Document:

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                                                                  EXECUTION COPY

                                                                   Exhibit 10.49

________________________________________________________________________________

                   SHAREHOLDERS RIGHTS AND VOTING AGREEMENT

                                    between

                           HAWKER PACIFIC AEROSPACE
                                As the Company

                     THE SHAREHOLDERS LISTED ON EXHIBIT A
                                As Shareholders

                                      and

                             LUFTHANSA TECHNIK AG
                                  As Investor

                           DATED SEPTEMBER 20, 2000

________________________________________________________________________________
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                           HAWKER PACIFIC AEROSPACE

                   SHAREHOLDERS RIGHTS AND VOTING AGREEMENT
                   ----------------------------------------

     This Shareholders Rights and Voting Agreement (the "Agreement") is made as
                                                         ---------
of the 20th day of September 2000, by and among Hawker Pacific Aerospace, a
California corporation (the "Company"), the individuals listed on Exhibit A to
                             -------                              ---------
this Agreement (each a "Shareholder" and collectively the "Shareholders"), and
                        -----------                        ------------
Lufthansa Technik AG, a company organized under the German law (the "Investor").
                                                                     --------

                                   RECITALS
                                   --------

     WHEREAS, the certain shareholders of the Company set forth on Exhibit B
                                                                   ---------
(collectively the "Sellers") and the Investor, have entered into a Stock
Purchase Agreement (the "Purchase Agreement") dated as of September 20, 2000
                         ------------------
pursuant to which the Sellers agreed to sell to such Investor and such Investor
has agreed to purchase from the Sellers' shares of the Company's common stock,
par value $0.01 (the "Common Stock") and such transaction has been consummated
                      ------------
as of the date hereof;

     WHEREAS, the Company and the Investor, have entered into a Loan Agreement
(the "Loan Agreement") of even date herewith pursuant to which the Investor has
agreed to loan to the Company $9,300,000 and the Company has agreed to issue to
the Investor a warrant as of the date hereof in an  amount equal to the sum of
2,500,000 shares of Common Stock, effective and exercisable as of the date of,
and subject to, shareholders approval (the "Warrant");

     WHEREAS, a condition to the closing of the transactions contemplated by the
Purchase Agreement and the Loan Agreement is that the Company, the Shareholders
and the Investor enter into this Agreement for the purpose of setting forth the
terms and conditions pursuant to which the Investor and the Shareholders shall
vote their shares of the Company's voting stock in favor of certain designees to
the Company's Board of Directors and other matters as set forth herein;

     WHEREAS, as of the date hereof and effective upon the Closing of the
Purchase Agreement, Investor became the beneficial owner of record of the number
shares as set forth on Exhibit C;
                       ---------

     WHEREAS, each Shareholder is a record holder and the beneficial owner of,
and has the right to vote and dispose of the number of shares of Common Stock
which is set forth opposite such shareholders name on Exhibit A, and
                                                      ----------

     WHEREAS, the Company, the Investor and the Shareholders each desire to
facilitate the voting arrangements set forth in this Agreement, the sale and
purchase of shares of Common Stock pursuant to the Purchase Agreement, and
extension of credit under the Loan Agreement by agreeing to the terms and
conditions set forth herein which is an inducement and condition to
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Investor consummating the transactions contemplated in the Purchase Agreement
and Loan Agreement.

     NOW, THEREFORE, in consideration of the covenants and agreements
hereinafter contained, and intending to be legally bound, the parties hereby
agree as follows:

1.   Voting Power.
     ------------

     1.1. Number of Votes. All shares of the Company's capital stock entitled to
          ---------------
          vote beneficially owned by the Shareholders, now or hereafter
          acquired, including any shares represented by options, warrants or
          convertible securities, shall be bound by the terms of this Agreement
          and shall be given the voting weight attributed to each such share in
          accordance with its respective terms.

     1.2. Means of Voting.  Subject to the Article 8, the voting rights shall be
          ----------------
          exercised and meetings shall be called and held in accordance with the
          Company's articles of incorporation, by-laws, or other agreement,
          instrument or documents, individually or collectively, pursuant to
          which the Company is established or organized, and that govern the
          internal affairs of the Company or such documents as they may be
          amended from time to time (the "Charter Documents").

2.   Board Representation.

     2.1. Board Seat.
          ----------

          2.1.1.    The Company hereby agrees to recommend to the Board of
                    Directors to take such actions as are necessary, and each of
                    the Shareholders and the Investor agrees to vote his, her or
                    its shares of the Company's Common Stock, (and any other
                    shares of the capital stock of the Company over which he,
                    she or it exercises voting control) and take such other
                    actions as are necessary, so as to elect and thereafter
                    continue in office as directors of the Company such
                    individuals who may be nominated by the Investor and the
                    Investor shall have the exclusive right to make three (3)
                    nominations of directorships and each director so designated
                    shall sit for an initial term equal to the remaining term of
                    the directors who resigned from the Board pursuant to
                    Section 8(e) of the Purchase Agreement and Investor's
                    designees shall sit until the next annual meeting of the
                    shareholders of the Company, except as provided in Section
                    2.1.2.

          2.1.2.    The Company hereby agrees to recommend to the Board of
                    Directors to take such actions as are necessary, and each of
                    the Shareholders and the Investor agrees to vote his, her or
                    its shares of the Company's Common Stock, (and any other
                    shares of the capital stock of the Company over which he,
                    she or it exercises voting control) and take such other
                    actions as are necessary, at a meeting of the shareholders
                    of the Company to occur within 120 days of the date hereof
                    (the "Special Meeting"):

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          2.1.2.1.  to elect and establish a board which, pursuant to Article IV
                    of the Articles of Incorporation of the Company, shall be
                    classified into two classes. Upon the increase of the board
                    to 9 directors pursuant to Section 2.4.1, Class I shall be
                    comprised of 5 directors and Class II shall be comprised of
                    4 directors. At the Special Meeting, the directors of Class
                    I shall be elected to hold office for a term expiring at the
                    next succeeding annual meeting of the shareholders following
                    the Special Meeting and the directors of Class II shall be
                    elected to hold office for a term expiring at the second
                    succeeding annual meeting of the shareholders following the
                    Special Meeting. At each subsequent annual meeting of the
                    shareholders of the Company, the successors to the class of
                    directors whose term shall then expire shall be elected to
                    hold office for a term expiring at the second succeeding
                    annual meeting of the shareholders of the Company.

          2.1.2.2.  (a) two of the three directors nominated by Investor and
                    elected pursuant to Section 2.1.1 shall be elected and serve
                    in Class II and the remaining one director nominated by the
                    Investor and elected pursuant to Section 2.1.1 shall be
                    elected and serve in Class I, (b) the two directors
                    nominated by Investor pursuant to Section 2.4.1 and elected
                    upon the increase of the board size to 9, shall each be
                    elected and serve in Class II, and (c) the remaining
                    directors not nominated by the Investor shall be elected and
                    serve in Class I.

