding
anything herein to the contrary, each Guarantor that was not a party to the
Existing Guaranty assumes and agrees to be bound by the terms and conditions of
the Existing Guaranty.

                            [Signature Pages Follow]

                                       12

<PAGE>

     IN WITNESS WHEREOF, this Guaranty has been duly executed by each Guarantor
as of the day and year first set forth above.

TIMCO AVIATION SERVICES, INC.

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

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

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

AVS/M-1, INC.
By: /s/ Timothy D. Nolan
   --------------------------------------------------

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

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

AVIATION SALES PROPERTY MANAGEMENT CORP.

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

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

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

AVIATION SALES DISTRIBUTION SERVICES COMPANY

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

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

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

AVS/M-2, INC.

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

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

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

                                       13

<PAGE>

WHITEHALL CORPORATION

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

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

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

AVIATION SALES LEASING COMPANY

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

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

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

AVS/M-3, INC.

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

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

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

AVS/CAI, INC.

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

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

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

HYDROSCIENCE, INC.

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

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

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

                                       14

<PAGE>

TIMCO ENGINEERED SYSTEMS, INC.

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

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

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

AVSRE, L.P.

By:    Aviation Sales Property Mangement Corp.,
       its General Partner

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

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

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

Acknowledged and agreed to as
of July 12, 2002

BANK OF AMERICA, N.A.

By: /s/ Samantha Kennedy
   --------------------------------------------------
        Samantha Kennedy
        Vice President

                                       15<PAGE>

                                                                   Exhibit 10.10

                                 TERM LOAN NOTE

$1,000,000                                                         July 12, 2002

         FOR VALUE RECEIVED, the undersigned, AEROCELL STRUCTURES, INC., an
Arkansas corporation, TRIAD INTERNATIONAL MAINTENANCE CORPORATION, a Delaware
corporation, AIRCRAFT INTERIOR DESIGN, INC., a Florida corporation, and TIMCO
ENGINE CENTER, INC., a Delaware corporation (each a "Borrower" and collectively,
the "Borrowers"), HEREBY JOINTLY AND SEVERALLY PROMISE TO PAY to the order of
BENITO QUEVEDO and MARTHA QUEVEDO (collectively, the "Lender"), the principal
amount of ONE MILLION DOLLARS (or such lesser amount as shall have been advanced
and remain outstanding hereunder) on the earlier to occur of (i) January 31,
2004, and (ii) the consummation of the sale by TIMCO Aviation Services, Inc. of
substantially all of the capital stock or assets of Aerocell Structures, Inc.
(the "Maturity Date").

         1. Interest. The Borrowers further, jointly and severally, promise to
pay interest on the unpaid principal amount of the indebtedness evidenced hereby
from the date advanced until such principal amount is paid in full at a fixed
per annum rate of interest equal to twelve (12%) percent. Interest will accrue
on any non-Business Day (as hereinafter defined) at the rate in effect on the
immediately preceding Business Day. Accrued interest shall be payable, in
arrears, on the first day of each calendar month (for the immediately preceding
calendar month) commencing on the first such day following the date hereof and,
if not theretofore paid in full, on the Maturity Date. Notwithstanding the
foregoing, effective immediately upon the occurrence of an Event of Default (as
such term is defined below), and for as long thereafter as such Event of Default
shall be continuing unwaived, the principal balance outstanding hereunder, shall
bear interest at eighteen percent (18%) per annum. Interest at the rate set
forth above will be calculated by the 365/360 day method (a daily amount of
interest is computed for a hypothetical year of 360 days; that amount is
multiplied by the actual number of days for which any principal is outstanding
hereunder). Notwithstanding any provision of this Note, the Lender does not
intend to charge and the Borrowers shall not be required to pay any amount of
interest or other charges in excess of the maximum permitted by applicable law.

         2. Use of Proceeds. The Borrowers further, jointly and severally, agree
and covenant that proceeds of the loan advanced under this Note shall be used to
refinance and/or pay down existing indebtedness of the Borrowers owing to Bank
of America, N.A. ("BofA") under that certain $13,000,000 Replacement Term Loan
Note dated as of May 24, 2001 (the "BofA Term Note").

