Document:

EXHIBIT 10.2

                              AMENDED AND RESTATED
                                 TERM LOAN NOTE

$15,500,000                                                         May 31, 2000

                  FOR VALUE RECEIVED, the undersigned, AVIATION SALES
DISTRIBUTION SERVICES COMPANY, a Delaware corporation, AEROCELL STRUCTURES,
INC., an Arkansas corporation, AVS/KRATZ-WILDE MACHINE COMPANY, a Delaware
corporation, WHITEHALL CORPORATION, a Delaware corporation, TRIAD INTERNATIONAL
MAINTENANCE CORPORATION, a Delaware corporation, APEX MANUFACTURING, INC., an
Arizona corporation, CARIBE AVIATION, INC., a Florida corporation, AIRCRAFT
INTERIOR DESIGN, INC., a Florida corporation, AVIATION SALES LEASING COMPANY, a
Delaware corporation, TIMCO ENGINE CENTER, INC., a Delaware corporation, and
AVIATION SALES BEARINGS COMPANY, a Delaware corporation (the "Borrowers"),
HEREBY JOINTLY AND SEVERALLY PROMISE TO PAY to the order of Citicorp USA, Inc.
(the "Lender"), the principal amount of $15,500,000.00 (Fifteen Million, Five
Hundred Thousand and no/100 Dollars) on the earlier to occur (the "Maturity
Date") of (i) February 17, 2001 and (ii) the date on which the "Obligations" (as
defined in that certain Fourth Amended and Restated Credit Agreement dated as of
May 31, 2000 among the Borrowers, the Lender, the other financial institutions
from time to time a party thereto as Lenders and Issuing Banks, and Citicorp
USA, Inc., a Delaware corporation, as Agent for the Lenders and Issuing Banks
(the "Credit Agreement")) are declared or become payable in full or are repaid
in full.

                  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 the per
annum rate of twelve percent (12.0%). 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, and
for as long thereafter as such Event of Default shall be continuing unwaived,
the principal balance outstanding hereunder, shall bear interest at the per
annum rate of fourteen percent (14.0%).

                  The Borrowers further represent and warrant that the proceeds
of the loan advanced under this Amended and Restated Term Loan Note were used
solely to repay Revolving Loans outstanding on February 18, 2000 under the Third
Amended and Restated Credit Agreement dated as of October 17, 1997, as amended,
and jointly and severally, agree and covenant, that immediately upon the receipt
by the Borrowers or any "Guarantor" (as defined in the Credit Agreement) of any
"Net Cash Proceeds of Sale" (as defined in the Credit Agreement) with respect to
the assets and property identified on Exhibit A attached hereto and made a part
hereof, to make or cause to be made a mandatory prepayment of the principal
indebtedness evidenced by this Amended and Restated Term Loan Note in an amount
equal to fifty percent (50%) of the balance of such Net Cash Proceeds of Sale
remaining after application of such Net Cash Proceeds of Sale to the "Loans" (as
defined in the Credit Agreement) as required by Section 4.01(b)(vi)(C)(1), (2)
and (3); PROVIDED, HOWEVER, that in no event shall the aforesaid mandatory
prepayment be required to be made if and to the extent that the "Revolving
Credit Availability" (as defined in the Credit Agreement) shall be less than the
greater of (a) $10,000,000 or (b) five percent (5.0%) of the Revolving Credit
Commitments as then in effect, in each instance, on a pro forma basis after
giving effect to such mandatory prepayment.

                  All payments of principal and interest in respect of this
Amended and Restated Term Loan 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 New York,
New York to such account of the Lender at Citibank, N.A. as the Lender may
designate. Funds received by the Lender as aforesaid no later than 1:00 p.m.
(New York 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 New York, New York. All payments made on account
of principal hereof and interest thereon shall be recorded by the Lender on its
books and records.

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                  Each of the Borrowers hereby represents and warrants to the
Lender that the execution, delivery and performance of this Amended and Restated
Term Loan Note by the Borrowers and the other agreements and documents executed
and delivered in connection herewith by the Borrowers and certain affiliates of
the Borrowers (collectively, the "Guaranty and Collateral Documents") do not and
will not (i) conflict with the "Organizational Documents" (as defined in the
Credit Agreement) or by-laws of any Borrower or affiliate a party to any of the
Guaranty and Collateral Documents, (ii) constitute a tortious interference with
any "Contractual Obligation" (as defined in the Credit Agreement) of any
Borrower or affiliate a party to such Guaranty and Collateral Documents, 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 defined in
the Credit Agreement) or Contractual Obligation of any Borrower or affiliate a
party to such Guaranty and Collateral Documents, or require termination of any
such Contractual Obligation, (iii) result in or require the creation or
imposition of any lien whatsoever upon any property or assets of any Borrower or
affiliate a party to such Guaranty and Collateral Documents, other than the
liens contemplated by the Credit Agreement and "Loan Documents" (as defined in
the Credit Agreement), or require any approval of the shareholders of any
Borrower or affiliate a party to such Guaranty and Collateral Documents.

                  Each Borrower has the requisite power and authority to
execute, deliver and perform this Amended and Restated Term Loan Note and the
other agreements and documents executed and delivered by it in connection
herewith and each of the affiliates of the Borrowers a party to the Guaranty and
Collateral Documents has the requisite power and authority to execute, deliver
and perform such Guaranty and Collateral Documents. The execution, delivery and
performance of this Amended and Restated Term Loan Note and the Guaranty and
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 thereof a party to the
Guaranty and Collateral Documents are necessary to consumamte such transactions.
This Amended and Restated Term Loan Note and each of the Guaranty and Collateral
Documents have been duly executed and delivered on behalf of the Borrowers and
their affiliates a party thereto and constitute such person's legal, valid and
binding obligation, enforceable against such person in accordance with its
terms..

                  Each of the following occurrences shall constitute an Event of
Default under this Amended and Restated Term Loan Note: (i) the Borrowers shall
fail to pay when due any principal of or interest on the indebtedness evidenced
by this Amended and Restated Term Loan Note in accordance with the terms hereof,
and (ii) there shall occur any "Event of Default" (as defined in, and set forth
pursuant to Section 12.01 of, the Credit Agreement).

                  Upon the occurrence of an Event of Default described in
Section 12.01(f), 12.10(g) or 12.01(h) of the Credit Agreement, the unpaid
principal amount evidenced by this Amended and Restated Term Loan 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.

                  The indebtedness evidenced by this Amended and Restated Term
Loan Note is secured pursuant to the terms of that certain Collateral Document
Amendment dated as of February 18, 2000 among the Borrowers and certain
affiliates of the Borrowers, as grantors, Citicorp USA, Inc., a Delaware
corporation, in its capacity as agent, as grantee, and the Lender, which
Collateral Document Amendment has been reaffirmed pursuant to that certain
Reaffirmation Agreement of even date herewith among the parties to the
Collateral Document Amendment.

                  The Borrowers, jointly and severally, agree upon demand to
pay, or reimburse the Lender for, all of the Lender's reasonable internal and
external audit, legal, appraisal, valuation, filing, document duplication and
reproduction and investigation expenses 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 Sidley & Austin, local legal
counsel, auditors, accountants, appraisers, printers, insurance and
environmental advisers, and other consultants and agents) incurred by the Lender
in connection with (i) the preparation, negotiation, and execution of this
Amended and Restated Term Loan Note and the agreements and documents executed
and delivered in connection therewith and the Lender's periodic reviews and
audits of the Borrowers and guarantors of the indebtedness evidenced hereby;
(ii) the preparation, negotiation, execution and interpretation of this Amended
and Restated Term Loan Note and the agreements and documents executed and
delivered in connection therewith; (iii) the creation, perfection or protection
of the liens securing this Amended and Restated Term Loan Note (including,
without limitation, any reasonable fees and expenses for local counsel in
various jurisdictions); (iv) consultation with attorneys in

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<PAGE>

connection therewith and with respect to the Lender's rights and
responsibilities under this Amended and Restated Term Loan 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 Amended and
Restated Term Loan 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
Amended and Restated Term Loan Note or any of such other agreements and
documents; and (viii) any amendments, consents, waivers, assignments,
restatements, or supplements to this Term Loan Agreement or any of such
agreements and documents and the preparation, negotiation, and execution of the
same.

                  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 allocated
costs of internal counsel and costs of settlement) incurred by the Lender after
the occurrence of an Event of Default (i) in enforcing this Amended and Restated
Term Loan 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 Amended and Restated Term Loan 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.

                  The Borrowers, jointly and severally, further agree (a) to
indemnify and hold harmless the Lender and each of its officers, directors,
employees, 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 Amended and Restated Term Loan Note or the agreements
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 or
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 or guarantor, or any of 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 or 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
or 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, non-appealable 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
Amended and Restated Term Loan 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

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<PAGE>

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.

                  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:

                  If to the Borrowers:

                  c/o Aviation Sales Company
                  3701 Flamingo Road
                  Miramar, Florida  33027
                  Attn: Dale S. Baker
                  Telecopy:  954-538-6610

                  with a copy to:

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

                  If to the Lender:

                  Citicorp USA, Inc.
                  399 Park Avenue
                  6th Floor, Zone 4
                  New York, New York  10043
                  Attn:  Shapeligh B. Smith
                  Telecopy:  212-793-1290

                  with a copy to:

                  Sidley & Austin
                  Bank One Plaza
                  10 South Dearborn Street
                  Chicago, Illinois  60603
                  Attn:  DeVerille A. Huston
                  Telecopy:  312-853-7036

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.

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

                  This Amended and Restated Term Loan 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

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<PAGE>

the Lender. The rights hereunder of the Borrowers, or any interest therein, may
not be assigned without the written consent of the Lender.

                  No failure or delay on the part of the Lender in the exercise
of any power, right or privilege under this Amended and Restated Term Loan 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 Amended and Restated Term Loan Note are cumulative with and not exclusive
of any rights or remedies otherwise available.

                  THE LENDER AND EACH OF THE BORROWERS IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF ANY NEW YORK STATE COURT OR FEDERAL COURT SITTING IN NEW YORK,
NEW YORK, 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 AMENDED AND RESTATED TERM LOAN NOTE 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 BORROWER IRREVOCABLY DESIGNATES
AND APPOINTS CT CORPORATION SYSTEM, INC., 1633 BROADWAY, NEW YORK, NEW YORK
10019 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 LENDER AND THE
BORROWERS AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR
IN ANY OTHER MANNER PROVIDED BY LAW. EACH BORROWER WAIVES IN ALL DISPUTES ANY
OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE.

                  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.

                  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 CERTIFIED MAIL, POSTAGE PREPAID, TO
THE PROCESS AGENT OR SUCH BORROWER'S NOTICE ADDRESS SPECIFIED BELOW, 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 AGREEMENT 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 AGENT TO BRING
PROCEEDINGS AGAINST ANY BORROWER IN THE COURTS OF ANY OTHER JURISDICTION.

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<PAGE>

                  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 LENDER MAY FILE AN ORIGINAL OR A COPY OF
THIS AMENDED AND RESTATED TERM LOAN NOTE WITH ANY COURT AS WRITTEN EVIDENCE OF
THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                  THIS AMENDED AND RESTATED TERM LOAN NOTE SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  Each Borrower represents and warrants to the Lender that it
has discussed this Amended and Restated Term Loan Note with its counsel. It is
expressly understood and agreed by the Borrowers that this Amended and Restated
Term Loan Note is executed and delivered in substitution for that certain Tern
Loan Note dated February 18, 2000 (the "Original Term Loan Note") and merely
modifies such Original Term Loan Note, is not payment for such Original Term
Loan Note, and is in no way to constitute a novation of the Original Term Loan
Note.

                  Each of the Borrowers agrees that it shall be jointly and
severally liable for all of the indebtedness evidenced by this Amended and
Restated Term Loan 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. 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
Amended and Restated Term Loan 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 for any payment under this Amended and
Restated Term Loan 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 Amended and Restated Term Loan
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 Amended and Restated Term Loan 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 Amended and Restated Term
Loan 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

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<PAGE>

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 of the other Borrowers or to exhaust any remedies available to it
against any of the other Borrowers 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 contrary contained herein, to the extent
the joint obligations of a Borrower shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any
applicable state or federal law relating to fraudulent conveyances or transfers)
then the obligations of each Borrower hereunder shall be limited to the maximum
amount that is permissible under applicable law (whether federal or state and
including, without limitation, the federal Bankruptcy Code). The Borrowers
hereby agree, as among themselves, that if any Borrower shall become an 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 Amended and Restated Term Loan Note, and such Excess Funding Borrower
shall not exercise any right or remedy with respect to such excess 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 Amended and Restated Term Loan 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, 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.

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

AVIATION SALES DISTRIBUTION               AEROCELL STRUCTURES, INC.
SERVICES COMPANY

By___________________________             By________________________
    Michael C. Brant                          Michael C. Brant
    Vice President and Treasurer              Vice President and Treasurer

                                       7
<PAGE>

AVS/KRATZ-WILDE MACHINE COMPANY           WHITEHALL CORPORATION

By___________________________             By________________________
   Michael C. Brant                           Michael C. Brant
   Vice President and Treasurer               Vice President and Treasurer

TRIAD INTERNATIONAL MAINTENANCE           APEX MANUFACTURING, INC.
 CORPORATION

By___________________________             By________________________
  Michael C. Brant                            Michael C. Brant
  Vice President and Treasurer                Vice President and Treasurer

AIRCRAFT INTERIOR DESIGN, INC.            CARIBE AVIATION, INC.

By___________________________             By________________________
   Michael C. Brant                           Michael C. Brant
   Vice President and Treasurer               Vice President and Treasurer

AVIATION SALES LEASING COMPANY            TIMCO ENGINE CENTER, INC.

By__________________________              By________________________
   Michael C. Brant                           Michael C. Brant
   Vice President and Treasurer               Vice President and Treasurer

AVIATION SALES BEARINGS COMPANY

By_________________________
    Michael C. Brant
    Vice President and Treasurer

                                       8EXHIBIT 10.3

                          AMENDMENT AGREEMENT NO. 2 FOR
                               LEASE AGREEMENT AND
                       CERTAIN OTHER OPERATIVE AGREEMENTS

         THIS AMENDMENT AGREEMENT is made and entered into as of the 31st of
May, 2000, by and among AVIATION SALES COMPANY, a Delaware corporation
("Aviation Sales"), as Construction Agent (the "Construction Agent"); AVIATION
SALES COMPANY, as Lessee (the "Lessee"); FIRST SECURITY BANK, NATIONAL
ASSOCIATION, a national banking association, not individually, except as
expressly stated in the Operative Agreements, but solely as Owner Trustee under
the Aviation Sales Trust 1998-1 (the "Owner Trustee"); BANK OF AMERICA, N.A.,
d/b/a NationsBank, N.A., successor to NationsBank, National Association ("Bank
of America"), as a Holder and as a Lender; BANK OF AMERICA, N.A., d/b/a
NationsBank, N.A., successor to NationsBank, National Association, as
Administrative Agent (the "Agent"); each of the holders party to the Trust
Agreement (defined below) (the "Holders"); each of the Lenders party to the
Credit Agreement (defined below)(the "Lenders"); and each of the Guarantors
party to the Guaranty Agreement (defined below).

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

         WHEREAS, the Construction Agent, the Lessee, the Owner Trustee, the
Agent, the Lenders and the Holders have entered into the Participation Agreement
dated as of December 17, 1998 (as amended, the "Participation Agreement"); and

         WHEREAS, the Owner Trustee, the Lenders and the Agent have entered into
the Credit Agreement dated as of December 17, 1998 (as amended, the "Credit
Agreement"); and

         WHEREAS, the Holders and the Owner Trustee have entered into the
Amended and Restated Trust Agreement dated as of December 17, 1998 (as amended,
the "Trust Agreement"); and

         WHEREAS, the Owner Trustee and the Lessee have entered into the Lease
Agreement dated as of December 17, 1998 (as amended, the "Lease" or "Lease
Agreement"); and

         WHEREAS, Aviation Sales, Subsidiaries of Aviation Sales, and the Agent
have entered into the respective Guaranty Agreements (Series A Obligations)
dated as of December 17, 1998, February 18, 2000, March 31, 2000 or May 31,
2000, as the case may be, (collectively, the "Series A Guaranty Agreement"); and
the Subsidiaries of Aviation Sales and the Owner Trustee have entered into the
respective Guaranty Agreements (Lessee Obligations) dated as of December 17,
1998 February 18, 2000, March 31, 2000 or May 31, 2000, as the case may be,
(collectively, the "Lessee Guaranty Agreement", and collectively with the Series
A Guaranty Agreement and any other Guaranty Agreement (as defined in the
Participation Agreement), the "Guaranty Agreement" or "Guaranty"); and

<PAGE>

         WHEREAS, the Construction Agent and the Lessee have informed the Agent
and the Owner Trustee that construction of the Improvements at the Property
located in Miramar, Florida (the "Miramar Property") is substantially complete
and the Lessee has obtained a temporary certificate of occupancy for, and is in
fact occupying, the Miramar Property; and

         WHEREAS, the parties hereto desire further to amend the Lease Agreement
and certain other Operative Agreements in the manner herein set forth effective
as of the date hereof;

         NOW, THEREFORE, the Construction Agent, the Lessee, the Owner Trustee,
the Holders, the Agent and the Lenders do hereby agree as follows:

         1. DEFINITIONS. The terms "Participation Agreement", "Credit
Agreement", "Trust Agreement", "Lease", "Lease Agreement", "Guaranty Agreement"
and "Guaranty" as used herein and in the Operative Documents (as defined in the
Participation Agreement) shall mean such agreements as hereby amended and
modified, and as further amended, modified, supplemented or restated from time
to time in accordance with the terms thereof. Unless the context otherwise
requires, all terms used herein without definition shall have the definition
provided therefor in the Participation Agreement.

         2. AMENDMENTS TO PARTICIPATION AGREEMENT, CREDIT AGREEMENT AND TRUST
AGREEMENT -- ALLOCATED INTEREST AND ALLOCATED RETURN. Because the Lessee has
obtained a temporary certificate of occupancy for, and is occupying, the Miramar
Property, the parties agree that notwithstanding any provision to the contrary
contained in any Operative Agreement, from and after the date hereof, no Funding
shall be requested or made, and no proceeds of any Funding shall be used, to
fund any Allocated Interest or Allocated Return.

         3. ADDITIONAL AMENDMENTS TO PARTICIPATION AGREEMENT. The Participation
Agreement is hereby amended, effective as of the date hereof, as follows:

                  (a) In addition to, and without limitation of, any other
         condition to any Loan or Holder Funding set forth in the Participation
         or any other Operative Agreement, the obligation of any Lender or
         Holder to make any Loan or Holder Funding as of any date is further
         subject to satisfaction of the following conditions precedent as of
         each such date:

                           (i)      No law, regulation, order, judgment or
                                    decree of any Governmental Authority shall,
                                    and the Agent shall not have received from
                                    any Lender or Holder notice that, in the
                                    judgment of such Lender or Holder,
                                    litigation is pending or threatened which is
                                    likely to, enjoin, prohibit or restrain, or
                                    impose or result in the imposition of any
                                    material adverse condition upon such
                                    Lender's making of the requested Loan or
                                    Holder Funding.

                           (ii)     No event shall have occurred since the date
                                    of this Amendment Agreement which has
                                    resulted, or is reasonably likely to result,
                                    in a Material Adverse Effect.

                                       2
<PAGE>

                  (b) Each of Lessee and Construction Agent hereby authorizes
         the Agent automatically to deduct from account numbered 003661088439
         (which is maintained at Bank of America, N.A.) any Rent or other
         amounts due from Lessee or the Construction Agent to any Person under
         any Operative Agreement.

                  (c) Appendix A to the Participation Agreement is amended by
         adding each of the following definitions, in the appropriate
         alphabetical order; each of the following definitions of any term
         replaces any previous definition of such term that may have appeared in
         the Participation Agreement or any other Operative Agreement.

                           " 'ACCOMMODATION OBLIGATION' means any Contractual
                  Obligation, contingent or otherwise, of one Person with
                  respect to any Indebtedness, obligation or liability of
                  another, if the primary purpose or intent thereof by the
                  Person incurring the Accommodation Obligation is to provide
                  assurance to the obligee of such Indebtedness, obligation or
                  liability of another that such Indebtedness, obligation or
                  liability will be paid or discharged, or that any agreements
                  relating thereto will be complied with, or that the holders
                  thereof will be protected (in whole or in part) against loss
                  in respect thereof including, without limitation, direct and
                  indirect guarantees, endorsements (except for collection or
                  deposit in the ordinary course of business), notes co-made or
                  discounted, recourse agreements, take-or-pay agreements,
                  keep-well agreements, agreements to purchase or repurchase
                  such Indebtedness, obligation or liability or any security
                  therefor or to provide funds for the payment or discharge
                  thereof, agreements to maintain solvency, assets, level of
                  income, or other financial condition, and agreements to make
                  payment other than for value received. The amount of any
                  Accommodation Obligation shall be equal to the amount of the
                  Indebtedness, obligation or liability so guaranteed or
                  otherwise supported; PROVIDED, that (i) if the liability of
                  the Person extending such guaranty or support is limited with
                  respect thereto to an amount less than the Indebtedness,
                  obligation or liability guaranteed or supported, or is limited
                  to recourse against a particular asset or assets of such
                  Person, the amount of the corresponding Accommodation
                  Obligation shall be limited (in the case of a guaranty or
                  other support limited by amount) to such lesser amount or (in
                  the case of a guaranty or other support limited by recourse to
                  a particular asset or assets) to the higher of the Fair Market
                  Value of such asset or assets at the date for determination of
                  the amount of the Accommodation Obligation or the value at
                  which such asset or assets would, in conformity with GAAP, be
                  reflected on or valued for the purposes of preparing a
                  consolidated balance sheet of such Person as at such
                  determination date; and (ii) if any obligation or liability is
                  guaranteed or otherwise supported jointly and severally by a
                  Person and others, then the amount of the obligation or
                  liability of such Person with respect to such guaranty or
                  other support to be included in the amount of such Person's
                  Accommodation Obligation shall be the whole principal amount
                  so guaranteed or otherwise supported."