          2.1.2.3.  to ratify the actions taken by the Board of the Company
                    since the 1999 annual meeting of the shareholders of the
                    Company.

2.1.3.    The Company hereby agrees to recommend to the Board of Directors to
          take such actions as are necessary, and each of the Shareholders and
          the Investor agrees to vote his, her or its shares of the Company's
          Common Stock, (and any other shares of the capital stock of the
          Company over which he, she or it exercises voting control) and take
          such other actions as are necessary, at the next annual meeting of the
          shareholders of the Company so that (a) those directors nominated by
          the Investor and elected to Class I at the Special Meeting or such
          other individuals nominated by Investor shall be nominated for
          election at the next annual meeting of the shareholders of the Company
          for a two year term expiring at the 2003 annual meeting of the
          shareholders of the Company and (b) those directors nominated by the
          Investor and elected to Class II at the Special Meeting or such other
          individuals nominated by Investor shall be confirmed at the next
          annual meeting of the shareholders of the Company for their then
          current term expiring at the 2002 annual meeting of the shareholders
          of the Company.

2.1.4.    If, at the end of the initial term of the directors elected pursuant
          to Section 2.1.1 above, the Investor beneficially owns (which
          ownership shall include

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                    shares issuable under the Warrant) at least 40% of the total
                    issued and outstanding shares of Common Stock, such
                    individuals or such other individuals as Investor designates
                    shall then be nominated for a two-year term and the Company
                    shall recommend such nomination to the Board of Directors;
                    provided; however, if the Company fails to make such
                    recommendation Investor, as a shareholder, may nominate its
                    designees in accordance with the Charter Documents.

     2.2. Removal and Substitution of Board Members. The Company hereby agrees
          -----------------------------------------
          to recommend to the Board of Directors to take such actions as are
          necessary, and each of the Shareholders and the Investor agrees to
          vote his, her or its shares of Common Stock (and any other shares of
          the capital stock of the Company over which he, she or it exercises
          voting control) and take such other actions as are necessary, for the
          removal of any director upon the request of the party or parties
          designating such director and for the election to the Board of
          Directors of a substitute designated by such party.

     2.3. Vacancies on Board of Directors. The Company hereby agrees to
          -------------------------------
          recommend to the Board of Directors take such actions as are
          necessary, and each of the Shareholders and the Investor agrees to
          vote his, her or its shares of Common Stock (and any other shares of
          the capital stock of the Company over which he, she or it exercises
          voting control) and take such other actions as are necessary, in such
          manner as shall be necessary or appropriate to ensure that any vacancy
          on the Board of Directors of the Company (occurring for any reason)
          shall be filled by the election to the Board of Directors of a
          replacement designated by the party or parties who designated the
          director whose failure to continue to serve causes the applicable
          vacancy.

     2.4. Size of the Board of Directors.
          ------------------------------

          2.4.1.    The Company shall recommend to the Board of Directors to
                    take such actions as are necessary so as to (i) increase the
                    number of the Board of Directors from seven (7) to nine (9)
                    directors in accordance with the Charter Documents, (ii)
                    elect and thereafter continue in office as directors of the
                    Company such individuals who may be nominated by the
                    Investor and the Investor shall have the exclusive right to
                    make two (2) nominations of directorships for the newly
                    created Board seats and each director so designated shall
                    sit in Class II which shall be established at the Special
                    Meeting and shall sit for a term expiring at the second
                    succeeding annual meeting of the shareholders of the Company
                    held following the Special Meeting. The Company shall use
                    its best efforts to ensure that within 120 days of the date
                    hereof all such actions are taken and that any actions are
                    proposed to the shareholders of the Company for their
                    approval, if required, by the expiration of such 120 day
                    period.

          2.4.2.    Immediately following modification to the Board size
                    pursuant to Section 2.4.1, the Company shall recommend to
                    the Board of Directors to propose

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                    an amendment to the Company Charter Documents such that the
                    Board size cannot thereafter be modified except by the vote
                    of at least 60% of the then outstanding shares Common Stock;
                    provided however, that the required percentage vote shall be
                    increased appropriately to counteract any future option
                    exercises, stock issuances, stock dividends or other events
                    that would have a dilutive effect on the shares held by
                    Investor at such time.

          2.4.3.    If, at the end of the initial term of the directors elected
                    pursuant to Section 2.4.1 above, the Lender beneficially
                    owns (which ownership shall include shares issuable under
                    the Warrant) at least 40% of the total issued and
                    outstanding shares of Common Stock, such individuals or such
                    other individuals as Investor designates shall then be
                    nominated for a two-year term and the Company shall
                    recommend such nomination to the Board of Directors;
                    provided; however, if the Company fails to make such
                    recommendation Investor, as a shareholder, may nominate its
                    designees in accordance with the Charter Documents.

     2.5. Information. The Company acknowledges that the Investor will likely
          -----------
          have, from time to time, information that may be of interest to the
          Company ("Information") regarding a wide variety of matters including,
                    -----------
          by way of example only, (1) the Investor's technologies, plans and
          services, and plans and strategies relating thereto; (2) current and
          future investments the Investor has made, may make, may consider or
          may become aware of with respect to other companies and other
          technologies, products and services, including, without limitation,
          technologies, products and services that may be competitive with the
          Company's; and (3) developments with respect to the technologies,
          products and services, and plans and strategies relating thereto, of
          other companies, including, without limitation, companies that may be
          competitive with the Company. The Company recognizes that a portion of
          such Information may be of interest to the Company. Such Information
          may or may not be known by the member of the Board of Directors
          appointed by the Investor (the "Board Representative"). The Company,
                                          --------------------
          as a material part of the consideration for this Agreement, agrees
          that the Investor and/or Board Representative shall have no duty to
          disclose any Information, or to otherwise take advantage of any
          opportunity that may be of interest to the Company if it were aware of
          such Information, and hereby waives, to the extent permitted by law,
          any claim based on the corporate opportunity doctrine or otherwise
          that could limit the Investor's ability to pursue opportunities based
          on such Information or that would require the Investor or its Board
          Representative to disclose any such Information to the Company or
          offer any opportunity relating thereto to the Company.

3.   Restrictions on Transfer

     3.1. Right of First Refusal.
          -----------------------

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     In addition to the other limitations and restrictions set forth in this
Agreement,  no Shareholder shall transfer all or any portion of its Common Stock
(the "Offered Shares") unless such Shareholder (the "Offeror") first offers to
sell the Offered Shares pursuant to the terms of this Section 3.1.

