Document:

<PAGE>

                                                                  EXHIBIT 10.46B
                          PAYMENT DEFERMENT AGREEMENT

     This Payment Deferment Agreement (the "Agreement") is entered into this
15th day of August, 2000 (the "Effective Date") by and among Hawker Pacific
Aerospace ("Hawker Pacific"), Lufthansa Technik AG ("Lufthansa") and David
Lokken (the "Employee") for the purpose of deferring certain payments due to the
Employee pursuant to Employee's Employment Agreement, as amended, and the
Management Incentive Program Agreement between the Employee and Hawker Pacific
dated February 4, 2000 (the "MIP"), and referenced in that certain Loan
Agreement between Hawker Pacific and Lufthansa (the "Loan Agreement").

     WHEREAS, Employee's Employment Agreement, contains certain provisions
whereby the Employee is entitled to receive a Change of Control Payment in the
amount set forth in the Loan Agreement, which is $344,877, upon a Change of
Control of Hawker Pacific, as defined in the Employment Agreement, and restated
in the MIP;

     WHEREAS, the transaction between Lufthansa and the shareholders of Unique
Investment Corporation (the "Transaction") constitutes such a Change of Control
of Hawker Pacific and therefore, upon the closing of such Transaction, the
Change of Control Payment to the Employee becomes due and payable in accordance
with the terms of the MIP;

     WHEREAS, the Employee voluntarily desires to assist Hawker Pacific and
improve the company's liquidity until such time as additional financing can be
secured; and

     WHEREAS, the Employee has accordingly agreed to defer his Change of Control
Payment as set forth below.

     NOW, THEREFORE, the parties agree as follows:

          1.   Deferment of Change of Control Payment. The Employee shall defer
               --------------------------------------
receipt of 100% of the Change of Control Payment due to him after the closing of
the Transaction until the first to occur of (i) October 31, 2000, or (ii) the
replacement or restructuring of the senior financing with Heller Financial,
Inc.; provided that the Employee shall give Lufthansa 30 days prior notice of
his intent to receive the Change of Control Payment as set forth below.

          2.   Interest. Hawker Pacific shall pay the Employee simple interest
               --------
at the rate of 11% per year on the principal amount of any deferred portion of
his Change of Control Payment. Such interest shall be calculated from the
Effective Date of this Agreement and shall be paid along with any principal
amount of the Change of Control Payment.

          3.   Prepayment. Notwithstanding the terms of Section 1 above, at any
               ----------
time after October 31, 2000, Hawker Pacific may, at its sole discretion, pay to
the Employee the Change of Control Payment and all interest accrued as of such
date of payment.

          4.   Vesting. Lufthansa and Hawker Pacific hereby acknowledge and
agree that despite the payment deferral provided for in this Agreement, the
Change of Control Payment
<PAGE>

is 100% vested and earned by the Employee, and shall remain so regardless of
death, disability or termination for any reason.

          5.   Waiver of Payment for Vested Options. Employee expressly waives
               ------------------------------------
his right to receive any payment under Section 5 of the MIP that would otherwise
become due upon the closing of the Transaction.

          6.   Notice. Notice of intent to receive the Change of Control Payment
               ------
must be provided in writing to the following persons at the following addresses
(or at such other addresses as shall be specified by either of the entities
below, provided that notices of a change of address shall be effective only upon
receipt of such notice):

               Hawker Pacific Aerospace
               11240 Sherman Way
               Sun Valley, California 91352
               Attention:  Chief Financial Officer
               Fax:  818-765-2416

               with a copy to:
               Lufthansa Technik AG
               Dept. TUL TS/U
               6501 East Apache, Suite 206
               Tulsa, Oklahoma 74115
               Attention:  James Stoecker, General Manager, North American
               Business Development
               Fax: 918-835-4592

     Notice shall be deemed to have been received if given personally, when
transmitted by facsimile or on the date sent by internationally recognized
overnight courier service.

          7.   General Provisions.
               ------------------
               (a)  Governing Law: Consent to Personal Jurisdiction. This
                    ------------------------------------------------
     Agreement will be governed by the internal laws of the State of California.
     The Parties hereby expressly consent to the personal jurisdiction of the
     state or federal courts located in California for the purpose of any action
     or judgment with respect to this Agreement.

               (b)  Entire Agreement. This Agreement sets forth the entire
                    ----------------
     agreement and understanding between the parties relating to the subject
     matter herein and supersedes any and all discussions and written agreements
     between them. No modification of or amendment to this Agreement, nor any
     waiver of any rights under this agreement, will be effective unless in
     writing signed by both parties.

               (c)  Successors and Assigns. This Agreement will be binding upon
                    ----------------------
     the parties' heirs, executors, administrators, assigns, successors and
     other legal representatives.
<PAGE>

               (d)  Arbitration; Attorneys Fees. The provisions related to
                    ---------------------------
     arbitration and attorney's fees contained in Employee's Employment
     Agreement are hereby incorporated by reference with regard to any disputes
     related to this Agreement.

     This Agreement is being executed by the parties effective as of the date
and year first set forth above.

HAWKER PACIFIC AEROSPACE
                                                  /s/  David L. Lokken
                                                  ------------------------------
                                                  David Lokken
By:      /s/  Daniel J. Lubeck
   ------------------------------
Name:   Daniel J. Lubeck
Title:  Chairman

<PAGE>

                          PAYMENT DEFERMENT AGREEMENT

     This Payment Deferment Agreement (the "Agreement") is entered into this
15th day of August, 2000 (the "Effective Date") by and among Hawker Pacific
Aerospace ("Hawker Pacific"), Lufthansa Technik AG ("Lufthansa") and Philip
Panzera (the "Employee") for the purpose of deferring certain payments due to
the Employee pursuant to Employee's Employment Agreement, as amended, and the
Management Incentive Program Agreement between the Employee and Hawker Pacific
dated February 4, 2000 (the "MIP"), and referenced in that certain Loan
Agreement between Hawker Pacific and Lufthansa (the "Loan Agreement").