                           " 'AEROCELL' means Aerocell Structures, Inc., an
                  Arkansas corporation."

                                       3
<PAGE>

                           " 'AFFILIATE', as applied to any Person, means any
                  other Person that directly or indirectly controls, is
                  controlled by, or is under common control with, that Person.
                  For purposes of this definition, 'control' (including, with
                  correlative meanings, the terms 'controlling', 'controlled by'
                  and 'under common control with'), as applied to any Person,
                  means (i) the possession, directly or indirectly, of the power
                  to vote ten percent (10.0%) or more of the Securities having
                  voting power for the election of directors of such Person or
                  otherwise to direct or cause the direction of the management
                  and policies of that Person, whether through the ownership of
                  voting Securities or by contract or otherwise, or (ii) the
                  ownership of (a) a general partnership interest or (b) a
                  limited partnership interest representing ten percent (10.0%)
                  or more of the outstanding limited partnership interests of a
                  Person."

                           " 'AMENDMENT EFFECTIVE DATE' shall mean May 31,
                  2000."

                           " 'AMENDMENT NO. 2' shall mean Amendment Agreement
                  No. 2 for Lease Agreement and certain other Operative
                  Agreements dated as of May 31, 2000, among the Construction
                  Agent, the Lessee, the Owner Trustee, the Agent, the Holders
                  and Lenders party thereto and the Guarantors party thereto."

                           "  'APEX'  means  Apex  Manufacturing, Inc., an
                  Arizona corporation and wholly-owned Subsidiary of
                  Manufacturing."

                           " 'APPLICABLE BASE RATE MARGIN' shall mean as of any
                  date of determination (i) during the period commencing on the
                  Amendment Effective Date through the day on which the Agent
                  has received a true notice from the Lessee that the
                  Overadvance Amount is repaid in full, a per annum rate equal
                  to three percent (3.00%) (subject to the proviso set forth
                  below at the end of this definition), (ii) during the period
                  commencing on the day immediately succeeding the day on which
                  the Agent has received a true notice from the Lessee that the
                  Overadvance Amount has been repaid in full through the day on
                  which the Agent has received a true notice from the Lessee
                  that the Revolving Credit Commitments have been reduced to a
                  maximum of $250,000,000, a per annum rate equal to two and
                  one-half percent (2.50%) (subject to the proviso set forth at
                  the end of this definition), (iii) during the period
                  commencing on the day immediately succeeding the day on which
                  the Agent has received a true notice from the Lessee that the
                  Revolving Credit Commitments have been reduced to a maximum of
                  $250,000,000 through the day on which the Agent has received a
                  true notice from the Lessee that the Revolving Credit
                  Commitments have been reduced to a maximum of $200,000,000, a
                  per annum rate equal to two percent (2.00%) (subject to the
                  proviso set forth at the end of this definition), (iv) during
                  the period commencing on the day immediately succeeding the
                  day on which the Agent has received a true notice from the
                  Lessee that the Revolving Credit Commitments have been reduced
                  to a maximum of $200,000,000 through the date on which
                  Aviation Sales delivers to the Agent, the Lenders and the
                  Holders a Compliance Certificate, as and when required by
                  SECTION 28.1.1(D) of the Lease, with respect to the Fiscal
                  Quarter ending December 31, 2000, a per annum rate

                                       4
<PAGE>

                  equal to one and three-quarters percent (1.75%), and (v)
                  thereafter, PROVIDED THAT the Revolving Credit Commitments do
                  not then exceed $250,000,000, the rate set forth below
                  opposite the then applicable Performance Level set forth
                  below:

                       PERFORMANCE LEVEL        APPLICABLE BASE RATE MARGIN
                       -----------------        ---------------------------
                               1                           1.50%
                               2                           1.75%
                               3                           2.25%

                  PROVIDED, HOWEVER, THAT, notwithstanding the foregoing, in the
                  event the Revolving Credit Commitments exceed $250,000,000 on
                  July 31, 2000, the Applicable Base Rate Margin shall increase,
                  as of August 1, 2000 and each successive November 1, February
                  1, May 1 and August 1, by one-quarter of one percent (0.25%)
                  until such time as the Agent has received a true notice from
                  the Lessee that the Revolving Credit Commitments do not exceed
                  $250,000,000, whereupon the increases in the Applicable Base
                  Rate Margin made in compliance with this sentence shall
                  immediately terminate and the Applicable Base Rate Margin
                  shall be determined as set forth in CLAUSE (I), (II), (IV) or
                  (V) above, as applicable."

                           " 'APPLICABLE MARGIN' shall mean as of any date of
                  determination, (i) during the period commencing on the
                  Amendment Effective Date through the day on which the Agent
                  has received a true notice from the Lessee that the
                  Overadvance Amount has been repaid in full, a per annum rate
                  equal to four and one-half percent (4.50%) (subject to the
                  proviso set forth at the end of this definition), (ii) during
                  the period commencing on the day immediately succeeding the
                  day on which the Agent has received a true notice from the
                  Lessee that the Overadvance Amount has been repaid in full
                  through the day on which the Agent has received a true notice
                  from the Lessee that the Revolving Credit Commitments have
                  been reduced to a maximum of $250,000,000, a per annum rate
                  equal to four percent (4.00%) (subject to the proviso set
                  forth at the end of this definition), (iii) during the period
                  commencing on the day immediately succeeding the day on which
                  the Agent has received a true notice from the Lessee that the
                  Revolving Credit Commitments have been reduced to a maximum of
                  $250,000,000 through the day on which the Agent has received a
                  true notice from the Lessee that the Revolving Credit
                  Commitments have been reduced to a maximum of $200,000,000, a
                  per annum rate equal to three and one-half percent (3.50%)
                  (subject to the proviso set forth below), (iv) during the
                  period commencing on the day immediately succeeding the day on
                  which the Agent has received a true notice from the Lessee
                  that the Revolving Credit Commitments have been reduced to a
                  maximum of $200,000,000 through the date on which Aviation
                  Sales delivers to the Agent, the Lenders and the Holders a
                  Compliance Certificate, as and when required by SECTION
                  28.1.1(D) of the Lease, with respect to the Fiscal Quarter
                  ending December 31, 2000, a per annum rate equal to three and
                  one-quarter percent (3.25%), and (v) thereafter, PROVIDED THAT
                  the Revolving

                                       5
<PAGE>

                  Credit Commitments do not then exceed $250,000,000, the rate
                  set forth below opposite the then applicable Performance Level
                  set forth below:

                       PERFORMANCE LEVEL        APPLICABLE MARGIN
                       -----------------        -----------------
                               1                      3.00%
                               2                      3.25%
                               3                      3.75%

                  PROVIDED, HOWEVER, THAT, notwithstanding the foregoing, in the
                  event the Revolving Credit Commitments exceed $250,000,000 on
                  July 31, 2000, the Applicable Margin shall increase, as of
                  August 1, 2000 and each successive November 1, February 1, May
                  1 and August 1, by one-quarter of one percent (0.25%) until
                  such time as the Agent has received a true notice from the
                  Lessee that the Revolving Credit Commitments do not exceed
                  $250,000,000, whereupon the increases in the Applicable Margin
                  made in compliance with this sentence shall immediately
                  terminate and the Applicable Margin shall be determined as set
                  forth in CLAUSE (I), (II), (IV) or (V) above, as applicable."

                           " 'ASSET' means any Real Property or personal
                  property, plant, building, facility, structure, underground
                  storage tank or unit, Non-TROL Equipment, Inventory, General
                  Intangible, Receivable, or other asset owned, leased or
                  operated by Aviation Sales or any Guarantor or any Subsidiary
                  of Aviation Sales, as applicable, (including any surface water
                  thereon, and soil and groundwater thereunder)."

                           " 'BANKRUPTCY CODE' means Title 11 of the United
                  States Code (11 U.S.C.ss.ss.101 ET SEQ.), as amended from
                  time to time, and any successor statute."

                           " 'BEARINGS' means Aviation Sales Bearings Company, a
                  Delaware corporation and wholly-owned Subsidiary of
                  Distribution."

                           " 'BENEFIT PLAN' means a defined benefit plan as
                  defined in Section 3(35) of ERISA (other than a Multiemployer
                  Plan or Foreign Employee Benefit Plan) in respect of which
                  Aviation Sales, any Guarantor, any Subsidiary of Aviation
                  Sales or any ERISA Affiliate is, or within the immediately
                  preceding six (6) years was, an 'employer' as defined in
                  Section 3(5) of ERISA."

                           " 'BORROWING BASE CERTIFICATE' shall have the meaning
                  assigned thereto in the Existing Aviation Sales Credit
                  Agreement."

                           " 'CAPITAL EXPENDITURES' means, for any period, the
                  aggregate of all expenditures (whether payable in cash or
                  other Property or accrued as a liability (but without
                  duplication)) during such period that, in conformity with
                  GAAP, are required to be included in or reflected by Aviation
                  Sales' or any of its Subsidiaries' fixed asset accounts as
                  reflected in any of their respective balance sheets; PROVIDED,
                  HOWEVER, (i) Capital Expenditures shall include, whether or
                  not such a designation would be in conformity with GAAP, (A)
                  expenditures for the

                                       6
<PAGE>

                  purchase or development of computer software and systems, (B)
                  that portion of Capital Leases which is capitalized on the
                  consolidated balance sheet of the Parent and its Subsidiaries
                  and (C) expenditures for Non-TROL Equipment which is purchased
                  simultaneously with the trade-in of existing Non-TROL
                  Equipment owned by the Parent or any of its Subsidiaries, to
                  the extent the gross purchase price of the purchased Non-TROL
                  Equipment exceeds the book value of the Non-TROL Equipment
                  being traded in at such time; and (ii) Capital Expenditures
                  shall exclude, whether or not such a designation would be in
                  conformity with GAAP, (A) expenditures made in connection with
                  the replacement or restoration of Property, to the extent
                  reimbursed or financed from insurance or condemnation proceeds
                  not constituting Net Cash Proceeds of Sale and (B)
                  expenditures for leased Inventory."

                           " 'CAPITAL LEASE' means any lease of any property
                  (whether real, personal or mixed) by a Person as lessee which,
                  in conformity with GAAP, is accounted for as a capital lease
                  on the balance sheet of that Person."

                           " 'CAPITAL STOCK' means, with respect to any Person,
                  any capital stock of such Person, regardless of class or
                  designation, and all warrants, options, purchase rights,
                  conversion or exchange rights, voting rights, calls or claims
                  of any character with respect thereto."

                           " 'CASH INTEREST EXPENSE' means, for any Person for
                  any period, total interest expense, whether paid or accrued,
                  but without duplication, (including the interest component of
                  Capital Leases but net of the difference between payments
                  received by such Person and its Subsidiaries on all Hedge
                  Agreements and payments made by such Person and its
                  Subsidiaries on all Hedge Agreements other than the initial
                  payments made to enter into such Hedge Agreements) of such
                  Person and its Subsidiaries, which is payable in cash, all as
                  determined in conformity with GAAP."

                           " 'CARIBE' means Caribe Aviation, Inc., a Florida
                  corporation and wholly-owned Subsidiary of Aviation Sales
                  Maintenance, Repair & Overhaul Company, a Delaware corporation
                  and wholly-owned Subsidiary of Aviation Sales."

                           " 'CASH EQUIVALENTS' means (i) marketable direct
                  obligations issued or unconditionally guaranteed by the United
                  States government and backed by the full faith and credit of
                  the United States government; and (ii) domestic and Eurodollar
                  certificates of deposit and time deposits, bankers'
                  acceptances, commercial paper, and floating rate certificates
                  of deposit issued by any commercial bank organized under the
                  laws of the United States, any state thereof, the District of
                  Columbia, any foreign bank, or its branches or agencies (fully
                  protected against currency fluctuations), which, at the time
                  of acquisition, are rated A-1 (or better) by Standard & Poor's
                  Rating Group, a division of McGraw-Hill, Inc., or P-1 (or
                  better) by Moody's Investors Services, Inc.; PROVIDED, THAT
                  (x) the maturities of such Cash Equivalents shall not exceed
                  one year and (y) such Cash Equivalents shall be maintained in
                  investment and other accounts of the

                                       7
<PAGE>

                  Existing Credit Agent at Citibank or accounts at other
                  investment banks or financial institutions acceptable to the
                  Agent."

                           " 'CERCLA' means the Comprehensive Environmental
                  Response, Compensation and Liability Act of 1980, 42
                  U.S.C.ss.ss.9601 ET SEQ., any amendments thereto, any
                  successor statutes, and any regulations promulgated
                  thereunder."

                           " 'CHANGE OF CONTROL' means (i) with respect to
                  Aviation Sales, (a) the occurrence of a change in more than
                  fifty percent (50%) of the Parent Board or (b) any Person
                  acquiring, directly or indirectly, voting control of
                  thirty-five percent (35%) or more of the issued and
                  outstanding Capital Stock of Aviation Sales and (ii) with
                  respect to any Guarantor, Aviation Sales ceasing to own,
                  directly or indirectly, and retain voting control of all
                  issued and outstanding Capital Stock of such Guarantor, in the
                  case of any of (I)(A), (I)(B) or (II), without the prior
                  written consent of the Majority Lenders, which consent shall
                  not be unreasonably withheld."

                           " 'CITIBANK' means Citibank, N.A., a national banking
                  association."

                           " 'CITICORP' means Citicorp USA, Inc., a Delaware
                  corporation."

                           " 'CITICORP LOAN DOCUMENTS' means the 'Loan
                  Documents' as defined in the Existing Aviation Sales Credit
                  Agreement (as amended, modified or restated from time to
                  time)."

                           " 'CITICORP BORROWERS' means, collectively,
                  Distribution, Bearings, Leasing, Aerocell, Apex, Caribe,
                  Kratz-Wilde, Design, Triad International Maintenance
                  Corporation, a Delaware corporation, Whitehall Corporation, a
                  Delaware corporation, and TIMCO Engine."

                           " 'COMMISSION' means the Securities and Exchange
                  Commission and any Person succeeding to the functions
                  thereof."

                           " 'COMPLIANCE CERTIFICATE' shall have the meaning
                  assigned thereto in Section 28.1.1(d) of the Lease."

                           " 'CONSOLIDATED EBITDA' with respect to Aviation
                  Sales and its Subsidiaries for any period of computation
                  thereof, the SUM, without duplication, of (i) Consolidated Net
                  Income, (ii) Consolidated Interest Expense, (iii) taxes on
                  federal, state and local income deducted from Consolidated Net
                  Income, (iv) amortization, (v) depreciation, and (vi) any
                  other item that may be approved by the Agent and the Majority
                  Lenders (in their sole discretion), MINUS (vii) extraordinary
                  gains, all determined on a consolidated basis in accordance
                  with GAAP applied on a Consistent Basis."

                           " 'CONSOLIDATED FIXED CHARGE RATIO' means, with
                  respect to Aviation Sales and its Subsidiaries for any period
                  of computation thereof, the RATIO OF (a)

                                       8
<PAGE>

                  the amount calculated as (i) Consolidated EBITDA MINUS (ii)
                  (without duplication) Capital Expenditures made in cash during
                  such period (iii) MINUS all taxes paid in cash during such
                  period by Aviation Sales and its Subsidiaries (net of tax
                  refunds received in cash during such period by Aviation Sales
                  and its Subsidiaries) TO (b) Consolidated Fixed Charges for
                  such period."

                           " 'CONSOLIDATED FIXED CHARGES' means, with respect to
                  Aviation Sales and its Subsidiaries for any period of
                  computation thereof, the SUM, without duplication, of (i) the
                  aggregate amount of interest paid in cash on Indebtedness
                  during such period (net of amounts under Hedge Agreements and
                  interest income, in each case actually received, without
                  duplication), (ii) the aggregate amount of scheduled payments
                  of principal of Funded Debt during such period and (iii) all
                  dividends and other distributions (other than distributions in
                  the form of capital stock of Aviation Sales) paid during such
                  period (regardless of when declared) on any shares of capital
                  stock of Aviation Sales then outstanding), all determined on a
                  consolidated basis in accordance with GAAP applied on a
                  Consistent Basis."

                           " 'CONTAMINANT' means any waste, pollutant, hazardous
                  substance, toxic substance, hazardous waste, special waste,
                  petroleum or petroleum-derived substance or waste, radioactive
                  materials, asbestos (in any form or condition),
                  polychlorinated biphenyls (PCBs), or any constituent of any
                  such substance or waste, and includes, but is not limited to,
                  these terms as defined in federal, state or local laws or
                  regulations."

                           " 'CONTRACTUAL OBLIGATION', as applied to any Person,
                  means any provision of any Securities issued by that Person or
                  any indenture, mortgage, deed of trust, security agreement,
                  pledge agreement, guaranty, contract, undertaking, agreement
                  or instrument to which that Person is a party or by which it
                  or any of its properties is bound, or to which it or any of
                  its properties is subject."

                           " 'DESIGN' means Aircraft Interior Design, Inc., a
                  Florida corporation."

                           " 'DISTRIBUTION' means Aviation Sales Distribution
                  Company, a Delaware corporation and wholly-owned Subsidiary of
                  Aviation Sales."

                           " 'DOL' means the United States Department of Labor
                  and any Person succeeding to the functions thereof."

                           " 'ELIGIBLE INVENTORy' shall have the meaning
                  assigned thereto in the Existing Aviation Sales Credit
                  Agreement."

                           " 'ELIGIBLE RECEIVABLES' shall have the meaning as
                  assigned thereto in the Existing Aviation Sales Credit
                  Agreement."

                           " 'ENVIRONMENTAL, HEALTH OR SAFETY REQUIREMENTS OF
                  LAW' means all laws, rules, regulations and determinations of
                  any arbitrator, court or other Governmental Authority derived
                  from or relating to any federal, state or local

                                       9
<PAGE>

                  law, ordinance, rule, regulation, Permit, license or other
                  binding determination of any Governmental Authority relating
                  to, imposing liability or standards concerning, or otherwise
                  addressing, the environment, health and/or safety, including,
                  but not limited to the Clean Air Act, the Clean Water Act,
                  CERCLA, RCRA, any so-called 'Superfund' or 'Superlien' law,
                  the Toxic Substances Control Act, OSHA, and applicable public
                  health codes, each as from time to time in effect."

                           " 'ENVIRONMENTAL LIEN' means a Lien in favor of any
                  Governmental Authority for any (i) liabilities under any
                  Environmental, Health or Safety Requirement of Law, or (ii)
                  damages arising from, or costs incurred by such Governmental
                  Authority in response to, a Release or threatened Release of a
                  Contaminant into the environment."

                           " 'ENVIRONMENTAL PROPERTY TRANSFER ACTS' means any
                  applicable Requirement of Law that conditions, restricts,
                  prohibits or requires any notification or disclosure triggered
                  by the transfer, sale, lease or closure of any Asset or deed
                  or title for any Asset for environmental reasons, including,
                  but not limited to, any so-called 'Industrial Site Recovery
                  Acts' or 'Responsible Property Transfer Acts'."

                           " 'ERISA' means the Employee Retirement Income
                  Security Act of 1974, 29 U.S.C.ss.ss.1000 ET SEQ., any
                  amendments thereto, any successor statutes, and any
                  regulations or guidance promulgated thereunder."

                           " 'ERISA AFFILIATE' means (i) any corporation which
                  is a member of the same controlled group of corporations
                  (within the meaning of Section 414(b) of the Internal Revenue
                  Code) as Aviation Sales or any Guarantor or any Subsidiary of
                  Aviation Sales; (ii) a partnership or other trade or business
                  (whether or not incorporated) which is under common control
                  (within the meaning of Section 414(c) of the Internal Revenue
                  Code) with Aviation Sales or any Guarantor or any Subsidiary
                  of Aviation Sales; and (iii) a member of the same affiliated
                  service group (within the meaning of Section 414(m) of the
                  Internal Revenue Code) as Aviation Sales or any Guarantor or
                  any Subsidiary of Aviation Sales; any corporation described in
                  CLAUSE (I) above or any partnership or trade or business
                  described in CLAUSE (II) above."

                           " 'EXISTING AVIATION SALES CREDIT AGREEMENT' shall
                  mean that certain Fourth Amended and Restated Credit Agreement
                  dated as of May 31, 2000, by and among the co-borrowers party
                  thereto, Aviation Sales, Citicorp USA, Inc. as agent, and the
                  lenders and issuing banks party thereto, without giving effect
                  to any subsequent amendment thereto."