          3.1.1.    Limitation on Transfers. Subject to Section 3.1.2, no
                    -----------------------
                    Transfer may be made unless the Offeror has received a bona
                    fide written or oral, evidenced by the terms set forth in
                    the Firm Offer, offer (the "Purchase Offer") from a Person
                    (the "Purchaser") to purchase the Offered Shares for a
                    purchase price (the "Offer Price") denominated and payable
                    in United States dollars at closing or according to
                    specified terms, with or without interest, which offer shall
                    be in writing signed by the Purchaser and shall be
                    irrevocable for a period ending no sooner than the Business
                    Day following the end of the Offer Period (as defined
                    below).

          3.1.2.    Offer by Offeror. In accordance with Section 3.1.3, Offeror
                    ----------------
                    may at any time, in the absence of a Purchase Offer, present
                    an independent offer to Investor to purchase the Offered
                    Shares for a purchase price equal to Market Price (the
                    "Independent Price").

          3.1.3.    Offer Notice. Prior to making any Transfer that is subject
                    ------------
                    to the terms of this Section 3.1, the Offeror shall give to
                    the Investor written notice (the "Offer Notice") which shall
                    include a copy of the Purchase Offer, if pursuant to Section
                    3.1.1, and an offer (the "Firm Offer"), substantially in the
                    form attached hereto as Exhibit E to sell the Offered Shares
                                            ---------
                    to Investor (the "Offeree") for the either (i) the Offer
                    Price, (ii) Market Price or (iii) the Independent Price,
                    payable according to the same terms as (or more favorable
                    terms than) those contained in the Purchase Offer or the
                    offer is made pursuant to Section 3.1.2 then in accordance
                    with commercially reasonable terms set forth in the Firm
                    Offer; provided that Offeror may, in its sole discretion,
                           --------
                    substitute the Market Price for the Offer Price in the Firm
                    Offer and, in the case of an offer pursuant to Section
                    3.1.2, the Independent Price shall equal the Market Price.

          3.1.4.    Offer Period. The Firm Offer shall be irrevocable for a
                    ------------
                    period (the "Offer Period") ending at 11:59 p.m., Los
                    Angeles, California time, on the 3rd Business Day following
                    the date of delivery of the Offer Notice.

          3.1.5.    Acceptance of First Offer. At any time during the Offer
                    -------------------------
                    Period, the Offeree may accept the Firm Offer as to all of
                    the Offered Shares, by giving written notice of such
                    acceptance to the Offeror, which notice shall indicate the
                    maximum number of Common Stock that the Offeree is willing
                    to purchase. If the Offeree does not accept the Firm Offer
                    as to all of the Offered Shares during the Offer Period, the
                    Firm Offer shall be deemed to be rejected in its entirety.
                    With respect to Offered Shares offered pursuant to Section
                    3.1.1, if after the Offeree rejects the Firm Offer, the
                    Offeror transfers the Offered Shares to Purchaser, the
                    Offered

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                    Shares so transferred shall remain subject to this Agreement
                    as stated in the legend in Section 9 hereof.

          3.1.6.    Closing of Purchase Pursuant to Firm Offer. In the event
                    ------------------------------------------
                    that the Firm Offer is accepted, the closing of the sale of
                    the Offered Shares shall take place within 5 Business Days
                    after the Firm Offer is accepted or, if later, the date of
                    closing set forth in the Purchase Offer. The Offeror and the
                    Offeree shall execute such documents and instruments as may
                    be necessary or appropriate to effect the sale of the
                    Offered Shares pursuant to the terms of the Firm Offer and
                    this Section 3.1.

          3.1.7.    "Market Price" shall mean the average closing price of the
                    prior ten (10) consecutive trading days of the Company
                    Common Stock.

     3.2. Future Issuance and Preemptive Rights
          -------------------------------------

     From the Effective Date until such time as the Investor (i) obtains at
least 51% of the seats of the Company's Board of Directors and (ii) owns
beneficially at least 51% of the total issued and outstanding shares of the
capital stock of the Company on a Fully Diluted Basis, the Investor shall be
entitled to the rights in this Section 3.2; provided however, if at any time
after clauses (i) and (ii) have become effective, Investor (x) does not hold 51%
of the seats of the Company's Board of Directors and (y) owns beneficially more
than 40% but less than 51% of the total issued and outstanding capital stock of
the Company on a Fully Diluted Basis, then the Investor shall be entitled to the
rights set forth in this Section 3.2.

          3.2.1.    Offering Notice. If the Company wishes to issue to any
                    ---------------
                    Person any Common Stock or any other securities convertible
                    into or exchangeable for membership interests of the Company
                    (collectively, "New Securities") to any Person (the "Subject
                                                                         -------
                    Purchaser"), then the Company shall offer the Proportionate
                    ---------
                    Percentage (as hereinafter defined) of such New Securities
                    simultaneously to the Investor by sending written notice
                    (the "New Issuance Notice") to the Investor, which New
                          -------------------
                    Issuance Notice shall state (a) the number of New Securities
                    proposed to be issued, (b) the proposed purchase price per
                    security of the New Securities (the "Proposed Price") and
                                                         --------------
                    (c) and the location of the closing of the sale of the New
                    Securities. Upon delivery of the New Issuance Notice, such
                    offer shall be irrevocable unless and until the rights
                    provided for in Section 3.2.2 shall have been waived or
                    shall have expired.

          3.2.2.    Preemptive Rights; Exercise.
                    ---------------------------

                    3.2.2.1.  For a period of 15 Business Days after the giving
                              of the New Issuance Notice pursuant to Section
                              3.2.1, the Investor shall have the right to
                              purchase its Proportionate Percentage (as
                              hereinafter defined) of the New Securities at a
                              purchase price equal to the Proposed Price and
                              upon the same terms and conditions set forth in
                              the New Issuance Notice. Investor shall have the
                              right to

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                              purchase that percentage of the New Securities
                              determined by dividing (a) the total number of
                              shares then owned by Investor on an as-if
                              converted to Common Stock basis, by (b) the total
                              number of shares then outstanding on an as-if
                              converted to Common Stock basis (the
                              "Proportionate Percentage").
                               ------------------------

                    3.2.2.2.  The right of Investor to purchase the New
                              Securities under subsection 3.2.2 above shall be
                              exercisable by delivering written notice of the
                              exercise thereof, prior to the expiration of the
                              15 Business Day period referred to in subsection
                              (i) above, to the Company, which notice shall
                              state the amount of New Securities that Investor
                              elects to purchase pursuant to Section 3.2. The
                              failure of Investor to respond within such 15
                              Business Day period shall be deemed to be a waiver
                              of Investor's rights under Section 3.2.2.2;
                              provided that each Investor may waive its rights
                              under Section 3.2.2.2 prior to the expiration of
                              such 15 Business Day period by giving written
                              notice to the Company.