         3. Payments. All payments of principal and interest in respect of this
Note shall be made to the Lender in lawful money of the United States of America
in same day funds on the date due at the Lender's office designated below. Funds
received by the Lender as aforesaid no later than 4:00 p.m. (eastern standard
time) on any given Business Day shall be credited against payment to be made
that day and funds received by the Lender after that time shall be deemed to
have been paid on the next succeeding Business Day. "Business Day" shall mean a
day in the applicable local time which is not a Saturday or Sunday or a legal
holiday and on which banks are not required or permitted by law or other
governmental action to close in Miami, Florida. All payments made on account of
principal

                                        1

<PAGE>

hereof and interest thereon shall be recorded by the Lender on its books and
records.

         4. Indentures. Indebtedness evidenced by this Note shall constitute
"Senior Debt" of each Borrower as defined in (i) that certain Indenture dated as
of February 17, 1998 by and among Parent., certain subsidiaries of Parent, and
SunTrust Bank, National Association, as amended (the "SunTrust Indenture"), and
(ii) that certain Indenture dated as of February 28, 2002 by and among Parent,
certain subsidiaries of Parent, and HSBC Bank USA, as amended (the "HSBC
Indenture", and collectively with the SunTrust Indenture, the "Indentures"), and
equal in right of payment and on parity with all other "Senior Debt" of each
Borrower as defined in the Indentures.

         5. Representations. Each of the Borrowers hereby represents and
warrants to the Lender that the execution, delivery and performance of this Note
by the Borrowers and the other agreements and documents executed and delivered
in connection therewith by the Borrowers and certain corporate affiliates of the
Borrowers (collectively, the "Affiliate Collateral Documents") do not and will
not (i) conflict with the "Organizational Documents" (as such term is defined in
that certain Fifth Amended and Restated Credit Agreement dated as of July 12,
2002 among the Borrowers, the lenders and other financial institutions from time
to time a party thereto, and Citicorp USA, Inc., a Delaware corporation
("Citicorp"), as Agent for the lenders and issuing banks thereunder, as amended
(the "Credit Agreement")) or by-laws of any Borrower or any other affiliate of
any Borrower a party to any of the Affiliate Collateral Documents (each an
"Affiliate Guarantor"), (ii) constitute a tortious interference with any
"Contractual Obligation" (as such term is defined in the Credit Agreement) of
any Borrower or Affiliate Guarantor, or conflict with, result in a breach of or
constitute (with or without notice or lapse of time or both) a default under any
"Requirement of Law" (as such term is defined in the Credit Agreement) or
Contractual Obligation of any Borrower or Affiliate Guarantor, or require
termination of any such Contractual Obligation, or (iii) require any approval of
the shareholders of any Borrower or Affiliate Guarantor.

         6. Authority and Enforceability. Each Borrower has the requisite power
and authority to execute, deliver and perform this Note and the other agreements
and documents executed and delivered by it in connection herewith and each of
the Affiliate Guarantors has the requisite power and authority to execute,
deliver and perform such Affiliate Collateral Documents. The execution, delivery
and performance of this Note and the Affiliate Collateral Documents have been
duly authorized by all necessary corporate action and such authorization has not
been rescinded. No other corporate action or proceedings on the part of any
Borrower or Affiliate Guarantor are necessary to consummate such transactions.
This Note and the Affiliate Collateral Documents have been duly executed and
delivered on behalf of the Borrowers and constitutes such person's legal, valid
and binding obligation, enforceable against the Borrowers and the Affiliate
Guarantors in accordance with its terms.

         7. Events of Default. Each of the following occurrences shall
constitute an Event of Default under this Note:

         (a) Failure to Make Payments When Due. The Borrowers shall fail to pay
when due any principal of or interest on the indebtedness evidenced by this Note
in accordance with the terms hereof.

                                        2

<PAGE>

         (b) Involuntary Bankruptcy; Appointment of Receiver, Etc. (i) An
involuntary case shall be commenced against any Borrower or any Affiliate
Guarantor and the petition shall not be dismissed, stayed, bonded or discharged
within thirty (30) days after commencement of the case; or a court having
jurisdiction in the premises shall enter a decree or order for relief in respect
of any Borrower or any Affiliate Guarantor in an involuntary case, under any
applicable bankruptcy, insolvency or other similar law now or hereinafter in
effect; or any other similar relief shall be granted under any applicable
federal, state, local or foreign law; or (ii) A decree or order of a court
having jurisdiction in the premises for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having similar
powers over any Borrower or any Affiliate Guarantor or over all or a substantial
part of the property subject to the Third Collateral Documents Amendment (as
such term is defined in the Credit Agreement) shall be entered; or an interim
receiver, trustee or other custodian of any Borrower or any Affiliate Guarantor
shall be appointed.