     WHEREAS, Employee's Employment Agreement, contains certain provisions
whereby the Employee is entitled to receive a Change of Control Payment in the
amount set forth in the Loan Agreement, which is $202,537, upon a Change of
Control of Hawker Pacific, as defined in the Employment Agreement, and restated
in the MIP;

     WHEREAS, the transaction between Lufthansa and the shareholders of Unique
Investment Corporation (the "Transaction") constitutes such a Change of Control
of Hawker Pacific and therefore, upon the closing of such Transaction, the
Change of Control Payment to the Employee becomes due and payable in accordance
with the terms of the MIP;

     WHEREAS, the Employee voluntarily desires to assist Hawker Pacific and
improve the company's liquidity until such time as additional financing can be
secured; and

     WHEREAS, the Employee has accordingly agreed to defer his Change of Control
Payment as set forth below.

     NOW, THEREFORE, the parties agree as follows:

          8.   Deferment of Change of Control Payment. The Employee shall defer
               --------------------------------------
receipt of 100% of the Change of Control Payment due to him after the closing of
the Transaction until the first to occur of (i) October 31, 2000, or (ii) the
replacement or restructuring of the senior financing with Heller Financial,
Inc.; provided that the Employee shall give Lufthansa 30 days prior notice of
his intent to receive the Change of Control Payment as set forth below.

          9.   Interest. Hawker Pacific shall pay the Employee simple interest
               --------
at the rate of 11% per year on the principal amount of any deferred portion of
his Change of Control Payment. Such interest shall be calculated from the
Effective Date of this Agreement and shall be paid along with any principal
amount of the Change of Control Payment.

          10.  Prepayment. Notwithstanding the terms of Section 1 above, at any
               ----------
time after October 31, 2000, Hawker Pacific may, at its sole discretion, pay to
the Employee the Change of Control Payment and all interest accrued as of such
date of payment.
<PAGE>

          11.  Vesting. Lufthansa and Hawker Pacific hereby acknowledge and
               -------
agree that despite the payment deferral provided for in this Agreement, the
Change of Control Payment is 100% vested and earned by the Employee, and shall
remain so regardless of death, disability or termination for any reason.

          12.  Waiver of Payment for Vested Options. Employee expressly waives
               ------------------------------------
his right to receive any payment under Section 5 of the MIP that would otherwise
become due upon the closing of the Transaction.

          13.  Notice. Notice of intent to receive the Change of Control Payment
               ------
must be provided in writing to the following persons at the following addresses
(or at such other addresses as shall be specified by either of the entities
below, provided that notices of a change of address shall be effective only upon
receipt of such notice):

               Hawker Pacific Aerospace
               11240 Sherman Way
               Sun Valley, California 91352
               Attention:  Chief Financial Officer
               Fax:  818-765-2416

               with a copy to:
               Lufthansa Technik AG
               Dept. TUL TS/U
               6501 East Apache, Suite 206
               Tulsa, Oklahoma 74115
               Attention:  James Stoecker, General Manager, North American
               Business Development
               Fax: 918-835-4592

     Notice shall be deemed to have been received if given personally, when
transmitted by facsimile or on the date sent by internationally recognized
overnight courier service.

          14.  General Provisions.
               ------------------

               (a)  Governing Law: Consent to Personal Jurisdiction. This
                    ------------------------------------------------
     Agreement will be governed by the internal laws of the State of California.
     The Parties hereby expressly consent to the personal jurisdiction of the
     state or federal courts located in California for the purpose of any action
     or judgment with respect to this Agreement.

               (b)  Entire Agreement. This Agreement sets forth the entire
                    ----------------
     agreement and understanding between the parties relating to the subject
     matter herein and supersedes any and all discussions and written agreements
     between them. No modification of or amendment to this Agreement, nor any
     waiver of any rights under this agreement, will be effective unless in
     writing signed by both parties.

               (c)  Successors and Assigns. This Agreement will be binding upon
                    ----------------------
     the parties' heirs, executors, administrators, assigns, successors and
     other legal representatives.
<PAGE>

               (d)  Arbitration; Attorneys Fees. The provisions related to
                    ---------------------------
     arbitration and attorney's fees contained in Employee's Employment
     Agreement are hereby incorporated by reference with regard to any disputes
     related to this Agreement.

     This Agreement is being executed by the parties effective as of the date
and year first set forth above.

HAWKER PACIFIC AEROSPACE
                                                  /s/ Philip M. Panzera
                                                  ------------------------------
                                                  Philip Panzera
By:      /s/  David L. Lokken
   ------------------------------
Name:    David L. Lokken
     ----------------------------
Title:   President & CEO
      ---------------------------
<PAGE>

                          PAYMENT DEFERMENT AGREEMENT

     This Payment Deferment Agreement (the "Agreement") is entered into this
15th day of August, 2000 (the "Effective Date") by and among Hawker Pacific
Aerospace ("Hawker Pacific"), Lufthansa Technik AG ("Lufthansa") and Michael
Riley (the "Employee") for the purpose of deferring certain payments due to the
Employee pursuant to Employee's Employment Agreement, as amended, and the
Management Incentive Program Agreement between the Employee and Hawker Pacific
dated February 4, 2000 (the "MIP"), and referenced in that certain Loan
Agreement between Hawker Pacific and Lufthansa (the "Loan Agreement").