          3.2.3.    Closing. The closing of the purchase of New Securities
                    -------
                    subscribed for by the Investor under Section 3.2.2 shall be
                    held at the place designated by the Company in the New
                    Issuance Notice at 10:00 a.m., local time, on (a) the date
                    of the closing of the sale to the Subject Purchaser or (b)
                    at such other time and place as the parties to the
                    transaction may agree. At such closing, the Company shall
                    deliver certificates representing the New Securities, and
                    such New Securities shall be issued free and clear of all
                    liens and the Company shall so represent and warrant, and
                    further represent and warrant that such New Securities shall
                    be, upon issuance thereof to the Investors and after payment
                    therefor, duly authorized, validly issued, fully paid and
                    non-assessable. Investor shall deliver at the closing
                    payment in full in immediately available funds for the New
                    Securities purchased by him or it. At such closing, all of
                    the parties to the transaction shall execute such additional
                    documents as are otherwise necessary or appropriate.

     3.3. Investor acknowledges that the Shareholders set forth on Schedule 3.3
                                                                   ------------
          have as of the date hereof pledged their respective Common Stock in
          the number of shares listed opposite such Shareholder's name to the
          Person listed opposite such Shareholder's name. Each Shareholder
          listed on Schedule 3.3 hereby represents and warrants to Investor that
                    ------------
          (i) such pledge of Common Stock does not restrict the Shareholder's
          ability to perform its obligations under this Agreement, including
          without limitation with respect to Article 2 and Article 8 or conflict
          with Investor's rights under Section 3.1 and (ii) prior to the
          Effective Date, such Shareholder has obtained, and delivered a copy to
          Investor, a written waiver and consent by Morgan Stanley Dean Witter
          to the Shareholders Rights Agreement with respect to shares owned by
          such Shareholder. Each Shareholder hereby agrees that it shall not
          pledge any Common Stock or enter into any agreement or take other
          action on or after the Effective Date in any manner that would
          restrict

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          the Shareholder's ability to perform its obligations under this
          Agreement, including without limitation with respect to Article 2 and
          Article 8 or conflict with Investor's rights under Section 3.1.

4.   Rights Plan.
     -----------

     4.1. From the Effective Date, the Company shall not propose any amendment
          to the Rights Agreement dated as of March 10, 1999, as filed with the
          Securities and Exchange Commission (the "SEC") on March 23, 1999, as
          amended and filed with the SEC on April 7, 1999 and as amended on
          August 15, 2000 (the "Rights Plan"), that would prevent, discourage or
          hinder the Investor or its Affiliates from acquiring beneficial
          ownership of any securities of the Company of at least 51% of the then
          outstanding Common Stock. The Company acknowledges that the August 15,
          2000 amendment expressly waived the application of the Rights Plan to
          Investor or its Affiliates.

5.   Covenants of the Company.
     -------------------------

     5.1. The Company agrees to use its best efforts to ensure that the rights
          granted hereunder are effective and that the parties hereto enjoy the
          benefits thereof.  Such actions include, without limitation, the use
          of the Company's best efforts to cause the nomination and election of
          the directors as provided in Section 2; the Company shall use its best
          efforts to make such nominations to the Board on the first Business
          Day following the Closing of the transactions contemplated in the
          Purchase Agreement and Loan Agreement.  The Company will not, by any
          voluntary action, avoid or seek to avoid the observance or performance
          of any of the terms to be performed hereunder by the Company, but will
          at all times in good faith assist in the carrying out of all of the
          provisions of this Agreement and in the taking of all such actions as
          may be necessary or in order to protect the rights of the parties
          hereunder against impairment.

     5.2. The Company covenants that it (i) will file any reports required to be
          filed by it under the Securities Act and the Exchange Act, including
          without limitation Section 13 and 15(d),  (ii) shall provide Investor
          and the Shareholders and prospective purchasers of their respective
          shares with the information specified in Rule 144(A), and (iii) will
          take such further action as the Shareholders or the Investor may
          reasonably request to the extent required from time to time to enable
          the Shareholders or the Investor to sell the Common Stock (and any
          other shares convertible into Common Stock) beneficially owned by it
          without registration under the Securities Act within the limitation of
          the exemptions provided by Rule 144 under the Securities Act, as such
          Rule may be amended from time to time, or any similar rule or
          regulation hereafter adopted by the Commission.  Upon the request of
          any Shareholder or the Investor, the Company will deliver to such
          holder a written statement as to whether it has complied with such
          reporting requirements.

                                       9
<PAGE>

     5.3. After the requirement for the restrictive legend described in Section
          9 hereof and Section 2.4 of the Warrant is no longer applicable
          because such Common Stock held by Investor or Shareholder are freely
          transferable under the Securities Act, the Company shall remove such
          legend upon the request of the holder of such Common Stock, if outside
          counsel for such holder reasonably determines that the transfer of
          such Common Stock is no longer restricted by the Securities Act and
          outside counsel for the Company reasonably concurs in such
          determination.

     5.4. The Charter Documents of the Company shall at all times provide for
          the exculpation and indemnification of the Board of Directors to the
          fullest extent permitted by the law of the jurisdiction in which the
          Company is organized.

     5.5. Except for options or warrants grated prior to the date hereof, the
          Company shall not issue any capital stock of the Company, options or
          warrants or other securities convertible into capital stock of the
          Company to any senior management, including any (i) executive officer
          or (ii) as determined by the Board of Directors, other key personnel,
          or member of the Board of Directors who is not a party to this
          Agreement as of the Effective Date, without such Person simultaneously
          agreeing to be bound by this Agreement in the same manner as the
          Shareholders and executing and delivering to the Company, the Investor
          and the Shareholders such agreement and delivering an irrevocable
          proxy to Investor in accordance with Article 8.

6.   The Warrants.
     ------------

     Each Shareholder hereby agrees to (i) vote, or cause the vote of, his
Shares and any shares such Shareholder may receive upon exercise or conversion
of any options in favor of the Warrants issued to Investor in an aggregate
amount of 2,500,000 shares of Common Stock at the next meeting of the
shareholders of the Company and any adjournment or postponement thereof, to the
extent that such Shares have not been voted by proxy pursuant to Section 8
hereof and (ii) take such other action necessary to effectuate the foregoing
clause (i).

7.   Charter Documents and Other Actions.
     ------------------------------------

     7.1. At any Company Shareholders' meeting or at any adjournment thereof or
          in any other circumstances upon which their vote, consent or other
          approval is sought, Shareholder shall vote (or cause to be voted) such
          Shareholder's Shares against any amendment of Company's Charter
          Documents or other proposal or transaction involving Company or any of
          its subsidiaries which amendment or other proposal or transaction
          would in any manner impede, frustrate, prevent or nullify any of the
          transactions contemplated in the Other Transaction Documents.

8.   Grant of Proxy.
     --------------

     8.1. This Agreement be construed to constitute the granting of proxies to
          the Investor, to secure Investor's performance as a creditor of the
          Company, such proxies shall be deemed coupled with an interest and are
          irrevocable for the term of this

                                       10
<PAGE>

           Agreement. The Parties acknowledge that the proxy from each
           Shareholder is given in consideration for the extension of credit by
           Investor to the Company. Such irrevocable proxy is executed, and
           intended to be irrevocable in accordance with the applicable
           provisions of the California Corporations Code.