         (c) Voluntary Bankruptcy; Appointment of Receiver, Etc. Any Borrower or
Affiliate Guarantor shall have an order for relief entered with respect to it or
commence a voluntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, or shall consent to the entry of an
order for relief in an involuntary case, or to the conversion of an involuntary
case to a voluntary case, under any such law, or shall consent to the
appointment of or taking possession by a receiver, trustee or other custodian
for all or a substantial part of its Property; or any Borrower or Affiliate
Guarantor shall make any assignment for the benefit of creditors or shall be
unable or fail, or admit in writing its inability, to pay its debts as such
debts become due; or the shareholders or board of directors (or equivalent) of
any Borrower or Affiliate Guarantor (or any committee thereof) adopts any
resolution or otherwise authorizes any action to approve any of the foregoing.

         (d) Dissolution. Any order, judgment or decree shall be entered against
any Borrower or any Affiliate Guarantor decreeing its involuntary dissolution or
split-up and such order shall remain undischarged and unstayed for a period in
excess of thirty (30) days; or any Borrower or any Affiliate Guarantor shall
otherwise dissolve, be dissolved, or cease to exist except as specifically
permitted by this Note.

         Upon the occurrence and during the continuance of any Event of Default
described in clauses (b) through (d) above, the unpaid principal amount
evidenced by this Note shall become, and upon the occurrence and during the
continuance of all other Events of Default, such unpaid principal amount may be
declared by the Lender to be, due and payable. Upon the occurrence and during
the continuance of any Event of Default, the Lender is hereby authorized at any
time, at its option and without notice or demand, to set off and charge against
any deposit accounts of any Borrower (as well as any money, instruments,
securities, documents, chattel paper, credits, claims, demands, income and any
other property, rights and interests of any Borrower), which at any time shall
come into the possession or custody or under the control of the Lender or any of
its agents, affiliates or correspondents, any and all obligations due hereunder.
Additionally, the Lender shall have all rights and remedies available under the
Note and each of the agreements and documents executed and delivered in
connection therewith, as well as all rights and remedies available at law or in
equity.

                                        3

<PAGE>

         8. Transaction Expenses. The Borrowers, jointly and severally, agree
upon demand to pay, or reimburse the Lender for all of the Lender's reasonable
legal fees and for all other out-of-pocket costs and expenses of every type and
nature (including, without limitation, the reasonable fees, expenses and
disbursements of legal counsel) incurred by the Lender in connection with (i)
the preparation, negotiation, and execution of this Note and the agreements and
documents executed and delivered in connection therewith; (ii) the preparation,
negotiation, execution and interpretation of this Note and the agreements and
documents executed and delivered in connection therewith; (iii) the creation,
perfection or protection of the liens securing this Note (including, without
limitation, any reasonable fees and expenses for local counsel in various
jurisdictions); (iv) consultation with attorneys in connection therewith and
with respect to the Lender's rights and responsibilities under this Note and the
agreements and documents executed and delivered in connection therewith; (v) the
protection, collection or enforcement of any of the obligations evidenced hereby
or by such other agreements and documents; (vi) the commencement, defense or
intervention in any court proceeding relating in any way to such obligations,
any security therefor, any Borrower, any guarantor thereof, this Note or any of
such other agreements and documents; (vii) the response to, and preparation for,
any subpoena or request for document production with which the Lender is served
or deposition or other proceeding in which the Lender is called to testify, in
each case, relating in any way to such obligations, any security therefor, any
Borrower, any guarantor thereof, this Note or any of such other agreements and
documents; and (viii) any amendments, consents, waivers, assignments,
restatements, or supplements to this Note or any of such agreements and
documents and the preparation, negotiation, and execution of the same.

         9. Enforcement Expenses. The Borrowers, jointly and severally, further
agree to pay or reimburse the Lender, upon demand, for all out-of-pocket costs
and expenses, including, without limitation reasonable attorneys' fees
(including costs of settlement) incurred by the Lender after the occurrence of
an Event of Default (i) in enforcing this Note and the agreements and documents
executed and delivered in connection therewith and the security therefor or
exercising or enforcing any other right or remedy available by reason of such
Event of Default; (ii) in connection with any refinancing or restructuring of
the credit arrangements provided under this Note in the nature of a "work-out"
or in any insolvency or bankruptcy proceeding; (iii) in commencing, defending or
intervening in any litigation or in filing a petition, complaint, answer, motion
or other pleadings in any legal proceeding relating to the obligations evidenced
hereby, any Borrower, any guarantor thereof, or security therefor and related to
or arising out of the transactions contemplated hereby or by any of the
agreements and documents executed in connection herewith, and (iv) in taking any
other action in or with respect to any suit or proceeding (bankruptcy or
otherwise) described in clauses (i) through (iii) above.