     WHEREAS, Employee's Employment Agreement, contains certain provisions
whereby the Employee is entitled to receive a Change of Control Payment in the
amount set forth in the Loan Agreement, which is $147,918, upon a Change of
Control of Hawker Pacific, as defined in the Employment Agreement, and restated
in the MIP;

     WHEREAS, the transaction between Lufthansa and the shareholders of Unique
Investment Corporation (the "Transaction") constitutes such a Change of Control
of Hawker Pacific and therefore, upon the closing of such Transaction, the
Change of Control Payment to the Employee becomes due and payable in accordance
with the terms of the MIP;

     WHEREAS, the Employee voluntarily desires to assist Hawker Pacific and
improve the company's liquidity until such time as additional financing can be
secured; and

     WHEREAS, the Employee has accordingly agreed to defer his Change of Control
Payment as set forth below.

     NOW, THEREFORE, the parties agree as follows:

          15.  Deferment of Change of Control Payment. The Employee shall defer
               --------------------------------------
receipt of 50% of the Change of Control Payment due to him after the closing of
the Transaction until the first to occur of (i) October 31, 2000, or (ii) the
replacement or restructuring of the senior financing with Heller Financial,
Inc.; provided that the Employee shall give Lufthansa 30 days prior notice of
his intent to receive the Change of Control Payment as set forth below.

          16.  Interest. Hawker Pacific shall pay the Employee simple interest
               --------
at the rate of 11% per year on the principal amount of any deferred portion of
his Change of Control Payment. Such interest shall be calculated from the
Effective Date of this Agreement and shall be paid along with any principal
amount of the Change of Control Payment.

          17.  Prepayment. Notwithstanding the terms of Section 1 above, at any
               ----------
time after October 31, 2000, Hawker Pacific may, at its sole discretion, pay to
the Employee the Change of Control Payment and all interest accrued as of such
date of payment.
<PAGE>

          18.  Vesting. Lufthansa and Hawker Pacific hereby acknowledge and
               -------
agree that despite the payment deferral provided for in this Agreement, the
Change of Control Payment is 100% vested and earned by the Employee, and shall
remain so regardless of death, disability or termination for any reason.

          19.  Waiver of Payment for Vested Options. Employee expressly waives
               ------------------------------------
his right to receive any payment under Section 5 of the MIP that would otherwise
become due upon the closing of the Transaction.

          20.  Notice. Notice of intent to receive the Change of Control Payment
               ------
must be provided in writing to the following persons at the following addresses
(or at such other addresses as shall be specified by either of the entities
below, provided that notices of a change of address shall be effective only upon
receipt of such notice):

               Hawker Pacific Aerospace
               11240 Sherman Way
               Sun Valley, California 91352
               Attention:  Chief Financial Officer
               Fax:  818-765-2416

               with a copy to:
               Lufthansa Technik AG
               Dept. TUL TS/U
               6501 East Apache, Suite 206
               Tulsa, Oklahoma 74115
               Attention:  James Stoecker, General Manager, North American
               Business Development
               Fax: 918-835-4592

     Notice shall be deemed to have been received if given personally, when
transmitted by facsimile or on the date sent by internationally recognized
overnight courier service.

          21.  General Provisions.
               ------------------
               (a)  Governing Law: Consent to Personal Jurisdiction. This
                    ------------------------------------------------
     Agreement will be governed by the internal laws of the State of California.
     The Parties hereby expressly consent to the personal jurisdiction of the
     state or federal courts located in California for the purpose of any action
     or judgment with respect to this Agreement.

               (b)  Entire Agreement. This Agreement sets forth the entire
                    ----------------
     agreement and understanding between the parties relating to the subject
     matter herein and supersedes any and all discussions and written agreements
     between them. No modification of or amendment to this Agreement, nor any
     waiver of any rights under this agreement, will be effective unless in
     writing signed by both parties.

               (c)  Successors and Assigns. This Agreement will be binding upon
                    ----------------------
     the parties' heirs, executors, administrators, assigns, successors and
     other legal representatives.
<PAGE>

               (d)  Arbitration; Attorneys Fees. The provisions related to
                    ---------------------------
     arbitration and attorney's fees contained in Employee's Employment
     Agreement are hereby incorporated by reference with regard to any disputes
     related to this Agreement.

     This Agreement is being executed by the parties effective as of the date
and year first set forth above.

HAWKER PACIFIC AEROSPACE
                                                  /s/  Michael Riley
                                                  ------------------------------
                                                  Michael Riley
By:     /s/  David L. Lokken
   ------------------------------
Name:   David L. Lokken

Title:  President & CEO
<PAGE>

                          PAYMENT DEFERMENT AGREEMENT

     This Payment Deferment Agreement (the "Agreement") is entered into this __
day of August, 2000 (the "Effective Date") by and among Hawker Pacific Aerospace
("Hawker Pacific"), Lufthansa Technik AG ("Lufthansa") and Dennis M. Biety (the
"Employee") for the purpose of deferring certain payments due to the Employee
pursuant to Employee's Employment Agreement, as amended, and the Management
Incentive Program Agreement between the Employee and Hawker Pacific dated
February 4, 2000 (the "MIP"), and referenced in that certain Loan Agreement
between Hawker Pacific and Lufthansa (the "Loan Agreement").

     WHEREAS, Employee's Employment Agreement, contains certain provisions
whereby the Employee is entitled to receive a Change of Control Payment in the
amount set forth in the Loan Agreement, which is $368,178, upon a Change of
Control of Hawker Pacific, as defined in the Employment Agreement, and restated
in the MIP;

     WHEREAS, the transaction between Lufthansa and the shareholders of Unique
Investment Corporation (the "Transaction") constitutes such a Change of Control
of Hawker Pacific and therefore, upon the closing of such Transaction, the
Change of Control Payment to the Employee becomes due and payable in accordance
with the terms of the MIP;

     WHEREAS, the Employee voluntarily desires to assist Hawker Pacific and
improve the company's liquidity until such time as additional financing can be
secured; and

     WHEREAS, the Employee has accordingly agreed to defer his Change of Control
Payment as set forth below.