     8.2.  Each of the Shareholders hereby indefinitely and irrevocably appoints
           Investor as his true and lawful attorney in fact, agent and proxy,
           and attorney-in-fact, with full power of substitution, to vote all of
           the Common Stock beneficially owned by him, now or hereafter
           acquired, as his proxy at any meetings of the shareholders of the
           Company for the term of this Agreement, with full power and authority
           to act for him and in his name at any meeting of shareholders or by
           written action by shareholders or in the transaction of such business
           as may come before a meeting of the shareholders, including matters
           set forth in Sections 2, 6 and 7 hereof, such grant of proxy shall be
           deemed coupled with an interest.

     8.3.  Each Shareholder represents that there are no other proxies (other
           than as set forth in this Section 8) heretofore given in respect of
           such Shareholder's shares that will continue in effect as of the date
           hereof.

9.   Legends.
     -------

     9.1.  In addition to any other legends required by law or agreements
           between or among the parties, each certificate representing
           Shareholders' or Investor's shares of Common Stock shall be endorsed
           by the Company with a legend reading as follows:

           "THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A SHAREHOLDERS RIGHTS AND
           VOTING AGREEMENT BY AND AMONG THE SHAREHOLDER, HAWKER PACIFIC
           AEROSPACE, AND LUFTHANSA TECHNIK AG (A COPY OF WHICH MAY BE OBTAINED
           FROM HAWKER PACIFIC AEROSPACE). BY ACCEPTING ANY INTEREST IN SUCH
           SHARES, THE PERSON ACCEPTING THIS INTEREST SHALL BE DEEMED TO AGREE
           TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SAID SHAREHOLDERS
           RIGHTS AND VOTING AGREEMENT."

10.  No Heightened Duty.
     ------------------

     10.1. Each party hereby acknowledges and agrees that no additional
           fiduciary duty, duty of care, duty of loyalty or other heightened
           duty will be created or imposed upon any party to any other party,
           the Company or any other Shareholder of the Company, by reason of
           this Agreement and/or any right or obligation hereunder; provided,
           however, that a Shareholder who is also a current member of the
           Company's Board of Directors may engage in activities to the extent
           necessary to satisfying fiduciary duty obligations to the Company and
           its shareholders. Investor and each Shareholder signs solely in his
           capacity as the record holder and beneficial owner of such
           Shareholder's Shares and options or warrants and
                                       11
<PAGE>

            nothing herein shall limit or affect any actions taken by a
            Investor's designees or such to the Board or Shareholder in its
            capacity as director of the Company.

11.  Dispute Resolution.

     11.1.  Disputes.  Within fifteen (15) days of the written request of either
            --------
            Party, the Parties shall meet to negotiate in good faith a
            resolution of any dispute, claim, controversy or claim arising out
            of or relating to this Agreement or the subject matter of this
            Agreement, or the breach, termination or invalidity thereof (a
            "Dispute").
             -------

     11.2.  Arbitration. Any Dispute which cannot be resolved pursuant to
            ------------
            Section 11.1 above within twenty (20) days of the written request
            provided pursuant to Section 11.1, will be finally settled by
            arbitration before a sole arbitrator in accordance with the
            Commercial Rules of Arbitration of the American Arbitration
            Association in effect on the date of this Agreement. The arbitrator
            shall be appointed in accordance with the applicable rules of
            arbitration. The arbitrator shall be an individual with significant
            experience in investment banking or venture capital.

     11.3.  Timing and Location of Arbitration. The Parties agree that any
            ----------------------------------
            arbitration process related to this Agreement shall be structured to
            the fullest extent possible in accordance with the applicable
            arbitration rules in such a way as to enable a decision to be
            rendered by the arbitrators within ninety (90) days of the date of
            the commencement of such arbitration. The place of arbitration will
            be Salt Lake City, Utah. By this agreement to arbitrate, the Parties
            waive their right to any form of appeal or recourse to a court of
            law or other judicial authority, to the fullest extent permitted by
            law, provided that any judgment upon an award rendered by the
                 --------
            arbitrator may be entered in any court having jurisdiction therefor.

     11.4.  Confidentiality; Expenses.
            -------------------------

            11.4.1. The Parties shall keep the arbitration confidential and
                    shall not disclose to any Person, other than those necessary
                    to the proceedings, the existence of the arbitration, any
                    document submitted or exchanged in connection with it, any
                    oral submissions or testimony, transcripts, or any award
                    unless disclosure is required by law or is necessary to
                    challenge, recognize or enforce an award. The arbitrators
                    and any experts shall be required to agree to comply with
                    this confidentiality provision before accepting appointment.

            11.4.2. All expenses of the arbitration procedure and tribunal will
                    be borne equally by the Parties, or as otherwise prescribed
                    by the applicable arbitration rules. Each Party's expenses
                    with respect to the conduct of the arbitration, including
                    the fees of attorneys, accountants, or other experts used in
                    connection with the arbitration, will be borne by the
                    unsuccessful

                                       12
<PAGE>

                    party in the arbitration, in whole or in part as determined
                    by the arbitration tribunal.

12.  Specific Performance.
     --------------------

     12.1.  The parties hereby acknowledge that it is impossible to measure in
            money the damages that will accrue to a party hereto or to its
            heirs, personal representatives, or assignees, by reason of a
            party's failure to perform its obligations under this Agreement and
            therefore agree that, in addition to and without limiting any
            remedies available at law, each of the parties hereto will have full
            equitable remedies available to such party.

13.  Confidentiality.
     ---------------

     13.1.  Disclosure of Terms. The terms and conditions of this Agreement (the
            -------------------
            "Terms"), including its existence, shall be considered confidential
             -----
            information and shall not be disclosed by any party hereto to any
            third party except in accordance with the provisions set forth
            below.

     13.2.  Press Releases, Etc. Within sixty (60) days of the date of the
            -------------------
            Purchase Agreement, the Company may issue a press release, in a form
            approved in advance by Investor, disclosing that the Investor has
            purchased an interest in the Company. The Investor's name and the
            fact that the Investor is an investor in the Company can be included
            in a reusable press release boilerplate statement, so long as the
            Investor has given the Company its initial approval of such
            boilerplate statement and the boilerplate statement is reproduced in
            exactly the form in which it was approved. No other announcements
            regarding the Investor in a press release, conference,
            advertisement, announcement, professional or trade publication, mass
            marketing materials or otherwise to the general public may be made
            without such Investor's prior written consent, which consent could
            be withheld at the Investor's sole discretion.

     13.3.  Permitted Disclosures. Notwithstanding the foregoing, any party may
            ---------------------
            disclose any of the Terms to its current or bona fide prospective
            investors, employees, investment bankers, lenders, accountants and
            attorneys, in each case only where such persons or entities are
            under appropriate nondisclosure obligations.