         10. Indemnity. The Borrowers, jointly and severally, further agree (a)
to indemnify and hold harmless the Lender and each of its attorneys and agents
(collectively, the "Indemnitees") from and against any and all liabilities,
obligations, losses (other than loss of profits), damages, penalties, actions,
judgments, suits, claims, costs, expenses and disbursements of any kind or
nature whatsoever and including, without limitation, the fees and disbursements
of counsel for such Indemnitees in connection with any investigative,
administrative or judicial proceeding, whether or not such Indemnitees shall be
designated a party thereto), imposed on, incurred by, or asserted against such
Indemnitees in any manner relating to or arising out of (i) this Note or the
agreements

                                        4

<PAGE>

and documents executed and delivered in connection therewith, the making of the
loan evidenced hereby, the management of such loan, the use or intended use of
the proceeds of such loan, or any of the other transactions contemplated by any
of the agreements and documents executed and delivered in connection herewith,
or (ii) any liabilities and costs relating to any violation by any Borrower, any
Affiliate Guarantor or their respective predecessors-in-interest of any
environmental, health or safety requirements of law, the past, present or future
operations of any Borrower, any Affiliate Guarantor or their respective
predecessors-in-interest, or the past, present or future environmental, health
or safety condition of any respective past, present or future property of such
persons, the presence of asbestos-containing materials at any respective past,
present or future property of such persons, or the release or threatened release
of any contaminant into the environment by any Borrower, any Affiliate Guarantor
or their respective predecessors-in-interest, or the release or threatened
release of any contaminant into the environment from or at any facility to which
any Borrower, any Affiliate Guarantor or their respective
predecessors-in-interest sent or directly arranged the transport of any
contaminant (collectively, the "Indemnified Matters"), provided, however, the
Borrowers shall have no obligation to an Indemnitee hereunder with respect to
Indemnified Matters caused by or resulting from the "willful misconduct" or
"gross negligence" of such Indemnitee, as determined by a final, nonappealable
order of a court of competent jurisdiction and (b) not to assert any claim
against any of the Indemnified Parties on any theory of liability for special,
indirect, consequential or punitive damages arising out of, or in any way in
connection with, the loans made hereunder or the transactions evidenced by the
agreements and documents executed and delivered in connection herewith, and/or
any other matters governed by this Note and such other agreements and documents.
To the extent that the undertaking to indemnify, pay and hold harmless set forth
in the preceding sentence may be unenforceable because it is violative of any
law or public policy, each Borrower shall contribute the maximum portion which
it is permitted to pay and satisfy under applicable law, to the payment and
satisfaction of all Indemnified Matters incurred by the Indemnitees. The Lender
agrees to notify the Borrowers of the institution or assertion of any
Indemnified Matter, but the parties hereto hereby agree that the failure to so
notify the Borrowers shall not release any Borrower from its obligations
hereunder, except to the extent of any material increase in the liabilities of
such Borrower hereunder directly resulting from such failure to receive notice
from such Indemnitees.

         11. Communications. Any notice or other communication herein required
or permitted to be given shall be in writing and may be personally served, sent
by facsimile transmission or courier service or United States certified mail and
shall be deemed to have been given when delivered in person or by courier
service, upon receipt of a facsimile transmission, or four (4) Business Days
after deposit in the United States mail with postage prepaid and properly
addressed. For the purposes hereof, the addresses of the parties hereto (until
notice of a change thereof is delivered as provided herein) shall be as set
forth below:

                                        5

<PAGE>

                  If to the Borrowers:

                  c/o TIMCO Aviation Services, Inc.
                  623 Radar Road
                  Greensboro, North Carolina  27410
                  Attn: Roy T. Rimmer, Jr.
                  Telecopy: 336-665-9508

                  with a copy to:

                  Akerman Senterfitt & Eidson, P.A.
                  SunTrust International Center
                  28th Floor One S.E. 3rd Avenue
                  Miami, Florida 33131-1704
                  Attn: Phillip B. Schwartz
                  Telecopy: 305-374-5095