     NOW, THEREFORE, the parties agree as follows:

          22.  Deferment of Change of Control Payment. The Employee shall defer
               --------------------------------------
receipt of 100% of the Change of Control Payment due to him after the closing of
the Transaction until the first to occur of (i) October 31, 2000, or (ii) the
replacement or restructuring of the senior financing with Heller Financial,
Inc.; provided that the Employee shall give Lufthansa 30 days prior notice of
his intent to receive the Change of Control Payment as set forth below.

          23.  Interest. Hawker Pacific shall pay the Employee simple interest
               --------
at the rate of 11% per year on the principal amount of any deferred portion of
his Change of Control Payment. Such interest shall be calculated from the
Effective Date of this Agreement and shall be paid along with any principal
amount of the Change of Control Payment.

          24.  Prepayment. Notwithstanding the terms of Section 1 above, at any
               ----------
time after October 31, 2000, Hawker Pacific may, at its sole discretion, pay to
the Employee the Change of Control Payment and all interest accrued as of such
date of payment.
<PAGE>

          25.  Vesting. Lufthansa and Hawker Pacific hereby acknowledge and
               -------
agree that despite the payment deferral provided for in this Agreement, the
Change of Control Payment is 100% vested and earned by the Employee, and shall
remain so regardless of death, disability or termination for any reason.

          26.  Waiver of Payment for Vested Options. Employee expressly waives
               ------------------------------------
his right to receive any payment under Section 5 of the MIP that would otherwise
become due upon the closing of the Transaction.

          27.  Notice. Notice of intent to receive the Change of Control Payment
               ------
must be provided in writing to the following persons at the following addresses
(or at such other addresses as shall be specified by either of the entities
below, provided that notices of a change of address shall be effective only upon
receipt of such notice):

               Hawker Pacific Aerospace
               11240 Sherman Way
               Sun Valley, California 91352
               Attention:  Chief Financial Officer
               Fax:  818-765-2416

               with a copy to:
               Lufthansa Technik AG
               Dept. TUL TS/U
               6501 East Apache, Suite 206
               Tulsa, Oklahoma 74115
               Attention:  James Stoecker, General Manager, North American
               Business Development
               Fax: 918-835-4592

     Notice shall be deemed to have been received if given personally, when
transmitted by facsimile or on the date sent by internationally recognized
overnight courier service.

          28.  General Provisions.
               ------------------

               (a)  Governing Law: Consent to Personal Jurisdiction. This
                    ------------------------------------------------
     Agreement will be governed by the internal laws of the State of California.
     The Parties hereby expressly consent to the personal jurisdiction of the
     state or federal courts located in California for the purpose of any action
     or judgment with respect to this Agreement.

               (b)  Entire Agreement. This Agreement sets forth the entire
                    ----------------
     agreement and understanding between the parties relating to the subject
     matter herein and supersedes any and all discussions and written agreements
     between them. No modification of or amendment to this Agreement, nor any
     waiver of any rights under this agreement, will be effective unless in
     writing signed by both parties.

               (c)  Successors and Assigns. This Agreement will be binding upon
                    ----------------------
     the parties' heirs, executors, administrators, assigns, successors and
     other legal representatives.
<PAGE>

               (d)  Arbitration; Attorneys Fees. The provisions related to
                    ---------------------------
     arbitration and attorney's fees contained in Employee's Employment
     Agreement are hereby incorporated by reference with regard to any disputes
     related to this Agreement.

     This Agreement is being executed by the parties effective as of the date
and year first set forth above.

HAWKER PACIFIC AEROSPACE
                                                  /s/  Dennis M. Biety
                                                  ------------------------------
                                                  Dennis M. Biety
By:     /s/  David L. Lokken
   ------------------------------
Name:   David L. Lokken

Title:  President & CEO<PAGE>

                                                                   EXHIBIT 10.56

[HAWKER PACIFIC AEROSPACE LETTERHEAD]
                                                 11240 Sherman Way
                                                 Sun Valley, CA  91352-4942  USA
                                                 (818) 765-6201
                                                 Fax: (818) 765-2416
                                                 www.hawker.com

                                February 6, 2001

Dr. Peter Janssen
Chief Financial Officer
Lufthansa Technik AG
Weg beim Jager 193
D-22334 Hamburg Germany

        Re: Exchange of Promissory Note of Hawker Pacific Aerospace

Dear Dr. Janssen:

     The purpose of this letter agreement (this "Agreement") is to confirm
                                                  ---------
the agreement of Hawker Pacific Aerospace ("Hawker") and Lufthansa Technik AG
                                            ------
("LHT") as follows:
-----

     1.  Defined Terms. Capitalized terms used herein but not defined herein
         -------------
shall have the meanings ascribed to them in that certain Loan Agreement by and
between Hawker and LHT dated as of September 20, 2000 (the "Loan Agreement" ).
                                                            --------------
     2.  Exchange of Promissory Note.
         ---------------------------

          (a) At the Closing (as defined below) LHT shall exchange (i) the
     $9,300,000 in principal and (ii) the accrued interest as of the Closing (to
     be $443,300.00), under the Promissory Note issued by Hawker and owned by
     LHT dated September 20, 2000 (the "Note").
                                        ----

          (b) In exchange for the tendered Note, Hawker will issue to LHT a
     number (rounded to the nearest whole number) of shares of Hawker's common
     stock ("Common Stock") equal to (i) the sum of the principal plus accrued
             ------------
     interest through the Closing under the Note divided by (ii) the Market
     Price.  "Market Price" means $3.125, which is the average of the last bid
              ------------
     prices of a share of the Common Stock on the NASDAQ Stock Market for each
     of the five (5) trading days preceding and including the trading day prior
     to the date hereof.