                           " 'FAIR MARKET VALUE' means, with respect to any
                  asset, the value of the consideration obtainable in a sale of
                  such asset in the open market, assuming a sale by a willing
                  seller to a willing purchaser dealing at arm's length and
                  arranged in an orderly manner over a reasonable period of
                  time, each having reasonable

                                       10
<PAGE>

                  knowledge of the nature and characteristics of such asset,
                  neither being under any compulsion to act, and, if in excess
                  of $250,000, as determined in an appraisal of such asset,
                  PROVIDED THAT for purposes of SECTION 28.3.2 of the Lease,
                  such appraisal was performed relatively contemporaneously with
                  such sale by an independent third party appraiser and the
                  basic assumptions underlying such appraisal have not
                  materially changed since the date thereof."

                           " 'FEDERAL RESERVE BOARD' means the Board of
                  Governors of the Federal Reserve System or any Governmental
                  Authority succeeding to its functions."

                           " 'FINANCE AFFILIATE' means Aviation Sales Finance
                  Company, a Delaware corporation and wholly-owned Subsidiary of
                  Aviation Sales."

                           " 'FINANCIAL STATEMENTS' means (i) statements of
                  income and retained earnings, statements of cash flow, and
                  balance sheets, (ii) such other financial statements as the
                  Parent and/or and its Subsidiaries shall routinely and
                  regularly prepare and (iii) such other financial statements as
                  the Agent or the Majority Lenders may from time to time
                  reasonably specify."

                           " 'FISCAL QUARTER' means a fiscal quarter in a Fiscal
                  Year."

                           " 'FISCAL YEAR' means the fiscal year of Aviation
                  Sales and its Subsidiaries for accounting and tax purposes,
                  which shall be the 52-week period ending on December 31 of
                  each calendar year."

                            " 'FOREIGN EMPLOYEE BENEFIT PLAN' means any employee
                  benefit plan as defined in Section 3(3) of ERISA which is
                  maintained or contributed to for the benefit of the employees
                  of Aviation Sales, any of its Subsidiaries, or any of its
                  ERISA Affiliates and is not covered by ERISA pursuant to ERISA
                  Section 4(b)(4)."

                           " 'FOREIGN SUBSIDIARY' means any Subsidiary of
                  Aviation Sales which is domiciled outside of the United States
                  of America and its states, districts and possessions."

                           " 'FOUR-QUARTER PERIOD' means any period of four
                  consecutive Fiscal Quarters."

                           " 'FUNDED DEBT' means, with respect to any Person,
                  (a) Indebtedness of such Person and its Subsidiaries for
                  borrowed money (determined in accordance with GAAP),
                  including, without limitation, Indebtedness under Capital
                  Leases, plus (b) the Property Cost under the Operative
                  Agreements."

                           " 'FUNDING DATE' means, with respect to any Loan, the
                  date of funding of such Loan."

                           " 'GAAP' means generally accepted accounting
                  principles set forth in the opinions and pronouncements of the
                  American Institute of Certified Public

                                       11
<PAGE>

                  Accountants' Accounting Principles Board and Financial
                  Accounting Standards Board or in such other statements by such
                  other entity as may be in general use by significant segments
                  of the accounting profession as in effect on the date hereof
                  (unless otherwise specified herein as in effect on another
                  date or dates)."

                           " 'GENERAL INTANGIBLES' means, with respect to any
                  Person, all of such Person's present and future (i) general
                  intangibles, (ii) rights, interests, choses in action, causes
                  of action, claims and other intangible property of every kind
                  and nature (other than Receivables), (iii) corporate and other
                  business records, (iv) loans, royalties, and other obligations
                  receivable, (v) trademarks, registered trademarks, trademark
                  applications, service marks, registered service marks, service
                  mark applications, patents, registered patents, patent
                  applications, trade names, rights of use of any name, labels,
                  fictitious names, inventions, designs, trade secrets, computer
                  programs, software, printouts and other computer materials,
                  goodwill, registrations, copyrights, copyright applications,
                  permits, licenses, franchises, customer lists, credit files,
                  correspondence, and advertising materials, (vi) customer and
                  supplier contracts, firm sale orders, rights under license and
                  franchise agreements, rights under tax sharing agreements, and
                  other contracts and contract rights, (vii) interests in
                  partnerships and joint ventures, (viii) tax refunds and tax
                  refund claims, (ix) right, title and interest under leases,
                  subleases, licenses and concessions and other agreements
                  relating to property, (x) deposit accounts (general or
                  special) with any bank or other financial institution, (xi)
                  credits with and other claims against third parties (including
                  carriers and shippers), (xii) rights to indemnification and
                  with respect to support and keep-well agreements, (xiii)
                  reversionary interests in pension and profit sharing plans and
                  reversionary, beneficial and residual interests in trusts,
                  (xiv) proceeds of insurance of which such Person is
                  beneficiary, (xv) letters of credit, guarantees, Liens,
                  security interests and other security held by or granted to
                  such Person, (xvi) uncertificated securities, and (xvii)
                  dividends and distributions and claims with respect to
                  dividends and distributions."

                           " 'GOVERNMENTAL AUTHORITY' means any nation or
                  government, any federal, state, local or other political
                  subdivision thereof and any entity exercising executive,
                  legislative, judicial, regulatory or administrative functions
                  of or pertaining to government."

                           " 'HEDGE AGREEMENT' means any agreement, including,
                  without limitation, interest rate exchange, swap, collar or
                  cap agreement, interest rate future or option contract,
                  currency swap agreement, currency future or option contract,
                  and other similar agreement, evidencing an agreement or
                  arrangement intended to protect against fluctuation in
                  interest rates and/or foreign exchange rates, conversion rates
                  for conversion of foreign currencies to Dollars, or inability
                  of any foreign Person to transfer Dollars to a Person in the
                  United States."

                           " 'IMPERMISSIBLE REFERENCE' shall mean, relative to
                  the opinion or certification of any independent public
                  accountant as to any Financial Statement of any Person, any
                  qualification or exception to such opinion or certification

                                       12
<PAGE>

                                    (a) which expresses concern about whether or
                           not such Person will be able to meet its obligations
                           as such become due, or otherwise will be able to
                           operate or conduct its business in the future, or
                           which otherwise expresses concerns of a "going
                           concern" nature about such Person;

                                    (b) which relates to the limited scope of
                           examination of matters relevant to such financial
                           statement; or

                                    (c) which relates to the treatment or
                           classification of any item in such Financial
                           Statement and which, as a condition to its removal,
                           would require an adjustment to such item the effect
                           of which would be to cause there to be a Default or
                           Event of Default under Article XVIII of the Lease."

                           " 'INDEBTEDNESS', as applied to any Person, means, at
                  any time, without duplication, (a) all indebtedness,
                  obligations or other liabilities of such Person (i) for
                  borrowed money or evidenced by debt securities, debentures,
                  acceptances, notes or other similar instruments, and any
                  accrued interest, fees and charges relating thereto, (ii)
                  under profit payment agreements or in respect of obligations
                  to redeem, repurchase or exchange any Securities of such
                  Person or to pay dividends in respect of any stock, (iii) with
                  respect to letters of credit issued for such Person's account,
                  (iv) to pay the deferred purchase price of property or
                  services, except accounts payable and accrued expenses arising
                  in the ordinary course of business, (v) in respect of Capital
                  Leases, (vi) which are Accommodation Obligations or (vii)
                  under warranties and indemnities; (b) all indebtedness,
                  obligations or other liabilities of such Person or others
                  secured by a Lien on any property of such Person, whether or
                  not such indebtedness, obligations or liabilities are assumed
                  by such Person, all as of such time; (c) all indebtedness,
                  obligations or other liabilities of such Person in respect of
                  Hedge Agreements, net of liabilities owed to such Person by
                  the counterparties thereon; (d) all preferred stock subject
                  (upon the occurrence of any contingency or otherwise) to
                  mandatory redemption; (e) all ERISA obligations currently due
                  and payable; and (f) all contingent Contractual Obligations
                  with respect to any of the foregoing."

                           " 'INTERNAL REVENUE CODE' means the Internal Revenue
                  Code of 1986, as amended to the date hereof and from time to
                  time hereafter, any successor statute and any regulations or
                  guidance promulgated thereunder."

                           " 'INVENTORY' means, with respect to any Person, all
                  of such Person's present and future (i) inventory, (ii) goods,
                  merchandise and other personal property furnished or to be
                  furnished under any contract of service or intended for sale
                  or lease, and all consigned goods and all other items which
                  have previously constituted Non-Trol Equipment of such Person
                  but are then currently being held for sale or lease in the
                  ordinary course of such Person's business, (iii) raw
                  materials, work-in-process and finished goods, (iv) materials
                  and supplies of any

                                       13
<PAGE>

                  kind, nature or description used or consumed in such Person's
                  business or in connection with the manufacture, production,
                  packing, shipping, advertising, finishing or sale of any of
                  the property described in CLAUSES (I) through (III) above, (v)
                  goods in which such Person has a joint or other interest or
                  right of any kind (including, without limitation, goods in
                  which such Person has an interest or right as consignee), and
                  (vi) goods which are returned to or repossessed by such
                  Person; in each case whether in the possession of such Person,
                  a bailee, a consignee, or any other Person for sale, storage,
                  transit, processing, use or otherwise, and any and all
                  documents for or relating to any of the foregoing."

                           " 'INVESTMENT' means, with respect to any Person, (i)
                  any purchase or other acquisition by that Person of
                  Securities, or of a beneficial interest in Securities, issued
                  by any other Person, (ii) any purchase by that Person of all
                  or substantially all of the assets of a business conducted by
                  another Person, and (iii) any loan, advance (other than
                  deposits with financial institutions available for withdrawal
                  on demand, prepaid expenses, accounts receivable, advances to
                  employees and similar items made or incurred in the ordinary
                  course of business) or capital contribution by that Person to
                  any other Person, including all Indebtedness to such Person
                  arising from a sale of property by such Person other than in
                  the ordinary course of its business. The amount of any
                  Investment shall be the original cost of such Investment, plus
                  the cost of all additions thereto less the amount of any
                  return of capital or principal to the extent such return is in
                  cash with respect to such Investment without any adjustments
                  for increases or decreases in value or write-ups, write-downs
                  or write-offs with respect to such Investment."

                           " 'IRS' means the Internal Revenue Service and any
                  Person succeeding to the functions thereof."

                           " 'KRATZ-WILDE' means AVS/Kratz-Wilde Machine
                  Company, a Delaware corporation and wholly-owned Subsidiary of
                  Manufacturing."

                           " 'LEASED INVENTORY' means aircraft spare parts
                  Inventory which is subject to any lease agreement or
                  arrangement."

                           " 'LEASING' means Aviation Sales Leasing Company, a
                  Delaware corporation and a wholly-owned Subsidiary of Aviation
                  Sales."

                           " 'LIABILITIES AND COSTS' means all liabilities,
                  obligations, responsibilities, losses, damages, personal
                  injury, death, punitive damages, economic damages,
                  consequential damages, treble damages, intentional, willful or
                  wanton injury, damage or threat to the environment, natural
                  resources or public health or welfare, costs and expenses
                  (including, without limitation, attorney, expert and
                  consulting fees and costs and fees and costs associated with
                  any investigation, feasibility or Remedial Action studies),
                  fines, penalties and monetary sanctions, interest, direct or
                  indirect, known or unknown, absolute or contingent, past,
                  present or future."

                                       14
<PAGE>

                           " 'LIEN' means any mortgage, deed of trust, pledge,
                  hypothecation, assignment, conditional sale or other title
                  retention agreement, deposit arrangement, security interest,
                  encumbrance (including, without limitation, easements,
                  rights-of-way, zoning restrictions and the like), lien
                  (statutory or other and including, without limitation, any
                  Environmental Lien), preference, priority or other security
                  agreement or preferential arrangement of any kind or nature
                  whatsoever in respect of any property of a Person, whether
                  granted voluntarily or imposed by law, and includes the
                  interest of a lessor under a Capital Lease or under any
                  financing lease having substantially the same economic effect
                  as any of the foregoing and the filing of any financing
                  statement or similar notice (other than a financing statement
                  filed by a 'true' lessor pursuant to ss. 9-408 of the Uniform
                  Commercial Code), naming the owner of such property as debtor,
                  under the Uniform Commercial Code or other comparable law of
                  any jurisdiction. Without limiting the generality of the
                  foregoing, with respect to any Property, "Lien" shall mean (a)
                  any of the Liens described in the preceding sentence, or (b)
                  any option with respect to such Property."

                           " 'MANUFACTURING' means Aviation Sales Manufacturing
                  Company, a Delaware corporation and wholly-owned Subsidiary of
                  Aviation Sales."

                           " 'MARGIN STOCK' means 'margin stock' as such term is
                  defined in Regulation U."

                           " 'MIS' means computerized management information
                  system for recording and maintenance of information regarding
                  purchases, sales, aging, categorization, and locations of
                  Inventory, creation and aging of Receivables, and accounts
                  payable (including agings thereof)."

                           " 'MR&O' means Aviation Sales Maintenance, Repair &
                  Overhaul Company, a Delaware corporation and wholly-owned
                  Subsidiary of Aviation Sales."

                           " 'MULTIEMPLOYER PLAN' means a 'multiemployer plan'
                  as defined in Section 4001(a)(3) of ERISA (other than a
                  Foreign Employee Benefit Plan) which is, or within the
                  immediately preceding six (6) years was, contributed to by
                  either Aviation Sales, any Guarantor, any Subsidiary of
                  Aviation Sales or any ERISA Affiliate or in respect of which
                  Aviation Sales, any Guarantor, any Subsidiary of Aviation
                  Sales or any ERISA Affiliate has assumed any liability."

                           " 'NET CASH PROCEEDS OF SALE' means (i) proceeds
                  received by Aviation Sales or any Guarantor or any Subsidiary
                  of Aviation Sales in cash (including cash, equivalents readily
                  convertible into cash, and such proceeds of any notes received
                  as consideration or any other non-cash consideration) from the
                  sale, assignment or other disposition of (but not the lease or
                  license of) any Asset, other than sales permitted under
                  CLAUSES (C), (d)(ii)(A), and (E) of SECTION 28.3.2, net of (a)
                  the costs of sale, assignment or other disposition, (b) any
                  income, franchise, transfer or other tax liability arising
                  from such transaction and (c) amounts

                                       15
<PAGE>

                  applied to the repayment of Indebtedness (other than the
                  Obligations under the Existing Aviation Sales Credit
                  Agreement) secured by a Lien permitted by SECTION 28.3.3 on
                  the asset disposed of, if such net proceeds arise from any
                  individual sale, assignment or other disposition or from any
                  group of related sales, assignments or other dispositions; and
                  (ii) to the extent provided in SECTION 9.08 of the Existing
                  Aviation Sales Credit Agreement, proceeds of insurance on
                  account of the loss of or damage to any such Asset, and
                  payments of compensation for any such Asset taken by
                  condemnation or eminent domain."

                           " 'NON-TROL EQUIPMENT' means, with respect to any
                  Person, all of such Person's present and future (i) equipment,
                  including, without limitation, machinery, manufacturing,
                  distribution, selling, data processing and office equipment,
                  assembly systems, tools, molds, dies, fixtures, appliances,
                  furniture, furnishings, vehicles, vessels, aircraft, aircraft
                  engines, and trade fixtures, (ii) other tangible personal
                  property (other than such Person's Inventory), and (iii) any
                  and all accessions, parts and appurtenances attached to any of
                  the foregoing or used in connection therewith, and any
                  substitutions therefor and replacements, products and proceeds
                  thereof."

                           " 'OFFICER'S CERTIFICATE' means a certificate
                  executed on behalf of Aviation Sales by its chairman,
                  president, chief financial officer, or treasurer, or on behalf
                  of Aviation Sales and its Subsidiaries by Aviation Sales'
                  chairman, president, chief financial officer or treasurer."

                           " 'OPERATING LEASE' means, as applied to any Person,
                  any lease of any property (whether real, personal or mixed) by
                  that Person as lessee which is not a Capital Lease."

                           " 'ORGANIZATIONAL DOCUMENTS' means, with respect to
                  any corporation, limited liability company, or partnership (i)
                  the articles/certificate of incorporation (or the equivalent
                  organizational documents) of such corporation or limited
                  liability company, (ii) the partnership agreement executed by
                  the partners in the partnership, (iii) the by-laws (or the
                  equivalent governing documents) of the corporation, limited
                  liability company or partnership, and (iv) any document
                  setting forth the designation, amount and/or relative rights,
                  limitations and preferences of any class or series of such
                  corporation's Capital Stock or such limited liability
                  company's or partnership's equity or ownership interests."

                           " 'OSHA' means the Occupational Safety and Health Act
                  of 1970, 29 U.S.C.ss.ss.651 ET SEQ., any amendments thereto,
                  any successor statutes and any regulations or guidance
                  promulgated thereunder."

                           " 'OVERADVANCE AMOUNT' shall have the meaning
                  assigned thereto in the Existing Aviation Sales Credit
                  Agreement."

                           " 'PARENT BOARD' means Board of Directors of Aviation
                  Sales comprised of those Persons who are members of such Board
                  of Directors on the Effective Date

                                       16
<PAGE>

                  and identified on SCHEDULE 1.01.5 attached hereto and made a
                  part hereof and those members of such Board of Directors who
                  are elected as referenced in SECTION 12.01(O) of the Existing
                  Aviation Sales Credit Agreement."

                           " 'PBGC' means the Pension Benefit Guaranty
                  Corporation and any Person succeeding to the functions
                  thereof."

                           " 'PERFORMANCE LEVEL 1' shall mean that level of
                  financial performance of Aviation Sales and its Subsidiaries,
                  on a consolidated basis, measured as of the end of a Fiscal
                  Quarter, at which the Consolidated Funded Debt-to-EBITDA Ratio
                  of Aviation Sales for the then most recently ended
                  Four-Quarter Period is less than or equal to 4.5 to 1.0."

                           " 'PERFORMANCE LEVEL 2' shall mean that level of
                  financial performance of Aviation Sales and its Subsidiaries,
                  on a consolidated basis, measured as of the end of a Fiscal
                  Quarter, at which the Consolidated Funded Debt-to-EBITDA Ratio
                  of Aviation Sales for the then most recently ended
                  Four-Quarter Period is greater than 4.5 to 1.0 and less than
                  or equal to 5.0 to 1.0."

                           " 'PERFORMANCE LEVEL 3' shall mean that level of
                  financial performance of Aviation Sales and its Subsidiaries,
                  on a consolidated basis, measured as of the end of a Fiscal
                  Quarter, at which the Consolidated Funded Debt-to-EBITDA Ratio
                  of Aviation Sales for the then most recently ended
                  Four-Quarter Period is greater than 5.0 to 1.0."

                           " 'PERMITS' means any permit, approval, authorization
                  license, variance, or permission required from a Governmental
                  Authority or other Person under an applicable Requirement of
                  Law."

                           " 'PERMITTED EQUITY SECURITIES OPTIONS' means the
                  subscriptions, options, warrants, rights, convertible
                  securities and other agreements or commitments relating to the
                  issuance of equity Securities of the Parent identified as such
                  on SCHEDULE 1.01.6."

                           " 'PERSON' means any natural person, corporation,
                  limited liability company, limited partnership, general
                  partnership, joint stock company, joint venture, association,
                  company, trust, bank, trust company, land trust, business
                  trust or other organization, whether or not a legal entity,
                  any other non-governmental entity, and any Governmental
                  Authority."

                           " 'PLAN' means an employee benefit plan defined in
                  Section 3(3) of ERISA (other than a Foreign Employee Benefit
                  Plan) in respect of which Aviation Sales, any Guarantor, any
                  Subsidiary of Aviation Sales or any ERISA Affiliate is, or
                  within the immediately preceding six (6) years was, an
                  'employer' as defined in Section 3(5) of ERISA or Aviation
                  Sales, any Guarantor, any Subsidiary of Aviation Sales or any
                  ERISA Affiliate has assumed any liability."

                                       17
<PAGE>

                           " 'PROJECTIONS' means the respective consolidated and
                  consolidating financial projections of (i) Aviation Sales and
                  its Subsidiaries and (ii) the Citicorp Borrowers and their
                  Subsidiaries (a) by business segment for each calendar month
                  during the period June - December 2000 and (b) for each of the
                  Fiscal Years ending in 2000, 2001 and 2002 (including, without
                  limitation, capital expenditure budget), in each instance,
                  together with related assumptions, prepared by Aviation Sales
                  and dated as of the Amendment Effective Date."

                           " 'RATIO OF SENIOR DEBT TO EBITDA' means, for any
                  period, the ratio of (i) the amount equal to the Consolidated
                  Funded Debt of Aviation Sales and its Subsidiaries MINUS the
                  principal amount outstanding under the Senior Subordinated
                  Notes calculated as of the last day of such period to (ii)
                  Consolidated EBITDA of Aviation Sales and its Subsidiaries for
                  such period."

                           " 'RCRA' means the Resource Conservation and Recovery
                  Act of 1976, 42 U.S.C.ss.ss. 6901 ET SEQ., any amendments
                  thereto, any successor statutes, and any regulations
                  promulgated thereunder."

                           " 'REAL PROPERTY' means, with respect to any Person,
                  all of such Person's present and future right, title and
                  interest (including, without limitation, any leasehold estate)
                  in (i) any plots, pieces or parcels of land, (ii) any
                  improvements, buildings, structures and fixtures now or
                  hereafter located or erected thereon or attached thereto of
                  every nature whatsoever (the rights and interests described in
                  CLAUSES (I) and (II) above being the 'Premises'), (iii) all
                  easements, rights of way, gores of land or any lands occupied
                  by streets, ways, alleys, passages, sewer rights, water
                  courses, water rights and powers, and public places adjoining
                  such land, and any other interests in property constituting
                  appurtenances to the Premises, or which hereafter shall in any
                  way belong, relate or be appurtenant thereto, (iv) all
                  hereditaments, gas, oil, minerals (with the right to extract,
                  sever and remove such gas, oil and minerals), and easements,
                  of every nature whatsoever, located in or on the Premises and
                  (v) all other rights and privileges thereunto belonging or
                  appertaining and all extensions, additions, improvements,
                  betterments, renewals, substitutions and replacements to or of
                  any of the rights and interests described in CLAUSES (III) and
                  (iv) above."