                  If to the Lender:

                  Mr. Benito Quevedo
                  Mrs. Martha Quevedo
                  2200 N.W. 84th Avenue
                  Miami, Florida 33122
                  Telecopy: 305-436-6064

                  with a copy to:

                  Angelo, Barry & Boldt, P.A.
                  SunTrust International Center
                  Suite 850
                  515 East Las Olas Boulevard
                  Ft. Lauderdale, Florida 33301
                  Attn: Thomas P. Angelo, Esq.
                  Telecopy: 954-766-9937

or, as to each party, at such other address as may be designated by such party
in a written notice to all of the other parties to this Agreement.

         12. Certain Waivers. Demand, presentment, diligence, protest and notice
of nonpayment are hereby waived by the Borrowers.

         13. Successors and Assigns. This Note shall be binding upon the parties
hereto and their respective successors and assigns and shall inure to the
benefit of the parties hereto and the successors and assigns of the Lender. The
rights hereunder of the Borrowers, or any interest therein may not be assigned
without the written consent of the Lender. The Lender may transfer or assign to

                                        6

<PAGE>

one or more assignees all or a portion of its rights and obligations under this
Note without the consent of the Borrowers.

         14. Certain Rights. No failure or delay on the part of the Lender in
the exercise of any power, right or privilege under this Note shall impair such
power, right or privilege or be construed to be a waiver of any default or
acquiescence therein nor shall any single or partial exercise of any such power,
right or privilege preclude other or further exercise thereof or of any other
right. power or privilege. All rights and remedies existing under this Note are
cumulative with and not exclusive of any rights or remedies otherwise available.

         15. Jurisdiction. THE LENDER AND EACH OF THE BORROWERS EACH IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF ANY FLORIDA STATE COURT OR FEDERAL COURT SITTING IN FLORIDA, AND
ANY COURT HAVING JURISDICTION OVER APPEALS OF MATTERS HEARD IN SUCH COURTS, IN
ANY ACTION OR PROCEEDING ARISING OUT OF, CONNECTED WITH, RELATED TO OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS
NOTE OR ANY OTHER AGREEMENT OR DOCUMENT EXECUTED AND DELIVERED IN CONNECTION
THEREWITH, WHETHER ARISING IN CONTRACT, TORT, EQUITY OR OTHERWISE, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURT OR, TO THE
EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE LENDER AND THE
BORROWERS AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR
IN ANY OTHER MANNER PROVIDED BY LAW. EACH BORROWER WAIVES IN ALL DISPUTES ANY
OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE.

         16. Additional Waivers. EACH BORROWER AGREES THAT THE LENDER SHALL HAVE
THE RIGHT TO PROCEED AGAINST SUCH BORROWER OR ITS PROPERTY IN A COURT IN ANY
LOCATION TO ENABLE THE LENDER TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY
FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN
FAVOR OF THE LENDER. EACH BORROWER AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE
COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY THE LENDER TO REALIZE ON THE
COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT
OR OTHER COURT ORDER IN FAVOR OF THE LENDER. EACH BORROWER WAIVES ANY OBJECTION
THAT IT MAY HAVE TO THE LOCATION OF THE COURT IN WHICH THE LENDER MAY COMMENCE A
PROCEEDING DESCRIBED IN THIS SECTION.

         17. Service of Process. EACH BORROWER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR
PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR

                                        7

<PAGE>

CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWERS' NOTICE ADDRESS SPECIFIED
ABOVE, SUCH SERVICE TO BECOME EFFECTIVE FIVE (5) DAYS AFTER SUCH MAILING. EACH
BORROWER IRREVOCABLY WAIVES ANY OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY
OBJECTION OF THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING WITH RESPECT TO THIS NOTE OR ANY OTHER AGREEMENT OR
DOCUMENT EXECUTED AND DELIVERED IN CONNECTION THEREWITH IN ANY JURISDICTION SET
FORTH ABOVE. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE LENDER TO BRING
PROCEEDINGS AGAINST THE BORROWERS IN THE COURTS OF ANY OTHER JURISDICTION.

         18. Trial by Jury Waiver. EACH OF THE LENDER AND BORROWERS IRREVOCABLY
WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT. ANY OF THE BORROWERS OR THE LENDER MAY FILE AN
ORIGINAL OR A COPY OF THIS NOTE WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         19. Governing Law. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF FLORIDA.