            13.3.1.  Legally Compelled Disclosure. In the event that any party
                     ----------------------------
                     is requested or becomes legally compelled (including
                     without limitation, pursuant to securities laws and
                     regulations) to disclose the existence of this Agreement or
                     the Purchase Agreement, Loan Agreement, Warrant,
                     Registration Rights Agreement between the Company and
                     Investor of even date herewith, or the Deephaven Purchase
                     Agreement (collectively the "Other Transaction Documents")
                     or any of the Terms hereof in contravention of the
                     provisions of this Section 13, such party (the "Disclosing
                                                                     ----------
                     Party") shall provide the other parties (the "Non-
                     -----                                         ---
                     Disclosing Parties") with prompt written notice of that
                     ------------------
                     fact so that the appropriate party may seek (with the

                                       13
<PAGE>

               cooperation and reasonable efforts of the other parties) a
               protective order, confidential treatment or other appropriate
               remedy. In such event, the Disclosing Party shall furnish only
               that portion of the information which is legally required or
               which has been previously released in a public filing and shall
               exercise reasonable efforts to obtain reliable assurance that
               confidential treatment will be accorded such information to the
               extent reasonably requested by any Non-Disclosing Party.
               Notwithstanding the preceding, each Party acknowledges that the
               other Party may be required to make certain filings with SEC with
               respect to this Agreement or the Other Transaction Documents;
               each Disclosing Party shall provide the Non-Disclosing Party with
               prior notice of any such filings, and no such filing shall be
               made without the prior written approval of the Non-Disclosing
               Party to the applicable disclosures.

14.  Termination.
     -----------

     14.1.  Events of Termination. This Agreement shall terminate in its
            ---------------------
            entirety on the earlier of (a) consummation of a transaction in
            which the Company shall sell, convey, or otherwise dispose of all or
            substantially all of its property or business, or merge into or
            consolidate with any other corporation (other than a wholly-owned
            subsidiary corporation), or effect any other transaction or series
            of related transactions in which at least 50% of the voting power of
            the Company is disposed of, or (b) mutual agreement in writing by
            all of the parties hereto; provided that this Agreement shall not be
                                       --------
            terminated following a merger effected solely for the purpose of
            changing the domicile of the Company; provided, further, the
                                                  --------  -------
            agreement may be terminated with respect to a Shareholder in
            accordance with Section 14.2 or as Investor, in its sole discretion,
            may otherwise agree in writing with such Shareholder or (c) if
            Shareholder ceases to be employed by the Company for any reason, (i)
            the proxy granted in Section 8 shall continue for six months
            following the termination of such employment provided the
            shareholders of the Company have not approved the Warrant as of the
            date of termination of such employment and (ii) Investor shall be
            granted the right of first refusal set forth in Section 3 as of the
            date of termination if Shareholder desires to sell its Shareholder
            Shares at that time.

     14.2.  Release of a Shareholder or Investor.  In the event a Shareholder
            ------------------------------------
            or the Investor bound by this Agreement ceases to hold any Company
            Common Stock, such party shall cease to be Shareholder or Investor
            and all rights and obligations as a party hereto shall cease;
            provided however, that (a) the obligations of such party set forth
            in Article 13, Article 11 and Article 14 shall survive and continue
            in full force and effect, (b) the representations and warranties of
            such party shall survive and continue in full force and effect for
            the longer of one year from the date Shareholder or Investor ceases
            to be a shareholder or the time periods allowed under applicable
            law, and (c) such party shall not be released from any liabilities
            or obligations under this Agreement accruing prior to the time such
            party ceases to hold any Company Common Stock.

                                       14
<PAGE>

15.  Miscellaneous.
     -------------

     15.1.  Amendments and Waivers. Any term hereof may be amended or waived
            -----------------------
            with the written consent of the Company, the Investor, and holders
            of a majority in interest of the Common Stock held by the
            Shareholders (or their respective successors and assigns); provided,
                                                                       --------
            however, that any such amendment or waiver cannot be effected in
            -------
            accordance with this Section 15.1 if it adversely affects the rights
            of any Shareholder or the Investor hereunder or increases the
            obligations of any Shareholder or the Investor hereunder unless the
            affected party expressly consents, in writing, to such amendment or
            waiver. Any amendment or waiver effected in accordance with this
            Section 15.1 shall be binding upon the Company, the Investor and any
            holder of the Common Stock held by the Shareholders, and each of
            their respective successors and assigns.

     15.2.  Notices.  Any notice required or permitted by this Agreement shall
            -------
            be in writing and shall be deemed sufficient on the date of
            delivery, when delivered personally or by overnight courier or sent
            by telegram or fax, or forty-eight (48) hours after being deposited
            in the U.S. mail, as certified or registered mail, with postage
            prepaid, and addressed to the party to be notified at such party's
            address as set forth below or on Exhibit D hereto.
                                             ---------

     15.3.  Severability.  Any provision of this Agreement which is invalid or
            ------------
            unenforceable shall be ineffective to the extent of such invalidity
            or unenforceability, provided that such invalidity or
                                 --------
            unenforceability does not deny any party the material benefits of
            the transactions for which it has bargained and such invalidity or
            unenforceability shall not affect in any way the remaining
            provisions hereof.

     15.4.  Governing Law.  This Agreement and all acts and transactions
            -------------
            pursuant hereto and the rights and obligations of the parties hereto
            shall be governed, construed and interpreted in accordance with the
            laws of the State of California, without giving effect to principles
            of conflicts of law.

     15.5.  Counterparts.  This Agreement may be executed in two or more
            ------------
            counterparts, each of which shall be deemed an original and all of
            which together shall constitute one instrument.

     15.6.  Successors and Assigns; No Third Party Beneficiaries.  The terms and
            -----------------------------------------------------
            conditions of this Agreement shall inure to the benefit of and be
            binding upon the respective successors and assigns of the parties.
            Nothing in this Agreement, express or implied, is intended to confer
            upon any party other than the parties hereto or their respective
            successors and assigns any rights, remedies, obligations, or
            liabilities under or by reason of this Agreement.

     15.7.  Entire Agreement.  This Agreement constitutes the entire agreement
            ----------------
            and any and all other written or oral agreements relating to the
            subject matter hereof existing between the parties hereto are
            expressly canceled.

                                       15
<PAGE>

     15.8.  Captions; Interpretation.  The section and other headings contained
            ------------------------
            in this Agreement are for reference purposes only and shall not
            affect the meaning or interpretation of this Agreement. Terms used
            with initial capital letters will have the meanings specified,
            applicable to both singular and plural forms, for all purposes of
            this Agreement. The words "include" and "exclude" and derivatives of
            those words are used in this Agreement in an illustrative sense
            rather than limiting sense.

