TIMCO AVIATION SERVICES INC
CONSIGNMENT AGREEMENT
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>6
<FILENAME>dex104.txt
<DESCRIPTION>CONSIGNMENT AGREEMENT
<TEXT>
<PAGE>

                                                                    Exhibit 10.4
                                    EXHIBIT O

                                 KAV Term Sheet
                                 --------------

                              Consignment Agreement
                              ---------------------

Consignor:     KAV Inventory, LLC, a Delaware limited liability company ("KAV")

Consignee:     KIAC, Inc., or such other party that is the successful bidder for
               the assets of Kellstrom Industries, Inc., as debtor-in-possession
               (such party, "Consignee")

Lender:        Bank of America, N.A. ("BofA")

Parties to
Agreement:     Consignee
               KAV
               BofA

Terms of New
Consignment
Agreement:     Collection/Disbursement of Proceeds:

               Year 1: First $15 million of sales from KAV's inventory (net of
               -------
               Reimbursable Expenses) (the "Net Proceeds") shall be distributed
               75% to KAV (for the benefit of BofA) and 25% to Consignee.

                       Next $15 million of sales from KAV's inventory (net of
               Reimbursable Expenses) (the "Net Proceeds") shall be distributed
               70% to KAV (for the benefit of BofA) and 30% to Consignee.

                       Next $15 million of sales from KAV's inventory (net of
               Reimbursable Expenses) (the "Net Proceeds") shall be distributed
               60% to KAV (for the benefit of BofA) and 40% to Consignee).

               Year 2: First $10 million of sales from KAV's inventory (net of
               -------
               Reimbursable Expenses) (the "Net Proceeds") shall be
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               distributed 75% to KAV (for the benefit of BofA) and 25% to
               Consignee).

                       Next $10 million of sales from KAV's inventory (net of
               Reimbursable Expenses) (the "Net Proceeds") shall be distributed
               70% to KAV (for the benefit of BofA) and 30% to Consignee).

                       Next $10 million of sales from KAV's inventory (net of
               Reimbursable Expenses) (the "Net Proceeds") shall be distributed
               60% to KAV (for the benefit of BofA) and 40% to Consignee).

               Year 3: First $6 million of sales from KAV's inventory (net of
               -------
               Reimbursable Expenses) (the "Net Proceeds") shall be distributed
               75% to KAV (for the benefit of BofA) and 25% Consignee).

                       Next $6 million of sales from KAV's inventory (net of
               Reimbursable Expenses) (the "Net Proceeds") shall be distributed
               70% to KAV (for the benefit of BofA) and 30% Consignee).

                       Next $6 million of sales from KAV's inventory (net of
               Reimbursable Expenses) (the "Net Proceeds") shall be distributed
               60% to KAV (for the benefit of BofA) and 40% Consignee).

               Other Terms:
               ------------

               1.   Gross selling price should be equal to or greater than 90%
                    of mutually pre-agreed market values.

               2.   No minimum required yearly sales levels apply other than the
                    levels as described above to effect the consignment fee
                    structure. Any party is allowed to terminate the agreement
                    only in case of breach of a material term of the agreement.

               3.   At the closing of the transaction pursuant to which
                    Consignee has acquired the assets of Kellstrom, Consignee
                    will pay to KAV (for the benefit of BofA) any balance owing
                    to KAV from sales of KAV inventory made by Kellstrom between
                    the date of execution of the related asset purchase
                    agreement and the closing of such transaction.
<PAGE>

               4.   Payment terms to KAV will be sixty (60) days from month-end
                    for sales occurring during the month.

               5.   The agreement will provide a mechanism for prioritizing
                    sales of KAV inventory and overlapping inventory either
                    owned by, or consigned with, Consignee.

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</DOCUMENT>