         20. Advice of Counsel. Each Borrower represents and warrants to the
Lender that it has discussed this Note with its counsel. Each of the Borrowers
agrees that it shall be jointly and severally liable for all of the indebtedness
evidenced by this Note. Each of the Borrowers is accepting joint and several
liability hereunder in consideration of the financial accommodations to be
provided by the Lender hereunder, for the mutual benefit, directly and
indirectly, of each of the Borrowers and in consideration of the undertakings of
each of the Borrowers to accept joint and several liability for the obligations
of each of them. Each of the Borrowers jointly and severally hereby irrevocably
and unconditionally accepts, not merely as a surety but also as a co-debtor,
joint and several liability with the other Borrowers with respect to the payment
and performance of all of the indebtedness evidenced hereby, it being the
intention of the parties hereto that all of such indebtedness shall be the joint
and several obligations of each of the Borrowers without preferences or
distinction among them. If and to the extent that any of the Borrowers shall
fail to make any payment with respect to any of such indebtedness as and when
due or to perform any of the agreements contained herein in accordance with the
terms thereof, then in each such event, the other Borrowers will make such
payment with respect to, or perform, such agreement.

         21. Further Waivers. The obligations of each Borrower under the
provisions hereof constitute full recourse obligations of such Borrower,
enforceable against it to the full extent of its properties and assets,
irrespective of the validity, regularity or enforceability of this Note or any
other circumstances whatsoever. Except as otherwise expressly provided herein,
each Borrower hereby waives notice of acceptance of its joint and several
liability, notice of the advance of the principal amount of the loan made
hereunder, notice of occurrence of any Event of Default, or of any demand

                                        8

<PAGE>

for any payment under this Note, notice of any action at any time taken or
omitted by the Lender under or in respect of any of the obligations hereunder,
any requirement of diligence and, generally, all demands, notices and other
formalities of every kind in connection with this Note. Each Borrower hereby
assents to, and waives notice of, any extension or postponement of the time for
the payment of any of such obligations, the acceptance of any partial payment
thereon, any waiver, consent or other action or acquiescence by the Lender at
any time or times in respect of any default by any Borrower in the performance
or satisfaction of any term, covenant, condition or provision of this Note, any
and all other indulgences whatsoever by the Lender in respect of any of such
obligations, and the taking, addition, substitution or release, in whole or in
part, at any time or times, of any security for any of such obligations or the
addition, substitution or release, in whole or in part, of any Borrower. Without
limiting the generality of the foregoing, each Borrower assents to any other
action or delay in acting or failure to act on the part of the Lender,
including, without limitation, any failure strictly or diligently to assert any
right or to pursue any remedy or to comply fully with the applicable laws or
regulations thereunder which might, but for the provisions of this paragraph,
afford grounds for terminating, discharging or relieving such Borrower, in whole
or in part, from any of its obligations hereunder, it being the intention of
each Borrower that, so long as any of the obligations evidenced by this Note
remain unsatisfied, the obligations of such Borrower under this paragraph shall
not be discharged except by performance and then only to the extent of such
performance. The obligations of each Borrower under this paragraph shall not be
diminished or rendered unenforceable by any winding up, reorganization,
arrangement liquidation, reconstruction or similar proceeding with respect to
any Borrower or the Lender. The joint and several liability of the Borrowers
hereunder shall continue in full force and effect notwithstanding any
absorption, merger, amalgamation or any other change whatsoever in the name,
membership, constitution or place of formation of any Borrower or the Lender.
The provisions of this paragraph are made for the benefit of the Lender and its
successors and assigns, and may be enforced by any such person from time to time
against any of the Borrowers as often as occasion therefor may arise and without
requirement on the part of any such person first to marshal any of its claims or
to exercise any of its rights against any other person or to exhaust any
remedies available to it against any other person or to resort to any other
source or means of obtaining payment of any of the indebtedness evidenced hereto
or to elect any other remedy. The provisions of this paragraph shall remain in
effect until all the indebtedness evidenced hereby shall have been paid in full
or otherwise fully satisfied. If at any time, any payment, or any part thereof,
made in respect of any of such indebtedness, is rescinded or must otherwise be
restored or returned by the Lender upon the insolvency, bankruptcy or
reorganization of any of the Borrowers, or otherwise, the provisions of this
paragraph will forthwith be reinstated in effect, as though such payment had not
been made.