                           " 'RECEIVABLES' means, with respect to any Person,
                  all of such Person's present and future (i) accounts, (ii)
                  contract rights, chattel paper, instruments, documents,
                  deposit accounts, and other rights to payment of any kind,
                  whether or not arising out of or in connection with the sale
                  or lease of goods or the rendering of services, and whether or
                  not earned by performance, (iii) any of the foregoing which
                  are not evidenced by instruments or chattel paper, (iv)
                  intercompany receivables, and any security documents executed
                  in connection therewith, (v) proceeds of any letters of credit
                  or insurance policies on which such Person is named as
                  beneficiary, (vi) claims against third parties for advances
                  and other financial accommodations and any other obligations
                  whatsoever owing to such Person, (vii) rights in and to all
                  security agreements, leases, guarantees, instruments,
                  securities, documents of title and other contracts securing,

                                       18
<PAGE>

                  evidencing, supporting or otherwise relating to any of the
                  foregoing, together with all rights in any goods, merchandise
                  or Inventory which any of the foregoing may represent, and
                  (viii) rights in returned and repossessed goods, merchandise
                  and Inventory which any of the same may represent, including,
                  without limitation, any right of stoppage in transit."

                           " 'REGULATION A' means Regulation A of the Federal
                  Reserve Board as in effect from time to time."

                           " 'REGULATION T' means Regulation T of the Federal
                  Reserve Board as in effect from time to time."

                           " 'REGULATION U' means Regulation U of the Federal
                  Reserve Board as in effect from time to time."

                           " 'REGULATION X' means Regulation X of the Federal
                  Reserve Board as in effect from time to time."

                           " 'RELEASE' means any release, spill, emission,
                  leaking, pumping, pouring, dumping, injection, deposit,
                  disposal, abandonment, or discarding of barrels, containers or
                  other receptacles, discharge, emptying, escape, dispersal,
                  leaching or migration into the indoor or outdoor environment
                  or into or out of any Asset, including the movement of
                  Contaminants through or in the air, soil, surface water,
                  groundwater or Asset."

                           " 'REMEDIAL ACTION' means actions required to (i)
                  clean up, remove, treat or in any other way address
                  Contaminants in the indoor or outdoor environment; (ii)
                  prevent the Release or threat of Release or minimize the
                  further Release of Contaminants; or (iii) investigate and
                  determine if a remedial response is needed and to design such
                  a response and post-remedial investigation, monitoring,
                  operation and maintenance and care."

                           " 'REPORTABLE EVENT' means any of the events
                  described in Section 4043(b) of ERISA and the regulations
                  promulgated thereunder as in effect from time to time other
                  than an event for which the thirty (30) day notice requirement
                  has been waived by the PBGC."

                           " 'REQUIREMENTS OF LAW' means, as to any Person, the
                  charter and by-laws or other organizational or governing
                  documents of such Person, and any law, rule or regulation, or
                  determination of an arbitrator or a court or other
                  Governmental Authority, in each case applicable to or binding
                  upon such Person or any of its property or to which such
                  Person or any of its property is subject including, without
                  limitation, the Securities Act, the Securities Exchange Act,
                  Regulations T, U and X, ERISA, the Fair Labor Standards Act,
                  the Worker Adjustment and Retraining Notification Act,
                  Americans with Disabilities Act of 1990, and any certificate
                  of occupancy, zoning ordinance, building, environmental or
                  land use requirement or Permit or any Environmental, Health or
                  Safety Requirement of Law."

                                       19
<PAGE>

                           " 'RESTRICTED JUNIOR PAYMENT' means (i) any dividend
                  or other distribution, direct or indirect, on account of any
                  equity Securities of Aviation Sales or any Guarantor or any
                  Subsidiary of Aviation Sales now or hereafter outstanding,
                  (ii) any redemption, retirement, sinking fund or similar
                  payment, purchase or other acquisition for value, direct or
                  indirect, of any Securities of Aviation Sales or any Guarantor
                  or any Subsidiary of Aviation Sales now or hereafter
                  outstanding, (iii) any payment or prepayment of principal of,
                  premium, if any, or interest, fees or other charges on or with
                  respect to, and any redemption, purchase, retirement,
                  defeasance, sinking fund or similar payment and any claim for
                  rescission with respect to, any Indebtedness owing at any time
                  to any Affiliate of Aviation Sales or any Guarantor, (iv) any
                  payment made to redeem, purchase, repurchase or retire, or to
                  obtain the surrender of, any outstanding warrants, options or
                  other rights to acquire equity Securities of Aviation Sales or
                  any Guarantor or any Subsidiary of Aviation Sales now or
                  hereafter outstanding, and (v) any fees or other remuneration
                  paid to Aviation Sales, Finance Affiliate, Manufacturing, or
                  any Subsidiary of Aviation Sales by Aviation Sales or any
                  Guarantor or any Subsidiary of Aviation Sales."

                           " 'REVOLVING CREDIT COMMITMENTS' shall have the
                  meaning assigned thereto in the Existing Aviation Sales Credit
                  Agreement."

                           " 'SCHEDULED INTEREST PAYMENT DATE' shall mean (a) as
                  to any Eurodollar Loan (or Eurodollar Holder Funding), the
                  last day of the Interest Period applicable to such Eurodollar
                  Loan (or Holder Funding), and if such Interest Period is for
                  more than three months, at intervals of three months after the
                  first day of such Interest Period, and (b) as to any Base Rate
                  Loan (or Base Rate Holder Funding), the last Business Day of
                  each calendar quarter, and (c) as to any Loan (or Holder
                  Funding), the Maturity Date."

                           " 'SECURITIES' means any stock, shares, voting trust
                  certificates, limited partnership certificates, bonds,
                  debentures, notes or other evidences of indebtedness, secured
                  or unsecured, convertible, subordinated or otherwise, or in
                  general any instruments commonly known as 'securities',
                  including, without limitation, any 'security' as such term is
                  defined in Section 8-102 of the Uniform Commercial Code, or
                  any certificates of interest, shares, or participations in
                  temporary or interim certificates for the purchase or
                  acquisition of, or any right to subscribe to, purchase or
                  acquire any of the foregoing, but shall not include the Notes
                  or the Certificates."

                           " 'SECURITIES ACT' means the Securities Act of 1933,
                  as amended from time to time, and any successor statute."

                           " 'SECURITIES EXCHANGE ACT' means the Securities
                  Exchange Act of 1934, as amended from time to time, and any
                  successor statute."

                           " 'SENIOR SUBORDINATED NOTES' means the 8-1/8% Senior
                  Subordinated Notes due 2008 in an aggregate principal amount
                  of up to $250,000,000 issued by

                                       20
<PAGE>

                  Aviation Sales under that certain Indenture dated as of
                  February 17, 1998, as the same may be amended or supplemented
                  with respect to the principal amount of Indebtedness issued
                  thereunder, between the Parent and SunTrust Bank, Central
                  Florida, National Association, as trustee."

                           " 'SENIOR SUBORDINATED NOTES GUARANTIES' means,
                  collectively, the unsecured guaranties of payment of the
                  Senior Subordinated Notes executed by Guarantors which are
                  Subsidiaries of Aviation Sales."

                           " 'SUPPLEMENTAL TERM LOAN' means that certain term
                  loan made by Citicorp USA, Inc. to the Citicorp Borrowers
                  pursuant to the Term Loan Note dated February 18, 2000, as
                  amended (the 'Supplemental Term Loan Note')."

                           " 'SUPPLEMENTAL TERM LOAN WARRANT' means that certain
                  Common Stock Warrant Certificate issued by Aviation Sales to
                  Citicorp USA, Inc., and Amendment No. 1 thereto dated May 31,
                  2000, which warrant certificate and amendment are in the form
                  attached hereto as EXHIBIT N."

                           " 'SUBSIDIARY' of a Person means any corporation,
                  limited liability company, general or limited partnership,
                  trust, or other entity of which securities or other ownership
                  interests having ordinary voting power to elect a majority of
                  the board of directors or other Persons performing similar
                  functions with respect to such entity are at the time directly
                  or indirectly owned or controlled by such Person, one or more
                  of the other subsidiaries of such Person or any combination
                  thereof, or in the case of an entity which is a partnership,
                  of which such Person is a general partner."

                           " 'TANGIBLE NET WORTH' means the amount calculated as
                  (i) the consolidated net worth of Aviation Sales and its
                  Subsidiaries MINUS (ii) the consolidated intangibles of
                  Aviation Sales and its Subsidiaries including, without
                  limitation, goodwill, trademarks, tradenames, copyrights,
                  patents, patent applications, licenses and rights in any
                  thereof and other items treated as intangibles in accordance
                  with GAAP."

                           " 'TERMINATION EVENT' means (i) a Reportable Event
                  with respect to any Benefit Plan; (ii) the withdrawal of
                  Aviation Sales, any Guarantor, any Subsidiary of Aviation
                  Sales or any ERISA Affiliate from a Benefit Plan during a plan
                  year in which Aviation Sales, such Guarantor, such Subsidiary
                  or such ERISA Affiliate was a 'substantial employer' as
                  defined in Section 4001(a)(2) of ERISA or the cessation of
                  operations which results in the termination of employment of
                  20% of Benefit Plan participants who are employees of Aviation
                  Sales, any Guarantor, any Subsidiary of Aviation Sales or any
                  ERISA Affiliate; (iii) the imposition of an obligation on any
                  Borrower or any ERISA Affiliate under Section 4041 of ERISA to
                  provide affected parties written notice of intent to terminate
                  a Benefit Plan in a distress termination described in Section
                  4041(c) of ERISA; (iv) the institution by the PBGC of
                  proceedings to terminate a Benefit Plan; (v) any event or
                  condition which could reasonably be expected to constitute

                                       21
<PAGE>

                  grounds under Section 4042 of ERISA for the termination of, or
                  the appointment of a trustee to administer, any Benefit Plan;
                  or (vi) the partial or complete withdrawal of Aviation Sales,
                  any Guarantor, any Subsidiary of Aviation Sales or any ERISA
                  Affiliate from a Multiemployer Plan."

                           " 'TEXAS TAX RESERVE' means, at any time, a reserve
                  in an amount equal to the taxes payable by Aviation Sales and
                  Guarantors under the statutes of the State of Texas with
                  respect to which a tax lien attaches to Property of Aviation
                  Sales and Guarantors located in the State of Texas pursuant to
                  ss.32.01 of the Texas Tax Code, which amount shall be
                  determined by Distribution as of the date of each Borrowing
                  Base Certificate and, if in excess of $200,000, disclosed by
                  Distribution thereon."

                           " 'WORKING CAPITAL' means, as at any date of
                  determination, the excess, if any, of (i) Aviation Sales' and
                  its Subsidiaries' consolidated current assets, except cash and
                  Cash Equivalents, over (ii) Aviation Sales' and its
                  Subsidiaries' consolidated current liabilities, except current
                  maturities of long-term debt, and current maturities of the
                  Revolving Credit Obligations (as defined in the Existing
                  Aviation Sales Credit Agreement) as of such date."

                  (d) The Participation Agreement is further amended by adding
         the Schedules 1.01.5 and 1.01.6 to Participation Agreement that are
         attached hereto.

         4. AMENDMENTS TO SERIES A GUARANTY. Each Series A Guaranty Agreement is
hereby amended, effective as of the effective date hereof, as follows:

                  (a) In the first sentence of SECTION 2 of each Series A
         Guaranty Agreement, the phrase "following the Completion of a Property
         (the 'Completion Date')" is deleted.

                  (b) In the last sentence of SECTION 2 of each Series A
         Guaranty Agreement, the phrase ", as of the Completion Date" is
         deleted.

                  (c) In SECTION 3 of each Series A Guaranty Agreement, the
         phrase ", on or after the Completion Date" is deleted.

                  (d) In the first sentence of SECTION 7 of each Series A
         Guaranty Agreement, the phrase "on or after the Completion Date" is
         deleted.

                  (e) In the last sentence of SECTION 9(A) of each Series A
         Guaranty Agreement, the phrase "on or after the Completion Date" is
         deleted.

                  (f) In the first sentence of SECTION 9(B) of each Series A
         Guaranty Agreement, the phrase "ON OR AFTER THE COMPLETION DATE" is
         deleted.

                  (g) In the first sentence of SECTION 10 of each Series A
         Guaranty Agreement, the phrase "as of the Completion Date" is deleted
         and the word "immediately" is inserted in its place.

                                       22
<PAGE>

                  (h) In accordance with the amendments described in paragraphs
         3(a) through 3(g) above, the Guarantors' Obligations under each Series
         A Guaranty are effective immediately, whether or not a Property has
         been Completed.

         5. AMENDMENTS TO LEASE AGREEMENT. Subject to the conditions hereof, the
Lease Agreement is hereby amended, effective as of the date hereof, as follows:

                  (a) The proviso in SECTION 3.1(A) of the Lease is amended to
         provide that the obligation of the Lessee to pay Basic Rent with
         respect to the Properties shall commence on the date hereof, and the
         definition of "Basic Rent Commencement Date" in SECTION 3.1(A) of the
         Lease is hereby amended to mean the date of this Amendment Agreement.

                  (b) The second sentence of SECTION 10.1(E) of the Lease is
         amended to add the following clause at the end of such sentence: ", or
         (iii) at any time upon the request of the Agent or the Lessor, such a
         request pursuant to this clause (iii) not to be made more than once for
         the same Property."

                  (c) Section 17.1 of the Lease is amended by deleting the comma
         at the end of clause (p) and inserting in its "; or", and by inserting
         the following clause (q) immediately after clause (p):

                      "(q) A Change of Control shall occur,"

                  (d) Article XVIII of the Lease is amended in its entirety, so
         that as amended it reads as follows:

                                 "ARTICLE XVIII

                           "28.1 REPORTING COVENANTS. Until the obligations of
                  the Lessee, the Construction Agent and the Guarantors under
                  the Operative Agreements have been paid and satisfied in full
                  and the Operative Agreement have been terminated in accordance
                  with their terms, unless the Lessor and the Majority Lenders
                  shall otherwise consent in writing, Aviation Sales will, and
                  where applicable will cause each Subsidiary to:

                                    "28.1.1 FINANCIAL STATEMENTS. Aviation Sales
                           shall maintain, and cause each of the other
                           Guarantors and each of the Subsidiaries of Aviation
                           Sales to maintain, a system of accounting established
                           and administered in accordance with sound business
                           practices to permit preparation of consolidated and
                           consolidating Financial Statements in conformity with
                           GAAP and each of the Financial Statements described
                           below shall be prepared from such system and records.
                           Aviation Sales shall deliver or cause to be delivered
                           to the Agent, the Lenders, the Holders and (upon
                           Lessor's request) the Lessor:

                                       23
<PAGE>

                                    "(a) MONTHLY REPORTS. As soon as
                           practicable, and in any event within (i) thirty (30)
                           days after the end of each calendar month which is
                           not the last month of a Fiscal Quarter and (ii)
                           forty-five (45) days after the end of each calendar
                           month which is the last month of a Fiscal Quarter,
                           (A) the consolidated and consolidating balance sheets
                           of Aviation Sales and its Subsidiaries as at the end
                           of such period and (B) the related consolidated and
                           consolidating statement of income of Aviation Sales
                           and its Subsidiaries and consolidated statements of
                           shareholders' equity and cash flow of Aviation Sales
                           and its Subsidiaries, in each instance, for such
                           calendar month, setting forth in each case in
                           comparative form the corresponding figures with
                           respect to consolidated statements for the
                           corresponding calendar month referenced in the
                           business plan pertaining to such period certified by
                           the chief financial officer of Aviation Sales as
                           fairly presenting the consolidated and consolidating
                           financial position of Aviation Sales and its
                           Subsidiaries as at the dates indicated and the
                           results of their operations and cash flow for the
                           calendar months indicated in accordance with GAAP,
                           subject to normal year end adjustments and excluding
                           footnotes.

                                    "(b) QUARTERLY REPORTS. As soon as
                           practicable, and in any event within forty-five (45)
                           days after the end of each Fiscal Quarter in each
                           Fiscal Year, the consolidated and consolidating
                           balance sheets of Aviation Sales and its Subsidiaries
                           as at the end of such period and the related
                           consolidated and consolidating statement of income of
                           Aviation Sales and its Subsidiaries and consolidated
                           statements of shareholders' equity and cash flow of
                           Aviation Sales and its Subsidiaries, in each
                           instance, for such Fiscal Quarter, setting forth in
                           comparative form the corresponding figures with
                           respect to consolidated statements for the
                           corresponding period referenced in the business plan
                           pertaining to such period and the corresponding
                           figures from the financial forecast for the current
                           Fiscal Year delivered on the Amendment Effective Date
                           or pursuant to SECTION 28.1.1(F), as applicable,
                           certified by the chief financial officer of Aviation
                           Sales as fairly presenting the respective
                           consolidated and consolidating financial positions of
                           Aviation Sales and its Subsidiaries as at the dates
                           indicated and the results of their operations and
                           cash flow for the periods indicated in accordance
                           with GAAP, subject to normal year end adjustments and
                           excluding footnotes. Notwithstanding the foregoing,
                           in the event (i) the filing of Aviation Sales' Form
                           10-Q with the Commission with respect to any Fiscal
                           Quarter is delayed for any reason and Aviation Sales
                           has provided Agent with written notice of such delay
                           by the due date for the reports required for such
                           Fiscal Quarter under this CLAUSE (B) and (ii)
                           Aviation Sales shall deliver either the required
                           reports or interim good faith estimates of the
                           information required to be reported under this CLAUSE
                           (B) within fifty-five (55) days after the end of such
                           Fiscal Quarter, upon delivery of such required
                           reports or interim estimates within such period
                           Aviation Sales shall be deemed to have complied with
                           the

                                       24
<PAGE>

                           requirements of this CLAUSE (B) with respect to such
                           Fiscal Quarter; PROVIDED THAT Aviation Sales deliver
                           the required reporting substantially concurrently
                           with its filing of its Form 10-Q with the Commission.

                                    "(c) ANNUAL REPORTS. As soon as practicable,
                           and in any event within ninety (90) days after the
                           end of each Fiscal Year, (i) the consolidated and
                           consolidating balance sheets of (A) Aviation Sales
                           and its Subsidiaries as at the end of such Fiscal
                           Year and (B) to the extent the same are routinely and
                           regularly prepared, each Guarantor and its
                           Subsidiaries as at the end of such Fiscal Year and
                           (ii) the related consolidated and consolidating
                           statements of income, shareholders' equity and cash
                           flow of (A) Aviation Sales and its Subsidiaries and
                           (B) to the extent the same are routinely and
                           regularly prepared, Leasing and its Subsidiaries and
                           each Guarantor and its Subsidiaries for such Fiscal
                           Year, setting forth in each case in comparative form
                           the corresponding figures for the previous Fiscal
                           Year and the corresponding figures from the financial
                           forecast for the current Fiscal Year delivered on the
                           Amendment Effective Date or pursuant to SECTION
                           28.1.1(F), as applicable, and (iii) a report on such
                           consolidated Financial Statements of Aviation Sales
                           and its Subsidiaries of Arthur Andersen LLP or other
                           independent certified public accountants acceptable
                           to the Agent, which report shall be unqualified as to
                           the scope of the audit performed and as to the "going
                           concern" status of Aviation Sales and shall not
                           contain any other Impermissible Qualification and
                           shall state that such Financial Statements fairly
                           present the consolidated financial position of
                           Aviation Sales and its Subsidiaries and, to the
                           extent included in Aviation Sales' annual Financial
                           Statements, Leasing and its Subsidiaries and each
                           Guarantor and its Subsidiaries as at the dates
                           indicated and the results of their operations and
                           cash flow for the periods indicated in conformity
                           with GAAP applied on a basis consistent with prior
                           years (except for changes with which Arthur Andersen
                           LLP or any such other independent certified public
                           accountants, if applicable, shall concur and which
                           shall have been disclosed in the notes to the
                           Financial Statements) and that the examination by
                           such accountants in connection with such Financial
                           Statements has been made in accordance with generally
                           accepted auditing standards. Notwithstanding the
                           foregoing, in the event the filing of Aviation Sales'
                           annual report with the Commission with respect to any
                           Fiscal Year is delayed for any reason and Aviation
                           Sales has provided Agent with written notice of such
                           delay by the due date for the reports required for
                           such Fiscal Year under this CLAUSE (C), Aviation
                           Sales shall comply with the requirements of this
                           clause (c) if it delivers the required reports by the
                           earlier of (y) one hundred twenty (120) days after
                           the end of such Fiscal Year, or (z) substantially
                           concurrently with its filing of its annual report
                           with the Commission.