     3.   Representations of Hawker.  Hawker hereby represents and warrants to
          -------------------------
LHT as follows:

          (a) Hawker has the corporate power and authority to execute,
     deliver and perform this Agreement and to issue, sell and deliver the
     shares of Common Stock hereunder.  The issuance and delivery of the shares
     of Common Stock hereunder and the
<PAGE>

Dr. Peter Janssen
Lufthansa Technik AG
February 6, 2001
Page 2

     execution, delivery and performance of this Agreement by Hawker have been,
     or as of the Closing will have been, duly authorized by all necessary
     corporate action of Hawker.

          (b) The shares of Common Stock to be issued hereunder have been
     duly authorized and, when issued in accordance with this Agreement, will be
     (i) validly issued, (ii) fully paid and nonassessable, (iii) exempt from
     registration under the Securities Act of 1933 and applicable state
     securities laws and (iv) free and clear of all liens or encumbrances
     imposed by or through Hawker.  Since September 20, 2000, Hawker has not
     sold or offered to sell any shares of Common Stock except shares of Common
     Stock issued to LHT upon conversion of the Hawker Series C Preferred Stock.
     Hawker has issued and outstanding as of February 6, 2001, 7,232,622 shares
     of Common Stock representing all of the issued and outstanding capital
     stock of Hawker on a fully diluted basis.

          (c) This Agreement has been duly executed and delivered by Hawker
     and constitutes the legal, valid and binding obligation of Hawker,
     enforceable in accordance with its terms, except as the same may be limited
     by bankruptcy, insolvency, moratorium and other laws of general application
     affecting the enforcement of creditors' rights and by the exercise of
     judicial discretion and the application of principles of equity.

          (d) The execution, delivery and performance of this Agreement,
     the consummation of the transactions contemplated hereby, the compliance
     with any of the provisions hereof, will not: (i) conflict with, or result
     in a breach or violation of the Organizational Documents of Hawker; (ii)
     (A) conflict with, or result in a violation or breach of, or constitute
     (with or without due notice or lapse of time or both) a default (or give
     rise to any right of termination, cancellation, vesting, payment, exercise,
     acceleration, suspension, revocation or modification) under, any of the
     terms, conditions or provisions of any note, credit agreement, bond,
     mortgage, deed of trust, security instrument, indenture, lease, License,
     Contract, plan or other instrument or obligation to which Hawker is a party
     or by which Hawker or any of its properties or assets may be bound or
     affected ("Third Party Obligation"), (B) result in the creation or
                ----------------------
     imposition of any Lien on any of the assets or properties of Hawker or (C)
     except as such filing with NASDAQ as will be made prior to Closing, require
     any filing or notification to any third party or Governmental Entity or
     consent or approval under any Third Party Obligation or from any
     Governmental Entity; or (iii) violate any Order or Applicable Law
     applicable to Hawker or any of its properties or assets.

          (e) Except as set forth on Schedule 3(e), the representations and
     warranties made by Hawker in Sections 4.1 (Organization), 4.2
     (Capitalization), 4.5 (Litigation), 4.6 (Financial Statements), 4.9
     (Absence of Undisclosed Liabilities) and 4.16 (Valid Issuance) of the Loan
     Agreement are true, complete and correct in all material respects.

          (f) No representation or warranty by Hawker in this Agreement or
     any schedule hereto, or any certificate furnished or to be furnished by
     Hawker in connection
<PAGE>

Dr. Peter Janssen
Lufthansa Technik AG
February 6, 2001
Page 3

     with this Agreement, contains or will contain an untrue statement of
     material fact, or omits or will omit to state a material fact necessary to
     make the statements contained herein or therein, in light of the
     circumstances in which they were made, not misleading.

     4.   Representations of LHT.  LHT hereby represents and warrants to Hawker
          ----------------------
as follows:

          (a) The execution, delivery and performance of this Agreement and the
exchange of the Note hereunder by LHT have been duly authorized by all necessary
corporate action of LHT.

          (b) This Agreement has been duly executed and delivered by LHT and
constitutes the legal, valid and binding obligation of LHT, enforceable in
accordance with its terms, except as the same may be limited by bankruptcy,
insolvency, moratorium and other laws of general application affecting the
enforcement of creditors' rights and by the exercise of judicial discretion and
the application of principles of equity.

          (c) LHT is acquiring the shares of Common Stock hereunder for
investment only for its own account, not as nominee or agent, and not with a
view to or for resale or distribution of any part thereof.

          (d) LHT is an "accredited investor" within the meaning of Rule 501(a)
under the Securities Act of 1933, as amended (the "Securities Act").
                                                   --------------

          (e) LHT understands that the shares of Common Stock acquired hereunder
will be "restricted securities" under the U.S. federal securities laws inasmuch
as they will acquired from Hawker in a transaction not involving a public
offering and that, under such laws and applicable regulations, such shares may
not be resold without registration under the Securities Act, except in certain
limited circumstances.  In this connection LHT represents that it is familiar
with Rule 144 under the Securities Act, as presently in effect, and understands
the resale limitations imposed thereby and by the Securities Act.

          (f) LHT understands and agrees that the certificates evidencing the
shares of Common Stock shall bear the following legend:

     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT
     WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF IN
     VIOLATION OF APPLICABLE SECURITIES LAWS.  NO SUCH SALE OR DISTRIBUTION MAY
     BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO
     OTHER THAN PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
     THE SECURITIES ACT 1933."
<PAGE>

Dr. Peter Janssen
Lufthansa Technik AG
February 6, 2001
Page 4

     5.   Closing.  Subject to the terms and conditions of this Agreement,
          -------
the closing of the transactions contemplated hereby (the "Closing") will occur
                                                          -------
on February 23, 2001 at 10:00 a.m. (the "Closing Date") at the offices of
                                         ------------
Wilmer, Cutler & Pickering at 2445 M Street, N.W., Washington, D.C. 20037.  At
the Closing, Hawker will issue and deliver or cause to be issued and delivered a
certificate registered in the name of LHT representing the shares of Common
Stock and cash payment specified in Section 2(b) against LHT's delivery and
surrender of the Note.