         Notwithstanding any provision to the Excess Funding Borrower (as
defined below), each other Borrower shall, on demand of such Excess Funding
Borrower (but subject to the next sentence hereof and to subsection (B) below),
pay to such Excess Funding Borrower an amount equal to such Borrower's Pro Rata
Share (as defined below and determined, for this purpose, without reference to
the properties, assets, liabilities and debts of such Excess Funding Borrower)
of such Excess Payment (as defined below). The payment obligation of any
Borrower to any Excess Funding Borrower under this paragraph shall be
subordinate and subject in right of payment to the prior payment in full of the
indebtedness of such Borrower under the other provisions of this Note, and such
Excess Funding Borrower shall not exercise any right or remedy with respect to
such excess

                                        9

<PAGE>

until payment and satisfaction in full of all of such obligations. For purposes
hereof, (i) "Excess Funding Borrower" shall mean, in respect of any obligations
arising under the other provisions of this Note (hereafter, the "Joint
Obligations"), a Borrower that has paid an amount in excess of its Pro Rata
Share of the Joint Obligations, (ii) "Excess Payment" shall mean, in respect of
any Joint Obligations, the amount paid by an Excess Funding Borrower in excess
of its Pro Rata Share of such Joint Obligations, and (iii) "Pro Rata Share", for
the purposes of this paragraph, shall mean, for any Borrower, the ratio
(expressed as a percentage) of (A) the amount by which the aggregate present
fair saleable value of all of its assets and properties exceeds the amount of
all debts and liabilities of such Borrower (including contingent, subordinated,
unmatured, and unliquidated liabilities, but excluding the obligations of such
Borrower hereunder) to (B) the amount by which the aggregate present fair
saleable value of all assets and other properties of such Borrower and all of
the other Borrowers exceeds the amount of all of the debts and liabilities
(including contingent, subordinated, unmatured, matured and unliquidated
liabilities, but excluding the obligations of such Borrower and the other
Borrowers hereunder) of such Borrower and all of the other Borrowers, all as of
the date hereof.

         22. Conditions to Lending. The Lender shall not be obligated to advance
the Loan to be evidenced by this Note unless and until it shall have received
the following items, each satisfactory to it in form and substance:

         (a) this Note;

         (b) a Loan Parties Agreement with the Borrowers and the Affiliate
             Guarantors;

         (c) a Guaranty from the Affiliate Guarantors;

         (d) an Intercreditor Agreement with Citicorp, as agent, and the other
             parties thereto;

         (e) a Security Agreement among the Borrowers, the Affiliate Guarantors,
             the Lender, Don A. Sanders ("Sanders"), LJH, Ltd., a Texas limited
             partnership ("LJH") and James Investments, Inc., a Texas
             corporation ("James Investments"), together with duly-executed
             Uniform Commercial Code financing statements on Form UCC-1 ;

         (f) an opinion of Akerman, Senterfitt & Eidson, P.A., the Borrowers'
             and Affiliate Guarantors' legal counsel;

         (g) a Release from BofA providing for the full and unconditional
             release of the Lender's credit support obligations to BofA in
             connection with the BofA Term Note;

         (h) the Borrowers' Certificates of Corporate Resolutions and
             Incumbency;

         (i) an Agreement Among Credit Support Parties among Benito Quevedo,
             Sanders, LJH and James Investments; and

         (j) payment of the fees and expenses of Angelo, Barry & Boldt, P.A.,
             legal counsel to the Lender, in connection with this transaction.

                                       10

<PAGE>

         23. Arbitration. ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES
HERETO INCLUDING BUT NOT LIMITED TO THOSE ARISING OUT OF OR RELATING TO THIS
NOTE OR ANY RELATED INSTRUMENTS, AGREEMENTS OR DOCUMENTS, INCLUDING ANY CLAIM
BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL BE DETERMINED BY BINDING
ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (OR IF NOT
APPLICABLE, THE APPLICABLE STATE LAW), THE RULES OF PRACTICE AND PROCEDURE FOR
THE ARBITRATION OF COMMERCIAL DISPUTES OF J.A.M.S./ENDISPUTE OR ANY SUCCESSOR
THEREOF ("J.A.M.S."), AND THE "SPECIAL RULES" SET FORTH BELOW. IN THE EVENT OF
ANY INCONSISTENCY, THE SPECIAL RULES SHALL CONTROL. JUDGMENT UPON ANY
ARBITRATION AWARD MAY BE ENTERED IN ANY COURT HAVING JURISDICTION. ANY PARTY TO
THIS NOTE MAY BRING AN ACTION, INCLUDING A SUMMARY OR EXPEDITED PROCEEDING, TO
COMPEL ARBITRATION OF ANY CONTROVERSY OR CLAIM TO WHICH THIS NOTE APPLIES IN ANY
COURT HAVING JURISDICTION OVER SUCH ACTION.