                                    "(d) OFFICER'S CERTIFICATE. Together with
                           each delivery of any Financial Statement pursuant to
                           this SECTION 28.1.1, (i) an Officer's

                                       25
<PAGE>

                           Certificate on behalf of Aviation Sales substantially
                           in the form of EXHIBIT M attached hereto and made a
                           part hereof, addressed to the Agent, Lenders and
                           Holders, stating that the Person signatory thereto
                           has reviewed the terms of the Operative Agreements,
                           and has made, or caused to be made under his/her
                           supervision, a review in reasonable detail of the
                           transactions and financial condition of Aviation
                           Sales and its Subsidiaries during the accounting
                           period covered by such Financial Statements, that
                           such review has not disclosed the existence during or
                           at the end of such accounting period, and that such
                           Person does not have knowledge of the existence as at
                           the date of such Officer's Certificate, of any
                           condition or event which constitutes a Default or
                           Event of Default, or, if any such condition or event
                           existed or exists, specifying the nature and period
                           of existence thereof and what action Aviation Sales,
                           any Guarantor, or any Subsidiary of Aviation Sales
                           has taken, is taking and proposes to take with
                           respect thereto; and (ii) a certificate (the
                           "Compliance Certificate"), signed by Aviation Sales'
                           and Distribution's chief financial officer, setting
                           forth calculations (with such specificity as the
                           Agent may reasonably request) for the period then
                           ended which demonstrate compliance, when applicable,
                           with the provisions of SECTION 28.4 (including
                           SECTIONS 28.4.1 THROUGH 28.4.8).

                                    "(e) ACCOUNTANT'S STATEMENT AND PRIVITY
                           LETTER. Together with each delivery of the Financial
                           Statements referred to in SECTION 28.1.1(C), a
                           written statement, in form and substance satisfactory
                           to the Agent, of the firm of independent certified
                           public accountants giving the report thereon (i)
                           stating that their audit examination has included a
                           review of the terms of this Agreement as it relates
                           to accounting matters, (ii) stating whether, in
                           connection with their audit examination, any
                           condition or event which constitutes a Default or
                           Event of Default or has come to their attention, and
                           if such condition or event has come to their
                           attention, specifying the nature and period of
                           existence thereof; PROVIDED THAT such accountants
                           shall not be liable by reason of any failure to
                           obtain knowledge of any such condition or event that
                           would not be disclosed in the course of their audit
                           examination, and (iii) stating that based on their
                           audit examination nothing has come to their attention
                           which causes them to believe that the information
                           contained in either or both of the certificates
                           delivered therewith pursuant to SECTION 28.1.1(D) (as
                           the information contained in such certificates
                           relates to the covenants set forth in SECTIONS 28.4
                           (including SECTIONS 28.4.1 THROUGH 28.4.8) is not
                           correct or that the matters set forth in the
                           Compliance Certificate delivered therewith pursuant
                           to SECTION 28.1.1(D)(II) for the applicable Fiscal
                           Year are not stated in accordance with the terms of
                           this Agreement. The statement referred to above shall
                           be accompanied by (x) a copy of the management letter
                           or any similar report delivered to Aviation Sales or
                           any Guarantor or any Subsidiary of Aviation Sales or
                           to any officer or employee thereof by such
                           accountants in connection with such Financial
                           Statements, to the extent

                                       26
<PAGE>

                           then available, and (y) a letter in substantially the
                           form of EXHIBIT N attached hereto and made a part
                           hereof from Aviation Sales to such accountants
                           informing such accountants that the Lenders and
                           Holders are relying upon the Financial Statements
                           audited by such accountants and delivered to the
                           Agent, the Lenders and the Holders pursuant to
                           SECTION 28.1.1(C) and that a primary intent of
                           Aviation Sales in having such Financial Statements
                           audited is to induce the Lenders and Holders to
                           continue to make Loans and Holder Fundings under the
                           Operative Agreements. The Agent, each Lender and each
                           Holder may, with the written consent of Aviation
                           Sales (which consent shall not be unreasonably
                           withheld or delayed), communicate directly with such
                           accountants. Aviation Sales shall deliver to the
                           Agent, Lenders and Holders, as soon as the same is
                           available to it and in any event no later than
                           September 30 of each calendar year, the management
                           letter or any similar report delivered to Aviation
                           Sales or any Guarantor or any Subsidiary of Aviation
                           Sales or to any officer or employee thereof by Arthur
                           Andersen LLP with the Financial Statements of
                           Aviation Sales for the Fiscal Year ending December 31
                           of the preceding calendar year. To the extent a
                           management letter or any similar report referenced in
                           CLAUSE (X) is not delivered concurrently with the
                           aforesaid accountants' written statement, such letter
                           or report shall be delivered to the Agent, Lenders
                           and Holders no later than June 30 of the calendar
                           year immediately succeeding the Fiscal Year for which
                           such written statement is delivered, commencing with
                           the Fiscal Year ending in 2000.

                                    "(f) BUDGETS; BUSINESS PLANS; FINANCIAL
                           PROJECTIONS.

                                            "(i) GENERAL. As soon as practicable
                                    and in any event not later than (A) January
                                    31 of each calendar year for the Fiscal Year
                                    ending in such calendar year, (1) a monthly
                                    budget for Aviation Sales and its
                                    Subsidiaries for such Fiscal Year; (2) an
                                    annual business plan for Aviation Sales and
                                    its Subsidiaries for such Fiscal Year,
                                    substantially in the form of the business
                                    plans heretofore delivered to the Agent, the
                                    Lenders, and the Holders, accompanied by a
                                    report reconciling all changes and
                                    departures from the business plans delivered
                                    to the Agent, the Lenders and the Holders
                                    for the preceding Fiscal Year; and (3) a
                                    plan and financial forecast, prepared in
                                    accordance with Aviation Sales' and
                                    Distribution's normal accounting procedures
                                    applied on a consistent basis, and (B)
                                    January 31 of each calendar year for the
                                    Fiscal Year ending in such calendar year,
                                    (1) an annual business plan for Aviation
                                    Sales and its Subsidiaries for such Fiscal
                                    Year, substantially in the form of the
                                    business plans heretofore delivered to the
                                    Agent, the Lenders and the Holders,
                                    accompanied by a report reconciling all
                                    changes and departures from the business
                                    plans delivered to the Agent, the Lenders
                                    and the Holders for the

                                       27
<PAGE>

                                    preceding Fiscal Year; and (2) a plan and
                                    financial forecast, prepared in accordance
                                    with Aviation Sales' and Distribution's
                                    normal accounting procedures applied on a
                                    consistent basis, including, without
                                    limitation, (I) forecasted consolidated and
                                    consolidating balance sheets and statements
                                    of cash flow of Aviation Sales and its
                                    Subsidiaries for each Fiscal Year, (II)
                                    forecasted consolidated and consolidating
                                    balance sheets, statements of earnings and
                                    retained earnings, and cash flow of Aviation
                                    Sales and its Subsidiaries for and as of the
                                    end of each fiscal quarter of the
                                    immediately succeeding Fiscal Year and for
                                    and as of the end of each Fiscal Year
                                    thereafter, (III) the amount of forecasted
                                    Capital Expenditures for such Fiscal Year,
                                    and (IV) forecasted compliance with the
                                    provisions of SECTION 28.4 (including
                                    SECTIONS 28.4.1 THROUGH 28.4.8).

                                            "(ii) QUARTERLY PROJECTIONS.
                                    Quarterly, on the date Financial Statements
                                    are required to be delivered pursuant to
                                    SECTION 28.1.1(B) for the first three Fiscal
                                    Quarters of a Fiscal Year and on the date
                                    the plan and financial forecast is required
                                    to be delivered pursuant to SECTION
                                    28.1.1(F) for the last Fiscal Quarter of a
                                    Fiscal Year, commencing with the due date
                                    for Financial Statements for the Fiscal
                                    Quarter ending June 30, 2000, a monthly
                                    financial forecast for the four Fiscal
                                    Quarters next succeeding such Fiscal Quarter
                                    then most recently ended, prepared in
                                    accordance with Aviation Sales' and
                                    Distribution's normal accounting procedures
                                    applied on a consistent basis, including,
                                    without limitation, (i) forecasted
                                    consolidated and consolidating balance
                                    sheets and statements of cash flow of
                                    Aviation Sales and its Subsidiaries for each
                                    month of such four Fiscal Quarters, (ii)
                                    forecasted consolidated and consolidating
                                    balance sheets, statements of earnings and
                                    retained earnings, and cash flow of Aviation
                                    Sales and its Subsidiaries for and as of the
                                    end of each month of such four Fiscal
                                    Quarters, (iii) the amount of forecasted
                                    Capital Expenditures for each month of such
                                    four Fiscal Quarters, and (iv) forecasted
                                    compliance with the provisions of SECTIONS
                                    28.4 (including SECTIONS 28.4.1 THROUGH
                                    28.4.8) for each of such four Fiscal
                                    Quarters.

                                            "(iii) CASH FLOW PROJECTIONS. On
                                    Friday of each week, eight-week projected
                                    cash flow statements of Aviation Sales and
                                    its Subsidiaries, by week, in form and
                                    substance satisfactory to the Agent and the
                                    Majority Lenders.

                                    "28.1.2 Borrowing Base Certificate;
                           Appraisals, Reports, Other Documents.

                                       28
<PAGE>

                                    "(a) BORROWING BASE CERTIFICATE. Aviation
                           Sales shall provide the Agent, the Lenders and
                           Holders (i) on Wednesday of each calendar week, or if
                           a Wednesday is not a Business Day, the immediately
                           succeeding Business Day, with a Borrowing Base
                           Certificate for Eligible Receivables as of the
                           immediately preceding Friday, (ii) on a bi-weekly
                           basis, on Wednesday of the applicable week, or if a
                           Wednesday is not a Business Day, the immediately
                           succeeding Business Day, with a Borrowing Base
                           Certificate for Eligible Inventory of Distribution as
                           of the immediately preceding Friday, and (iii) on a
                           monthly basis, on the second Wednesday of each month,
                           or if a Wednesday is not a Business Day, the
                           immediately succeeding Business Day, with a Borrowing
                           Base Certificate for Eligible Inventory of Persons
                           other than Distribution as of the immediately
                           preceding month end, in each instance, together with
                           a calculation of the Texas Tax Reserve as of the date
                           thereof if such Texas Tax Reserve exceeds $200,000
                           and such supporting documents as the Agent deems
                           desirable, all certified as being true and correct by
                           the chief financial officer, chief executive officer,
                           or controller of Distribution.

                                    "(b) APPRAISALS, CERTAIN REPORTS AND OTHER
                           DOCUMENTS. If Aviation Sales, Distribution or any
                           other Person shall obtain or deliver to the Existing
                           Credit Agent or any other lender under the Existing
                           Aviation Sales Credit Agreement (as amended from time
                           to time), any appraisal of the Inventory of Aviation
                           Sales, Distribution or any Citicorp Borrower or
                           Guarantor or any Subsidiary of Aviation Sales, then
                           Aviation Sales shall simultaneously deliver a copy of
                           such appraisal to the Agent, each Lender and each
                           Holder.

                                    "(c) CERTAIN REPORTS AND OTHER DOCUMENTS.
                           Upon receipt by Aviation Sales, or any Guarantor or
                           any Subsidiary of Aviation Sales, of (i) any report
                           or other document pursuant to SECTION 6.01(J) of the
                           Existing Aviation Sales Credit Agreement or (ii) any
                           report or written recommendation created by an
                           independent consultant or other third party pursuant
                           to SECTION 9.06 of the Existing Aviation Sales Credit
                           Agreement, in each case Aviation Sales shall promptly
                           deliver a copy of such report or document to the
                           Agent.

                                    "28.1.3 EVENTS OF DEFAULT. Promptly upon any
                           Authorized Officer or any of the chief executive
                           officer, chief operating officer, chief financial
                           officer, treasurer or controller of Aviation Sales
                           obtaining knowledge (a) of any condition or event
                           which constitutes a Default or Event of Default, or
                           becoming aware that any Lender, Holder, Lessor or the
                           Agent has given any notice with respect to a claimed
                           Default or Event of Default, (b) that any Person has
                           given any notice to Aviation Sales or any Guarantor
                           or any Subsidiary of Aviation Sales or exercised any
                           remedy with respect to a claimed default or event or
                           condition, or (c) of any condition or event which has
                           resulted, or is reasonably likely to result,

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<PAGE>

                           in a Material Adverse Effect or affect the value of,
                           or the Agent's or Lessor's interest in, any Property
                           in any material respect, Aviation Sales shall deliver
                           to the Agent, the Lenders and the Holders an
                           Officer's Certificate specifying (i) the nature and
                           period of existence of any such claimed default,
                           Default, Event of Default, condition or event, (ii)
                           the notice given or action taken by such Person in
                           connection therewith, and (iii) what action Aviation
                           Sales has taken, is taking and proposes to take with
                           respect thereto.

                                    "28.1.4 LAWSUITS.

                                    "(a) INSTITUTION OF PROCEEDINGS. Promptly
                           upon Aviation Sales or any Guarantor or any
                           Subsidiary of Aviation Sales obtaining knowledge of
                           the institution of, or written threat of, any action,
                           suit, proceeding, governmental investigation or
                           arbitration against or affecting Aviation Sales or
                           any Guarantor or any Subsidiary of Aviation Sales, or
                           any Asset or Property not previously disclosed, which
                           action, suit, proceeding, governmental investigation
                           or arbitration exposes, or in the case of multiple
                           actions, suits, proceedings, governmental
                           investigations or arbitrations arising out of the
                           same general allegations or circumstances which
                           expose, in Aviation Sales' reasonable judgment,
                           Aviation Sales or any Guarantor or any Subsidiary of
                           Aviation Sales to liability in an amount aggregating
                           $1,000,000 or more (exclusive of claims covered by
                           insurance policies of Aviation Sales and Guarantors
                           and such Subsidiaries unless the insurers of such
                           claims have disclaimed coverage or reserved the right
                           to disclaim coverage on such claims), Aviation Sales
                           shall give written notice thereof to the Agent, the
                           Lenders and Holders and provide such other
                           information as may be reasonably available to enable
                           each Lender, each Holder and the Agent and its
                           counsel to evaluate such matters.

                                    "(b) QUARTERLY REPORTS. As soon as
                           practicable and in any event within forty-five (45)
                           days after the end of each fiscal quarter of Aviation
                           Sales, it shall provide a written quarterly report to
                           the Agent, the Lenders and Holders covering the
                           institution of, or written threat of, any action,
                           suit, proceeding, governmental investigation or
                           arbitration (not previously reported) against or
                           affecting Aviation Sales, any Guarantor or any
                           Subsidiary of Aviation Sales, or any Property or
                           Asset not previously disclosed by Aviation Sales to
                           the Agent, the Lenders and Holders, and shall provide
                           such other information at such time as may be
                           reasonably available to enable each Lender, each
                           Holder and the Agent and its counsel to evaluate such
                           matters.

                                    "(c) ADDITIONAL REPORTS UPON REQUEST. In
                           addition to the requirements set forth in clauses (a)
                           and (B) of this Section, Aviation Sales, upon the
                           request of the Agent or the Majority Lenders, shall

                                       30
<PAGE>

                           promptly give written notice of the status of any
                           action, suit, proceeding, governmental investigation
                           or arbitration covered by a report delivered pursuant
                           to either of such CLAUSES (A) or (B) and provide such
                           other information as may be reasonably available to
                           it to enable each Lender and Holder and the Agent and
                           its counsel to evaluate such matters.

                                    "28.1.5 INSURANCE. As soon as practicable
                           and in any event by the last day of February in each
                           calendar year, Aviation Sales shall deliver to the
                           Agent, the Lenders and Holders (a) a report in form
                           and substance reasonably satisfactory to the Agent,
                           the Lenders and Holders outlining (i) all material
                           insurance coverage maintained as of the date of such
                           report by Aviation Sales and Guarantors and the
                           Subsidiaries of Aviation Sales and the duration of
                           such coverage and (ii) the claims and awards, if any,
                           made under such insurance for the twelve (12)
                           calendar month period then ending and (b) evidence
                           that all premiums with respect to such coverage have
                           been paid when due.

                                    "28.1.6 ERISA NOTICES. Aviation Sales shall
                           deliver or cause to be delivered to the Agent and the
                           Lenders and Holders, at Aviation Sales' expense, the
                           following information and notices as soon as
                           reasonably possible, and in any event:

                                    "(a) within ten (10) Business Days after
                           Aviation Sales, any Guarantor, any Subsidiary of
                           Aviation Sales or any ERISA Affiliate knows or has
                           reason to know that a Termination Event has occurred,
                           a written statement of the chief financial officer of
                           Aviation Sales describing such Termination Event and
                           the action, if any, which Aviation Sales, any
                           Guarantor, any Subsidiary of Aviation Sales or any
                           ERISA Affiliate has taken, is taking or proposes to
                           take with respect thereto, and when known, any action
                           taken or threatened by the IRS, DOL or PBGC with
                           respect thereto;

                                    "(b) within ten (10) Business Days after
                           Aviation Sales or any Guarantor or any Subsidiary of
                           Aviation Sales knows or has reason to know that an
                           assessment of a prohibited transaction excise tax
                           under Section 4975 of the Internal Revenue Code has
                           occurred, a statement of the chief financial officer
                           of Distribution describing such transaction and the
                           action which Aviation Sales, any Guarantor, any
                           Subsidiary of Aviation Sales or any ERISA Affiliate
                           has taken, is taking or proposes to take with respect
                           thereto;

                                    "(c) within three (3) Business Days after
                           the filing of the same with the DOL, IRS or PBGC,
                           copies of each annual report (form 5500 series),
                           including Schedule B thereto, filed with respect to
                           each Benefit Plan;

                                       31
<PAGE>

                                    "(d) within three (3) Business Days after
                           receipt by Aviation Sales, any Guarantor, any
                           Subsidiary of Aviation Sales or any ERISA Affiliate
                           of each actuarial report for any Benefit Plan or
                           Multiemployer Plan and each annual report for any
                           Multiemployer Plan, copies of each such report;

                                    "(e) within three (3) Business Days after
                           the filing of the same with the IRS, a copy of each
                           funding waiver request filed with respect to any
                           Benefit Plan and all communications received by
                           Aviation Sales, any Guarantor, any Subsidiary of
                           Aviation Sales or any ERISA Affiliate with respect to
                           such request;

                                    "(f) within three (3) Business Days after
                           the occurrence any material increase in the benefits
                           of any existing Benefit Plan or the establishment of
                           any new Benefit Plan or the commencement of
                           contributions to any Benefit Plan to which Aviation
                           Sales, any Guarantor, any Subsidiary of Aviation
                           Sales or any ERISA Affiliate was not previously
                           contributing, notification of such increase,
                           establishment or commencement;

                                    "(g) within three (3) Business Days after
                           Aviation Sales, any Guarantor, any Subsidiary of
                           Aviation Sales or any ERISA Affiliate receives notice
                           of the PBGC's intention to terminate a Benefit Plan
                           or to have a trustee appointed to administer a
                           Benefit Plan, copies of each such notice;

                                    "(h) within three (3) Business Days after
                           Aviation Sales or any Guarantor or any Subsidiary of
                           Aviation Sales receives notice of any unfavorable
                           determination letter from the IRS regarding the
                           qualification of a Plan under Section 401(a) of the
                           Internal Revenue Code, copies of each such notice and
                           letter;

                                    "(i) within three (3) Business Days after
                           Aviation Sales, any Guarantor, any Subsidiary of
                           Aviation Sales or any ERISA Affiliate receives notice
                           from a Multiemployer Plan regarding the imposition of
                           withdrawal liability, copies of each such notice;

                                    "(j) within three (3) Business Days after
                           Aviation Sales, any Guarantor, any Subsidiary of
                           Aviation Sales or any ERISA Affiliate fails to make a
                           required installment or any other required payment
                           under Section 412 of the Internal Revenue Code on or
                           before the due date for such installment or payment,
                           a notification of such failure; and

                                    "(k) within three (3) Business Days after
                           Aviation Sales, any Guarantor, any Subsidiary of
                           Aviation Sales or any ERISA Affiliate knows (A) a
                           Multiemployer Plan has been terminated, (B) the

                                       32
<PAGE>

                           administrator or plan sponsor of a Multiemployer Plan
                           intends to terminate a Multiemployer Plan, or (C) the
                           PBGC has instituted or will institute proceedings
                           under Section 4042 of ERISA to terminate a
                           Multiemployer Plan.

                           "For purposes of this SECTION 28.1.6, Aviation Sales,
                           each Guarantor, each Subsidiary of Aviation Sales and
                           each ERISA Affiliate shall be deemed to know all
                           facts known by the Administrator of any Plan of which
                           Aviation Sales, such Guarantor, such Subsidiary or
                           any ERISA Affiliate is the plan sponsor.

                                    "28.1.7 ENVIRONMENTAL NOTICES.