     6.   Conditions to LHT's Obligation to Close.  The obligations of LHT to
          ----------------------------------------
tender the Note in exchange for the shares of Common Stock hereunder and to
carry out the terms of this Agreement are subject to the fulfillment on or
before the Closing Date of the following conditions, which may be waived by LHT:

          (a) The representations and warranties of Hawker contained in
     Section 3 shall be true, complete and correct in all material respects on
     and as of Closing Date with the same effect as if made on and as of the
     Closing Date.

          (b) A National Association of Securities Dealers ("NASD") listing
                                                             ----
     qualifications panel shall have made a written determination with respect
     to Hawker's present proceedings before it that continues Hawker's present
     NASD listing and LHT shall have received a copy of such written
     determination.

          (c) Hawker shall not have received any notice from the NASD to
     the effect that the consummation of the transactions contemplated by this
     Agreement will not, in and of themselves, be sufficient to cause Hawker to
     be in compliance with the net tangible asset requirements of the NASD
     Rules.

          (d) Hawker shall have filed a notification with the NASD with
     respect to the listing of the shares of Common Stock to be issued to LHT
     hereunder at least fifteen (15) days prior to the Closing as required under
     NASD Rule 4310(c)(17).

          (e) The Board of Directors of Hawker shall have approved this
     Agreement and the transactions contemplated hereby.

          (f) Hawker shall have obtained all regulatory approvals, if any,
     required in connection with the transactions contemplated hereby.

          (g) The receipt of such other certificates or documentation as
     LHT shall reasonably request in connection with the transactions
     contemplated hereby.
<PAGE>

Dr. Peter Janssen
Lufthansa Technik AG
February 6, 2001
Page 5

     7.   Conditions to Hawker's Obligation to Close.  The obligations of
          -------------------------------------------
Hawker to carry out the terms of this Agreement are subject to the fulfillment
on or before the Closing Date of the following condition, which may be waived by
Hawker: LHT shall have obtained all regulatory approvals, if any, required in
connection with the transactions contemplated hereby.

     8.   Covenants of Hawker.  The covenants of Hawker set forth in this
          -------------------
Section 8 are continuations of certain obligations of Hawker set forth in the
Loan Agreement that would not have survived the tender of the Note by LHT
pursuant to the terms of the Loan Agreement and which the parties agree should
continue under this Agreement.  From the Closing until the first anniversary of
the Closing, or, for any particular covenant, for such longer period as may be
specified therein, Hawker covenants and agrees with LHT that:

          (a) Payments to FUSI.  Upon the satisfaction of any amounts owed
              ----------------
     to First Union Securities, Inc. ("FUSI"), such sum to be paid from funds
                                       ----
     other than the proceeds of the loan made to Hawker pursuant to the Loan
     Agreement, Hawker shall deliver to LHT (i) a written acknowledgement from
     FUSI of the satisfaction and payment in full of any fees owed to it
     pursuant to that certain agreement dated October 1, 1999 by and between
     Hawker and FUSI (the "FUSI Agreement") and the release in full of Hawker of
                           --------------
     any further obligations of Hawker under the FUSI Agreement or claims FUSI
     may have against Hawker and (ii) copies of all written documentation
     evidencing such payment; provided, however, in accordance with that certain
                              --------  -------
     Indemnification Agreement by and between the Sellers (as that term is
     defined in that certain Stock Purchase Agreement dated September 20, 2000
     by and between LHT and the shareholders listed therein) and Hawker, Hawker
     shall in no event pay in excess of $250,000 to FUSI, and any amounts owed
     FUSI above $250,000 shall be the sole liability of the Sellers.  The
     covenant set forth in this paragraph (a) shall survive until LHT has
     received the written documentation referred to in clauses (i) and (ii)
     above.

          (b) Stock Transactions.  Hawker shall not, without prior notice
              ------------------
     to and consent of LHT, (i) take any action that would have the effect of
     preventing LHT from exercising the Warrant or otherwise acquiring Common
     Stock, (ii) issue any Common Stock or other securities convertible into or
     exchangeable for Common Stock, (iii) issue any stock dividend, (iv)
     subdivide the outstanding Common Stock, (v) propose to dissolve, liquidate
     or wind-up voluntarily, (vi) change the number of authorized or outstanding
     Common Stock or issue any Common Stock or any warrants, options, or other
     rights to subscribe for or to purchase any Common Stock or securities
     convertible into or exchangeable or exercisable for any of its Common
     Stock, (vii) enter into any capital reorganization or any reclassification
     of its Common Stock, (viii) issue any Common Stock distribution; (ix)
     issue, sell, distribute or grant any rights to subscribe or purchase any
     Common Stock, or any warrants or options to purchase any Common Stock,
     except for any such option grants made pursuant to the 1997 Stock Option
     Plan as approved by Hawker's Board of Directors and that are consistent
     with Hawker's past practice as of September 20, 2000 or (x) amend or grant
     any waiver to the Rights Agreement to any Person other than LHT or its
     Affiliates.
<PAGE>

Dr. Peter Janssen
Lufthansa Technik AG
February 6, 2001
Page 6

          (c) Confidentiality.
              ---------------

              (i)    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.

              (ii)   Press Release. Within sixty (60) days after the Closing,
                     -------------
                     Hawker may issue a press release, but only after Hawker
                     receives the prior written approval of LHT for any such
                     press release or form of press release, disclosing the
                     transactions contemplated hereunder.