                  A. SPECIAL RULES. THE ARBITRATION SHALL BE CONDUCTED IN THE
         COUNTY OF ANY BORROWER'S DOMICILE AT THE TIME OF THE EXECUTION OF THIS
         NOTE AND ADMINISTERED BY J.A.M.S. WHO WILL APPOINT AN ARBITRATOR; IF
         J.A.M.S. IS UNABLE OR LEGALLY PRECLUDED FROM ADMINISTERING THE
         ARBITRATION, THEN THE AMERICAN ARBITRATION ASSOCIATION WILL SERVE. ALL
         ARBITRATION HEARINGS WILL BE COMMENCED WITHIN 90 DAYS OF THE DEMAND FOR
         ARBITRATION; FURTHER, THE ARBITRATOR SHALL ONLY, UPON A SHOWING OF
         CAUSE, BE PERMITTED TO EXTEND THE COMMENCEMENT OF SUCH HEARING FOR UP
         TO AN ADDITIONAL 60 DAYS.

                  B. RESERVATION OF RIGHTS. NOTHING IN THIS ARBITRATION
         PROVISION SHALL BE DEEMED TO (I) LIMIT THE APPLICABILITY OF ANY
         OTHERWISE APPLICABLE STATUTES OF LIMITATION OR REPOSE AND ANY /WAIVERS
         CONTAINED IN THIS NOTE; OR (II) BE A WAIVER BY THE LENDER OF THE
         PROTECTION AFFORDED TO IT BY 12 U.S.C. SEC. 91 OR ANY SUBSTANTIALLY
         EQUIVALENT STATE LAW; OR (III) LIMIT THE RIGHT OF THE LENDER HERETO (A)
         TO EXERCISE SELF HELP REMEDIES SUCH AS (BUT NOT LIMITED TO) SETOFF, OR
         (B) TO FORECLOSE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL, OR
         (C) TO OBTAIN FROM A COURT PROVISIONAL OR ANCILLARY REMEDIES SUCH AS
         (BUT NOT LIMITED TO) INJUNCTIVE RELIEF, WRIT OF POSSESSION OR THE
         APPOINTMENT OF A RECEIVER. THE LENDER MAY EXERCISE SUCH SELF HELP
         RIGHTS, FORECLOSE UPON SUCH PROPERTY, OR OBTAIN SUCH PROVISIONAL OR
         ANCILLARY REMEDIES BEFORE, DURING OR AFTER THE PENDENCY OF ANY
         ARBITRATION PROCEEDING BROUGHT PURSUANT TO THIS NOTE. NEITHER THIS
         EXERCISE OF SELF HELP REMEDIES NOR THE INSTITUTION OR MAINTENANCE OF AN
         ACTION FOR FORECLOSURE OR

                                       11

<PAGE>

         PROVISIONAL OR ANCILLARY REMEDIES SHALL CONSTITUTE A WAIVER OF THE
         RIGHT OF ANY PARTY, INCLUDING THE CLAIMANT IN ANY SUCH ACTION, TO
         ARBITRATE THE MERITS OF THE CONTROVERSY OR CLAIM OCCASIONING RESORT TO
         SUCH REMEDIES.

         24. NOTICE OF FINAL AGREEMENT. THIS WRITTEN NOTE REPRESENTS THE FINAL
AGREEMENT AMONG THE PARTIES, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

         25. Headings. Section headings in this Note are included for
convenience only and shall not constitute a part of this Note for any other
purpose.

         IN WITNESS WHEREOF, each of the Borrowers has caused this Note to be
executed and delivered by its duly authorized officer as of the day and year
first above written.

                            [signature page follows]

                                       12

<PAGE>

TRIAD INTERNATIONAL MAINTENANCE CORPORATION,
a Delaware corporation

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

AIRCRAFT INTERIOR DESIGN, INC.,
a Florida corporation

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

AEROCELL STRUCTURES, INC.,
an Arkansas corporation

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

TIMCO ENGINE CENTER, INC.,
a Delaware corporation

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

                              [notary pages follow]

                                       13

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