                                    "(a) Aviation Sales shall notify the Agent,
                           the Lenders and Holders in writing, promptly upon
                           Aviation Sales' learning thereof, of any:

                                            "(i) notice or claim to the effect
                                    that Aviation Sales or any Guarantor or any
                                    Subsidiary of Aviation Sales is or may be
                                    liable to any Person as a result of the
                                    Release or threatened Release of any
                                    Contaminant into the environment which could
                                    reasonably result in an expenditure by
                                    Aviation Sales and/or any Guarantor or any
                                    Subsidiary of Aviation Sales over $500,000;

                                             "(ii) notice that Aviation Sales or
                                    any Guarantor or any Subsidiary of Aviation
                                    Sales is subject to investigation by any
                                    Governmental Authority evaluating whether
                                    any Remedial Action is needed to respond to
                                    the Release or threatened Release of any
                                    Contaminant into the environment which could
                                    reasonably result in an expenditure by
                                    Aviation Sales and/or any Guarantor or any
                                    Subsidiary of Aviation Sales over $500,000;

                                             "(iii) notice that any Property or
                                    other Asset is subject to an Environmental
                                    Lien;

                                             "(iv) notice to Aviation Sales or
                                    any Guarantor or any Subsidiary of Aviation
                                    Sales of any material violation of any
                                    Environmental, Health or Safety Requirement
                                    of Law;

                                             "(v) condition which might
                                    reasonably result in a material violation of
                                    any Environmental, Health or Safety
                                    Requirement of Law;

                                             "(vi) commencement or threat of any
                                    judicial or administrative proceeding
                                    alleging a material violation by Aviation
                                    Sales or any Guarantor or any Subsidiary of
                                    Aviation Sales (or any

                                       33
<PAGE>

                                    predecessor in interest thereof) of any
                                    Environmental, Health or Safety Requirement
                                    of Law;

                                             "(vii) new or proposed changes to
                                    any existing Environmental, Health or Safety
                                    Requirement of Law that could result in a
                                    Material Adverse Effect;

                                             "(viii) any proposed acquisition of
                                    stock, assets, real estate, or leasing of
                                    property, or any other action by Aviation
                                    Sales or any Guarantor or any Subsidiary of
                                    Aviation Sales that could subject Aviation
                                    Sales or any Guarantor or any Subsidiary of
                                    Aviation Sales to environmental, health or
                                    safety Liabilities and Costs which could
                                    reasonably result in an expenditure by
                                    Aviation Sales and/or any Guarantor or any
                                    Subsidiary of Aviation Sales over $500,000;
                                    or

                                             "(ix) any filing or report made by
                                    Aviation Sales or any Guarantor or any
                                    Subsidiary of Aviation Sales with any
                                    Governmental Authority with respect to any
                                    unpermitted Release or threatened Release of
                                    a Contaminant which could reasonably result
                                    in an expenditure by Aviation Sales and/or
                                    any Guarantor or any Subsidiary of Aviation
                                    Sales over $500,000.

                                    "(b) Within sixty (60) days after the end of
                           each Fiscal Year, Aviation Sales shall submit to the
                           Agent and the Lenders and Holders a report
                           summarizing the status of environmental, health or
                           safety compliance, hazard or liability issues
                           identified in notices required pursuant to SECTION
                           28.1.7(A), disclosed on SCHEDULE 28.1.7-B, or
                           identified in any notice or report required herein,
                           which report shall include, with respect to any Real
                           Property leased or acquired during the period covered
                           by such report, the results of an annual inspection
                           of the Asset with respect to whether it contains any
                           asbestos-containing material and, in the event any
                           Asset does contain any asbestos-containing material,
                           what actions will be taken to eliminate or remediate
                           the same.

                                    "28.1.8 LABOR MATTERS. Aviation Sales shall
                           notify the Agent and the Lenders and Holders in
                           writing, promptly upon Aviation Sales' learning
                           thereof, of (i) any material labor dispute to which
                           Aviation Sales or any Guarantor or any Subsidiary of
                           Aviation Sales may become a party, including, without
                           limitation, any strikes, lockouts or other grievances
                           relating to Aviation Sales' or any Guarantor's or any
                           such Subsidiary's plants and other facilities and
                           (ii) any liability relating to its employees incurred
                           with respect to the closing of any plant or other
                           facility of Aviation Sales or any Guarantor or any
                           Subsidiary of Aviation Sales.

                                       34
<PAGE>

                                    "28.1.9 SEC REPORTING. Promptly after the
                           same are available, Aviation Sales shall deliver to
                           the Agent, the Lenders and Holders copies of all
                           Financial Statements, reports and notices,
                           registration statements and proxy statements or other
                           filings, if any, sent or made available generally by
                           Aviation Sales and/or any Guarantor or any Subsidiary
                           of Aviation Sales to its respective Securities
                           holders or filed with the Commission or other
                           securities exchange.

                                    "28.1.10 HEDGE AGREEMENTS. Aviation Sales
                           shall provide to the Agent, promptly upon the
                           execution by Aviation Sales or any Subsidiary of
                           Aviation Sales of any Hedge Agreement, written notice
                           of the notional amount thereof.

                                    "28.1.11 OTHER REPORTS. Aviation Sales shall
                           deliver or cause to be delivered to the Agent, the
                           Lenders and Holders (a) all written notices and
                           statements of collateral described in or required by
                           the terms of any other Operative Agreement as and
                           when described therein, (b) copies of all press
                           releases made available generally by Aviation Sales
                           or any of its Subsidiaries to the public concerning
                           material developments in the business of such
                           Person(s), and (c) reports, if any, submitted to
                           Aviation Sales or any of its Subsidiaries or their
                           respective boards of directors by such Person's
                           independent public accountants, including, without
                           limitation, any management report prepared in
                           connection with the annual audit.

                                    "28.1.12 NOTICE OF DEFAULT. Aviation Sales
                           shall deliver or cause to be delivered to the Agent
                           and Lenders and Holders written notice of the
                           occurrence of any breach or default under the terms
                           of the Citicorp Loan Documents, Senior Subordinated
                           Notes, Supplemental Term Loan Note, or other material
                           Contractual Obligation of Aviation Sales or any
                           Guarantor or any Subsidiary of Aviation Sales
                           promptly upon the occurrence thereof and, in any
                           event, concurrent with any notice thereof to the
                           obligees thereunder or within two (2) Business Day
                           after Aviation Sales or any Guarantor or any
                           Subsidiary of Aviation Sales receives notice thereof.

                                    "28.1.13 OTHER INFORMATION. Promptly upon
                           receiving a request therefor from the Agent or the
                           Majority Lenders, Aviation Sales shall prepare and
                           deliver to the Agent and the Lenders and Holders such
                           other information with respect to Aviation Sales, the
                           Guarantors, the Subsidiaries of Aviation Sales or any
                           Property or other Asset, including, without
                           limitation, schedules identifying and describing any
                           Property or other Asset and any dispositions thereof,
                           as from time to time may be reasonably requested by
                           the Agent or the Majority Lenders.

                                       35
<PAGE>

                                    "28.1.14 AMENDMENTS TO CITICORP LOAN
                           DOCUMENTS. Immediately upon execution thereof,
                           Aviation Sales shall deliver to the Agent, each
                           Lender and each Holder a copy of any amendment to any
                           Citicorp Loan Document.

                           "28.2 AFFIRMATIVE COVENANTS. Until the obligations of
                  the Lessee, the Construction Agent and the Guarantors under
                  the Operative Agreements have been paid and satisfied in full
                  and the Operative Agreements have been terminated in
                  accordance with the terms thereof, unless the Lessor and the
                  Majority Lenders shall otherwise consent in writing, Aviation
                  Sales will, and where applicable will cause each Subsidiary
                  to:

                                    "28.2.1 EXISTENCE, ETC. Aviation Sales shall
                           at all times maintain, and cause each of its
                           Subsidiaries to maintain, its corporate existence and
                           preserve and keep, or cause to be preserved and kept,
                           in full force and effect their respective rights and
                           franchises material to their respective businesses.

                                    "28.2.2 CORPORATE POWERS; CONDUCT OF
                           BUSINESS. Aviation Sales shall, and shall cause each
                           of its Subsidiaries to, qualify and remain qualified
                           to do business and maintain its good standing in each
                           jurisdiction in which the nature of its business and
                           the ownership of its Assets requires it to be so
                           qualified and in good standing.

                                    "28.2.3 COMPLIANCE WITH LAWS, ETC. Aviation
                           Sales shall, and shall cause each of its Subsidiaries
                           to, (a) comply with all Requirements of Law and all
                           restrictive covenants affecting it or its business,
                           Assets or operations, and (b) obtain as needed all
                           Permits necessary for its operations and maintain
                           such Permits in good standing, except in the case
                           where noncompliance with either CLAUSE (A) or (b)
                           above is not reasonably likely to result in a
                           Material Adverse Effect.

                                    "28.2.4 PAYMENT OF TAXES AND CLAIMS.
                           Aviation Sales shall, and shall cause each of its
                           Subsidiaries to, file all tax returns and reports as
                           and when required by the related Governmental
                           Authority and pay (a) all taxes, assessments and
                           other governmental charges imposed upon it or on any
                           of its Assets or in respect of any of its franchises,
                           business, income or Assets before any penalty or
                           interest accrues thereon and (b) all claims
                           (including, without limitation, claims for labor,
                           services, materials and supplies) for sums which have
                           become due and payable and which by law have or may
                           become a Lien (other than a Lien permitted by SECTION
                           28.3.3 upon any of the Assets of Aviation Sales or
                           any Subsidiary of Aviation Sales, prior to the time
                           when any penalty or fine shall be incurred with
                           respect thereto; PROVIDED, HOWEVER, that no such
                           taxes, assessments and governmental charges referred
                           to in CLAUSE (A) above or claims referred to in
                           CLAUSE (B) above need be paid if being contested in
                           good faith by

                                       36
<PAGE>

                           appropriate proceedings diligently instituted and
                           conducted and if such reserve or other appropriate
                           provision, if any, as shall be required in conformity
                           with GAAP shall have been made therefor.

                                    "28.2.5 INSURANCE. Without limiting any
                           provision of Article XIV, Aviation Sales shall
                           maintain in full force and effect the insurance
                           policies and programs listed on SCHEDULE 7-G to
                           Amendment No. 2 or substantially similar policies and
                           programs or other policies and programs as are
                           acceptable to the Agent. Each such policy shall
                           contain endorsement, or an independent instrument
                           furnished to the Agent, providing that the insurance
                           companies will give the Agent at least thirty (30)
                           days' written notice before any such policy or
                           policies of insurance shall be altered adversely to
                           the interests of Aviation Sales, any Guarantor or any
                           Subsidiary of Aviation Sales or cancelled.

                                    "28.2.6 INSPECTION OF PROPERTY; BOOKS AND
                           RECORDS; DISCUSSIONS. Aviation Sales shall permit,
                           and shall cause each of their respective Subsidiaries
                           to permit, any authorized representative(s)
                           designated by either the Agent or any Lender or
                           Holder to visit and inspect, whether by access to
                           Aviation Sales and its Subsidiaries' MIS or
                           otherwise, any of the Assets, to examine, audit,
                           check and make copies of Aviation Sales and its
                           Subsidiaries' financial and accounting records,
                           books, journals, orders, receipts and any
                           correspondence (other than privileged correspondence
                           with legal counsel) and other data relating to their
                           respective businesses or the transactions
                           contemplated hereby or referenced herein (including,
                           without limitation, in connection with environmental
                           compliance, hazard or liability, and quarterly (or
                           more often) examinations of the Properties by such
                           representatives designated by the Agent), and to
                           discuss their affairs, finances and accounts with
                           their management personnel and independent certified
                           public accountants, all upon reasonable written
                           notice and at such reasonable times during normal
                           business hours, as often as may be reasonably
                           requested. Each such visitation and inspection (i) by
                           or on behalf of any Lender or Holder shall be at such
                           Lender's or Holder's expense and (ii) by or on behalf
                           of the Agent shall be at the Lessee's expense.
                           Aviation Sales shall keep and maintain, and cause its
                           Subsidiaries to keep and maintain, in all material
                           respects on its MIS and otherwise proper books of
                           record and account in which entries in conformity
                           with GAAP shall be made of all dealings and
                           transactions in relation to its respective businesses
                           and activities, including, without limitation,
                           transactions and other dealings with respect to the
                           Properties. If an Event of Default has occurred and
                           is continuing and the Loans or Holder Fundings or
                           Lease obligations have been accelerated, upon the
                           Agent's request in connection with efforts to enforce
                           the rights and remedies of the Agent, the Lenders,
                           the Holders or the Lessor, Aviation Sales shall turn
                           over, and cause each of its Subsidiaries to turn
                           over, any such records requested by the Agent to the
                           Agent or its

                                       37
<PAGE>

                           representatives; PROVIDED, HOWEVER, that Aviation
                           Sales may, in its discretion, retain copies of such
                           records; and PROVIDED FURTHER that unless such
                           records relate to any Property, Aviation Sales and
                           its Subsidiaries may deliver copies (as opposed to
                           originals) of such records to the Agent or its
                           representatives.

                                    "28.2.7 ERISA COMPLIANCE. Aviation Sales
                           shall, and shall cause each of the Guarantors and
                           each of the Subsidiaries of Aviation Sales and
                           its/their ERISA Affiliates to, establish, maintain
                           and operate all Plans to comply in all material
                           respects with the provisions of ERISA, the Internal
                           Revenue Code, all other applicable laws, and the
                           regulations and interpretations thereunder and the
                           respective requirements of the governing documents
                           for such Plans.

                                    "28.2.8 MAINTENANCE OF PROPERTY. Aviation
                           Sales shall, and shall cause each of the Guarantors
                           and each of the Subsidiaries of Aviation Sales to,
                           maintain in all material respects all of its owned
                           and leased Assets in good, safe and insurable
                           condition and repair, and not permit, commit or
                           suffer any waste or abandonment of any such Assets
                           and from time to time shall make or cause to be made
                           all material repairs, renewal and replacements
                           thereof, including, without limitation, any capital
                           improvements which may be required; PROVIDED,
                           HOWEVER, that such Property may be altered or
                           renovated in the ordinary course of Aviation Sales'
                           or a Guarantor's or Subsidiary's business.

                                    "28.2.9 CONDEMNATION. Immediately upon
                           Aviation Sales' learning of the institution of any
                           proceeding for the condemnation or other taking of
                           any of the owned or leased Real Property of Aviation
                           Sales or any Guarantor or any Subsidiary of Aviation
                           Sales, Aviation Sales shall notify the Agent of the
                           pendency of such proceeding, and (to the extent such
                           proceeding relates to any Property) permit the Agent
                           to participate in any such proceeding, and from time
                           to time will deliver to the Agent all instruments
                           reasonably requested by the Agent to permit such
                           participation.

                                    "28.2.10. NEW SUBSIDIARIES. Promptly (and in
                           any event within 15 days) after the acquisition or
                           creation of any Domestic Subsidiary (other than an
                           Excluded Subsidiary), cause to be delivered to the
                           Agent for the benefit of itself, the Lenders, the
                           Holders and the Owner Trustee each of the following:

                                    "(i) a Guaranty Agreement executed by such
                           Subsidiary substantially in the form of the Guaranty
                           Agreement (Series A Obligations) executed by the
                           Guarantors and the Agent on the Initial Closing Date;

                                       38
<PAGE>

                                    "(ii) a Guaranty Agreement executed by such
                           Subsidiary substantially in the form of the Guaranty
                           Agreement (Lessee Obligations) executed by the
                           Guarantors (other than Aviation Sales) and the Lessor
                           on the Initial Closing Date;

                                    "(iii) an opinion of outside counsel to such
                           Subsidiary (which counsel shall be acceptable to the
                           Agent) dated as of the date of delivery of the
                           Guaranty Agreements provided for in this SECTION
                           28.2(K) and addressed to the Agent, the Owner Trustee
                           and each of the Lenders, in form and substance
                           reasonably acceptable to the Agent (which opinion may
                           include assumptions and qualifications of similar
                           effect to those contained in the opinion of counsel
                           delivered by Akerman Senterfitt & Eidson, P.A. on the
                           Initial Closing Date (the "Initial ASE Opinion")),
                           including opinions with respect to such Subsidiary
                           and each such Guaranty Agreement that are
                           substantively identical to the opinions set forth in
                           paragraphs 2, 3, 4, 5(a), 5(b), 5(c), 5(d), 5(e),
                           5(f) and 6 (on pages 5-7) of the Initial ASE Opinion;

                                    "(iv) a certificate of the Secretary or an
                           Assistant Secretary of such Subsidiary in the form
                           attached as EXHIBIT E to the Participation Agreement
                           or in such other form as is reasonably acceptable to
                           the Agent attaching and certifying as to (A) the
                           resolutions of the Board of Directors (or, as
                           applicable, the partners, members or other equivalent
                           governing body) of such Subsidiary duly authorizing
                           the execution, delivery and performance by such
                           Subsidiary of each of the Operative Agreements to
                           which it is or will be a party, (B) its certificate
                           of incorporation (or other equivalent charter or
                           organizational documents), in each case certified as
                           of a recent date by the Secretary of State of the
                           State of its incorporation (or organization), (C) its
                           bylaws (or other equivalent documents relating to the
                           operation, governance or management of such
                           Subsidiary), and (D) the incumbency and signature of
                           persons authorized to execute and deliver on its
                           behalf the Operative Agreements to which it is a
                           party; and

                                    "(v) a good standing certificate from the
                           appropriate officer of its state of incorporation (or
                           organization) and each state in which it is required
                           to be qualified to do business as to its good
                           standing in such state.

                                    "28.2.11 JOINT VENTURE. Triad International
                           Maintenance Corporation ("TIMCO") shall cause
                           Hamilton/TIMCO Cargo Conversions, LLC, a North
                           Carolina limited liability company in which TIMCO
                           owns a fifty percent (50%) equity interest to
                           distribute fifty percent (50%) of its net income to
                           TIMCO at least quarterly and confirm its receipt of
                           such distribution to the Agent concurrently with
                           delivery by Aviation Sales of the financial reporting
                           required by SECTION 28.1.1(B).

                                       39
<PAGE>

                           "28.3 NEGATIVE COVENANTS. Until the obligations of
                  the Lessee, the Construction Agent and the Guarantors under
                  the Operative Agreements have been paid and satisfied in full
                  and the Operative Agreements have been terminated in
                  accordance with the terms thereof, unless the Lessor and the
                  Majority Lenders shall otherwise consent in writing, Aviation
                  Sales will not, nor will it permit any Subsidiary to:

                                    "28.3.1 INDEBTEDNESS. Aviation Sales shall
                           not, nor shall it permit any of its Subsidiaries to,
                           directly or indirectly create, incur, assume or
                           otherwise become or remain directly or indirectly
                           liable with respect to any Indebtedness, except:

                                    "(a) the obligations under the Operative
                           Agreements; and

                                    "(b) Indebtedness permitted by Section 10.01
                           of the Existing Aviation Sales Credit Agreement.

                                    "28.3.2 SALES OF ASSETS. Without limiting
                           the generality of any provision of any Operative
                           Agreement that restricts any sale or other transfer
                           of any Property (including without limitation any
                           Land, Improvements or Equipment), neither Aviation
                           Sales nor any Subsidiary of Aviation Sales shall
                           sell, assign, transfer, lease, convey or otherwise
                           dispose of any of its Assets, whether now owned or
                           hereafter acquired, or any income or profits
                           therefrom, or enter into any agreement to do so,
                           except:

                                    "(a) any sale of such Assets specifically
                           permitted by the terms of the Operative Agreements;
                           and

                                    "(b) sales of Assets permitted by Section
                           10.02 of the Existing Aviation Sales Credit
                           Agreement.

                                    "28.3.3 LIENS. Without limiting the
                           generality of any other restriction of Liens on any
                           Property, neither Aviation Sales nor any Subsidiary
                           of Aviation Sales shall directly or indirectly
                           create, incur, assume or permit to exist any Lien on
                           or with respect to any of their respective Assets
                           (other than the Properties) except:

                                    "(a) Liens created pursuant to the Operative
                           Agreements; and

                                    "(b) Liens permitted under Section 10.03 of
                           the Existing Aviation Sales Credit Agreement.

                                       40
<PAGE>

                                    "28.3.4 . INVESTMENTS. Neither Aviation
                           Sales nor any Subsidiary of Aviation Sales shall
                           directly or indirectly make or own any Investment
                           except:

                                    "(a) Investments permitted under Section
                           10.03 of the Existing Aviation Sales Credit
                           Agreement.

                           "Aviation Sales shall not form any direct Subsidiary
                           after the Amendment Effective Date or permit any of
                           its Subsidiaries or Guarantor to form any Subsidiary
                           except to the extent Investments therein are
                           permitted hereinabove. Neither Aviation Sales nor any
                           Subsidiary of Aviation Sales may make any Investment
                           in any Subsidiary of Leasing which is not a
                           Guarantor.

                                    "28.3.5.ACCOMMODATION OBLIGATIONS. Neither
                           Aviation Sales nor any Subsidiary of Aviation Sales
                           shall directly or indirectly create or become or be
                           liable with respect to any Accommodation Obligation,
                           except:

                                    "(a) Accommodation Obligations arising under
                           the Operative Agreements; and

                                    "(b) Accommodation Obligations permitted
                           under Section 10.05 of the Existing Aviation Sales
                           Credit Agreement;

                           "Neither Aviation Sales nor any Subsidiary of
                           Aviation Sales shall incur any Accommodation
                           Obligation with respect to Indebtedness of any
                           Subsidiary of Leasing.

                                    "28.3.6 RESTRICTED JUNIOR PAYMENTS. Aviation
                           Sales shall not, nor shall it permit any Subsidiary
                           of Aviation Sales to, declare or make any Restricted
                           Junior Payment, except:

                                    "(a) Restricted Junior Payments permitted
                           under Section 10.06 of the Existing Aviation Sales
                           Credit Agreement.

                                    "28.3.7 CONDUCT OF BUSINESS. Neither
                           Aviation Sales nor any Subsidiary of Aviation Sales
                           shall engage in any business other than (a) the
                           businesses engaged in by such Person on the Amendment
                           Effective Date and (b) any business or activities
                           which are substantially similar, related, incidental
                           or complimentary thereto.