             (iii)   Permitted Disclosures. Notwithstanding clause (i) above,
                     ---------------------
                     any party may disclose any of the Terms to its employees,
                     investment bankers, lenders, accountants and attorneys, in
                     each case only where such persons or entities are under
                     appropriate nondisclosure obligations.

             (iv)    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
                     any of the Terms in contravention of the provisions of this
                     Section 8(c), such party (the "Disclosing Party") shall
                                                    ----------------
                     provide the other parties (the "Non-Disclosing Party") with
                                                     --------------------
                     prompt written notice of that fact so that the appropriate
                     party may seek (with the 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 shall be accorded such information
                     to the extent reasonably requested by any Non-Disclosing
                     Party. Notwithstanding the preceding, each party
                     acknowledges that the other party shall be required to make
                     certain filings with SEC with respect to this Agreement;
                     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;
                     provided, however, that the text of this Agreement may be
                     --------  -------
                     filed by either party without the prior
                     written approval of the other party.
<PAGE>

Dr. Peter Janssen
Lufthansa Technik AG
February 6, 2001
Page 7

          (d) Warrant Shares.  Hawker shall propose and recommend to its
              --------------
     Board of Directors that at the Annual Meeting (as defined below) its Board
     of Directors (i) approve and recommend to Hawker's shareholders the
     approval of and (ii) seek the approval of Hawker's shareholders of, the
     issuance of the Warrant and the Company's corresponding issuance of the
     number of shares of Common Stock represented by the Exercise Amount (as
     defined in the Warrant).  Hawker shall not take any action or omit to take
     any action that would hinder the above described actions by its Board of
     Directors or Hawker's shareholders.  Hawker shall duly list any additional
     shares represented by shares exercised under the Warrant with NASDAQ.  Upon
     shareholder approval of the 2,500,000 shares of Common Stock represented by
     the Exercise Amount, until September 20, 2001, Hawker shall keep reserved
     an aggregate of 2,500,000 shares of Common Stock authorized and unissued,
     such amount being subject to adjustment as provided in the Warrant, and
     Hawker will take all necessary corporate action to authorize and reserve
     for issuance all additional shares of Common Stock or other securities that
     may be issued pursuant to adjustment as provided in the Warrant; provided,
                                                                      --------
     however, that the parties agree that no adjustment to the Exercise Amount
     -------
     under the Warrant shall be required as a result of the exchange of the Note
     pursuant to this Agreement.  The Warrant shall continue in full force and
     effect in accordance with its terms.

          (e) Board Seats.
              -----------

              (i)   Hawker shall recommend to its Board of Directors to take
                    such actions as are necessary to effect the following:

                    (A) At the written request of LHT, at a meeting (whether an
                    annual or special meeting) of Hawker shareholder's, increase
                    the number of its Board of Directors from seven to nine
                    directors in accordance with the Charter Documents;

                    (B) At the written request of LHT, at a meeting (whether an
                    annual or special meeting) of Hawker shareholders, elect and
                    thereafter continue in office as directors of Hawker
                    individuals who may be nominated by LHT and LHT shall have
                    the exclusive right to make two (2) nominations of
                    directorships for the new board seats created pursuant to
                    paragraph (A) above and one director so designated shall sit
                    in Class I and one director so designated shall sit in Class
                    II, which shall be initially established at the next annual
                    meeting Hawker's shareholders to be held no later than June
                    30, 2001 (the "Annual Meeting"), and shall sit for a term
                                   --------------
                    expiring at second succeeding annual meeting of Hawker's
                    shareholders held following such election to the respective
                    class;
<PAGE>

Dr. Peter Janssen
Lufthansa Technik AG
February 6, 2001
Page 8
                    (C) At the Annual Meeting, elect and establish a board
                    which, pursuant to Article IV of the Articles of
                    Incorporation of Hawker (as may be amended at the Annual
                    Meeting), shall be classified into two classes.  At the
                    Annual Meeting, Class I shall be comprised of four directors
                    and Class II shall be comprised of three directors.  Upon
                    the increase of the board to nine directors pursuant to
                    paragraph (A) above, Class I shall be comprised of five
                    directors and Class II shall be comprised of four directors.
                    At the Annual 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
                    Annual 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
                    Annual Meeting.  At each subsequent annual meeting of
                    Hawker's shareholders, 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 Hawker's shareholders;

                    (D) At the Annual Meeting, (1) the three directors nominated
                    by LHT and elected pursuant to Section 2.1.1 of the
                    Shareholders Rights and Voting Agreement shall be elected
                    and serve in Class II and (2) the remaining directors not
                    nominated by LHT shall be elected and serve in Class I.
                    Upon the increase of the board size to nine pursuant to
                    paragraph (A) above, (1) one of the directors nominated by
                    LHT pursuant to paragraph (B) above, shall be elected and
                    serve in Class I; and the other director so nominated shall
                    be elected and serve in Class II; and (2) the remaining
                    directors not nominated by LHT shall be elected and serve in
                    Class I; and

                    (E) Within thirty (30) days after the Annual Meeting, the
                    Board duly elected and constituted at the Annual Meeting
                    shall ratify the actions taken by Hawker's Board of
                    Directors since the 1999 annual meeting of Hawker's
                    shareholders.

               (ii) Hawker shall use its best efforts to cause (A) all actions
                    set forth in clause (i) to be taken on or before June 30,
                    2001 and (B) such actions to be proposed to Hawker's
                    shareholders for their approval, if required, on or before
                    June 30, 2001, unless otherwise specified in clause (i).