     15.9.  No Investor Affiliate Liability.  Each of the following is herein
            --------------------------------
            referred to as an "Investor Affiliate:" (a) any direct or indirect
            holder of any equity interests or securities of the Investor
            (whether such holder is a limited or general partner, member,
            Shareholder or otherwise), (b) any Affiliate of the Investor, or (c)
            any director, officer, employee, representative or agent of (i)
            Investor, (ii) any Affiliate of Investor or (iii) any such holder of
            equity interests or securities referred to in clause (a) above. No
            Investor Affiliate shall have any liability or obligation of any
            nature whatsoever in connection with or under this Agreement or any
            of the Other Transaction Documents or the transactions contemplated
            hereby or thereby (whether or not such Investor Affiliate has called
            or received capital for contribution to Investor), and the
            Shareholders and the Company hereby waive and release all claims
            related to any such liability or obligation.

     15.10. Survival. The representations, warranties and covenants of the
            --------
            Shareholders, Investor and the Company contained in or made pursuant
            to this Agreement shall survive the execution and delivery of this
            Agreement and, except as otherwise specifically provided in this
            Agreement, shall remain operative and in full force and effect for
            the longer of one (1) year following the termination of the
            Agreement or time periods allowed under applicable law, except (i)
            as otherwise provided in Article 14 and (ii) as to any matters with
            respect to which a bona fide written claim shall have been made or
            an action at law or in equity shall have commenced before such date,
            in which event survival shall continue (but only with respect to,
            and to the extent of, such claim) until the final resolution of such
            claim, including all applicable periods for appeal.

     15.11. Authority.  If the Shareholder is married and the Shareholder's
            ---------
            Shares or options in the Company constitute community property, this
            Agreement has been duly authorized, executed and delivered by
            Shareholder, and constitutes a valid and binding agreement of the
            Shareholder's spouse, enforceable against such person in accordance
            with its terms (except as enforceability may be limited by
            applicable bankruptcy, insolvency, moratorium or similar laws
            affecting creditors' rights generally or by principles governing the
            availability of equitable remedies).

                           [Signature Pages Follow]

                                       16
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the date first above written.

                                        COMPANY:

                                        HAWKER PACIFIC AEROSPACE

                                        By:     /s/ David L. Lokken

                                        Name:   David L. Lokken

                                        Title:  CEO

                                        INVESTOR:

                                        LUFTHANSA TECHNIK AG

                                        By:     /s/ Bernhard Langlotz

                                        Name:   Bernhard Langlotz

                                        Title:  General Counsel

                      [Signatures Continue on Next Page]

<PAGE>

                                            SHAREHOLDERS:

                                            /s/ David L. Lokken
                                            David Lokken

                                            /s/ Brian Carr
                                            Brian Carr

                                            /s/ Michael Riley
                                            Michael Riley

                                            /s/ Dennis Biety
                                            Dennis Biety

<PAGE>

Exhibits:

Exhibit A - Schedule of Shareholders
Exhibit B - Schedule of Sellers
Exhibit C - Schedule of Investors
Exhibit D - Addresses
Exhibit E - Form of Firm Offer

Schedules:

Schedule 3.3: Pledge Agreements

<PAGE>

                             EXHIBIT A
                             ---------
                    SCHEDULE OF SHAREHOLDERS

--------------------------------------------------------------------
                                                         Number of
      Shareholder            Number of Shares             Options
--------------------------------------------------------------------
David Lokken                          138,930                 72,105
--------------------------------------------------------------------
Brian Carr                             28,706                 14,420
--------------------------------------------------------------------
Michael Riley                          28,706                 14,420
--------------------------------------------------------------------
Dennis Biety                                0                 28,841
--------------------------------------------------------------------
                    TOTAL:            196,342                129,786
--------------------------------------------------------------------

                                      A-1

<PAGE>

                                   EXHIBIT B

                              Schedule of Sellers

------------------------------------------------------------------
     Name                                 Number of Shares
------------------------------------------------------------------
Melanie Bastian                                            961,252
------------------------------------------------------------------
John Makoff                                                444,943
------------------------------------------------------------------
Sidney Makoff                                              287,060
------------------------------------------------------------------
Daniel Lubeck                                              324,120
------------------------------------------------------------------
Scott Hartman                                              319,120
------------------------------------------------------------------
                    TOTAL:                               2,336,495
------------------------------------------------------------------

                                      B-1

<PAGE>

                                   EXHIBIT C
                                   ---------
                        SCHEDULE OF INVESTOR'S INTEREST

 ------------------------------------------------------------------------
                                                             Number of
               Investor          Number of Shares             Warrants
------------------------------------------------------------------------
Lufthansa Technik AG                    2,336,495           2,500,000/1/
------------------------------------------------------------------------

_________________

/1/ The number of warrant shares are subject to shareholder approval in
accordance with the Warrant.

                                      C-1

<PAGE>

                                   EXHIBIT D
                                   ADDRESSES

Company:
Hawker Pacific Aerospace
1120 Sherman Way
Sun Valley, California  91352
Attn.: Chief Financial Officer
Fax No.:  818 765 2416

Shareholders:

David Lokken
Brian Carr
Michael Riley
Dennis Biety
c/o Hawker Pacific Aerospace
1120 Sherman Way
Sun Valley, CA  91352
Fax No.: 818-765-2416

Investor:
Lufthansa Technik AG
Weg beim Jager 193
D-22335 Hamburg, GERMANY
Attn.: Bernhard Langlotz
Fax No.: 011 49 40 5070 4909

With a copy to:

Wilmer, Cutler & Pickering
2445 M Street, NW
Washington, DC  20037
Attn:  Stephen P. Doyle
Fax No.:  (202) 663 - 6363

                                      D-1

<PAGE>

                                   EXHIBIT E

                                  FIRM OFFER
                                   [Seller]
                                   [Address]
                                [Phone and Fax]

                                _________, 2000

Lufthansa Technik AG
Weg beim Jager 193
D-22335 Hamburg, GERMANY

     Re: Firm Offer

Dear Sir:

     The undersigned, hereby makes an irrevocable offer to sell shares of Common
Stock  ("Common Stock") of Hawker Pacific Aerospace ,a California corporation
(the "Corporation") to Lufthansa Technick AG, a corporation organized under the
laws of the Germany ("Offeree") pursuant to the terms and conditions set forth
in this Firm Offer ("Firm Offer"):

     1.    Number of Shares: The undersigned (the "Seller") certifies to the
           ----------------
Offeree that they are  a registered holder and beneficial owner of ______shares
of the Corporation's Common Stock and desires to sell those shares ("Offered
Shares") to Offeree for [Offer Price] [Market Price] as set forth  in paragraph
2 below, payable according to the same terms as [or more favorable terms than]
those contained in the Purchase offer (attached hereto), provided that Seller
may in its sole discretion substitute the Market Price for the Offer Price.

     (i)   prior ten
(10) consecutive trading days of the Company Common Stock from the date hereof.

     (ii)  Price" shall mean offer a Seller received by oral or written
notice to purchase the Offered Shares for a purchase price.