                                    "28.3.8 TRANSACTIONS WITH AFFILIATES.
                           Neither Aviation Sales nor any Subsidiary of Aviation
                           Sales shall directly or indirectly enter

                                       41
<PAGE>

                           into or permit to exist any transaction (including,
                           without limitation, the purchase, sale, lease or
                           exchange of any property or the rendering of any
                           service) with any Affiliate of Aviation Sales, on
                           terms that are less favorable to Aviation Sales or
                           such Subsidiary than those that might be obtained in
                           an arm's length transaction at the time from Persons
                           who are not such an Affiliate. Nothing contained in
                           this SECTION 28.3.8 shall prohibit (a) any
                           transaction expressly permitted by SECTION 28.3.6;
                           (b) increases in compensation and benefits for
                           officers and employees of Aviation Sales or its
                           Subsidiaries which are customary in the industry;
                           PROVIDED THAT no Default or Event of Default has
                           occurred and is continuing; or (c) payment of
                           customary officers' and directors' indemnities.

                                    "28.3.9 RESTRICTION ON FUNDAMENTAL CHANGES.
                           Neither Aviation Sales nor any Subsidiary of Aviation
                           Sales shall (a) enter into any merger or
                           consolidation, (b) permit any of its Subsidiaries to
                           enter into any merger or consolidation. Neither
                           Aviation Sales nor any Subsidiary of Aviation Sales
                           shall liquidate, wind-up or dissolve (or suffer any
                           liquidation or dissolution), or convey, lease, sell,
                           transfer or otherwise dispose of, in one transaction
                           or a series of transactions, all or substantially all
                           of its business or Assets, whether now or hereafter
                           acquired, except in connection with transactions
                           permitted under SECTION 28.3.2 or permit any of its
                           Subsidiaries to (a) liquidate, wind-up or dissolve
                           (or suffer any liquidation or dissolution) or (b)
                           convey, lease, sell, transfer or otherwise dispose
                           of, in one transaction or a series of transactions,
                           all or substantially all of their respective
                           businesses or Assets, whether now or hereafter
                           acquired, except in connection with transactions
                           permitted under SECTION 28.3.2.

                                    "28.3.10 SALES AND LEASEBACKS. Neither
                           Aviation Sales nor any Subsidiary of Aviation Sales
                           shall become liable, directly, by assumption or by
                           Accommodation Obligation, with respect to any lease,
                           whether an Operating Lease or a Capital Lease, of any
                           Asset (whether real or personal or mixed) which it
                           (a) sold or transferred or is to sell or transfer to
                           any other Person, or (b) intends to use for
                           substantially the same purposes as any other Asset
                           which has been or is to be sold or transferred by it
                           to any other Person, in either instance, in
                           connection with such lease.

                                    "28.3.11 MARGIN REGULATIONS; SECURITIES
                           LAWS. Neither Aviation Sales nor any Subsidiary of
                           Aviation Sales shall, nor shall Aviation Sales or any
                           Subsidiary of Aviation Sales permit any of its
                           Subsidiaries to, use all or any portion of the
                           proceeds of any credit extended under any Citicorp
                           Loan Agreement to purchase or carry Margin Stock.

                                       42
<PAGE>

                                    "28.3.12 ERISA. Neither Aviation Sales nor
                           any Subsidiary of Aviation Sales shall:

                                    "(a) engage in any prohibited transaction
                           described in Sections 406 of ERISA or 4975 of the
                           Internal Revenue Code for which a statutory or class
                           exemption is not available or a private exemption has
                           not been previously obtained from the DOL;

                                    "(b) permit to exist any accumulated funding
                           deficiency (as defined in Sections 302 of ERISA and
                           412 of the Internal Revenue Code), with respect to
                           any Benefit Plan, whether or not waived;

                                    "(c) fail, or permit any ERISA Affiliate to
                           fail, to pay timely required contributions or annual
                           installments due with respect to any waived funding
                           deficiency to any Benefit Plan;

                                    "(d) terminate, or permit any ERISA
                           Affiliate to terminate, any Benefit Plan which would
                           result in any liability of any Borrower or any ERISA
                           Affiliate under Title IV of ERISA;

                                    "(e) fail to make any contribution or
                           payment to any Multiemployer Plan which Aviation
                           Sales, any Guarantor, any Subsidiary of Aviation
                           Sales or any ERISA Affiliate may be required to make
                           under any agreement relating to such Multiemployer
                           Plan, or any law pertaining thereto;

                                    "(f) fail, or permit any ERISA Affiliate to
                           fail, to pay any required installment or any other
                           payment required under Section 412 of the Internal
                           Revenue Code on or before the due date for such
                           installment or other payment; or

                                    "(g) amend, or permit any ERISA Affiliate to
                           amend, a Benefit Plan resulting in an increase in
                           current liability for the plan year such that
                           Aviation Sales, any Guarantor, any Subsidiary of
                           Aviation Sales or any ERISA Affiliate is required to
                           provide security to such Plan under Section
                           401(a)(29) of the Internal Revenue Code;

                           "if such event results, either singly or in the
                           aggregate, after taking into account all other such
                           events and any liabilities associated therewith, in
                           an aggregate liability of Aviation Sales and its
                           Subsidiaries in excess of $500,000.

                                    "28.3.13 ISSUANCE OF EQUITY SECURITIES.
                           Aviation Sales shall not permit any of its
                           Subsidiaries to issue any equity Securities.

                                       43
<PAGE>

                                    "28.3.14 ORGANIZATIONAL DOCUMENTS. Neither
                           Aviation Sales nor any Subsidiary of Aviation Sales
                           shall, nor shall Aviation Sales or any Subsidiary of
                           Aviation Sales permit any of its Subsidiaries to,
                           amend, modify or otherwise change any of the terms or
                           provisions in any of (a) its Organizational Documents
                           as in effect on the Effective Date, except amendments
                           (i) to effect a change of name of such Person,
                           written notice of which change of name such Person
                           shall have provided the Agent within sixty (60) days
                           prior to the effective date of any such name change
                           or (ii) otherwise consented to by the Agent in
                           writing, (b) the agreements and instruments
                           evidencing loans and advances comprising intercompany
                           loans without the prior written consent of the Agent,
                           or (c) the Operative Agreements, the Citicorp Loan
                           Documents or agreements and instruments executed in
                           connection with the Senior Subordinated Notes.

                                    "28.3.15 FISCAL YEAR. Aviation Sales shall
                           not, and shall not permit any of its Subsidiaries to,
                           change its fiscal year from the Fiscal Year.

                                    "28.3.16 AVIATION SALES COVENANTS. Aviation
                           Sales shall not:

                                    "(a) merge or liquidate with or into any
                           other Person and, if as a result thereof and after
                           giving effect thereto, Aviation Sales is not the
                           surviving Person;

                                    "(b) repurchase or redeem any of its Capital
                           Stock other than as required with respect to the
                           Permitted Equity Securities Options; or

                                    "(c) engage in any business other than that
                           of acting as a holding company for Distribution,
                           Leasing, Finance Affiliate, MR&O, Manufacturing,
                           Aviation Sales Property Management Corp., and
                           Aviation Sales Company FSC, Ltd., a Barbados
                           corporation.

                           "28.4 FINANCIAL COVENANTS. Aviation Sales covenants
                  and agrees that, until the obligations of the Lessee, the
                  Construction Agent and the Guarantors have been paid and
                  satisfied in full and the Operative Agreements have been
                  terminated in accordance with the terms thereof:

                                    "28.4.1 MINIMUM CONSOLIDATED EBITDA.
                           Aviation Sales shall maintain Consolidated EBITDA,
                           determined as of the last day of each Fiscal Quarter
                           set forth below for the period then ending described
                           below, of at least the amount set forth below
                           opposite such date of determination:

                                       44
<PAGE>
                                                                   MINIMUM
DETERMINATION DATE      APPLICABLE PERIOD                    CONSOLIDATED EBITDA
------------------      -----------------                    -------------------
June 30, 2000           January 1, 2000-- June 30, 2000         $27,000,000
September 30, 2000      January 1, 2000-- September 30, 2000    $43,000,000
December 31, 2000       January 1, 2000-- December 31, 2000     $60,000,000

                                    "28.4.2 CAPITAL EXPENDITURES. Aviation Sales
                           and its Subsidiaries shall not make Capital
                           Expenditures in the aggregate during any period set
                           forth below in excess of the amount set forth below
                           opposite such period (in each instance, the "Maximum
                           Amount"):

DETERMINATION DATE      APPLICABLE PERIOD                       MAXIMUM AMOUNT
------------------      -----------------                       --------------
June 30, 2000           January 1, 2000-- June 30, 2000          $13,000,000
September 30, 2000      January 1, 2000-- September 30, 2000     $16,500,000
December 31, 2000       January 1, 2000-- December 31, 2000      $19,000,000

March 31, 2001          Four-Quarter Period then ending          $12,500,000
June 30, 2001           Four-Quarter Period then ending          $12,500,000
September 30, 2001      Four-Quarter Period then ending          $12,500,000
December 31, 2001       Four-Quarter Period then ending          $12,500,000

March 31, 2002          Four-Quarter Period then ending          $12,500,000
June 30, 2002           Four-Quarter Period then ending          $12,500,000

Each September 30,      Four-Quarter Period then ending          $12,500,000
December 31, March 31
and June 30 thereafter

                           PROVIDED, HOWEVER, to the extent Aviation Sales and
                           its Subsidiaries have not made Capital Expenditures
                           in the amount permitted above for any given period
                           set forth above, Capital Expenditures in an amount
                           equal to 100% of the Maximum Amount of such Capital
                           Expenditures permitted but not made in such period
                           may be made in the immediately next succeeding period
                           in addition to any amounts permitted above for such
                           succeeding period; PROVIDED THAT to the extent
                           amounts carried forward from one period to the next
                           succeeding period are not expended in such period,
                           such surplus may not be carried forward to any other
                           succeeding period.

                                    "28.4.3 CONSOLIDATED FIXED CHARGE RATIO.
                           Aviation Sales shall maintain a Consolidated Fixed
                           Charge Ratio for Aviation Sales and its Subsidiaries,
                           as determined as of the last day of each Fiscal
                           Quarter set forth below for the period then ending
                           described below, of at least the level set forth
                           below opposite such determination date:

                                       45
<PAGE>

DETERMINATION DATE      APPLICABLE PERIOD                       MINIMUM RATIO
------------------      -----------------                       -------------
June 30, 2000           January 1, 2000-- June 30, 2000         1.25 to 1.00
September 30, 2000      January 1, 2000-- September 30, 2000    1.25 to 1.00
December 31, 2000       January 1, 2000-- December 31, 2000     1.50 to 1.00

March 31, 2001          Four-Quarter Period then ending         1.75 to 1.00
June 30, 2001           Four-Quarter Period then ending         1.75 to 1.00
September 30, 2001      Four-Quarter Period then ending         1.75 to 1.00
December 31, 2001       Four-Quarter Period then ending         1.75 to 1.00

March 31, 2002          Four-Quarter Period then ending         2.00 to 1.00
June 30, 2002           Four-Quarter Period then ending         2.00 to 1.00

Each September 30,      Four-Quarter Period then ending         2.00 to 1.00
December 31, March 31
and June 30 thereafter

                                    "28.4.4 WORKING CAPITAL. Working Capital
                           shall be $325,000,000 at June 30, 2000 and thereafter
                           maintained, at all times during the term of this
                           Agreement, determined at the end of each Fiscal
                           Quarter commencing with the Fiscal Quarter ending
                           June 30, 2000, in a minimum amount of $300,000,000.

                                    "28.4.5 MINIMUM TANGIBLE NET WORTH. Aviation
                           Sales shall maintain a Tangible Net Worth of Aviation
                           Sales and its Subsidiaries, of at least the amount
                           set forth below for the Fiscal Quarter ending during
                           the period set forth below opposite such amount.

                                       46
<PAGE>

             FISCAL QUARTER ENDING                MINIMUM TANGIBLE NET WORTH
             ---------------------                --------------------------
             June 30, 2000                               $142,500,000
             September 30, 2000                          $155,000,000
             December 31, 2000                           $155,000,000

             March 31, 2001                              $160,000,000
             June 30, 2001                               $160,000,000
             September 30, 2001                          $165,000,000
             December 31, 2001                           $165,000,000

             March 31, 2002                              $180,000,000
             June 30, 2002                               $190,000,000

             Each September 30,              The amount of Tangible Net Worth
             December 31, March              required to be maintained by this
             31 and June 30 thereafter       Section 28.4.5 as at the end of the
                                             immediately preceding Fiscal
                                             Quarter plus 85% of Consolidated
                                             Net Income (with no reduction for
                                             net losses during any period) for
                                             the Fiscal Quarter ending on such
                                             date

                                    "28.4.6 LEVERAGE RATIO. Aviation Sales shall
                           maintain a ratio of Consolidated Funded Debt to
                           Consolidated EBITDA of Aviation Sales and its
                           Subsidiaries, determined as of the end of each Fiscal
                           Quarter ending on or after December 31, 2000, for the
                           Four-Quarter Period then ended, of not more than:

                                       47
<PAGE>

              FOUR-QUARTER PERIOD ENDING            MAXIMUM RATIO
              --------------------------            -------------
                   December 31, 2000                 5.75 to 1.00

                   March 31, 2001                    5.50 to 1.00
                   June 30, 2001                     5.25 to 1.00
                   September 30, 2001                4.75 to 1.00
                   December 31, 2001                 4.50 to 1.00

                   March 31, 2002                    4.50 to 1.00
                   June 30, 2002                     4.25 to 1.00

                   Each September 30, December 31,   4.25 to 1.00
                   March 31 and June 30 thereafter

                                    "28.4.7 RATIO OF SENIOR DEBT TO EBITDA.
                           Aviation Sales shall maintain a Ratio of Senior Debt
                           to EBITDA for Aviation Sales and its Subsidiaries,
                           determined as of the end of each Fiscal Quarter
                           ending on or after December 31, 2000, for the
                           Four-Quarter Period then ended, of not more than:

              FOUR-QUARTER PERIOD ENDING            MAXIMUM RATIO
              --------------------------            -------------
                   December 31, 2000                 3.25 to 1.00

                   March 31, 2001                    3.00 to 1.00
                   June 30, 2001                     2.75 to 1.00
                   September 30, 2001                2.50 to 1.00
                   December 31, 2001                 2.25 to 1.00

                   March 31, 2002                    2.25 to 1.00
                   June 30, 2002                     2.00 to 1.00

                   Each September 30, December 31,   2.00 to 1.00
                   March 31 and June 30 thereafter

                                    "28.4.8 AVIATION SALES AND SUBSIDIARIES. For
                           purposes of the covenants set forth in this SECTION
                           28.4, references to Aviation Sales and its
                           Subsidiaries shall be deemed to mean Aviation Sales
                           and its Subsidiaries on a consolidated basis.

                           "28.5 AMENDMENTS AND WAIVERS. Notwithstanding
                  anything contained in this Lease or any other Operative
                  Agreement to the contrary, no provision of Section 28.1, 28.2,
                  28.3 or 28.4 hereof may be amended, waived, discharged or
                  terminated except by an instrument in writing signed by the
                  Lessor and the Majority Lenders.

                                       48
<PAGE>

                           "28.6 ADDITIONAL COVENANTS. The covenants contained
                  in this Article XVIII are in addition to any covenants or
                  terms contained in any other provisions of this Lease or any
                  other Operative Agreement. Nothing contained in this Article
                  XVIII shall be deemed to limit the generality of any covenant
                  or term contained in any other provision of this Lease or any
                  other Operative Agreement.

                           "28.7 REFERENCES TO EXISTING AVIATION SALES CREDIT
                  AGREEMENT. The parties agree that to the extent any provision
                  of Section 28.3 (including without limitation Section 28.3.1,
                  28.3.2, 28.3.3, 28.3.4, 28.3.5 or 28.3.6 incorporates by
                  reference any provision of the Existing Aviation Sales Credit
                  Agreement:

                           (a)      any reference (in any such provision of the
                                    Existing Aviation Sales Credit Agreement) to
                                    the "Borrowers" and "Guarantors" shall be
                                    deemed to apply to Aviation Sales and its
                                    Subsidiaries;

                           (b)      any requirement (under any such provision of
                                    the Existing Aviation Sales Credit
                                    Agreement) that the consent or approval of
                                    the "Agent" under such agreement be obtained
                                    for any act or condition, shall be deemed to
                                    require the consent or approval of the Agent
                                    under the Operative Agreements; and

                           (c)      any requirement (under any such provision of
                                    the Existing Aviation Sales Credit
                                    Agreement) that the consent or approval of
                                    any lender under such agreement be obtained
                                    for any act or condition, shall be deemed to
                                    require the consent or approval of the
                                    Majority Lenders under the Operative
                                    Agreements."

                  (b) Exhibit C to the Lease Agreement is deleted.

                  (c) The Lease Agreement is further amended by adding the
         Exhibits M and N and the Schedule 28.1.7-B that are attached hereto.

         6. AGREEMENT AND CONFIRMATION BY GUARANTORS. Each of the undersigned
Guarantors has joined in the execution of this Amendment Agreement for the
purpose of (i) agreeing to the amendments to the Guaranty Agreement, the Lease
Agreement, the Participation Agreement, the Credit Agreement, the Trust
Agreements; and other Operative Agreements contained herein and (ii) confirming
its guarantee of payment of all Borrower's Liabilities (as defined in the Series
A Guaranty Agreement) and all Lessee's Liabilities (as defined in the Lessee
Guaranty Agreement).

         7. REPRESENTATIONS, WARRANTIES AND COVENANTS. The Lessee and the
Construction Agent hereby represent, warrant and covenant that:

                                       49
<PAGE>

                  (a) The representations and warranties made by the Lessee and
         the Construction Agent in Section 7 (other than in Section 7.3(f)(i))
         of the Participation Agreement are true on and as of the date hereof;
         and the representations in warranties set forth in Section 7.3(f)(i) of
         the Participation Agreement are true on and as of the date set forth in
         such Section;

                  (b) (i) The audited consolidated financial statements of each
         of the Construction Agent and the Lessee as at December 31, 1999,
         copies of which have been furnished to the Agent and the Owner Trustee,
         were prepared in accordance with GAAP and fairly present the financial
         condition of each of the Construction Agent and the Lessee and their
         Subsidiaries on a consolidated basis as of such date and their
         consolidated results of operations for the fiscal year then ended and
         (ii) the unaudited consolidated financial statements as at March 31,
         2000, copies of which have been furnished to the Agent and the Owner
         Trustee, were prepared in accordance with GAAP (subject to normal
         year-end adjustments) and fairly present the financial condition of the
         Construction Agent and the Lessee and their Subsidiaries on a
         consolidated basis as of such date and their consolidated results of
         operations for the fiscal quarter then ended. Complete and accurate
         copies of the Projections (as defined in the Existing Aviation Sales
         Credit Agreement) have been delivered to the Agent. The Projections are
         reasonable based on the information available to Aviation Sales at the
         time so furnished. Neither Aviation Sales nor any Guarantor or any
         Subsidiary of Aviation Sales has, as of the date hereof, any
         Accommodation Obligation, contingent liability or liability for any
         taxes, long-term leases or commitments, not disclosed in writing to the
         Agent, the Lenders and the Holders prior to the date hereof.

                  (c) The business and properties of the Lessee and the
         Construction Agent and the Guarantors and the Subsidiaries of Aviation
         Sales are not, and since the Initial Closing Date have not been,
         adversely affected in any substantial way as the result of any fire,
         explosion, earthquake, accident, strike, lockout, combination of
         workmen, flood, embargo, riot, activities of armed forces, war or acts
         of God or the public enemy, or cancellation or loss of any major
         contracts;

                  (d) No event has occurred and no condition exists which, after
         giving effect to this Amendment Agreement, constitutes a Default or an
         Event of Default on the part of the Lessee or the Construction Agent or
         any Guarantor or any Subsidiary of Aviation Sales under the
         Participation Agreement or any other Operative Agreement, either
         immediately or with the lapse of time or the giving of notice, or both.
         Since April 15, 2000, there has occurred no event with respect to the
         Lessee, the Construction Agent or any Guarantor or any Subsidiary of
         Aviation Sales which has resulted, or is reasonably likely to result,
         in a Material Adverse Effect.

                  (e) Neither the Construction Agent nor the Agent is aware of
         any change order, amendment or modification of the Construction Budget,
         or amendment or modification to any Plans and Specifications for any
         Property (collectively, "Change Orders") that has been adopted or is
         planned, contemplated or under consideration, other than the Permitted
         Change Orders (the "Permitted Change Orders") identified on Schedule
         7-E and approved by the Agent, or the Submitted Change Orders (the
         "Submitted Change Orders") identified on

                                       50
<PAGE>

         such Schedule 7-E which have been or (on or prior to June 25, 2000)
         will be submitted to Agent but which Submitted Change Orders remain
         subject to the Agent's approval. Each of the Construction Agent and the
         Lessee hereby covenants and agrees that unless it has obtained the
         prior written consent of the Agent thereto, it will not (i) obtain,
         permit or approve any Change Order (other than a Permitted Change Order
         or, to the extent approved by the Agent, Submitted Change Order) with
         respect to any Property, or (ii) perform or permit any work to be
         performed at any Property that would involve any Change Order (other
         than a Permitted Change Order or, to the extent approved by the Agent,
         Submitted Change Order) or other deviation from the Construction
         Budget, the Plans and Specifications or any construction contract with
         respect to any Property, in each case as they exist on the date of this
         Amendment Agreement and have been previously delivered to the Agent;

                  (f) If, the Lessor, the Lessee or the Construction Agent shall
         receive, directly or indirectly, any rebate, return or credit of any
         real or personal property tax, ad valorem tax, other Imposition or
         water or sewer impact fee previously paid with respect to any Property,
         and (i) such rebate, return or credit relates to a tax, Imposition or
         fee paid with the proceeds of any Loan or Holder Funding, or (ii) such
         rebate, return or credit is available because of the location of such
         Property in a particular place, then, in either case, such Lessor, such
         Lessee or such Construction Agent shall promptly pay the amount of such
         rebate, return or credit to the Agent as a prepayment of the Loans and
         Holder Fundings, and such amount shall be applied to reduce the
         outstanding principal amount of Loans and Holder Fundings pro rata, and
         accrued interest and Holder Yield on the amounts prepaid, in accordance
         with the terms of the Credit Agreement and the Trust Agreement.

                  (g) SCHEDULE 7-G attached hereto accurately sets forth as of
         the date hereof all insurance policies and programs currently in effect
         with respect to the respective Assets and business of Aviation Sales
         and each Guarantor and each Subsidiary of Aviation Sales, specifying
         for each such policy and program, (i) the amount thereof, (ii) the
         risks insured against thereby, (iii) the name of the insurer and each
         insured party thereunder, (iv) the policy or other identification
         number thereof, (v) the expiration date thereof, (vi) the annual
         premium with respect thereto, and (vii) a list of claims and awards
         made thereunder during the immediately preceding three (3) calendar
         years. Aviation Sales has delivered to the Agent copies of all such
         insurance policies. Such insurance policies and programs are currently
         in full force and effect, in compliance with the requirements of
         Article XIV and SECTION 28.2.5 of the Lease and are in amounts
         sufficient to cover the replacement value of the respective Assets of
         Aviation Sales and the Guarantors and the Subsidiaries of Aviation
         Sales.

                  (h) SCHEDULE 7-H attached hereto (i) contains a diagram
         indicating the corporate structure of Aviation Sales and each Person in
         which Aviation Sales holds a direct or indirect partnership, joint
         venture, or other equity interest and indicates the nature of such
         interest with respect to each Person included in such diagram; and (ii)
         accurately sets forth (A) the correct legal name of such Person, the
         jurisdiction of its

                                       51
<PAGE>

         incorporation or organization and the jurisdictions in which it is
         qualified to transact business as a foreign corporation or otherwise,
         and (B) the authorized, issued and outstanding shares or interests of
         each class of equity Securities of Aviation Sales and each such Person,
         and, with respect to Subsidiaries of Aviation Sales, the owners of such
         shares or interests. None of such issued and outstanding Securities is
         subject to any vesting, redemption, or repurchase agreement, and there
         are no warrants or options (other than Permitted Equity Securities
         Options) outstanding with respect to such Securities. The outstanding
         Capital Stock of Aviation Sales, each Guarantor and each Subsidiary of
         Aviation Sales is duly authorized, validly issued, fully paid and
         nonassessable and (except for the Capital Stock of Aviation Sales) is
         not Margin Stock, is free and clear of all Liens, except for Liens
         granted pursuant to the Loan Documents, is not subject to any option or
         purchase rights, conversion or exchange rights, call, commitment or
         claim of any right, title or interest therein or thereto, and has been
         issued in compliance with all applicable Requirements of Law.

                  (i) There is no action, suit, proceeding, claim, investigation
         or arbitration before or by any Governmental Authority or private
         arbitrator pending or, to the knowledge of Aviation Sales, threatened
         against Aviation Sales, any Guarantor or any Subsidiary of Aviation
         Sales or any of their respective Assets (i) challenging the validity or
         the enforceability of any of the Operative Agreements, (ii) which will,
         or is reasonably likely to, result in any Material Adverse Effect, or
         (iii) under the Racketeering Influenced and Corrupt Organizations Act
         or any similar federal or state statute or law under any jurisdiction
         outside of the United States where such Person is a defendant in a
         criminal indictment that provides for the forfeiture of assets to any
         Governmental Authority as a criminal penalty. There is no material loss
         contingency within the meaning of GAAP which has not been reflected in
         the Financial Statements of Aviation Sales and its Subsidiaries.
         Neither Aviation Sales nor any Guarantor or any Subsidiary of Aviation
         Sales is subject to or in default with respect to any final judgment,
         writ, injunction, restraining order or order of any nature, decree,
         rule or regulation of any court or Governmental Authority which will,
         or is reasonably likely to, result in a Material Adverse Effect. All
         pending litigation to which Aviation Sales or any Guarantor or any
         Subsidiary of Aviation Sales is a party as of the Amendment Effective
         Date is disclosed on SCHEDULE 7-I attached hereto and made a part
         hereof.

         This Amendment Agreement shall be deemed to be an Operating Agreement
and any violation of a covenant contained herein shall be a violation of an
Operative Agreement.

         8. CONDITIONS PRECEDENT. The effectiveness of this Amendment Agreement
shall be subject to fulfillment of the following conditions precedent:

                  (a) The Agent shall have received on the date hereof, in form
         and substance satisfactory to the Agent, the following:

                           (i) a fully-executed original of this Amendment
                  Agreement;

                                       52
<PAGE>

                           (ii) a fully-executed modification of the Memorandum
                  of Lease and Lease Supplement and Mortgage with respect to the
                  property in Miramar Florida (the "Miramar Property");

                           (iii) an opinion of outside counsel to the Lessee and
                  the Guarantors, addressed to the Agent, the Owner Trustee and
                  the Lenders and Holders;

                           (iv) a certificate of the Secretary or an Assistant
                  Secretary of each of the Lessee and each Guarantor in such
                  form as is reasonably acceptable to the Agent attaching and
                  certifying as to (A) the resolutions of the Board of Directors
                  of Lessee or such Guarantor (as the case may be) duly
                  authorizing the execution, delivery and performance by Lessee
                  or such Guarantor (as the case may be) of this Amendment
                  Agreement and each of the other Operative Agreements delivered
                  in connection with this Amendment Agreement to which such
                  Lessee or Guarantor is or will be a party, (B) the fact that
                  neither its certificate of incorporation nor its bylaws have
                  been changed from the versions that were certified and
                  delivered to the Agent on the Initial Closing Date (or if they
                  have been changed, such certificate of incorporation or
                  by-laws certified as of a recent date by the Secretary of
                  State of the State of its incorporation), and (C) the
                  incumbency and signature of persons authorized to execute and
                  deliver on its behalf this Amendment Agreement and each of the
                  other Operative Agreements delivered in connection with this
                  Amendment Agreement to which such Lessee or Guarantor is a
                  party; and

                           (v) a fee (the "Amendment Fee") in the amount of
                  $322,500, in immediately available funds, paid by the Lessee
                  or by the Borrower (using the proceeds of a Funding) to the
                  Agent; plus all other fees and amounts set forth in the
                  Closing Statement (defined below);

                           (vi) unaudited Financial Statements of Aviation Sales
                  and its Subsidiaries on a consolidated and consolidating basis
                  for the Fiscal Quarter ending March 31, 2000 and Compliance
                  Certificates for the Fiscal Year ending December 31, 1999 and
                  March 31, 2000;

                           (vii) a Borrowing Base Certificate (as defined in the
                  Existing Aviation Sales Credit Agreement) dated May 24, 2000;

                           (viii) an executed amendment and restatement of the
                  Existing Aviation Sales Credit Agreement (as in effect prior
                  to the effective date of this Amendment Agreement) in form and
                  substance satisfactory to the Agent, Lenders and Holders;

                           (ix) a Closing Statement (the "Closing Statement")
                  dated as of the Amendment Effective Date, signed by Lessee;

                           (x) a letter agreement dated as of the date hereof,
                  addressed to the Agent, each Lender, each Holder and the Owner
                  Trustee, executed by each of

                                       53
<PAGE>

                  Tambone/Aero Development Corp. ("Tambone") and Schaffer Corp.,
                  Inc. ("Schaffer"), in which (A) each of Tambone and Schaffer
                  represents and warrants to the addressees as of the date
                  hereof that it is not aware of any Change Order (as defined
                  above) (including without limitation any change order,
                  amendment or modification of the Construction Budget, or
                  amendment or modification to any Plans and Specifications for
                  any Property) that has been adopted or is planned,
                  contemplated or under consideration, other than the Permitted
                  Change Orders and Submitted Change Orders (as defined above);
                  and (B) each of Tambone and Schaffer covenants and agrees that
                  unless it has obtained the prior written consent of the Agent
                  thereto, it will not (i) obtain, permit or approve any Change
                  Order (other than a Permitted Change Order or, to the extent
                  approved by the Agent, a Submitted Change Order) with respect
                  to any Property, or (ii) perform or permit any work to be
                  performed at any Property that would involve any Change Order
                  (other than a Permitted Change Order or, to the extent
                  approved by the Agent, a Submitted Change Order) or other
                  deviation from the Construction Budget, the Plans and
                  Specifications or any construction contract with respect to
                  any Property, in each case as they exist on the date hereof
                  and have been previously delivered to the Agent;

                           (xi) (A) down-dating endorsements of the title
                  policies issued to the Owner Trustee and the Agent, with
                  respect to the Miramar Property, such endorsements reflecting
                  the transaction documents, as amended hereby, and showing no
                  additional exceptions to coverage, except as approved by the
                  Agent (in its sole discretion) and (B) down-dating
                  endorsements of such policies with respect to the Fundings in
                  April and May, 2000, showing no additional exceptions to
                  coverage except as approved by the Agent (in its sole
                  discretion);

                           (xii) any additional agreements, instruments or
                  documents which it may reasonably request in connection
                  herewith;

                  (b) The correctness in all material respects on the date
         hereof of the representations and warranties of the Owner Trustee,
         Construction Agent and the Lessee contained herein and in each of the
         Operative Agreements;

                  (c) After giving effect to the waivers in Section 9 of this
         Amendment Agreement, no Default or Event of Default shall have occurred
         and be continuing on the date hereof;

                  (d) No material adverse change shall have occurred (as
         certified to the Agent, the Lenders and the Holders by the respective
         chief financial officers) in the business, assets, management,
         operations, financial condition or prospects of Aviation Sales or any
         Guarantor or any Subsidiary of Aviation Sales since March 31, 2000;

                  (e) (Except for the Supplemental Term Loan, the amendments and
         standstill agreements that have previously been delivered to the Agent
         with respect to "Predecessor Agreement" (as defined in the Existing
         Aviation Sales Credit Agreement), and the

                                       54
<PAGE>

         Supplemental Term Loan Warrants to purchase 129,000 shares of Aviation
         Sales common stock for an aggregate purchase price of $129, which
         warrants have been issued to Citicorp in connection with the
         Supplemental Term Loan) since December 31, 1999, neither Aviation Sales
         nor any Guarantor or any Subsidiary of Aviation Sales shall have (i)
         entered into any material (as determined in good faith by the Agent)
         commitment or transaction, including, without limitation, transactions
         for borrowings and capital expenditures, which are not in the ordinary
         course of such Person's business, except with respect to the
         consummation of the transactions contemplated hereby, (ii) declared or
         paid any distribution or dividend, (iii) established or assumed any
         obligations with respect to compensation or employee benefit plans
         other than plans with respect to the Permitted Equity Securities
         Options (as defined in the existing Aviation Sales Credit Agreement),
         or (iv) redeemed, repurchased, or issued any equity Securities;

                  (f) Since March 31, 2000, no permit, agreement, lease, or
         license which, in the judgment of the Agent, is material to the
         business, operations or employee relations of Aviation Sales or any
         Guarantor or any Subsidiary of Aviation Sales, including without
         limitation, any agreement relating to the Existing Aviation Sales
         Credit Agreement or the Senior Subordinated Notes (as defined in the
         Existing Aviation Sales Credit Agreement), shall have been terminated,
         modified, revoked, breached, or declared to be in default, or if
         breached or declared to be in default during such period, such breach
         or default shall have been cured or waived on terms satisfactory to the
         Agent and Lenders;

                  (g) Lenders and Holders shall have reviewed all litigation
         pending or threatened against Aviation Sales or any Guarantor or any
         Subsidiary of Aviation Sales and determined to their satisfaction that
         no Material Adverse Effect will, or is reasonably likely to, result
         from the existence thereof; and

                  (h) None of the members of Aviation Sales' Board of Directors
         as of March 31, 2000 shall have ceased acting as members of such Board
         of Directors.

         9. WAIVER. Subject to the terms and conditions of this Amendment
Agreement, the Lessor, the Agent, each Lender and each Holder waives the
specific Events of Default set forth in Schedule 9 attached hereto.

         The waivers contained in this SECTION 9 are granted only for the
specific instances specified in Schedule 9 hereto and are not intended to create
a course of dealing or otherwise impair the future ability of the Lessor, the
Agent, any Lender or any Holder to declare a Lease Event of Default or any other
Event of Default or otherwise enforce the terms of any Operative Agreement. Such
waivers are not intended to be nor shall they be construed to be a general
waiver or alteration of any of the terms or conditions of any Operative
Agreement.

         10. RELEASE.

                  (a) Aviation Sales and its Subsidiaries acknowledge that they
         have no existing defense, counterclaim, offset, cross-complaint, claim
         or demand of any kind or nature whatsoever that can be asserted to
         reduce or eliminate all or any part of their or the

                                       55
<PAGE>

         Owner Trustee's respective liability to pay or perform any obligations
         pursuant to any of the Operative Agreements or any other documents
         which evidence or secure any obligations owed under any Operative
         Agreement. In consideration for the execution of this Amendment
         Agreement, each of Aviation Sales and each of its Subsidiaries hereby
         releases and forever discharges, Bank of America, the Agent, the
         Lenders, the Holders and the Owner Trustee and all of their respective
         officers, directors, employees, Affiliates and agents (collectively,
         the "Released Parties") from any and all actions, causes of action,
         debts, dues, claims, demands, liabilities and obligations of every kind
         and nature, both in law and in equity, known or unknown, whether
         heretofore or now existing, liquidated or unliquidated, matured or
         unmatured, fixed or contingent (collectively, the "Release Claims"),
         which might be asserted against any of the Released Parties. This
         Release applies to all matters arising out of or relating to the
         Operative Agreements, any Property, any obligations due under any of
         the Operative Agreements and this Amendment Agreement, commitment
         letters with respect to other loan facilities, and the lending and
         borrowing relationships, and (to the extent any Release Claims relating
         to such deposit relationships are now known to Aviation Sales or any of
         its Subsidiaries) the deposit relationships, between Aviation Sales or
         its Subsidiaries, and Bank of America, the Agent, the Lenders, the
         Holders and the Owner Trustee, including the administration,
         collateralization and funding thereof. Each of Aviation Sales and each
         of its Subsidiaries further agrees not to bring any action in any
         judicial, administrative or other proceeding against the Released
         Parties, or any of them, alleging any such Release Claim or otherwise
         arising in connection with any such Release Claim.

                  (b) It is the intent of the parties that except as otherwise
         set forth herein, the foregoing release shall be effective as a full
         and final accord and satisfaction of all claims hereby released and
         each of Aviation Sales and each of its Subsidiaries hereby agrees,
         represents and warrants that the matters released herein are not
         limited to matters which are known or disclosed. In this connection,
         each of Aviation Sales and each of its Subsidiaries hereby agrees,
         represents and warrants that it realizes and acknowledges that factual
         matters now existing and unknown to it may have given or may hereafter
         give rise to Release Claims, which are presently unknown, unsuspected,
         unliquidated, unmatured and/or contingent, and it further agrees,
         represents and warrants that this release has been negotiated and
         agreed upon in view of that realization. Nevertheless, Aviation Sales
         and its Subsidiaries hereby intend to release, discharge and acquit the
         Released Parties of and from any such unknown, unsuspected,
         unliquidated, unmatured and/or contingent Release Claims, which are in
         any way set forth in or related to the matters identified above in this
         SECTION 10. Aviation Sales and its Subsidiaries hereby explicitly waive
         the benefits of any common law or statutory rule with respect to the
         release of such Release Claims.

                  (c) The acceptance and delivery of this Amendment Agreement by
         the Agent on behalf of the Released Parties shall not be deemed or
         construed as an admission of liability with respect to the Release
         Claims or otherwise by the Released Parties, or any of them, and the
         Released Parties hereby expressly deny liability of any nature
         whatsoever arising from or related to the subject of the release
         contained in this SECTION 10.

                                       56
<PAGE>

                  (d) Each of Aviation Sales and each of its Subsidiaries hereby
         agrees, represents and warrants that: (i) such party has not
         voluntarily, by operation of law or otherwise, assigned, conveyed,
         transferred or encumbered, either directly or indirectly, in whole or
         in part, any right to or interest in any of the Release Claims
         purported to be released by this SECTION 10; (ii) such party has had
         advice of counsel of its own choosing in negotiations for and the
         preparation of this Amendment Agreement; and (iii) such party is fully
         aware of the effect of releases such as that contained in this SECTION
         10.

         11. ENTIRE AGREEMENT. This Amendment Agreement sets forth the entire
understanding and agreement of the parties hereto in relation to the subject
matter hereof and supersedes any prior negotiations and agreements among the
parties relative to such subject matter. No promise, conditions, representation
or warranty, express or implied, not herein set forth shall bind any party
hereto, and no one of them has relied on any such promise, condition,
representation or warranty. Each of the parties hereto acknowledges that, except
as in this Amendment Agreement otherwise expressly stated, no representations,
warranties or commitments, express or implied, have been made by any other party
to the other. None of the terms or conditions of this Amendment Agreement may be
changed, modified, waived or canceled orally or otherwise, except by writing,
signed by all the parties hereto, specifying such change, modification, waiver
or cancellation of such terms or conditions, or of any proceeding or succeeding
breach thereof.

         12. FULL FORCE AND EFFECT OF OPERATIVE AGREEMENTS. Except as hereby
specifically amended, modified or supplemented, the Participation Agreement, the
Lease, the Credit Agreement, the Trust Agreement, the Guaranty Agreements and
all of the other Operative Agreements are hereby confirmed and ratified in all
respects and shall remain in full force and effect according to their respective
terms.

         13. COUNTERPARTS. This Amendment Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

                  [Remainder of page intentionally left blank.]

                                       57
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment
Agreement to be duly executed by their duly authorized officers, all as of the
day and year first above written.

                                    AVIATION SALES COMPANY,
                                    as Construction Agent

                                    By:_____________________________________
                                    Name:___________________________________
                                    Title:__________________________________

                                    AVIATION SALES COMPANY,
                                    as Lessee

                                    By:_____________________________________
                                    Name:___________________________________
                                    Title:__________________________________

                                    FIRST SECURITY BANK, NATIONAL
                                      ASSOCIATION
                                    not individually, except as expressly stated
                                    under the Operative Agreements, but solely
                                    as Owner Trustee under the Aviation Sales
                                    Trust 1998-1

                                    By:_____________________________________
                                    Name:___________________________________
                                    Title:__________________________________

                                    BANK OF AMERICA, N.A., as a Holder and as
                                    a Lender

                                    By:_____________________________________
                                    Name:___________________________________
                                    Title:__________________________________

                                    BANK OF AMERICA, N.A., as Administrative
                                    Agent

                                    By:_____________________________________
                                    Name:___________________________________
                                    Title:__________________________________

                              SIGNATURE PAGE 1 OF 3
<PAGE>

                              JOINDER BY GUARANTORS

The undersigned Guarantors hereby join in and consent to this Amendment
Agreement.

                                 AVIATION SALES COMPANY
                                 AVIATION SALES MANUFACTURING
                                      COMPANY
                                 AVIATION SALES PROPERTY
                                      MANAGEMENT  CORP.
                                 AVIATION SALES FINANCE COMPANY
                                 TIMCO ENGINE CENTER, INC.
                                 AVS/KRATZ-WILDE MACHINE COMPANY
                                 APEX MANUFACTURING, INC.
                                 AEROCELL STRUCTURES, INC.
                                 AVIATION SALES DISTRIBUTION
                                       SERVICES COMPANY
                                 AVIATION SALES BEARINGS COMPANY
                                 AVIATION SALES LEASING COMPANY
                                 WHITEHALL CORPORATION
                                 TRIAD INTERNATIONAL MAINTENANCE
                                       CORPORATION (successor in
                                        interest to Aero Corporation
                                        and Aero Corp Macon, Inc.)
                                 AVIATION SALES MAINTENANCE, REPAIR &
                                       OVERHAUL COMPANY
                                 CARIBE AVIATION, INC.
                                 AIRCRAFT INTERIOR DESIGN, INC.
                                 AERO HUSHKIT CORPORATION
                                 HYDROSCIENCE, INC.
                                 TIMCO ENGINEERED SYSTEMS, INC.

                                 By:______________________________________
                                 Name:____________________________________
                                 Title:________________ of each of the foregoing
                                         Guarantors

                                 AVSRE, L.P.
                                 By: Aviation Sales Property Management Corp.,
                                     its general partner

                                     By:__________________________________
                                     Name:________________________________
                                     Title:_______________________________

                              SIGNATURE PAGE 2 OF 3
<PAGE>

                                     AVIATION SALES SPS I, INC.

                                     By:__________________________________
                                     Name:________________________________
                                     Title:_______________________________

                              SIGNATURE PAGE 3 OF 3

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