     (iii) Purchase Offer" shall mean the bona fide offer Seller has received
from a third party purchaser for the offered shares.

     2.    Purchase Price : Seller, hereby agrees to irrevocably sell the
           ----------------
Offered Shares to the Offeree at a purchase price  ______ per share based on
[Offer Price] [Market Price].

                                      E-2

<PAGE>

     3.  [Other Terms of the Purchase]

     4.  Offer Period.  This Firm Offer shall be irrevocable for a period (the
         ------------
"Offer Period") ending at 11:59 p.m., Los Angeles, California time, on the 3rd
Business Day following the date of delivery of this Firm Offer to Offeree.

     5.  Acceptance of First Offer.  At any time during the Offer Period, the
         -------------------------
Offeree may accept the Firm Offer as to all of the Offered Shares, by giving
written notice of such acceptance to the Seller, which notice shall indicate the
maximum number of Common Stock that the Offeree is willing to purchase at the
[Offer Price] [Market Price].  If the Offeree does not accept the Firm Offer as
to all of the Offered Shares by the expiration of the Offer Period, the Firm
Offer shall be deemed to be rejected in its entirety.

     6.  Closing of Purchase Pursuant to Firm Offer.  In the event that the Firm
         ------------------------------------------
Offer is accepted, the closing of the sale of the Offered Shares shall take
place within 5 Business Days after the Firm Offer is accepted by Offeree or, if
later, the date of closing set forth in the Purchase Offer.  The Seller and the
Offeree shall execute such documents and instruments as may be necessary or
appropriate to effect the sale of the Offered Shares pursuant to the terms of
this Firm Offer.

     7.  Offer Irrevocable; Acceptance Procedure:  Execution and delivery of
         ---------------------------------------
this Firm Offer by Seller and countersignature by Offeree below shall constitute
an irrevocable offer and acceptance of this Firm shares of Common Stock, and
Seller shall be bound to transfer and sell to Offeree the Offered Shares and
Offeree shall be bound to purchase the Offered Shares from Seller in accordance
with the terms of this Firm Offer.

                              Sincerely,

                              _________________________________
                              Name:

                              Acknowledged and Agreed to by:
                              LUFTHANSA TECHNIK AG
                              OFFEREE

                              By:______________________________
                              Name:
                              Title:

                                      E-2

<PAGE>

                                 SCHEDULE 3.3

                               Pledge Agreements

The following Shareholders have pledged their respective Common Stock in Margin
Client Agreements with Morgan Stanley Dean Witter.

   Dave Lokken   138,930 shares
   Brian Carr     28,706 shares
   Mike Riley     28,706 shares<PAGE>

                                                                   Exhibit 10.50

                                                                  EXECUTION COPY

                                PROMISSORY NOTE
                                ---------------

$9,300,000                                                  September 20, 2000

     Hawker Pacific Aerospace, a corporation organized under the laws of the
State of California and having its principal place of business at 11240 Sherman
Way, Sun Valley, California, 91352, (the "Company"), for value received,
promises to pay to Lufthansa Technik AG having its principal place of business
at Weg beim Jager 193D-22335 Hamburg, GERMANY or its assigns, in lawful money
of the United States, the principal sum of NINE MILLION THREE HUNDRED THOUSAND
DOLLARS ($9,300,000) and to pay interest on the unpaid principal balance thereof
at the rate set forth below, such principal and interest to be paid in
immediately available funds in U.S. Dollars within the term set forth below in
accordance with the Loan Agreement of even date herewith between the Company and
the Lender (the "Loan Agreement"). Capitalized terms used, but not otherwise
defined, herein shall have the respective meanings ascribed to such terms in the
Loan Agreement.

     The Company shall pay principal and interest at terms and the rates for the
corresponding periods as set forth below:

     (a)  On or before June 30 and December 31 in each calendar year during the
term of the Loan, the Company shall pay an amount of interest accruing to such
date at the rate provided herein on the outstanding principal balance under the
Loan. The first interest payment shall be due on September 19, 2001. The annual
interest rate shall be equal to the higher of (a) 10% per annum or (b) 5% per
annum plus USD LIBOR as published on the Effective Date which shall be
applicable for the first six months and USD LIBOR as published each six month
anniversary thereafter for each subsequent six month period, to the extent
permitted by Applicable Law; provided, however, the interest rate shall in no
event exceed 11%.

     (b)  The principal amount of the Loan shall be paid as follows: (a) on the
first anniversary of Effective Date, the Company shall make a payment to Lender
in the amount of $2,325,000 which represents 25% of the principal; (b) on the
second anniversary of the Effective Date, the Company shall make a payment to
Lender in the amount of $2,325,000 which represents 25% of the principal.

     (c)  On the third anniversary of the Effective Date, the Loan shall mature
and $4,650,000 (which represents the remaining 50% of the principal) together
with any accrued but unpaid interest hereunder, shall be due and payable in full
by the Company.

     Subject to Section 2.10 and Section 2.14 of the Loan with respect to
exercise of the Warrants, all payments shall be made to the Lender in
immediately available funds to Lender's account no. 40652003 with CITIBANK, New
York, swift code: citi us 33/ABA 021000089 or to such other account notified to
the Company not later than 7 days prior to the respective
<PAGE>

obligation falling due. Subject to Section (a) above, interest shall be
calculated on a basis of the actual number of days elapsed and a 360 day year.

     All amounts payable by the Company under this Agreement shall be paid in
full without set-off or counterclaim or right of retention or other restrictions
and free and clear of and save to the extent required by law, without any
deduction or withholding for or on account of any taxes or charges or otherwise.

     If payments are not made on their due date, additional 1% per annum (one
percent per annum), calculated from the due date to the actual date of payment,
shall be due and payable to the Lender, to the extent permitted by Applicable
Law.

     This Note may be prepaid at any time in whole or in part, and from time to
time, without penalty or premium.

     This Note shall be subject to all terms and conditions of the Loan
Agreement between the parties, which Agreement is incorporated herein by
reference and made a part hereof.

     This Note shall be governed by and construed and enforced in accordance
with the laws of the State of California.

     The indebtedness evidenced hereby and all liens securing such indebtedness
are subordinated in the manner and to the extent set forth in that certain
Subordination Agreement (the "Subordination Agreement") dated as of September
20, 2000 among Lufthansa Technik AG, Hawker Pacific Aerospace, and Heller
Financial, Inc., to the Senior Debt (as defined in such Subordination
Agreement), and each lender hereunder, by its acceptance hereof, shall be bound
by the provisions of the Subordination Agreement.

     IN WITNESS WHEREOF, the Company has caused this Note to be duly executed as
an instrument under seal by its duly authorized officer on the day and year
first above written.

                                                  HAWKER PACIFIC AEROSPACE

                                                  By:    /s/ David L. Lokken

                                                  Name:  David L. Lokken

                                                  Title: CEO

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