             (iii)  If, at the end of the initial term of the directors elected
                    pursuant to paragraph (B) and (D) above, LHT beneficially
                    owns (which
<PAGE>

Dr. Peter Janssen
Lufthansa Technik AG
February 6, 2001
Page 9

                    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
                    LHT designates shall be nominated for a two-year term and
                    Hawker shall recommend such nomination to its Board of
                    Directors; provided, however, that if Hawker fails to make
                               -----------------
                    such recommendation LHT, as a shareholder, may nominate its
                    designees in accordance with the Organizational Documents.

               (iv) Hawker shall recommend to its Board of Directors to take
                    such 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 its Board
                    of Directors of a substitute designated by such party.

               (v)  Hawker shall recommend that its Board of Directors take such
                    actions as are necessary or appropriate to ensure that any
                    vacancy on its Board of Directors (occurring for any reason)
                    be filled by the election to its 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.

          (f) Rights Agreement.  Hawker shall not recommend to its Board of
              ----------------
     Directors that it adopt any amendment to the Rights Agreement, as amended
     on August 15, 2000, which would be adverse to LHT.

     9.  Dividends on Preferred Stock.  On December 22, 2000, LHT exercised
         ----------------------------
its rights under Hawker's Certificate of Determination of Rights, Preferences,
Privileges and Restrictions of 8% Series C Convertible Preferred Stock (the

"Certificate of Determination") to convert all 300 of its shares of Hawker
-----------------------------
Series C Convertible Preferred Stock (the "Preferred Stock") into shares of
                                           ---------------
Common Stock.  In conjunction with the conversion, LHT also received partial
accrued dividends on the Preferred Stock.  Pursuant to the terms of the
Certificate of Determination, upon shareholder approval, LHT has the right to
receive the remaining accrued dividends on the Preferred Stock in the form of
35,583 shares of Common Stock.  On December 22, 2000, LHT requested that Hawker
seek shareholder approval to issue these 35,583 shares of Common Stock.
Pursuant to the Certificate of Determination, Hawker must use its best efforts
to obtain such shareholder approval not later than sixty (60) days after such
request has been made and if such shareholder approval is not obtained within
such 60-day period, Hawker shall instead be required to make a cash payment to
LHT pursuant to a formula set forth in the Certificate of Determination.
Pursuant to the Certificate of Determination, if Hawker fails to make such cash
payment in full, interest on any unpaid amount shall accrue at a rate of 18% per
year beginning as of December 22, 2000. Hawker hereby agrees that it shall seek
the shareholder approval to issue the foregoing 35,583 shares of Common Stock to
LHT at the Annual Meeting. Hawker further agrees that if the Annual Meeting does
not take place during the 60-day period required
<PAGE>

Dr. Peter Janssen
Lufthansa Technik AG
February 6, 2001
Page 10

for such shareholder approval pursuant to the Certificate of Determination, that
LHT shall thereafter, at its option, have the right to receive either (1) a cash
payment, in accordance with the terms of the Certificate of Determination or (2)
in the event their issuance is approved at the Annual Meeting, the 35,583 shares
of Common Stock in accrued dividends.

     10.  Termination Date.  This Agreement may be terminated by either
          ----------------
party if the Closing shall not have occurred by September 30, 2001; provided,
                                                                    --------
however, that the right to terminate this Agreement under this Section 10 shall
-------
not be available to either party whose material misrepresentation, inaccuracy,
breach of warranty, default or failure to fulfill any covenant or obligation
under this Agreement has been the cause of, or resulted in, the failure of the
Closing to occur on or before such date.  In the event of any termination of
this Agreement pursuant to this Section 10, this Agreement shall be
automatically rescinded and of no further force or effect, and no party hereto
(or any of its affiliates, directors, trustees, executors, officers, agents or
representatives) shall have any liability or obligation hereunder.  The
provisions of Section 8 of this Agreement (Covenants of Hawker) shall survive
any termination of this Agreement pursuant to this Section 10.

     11.  Entire Agreement.  This Agreement represents the entire
          ----------------
understanding and agreement between the parties hereto with respect to the
subject matter hereof and supersedes all prior oral and written and all
contemporaneous oral negotiations, commitments and understandings between such
parties.  The parties may amend or modify this Agreement, in such manner as may
be agreed upon, only by a written instrument executed by the parties hereto.

     12.  Governing Law.  This Agreement shall be
          -------------
governed by and construed in
accordance with the laws of the State of California.

     13.  Severability.  The invalidity or unenforceability of any
          ------------
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

     14.  Expenses.  Each party shall be responsible for its own fees,
          --------
costs and expenses incurred in connection with the negotiation of this
Agreement, including but not limited to, any attorneys' fees.

     15.  Counterparts.  This Agreement may be executed in two or more
          ------------
counterparts, each of which shall be deemed to be an original, but all of which
shall be one and the same document.

                          [Execution Page to Follow]
<PAGE>

     Please confirm your agreement by signing in the space indicated below.

                                      Hawker Pacific Aerospace

                                      By: /s/ Phillip M. Panzera
                                          ------------------------------
                                      Name:   Philip M. Panzera
                                      Title:  Executive Vice President

Accepted and Agreed as of February 6, 2001

Lufthansa Technik AG

By:  /s/ Peter Janssen
     ------------------------------
Name: Dr. Peter Janssen
Title:  Chief Executive Finance

By:  /s/ Silke Richter
     ------------------------------
Name: Silke Richter
Title:

                   Signature Page to the Letter from Hawker
                  Pacific Aerospace to Lufthansa Technik re:
            Exchange of Promissory Note of Hawker Pacific Aerospace
<PAGE>

                                 Schedule 3(e)
                                 -------------

                    Hawker Pacific Aerospace Representations
                    ----------------------------------------

4.2  Capitalization.

     A Shareholder Rights and Voting Agreement was entered into between LHT,
     Hawker Pacific Aerospace and certain management shareholders on September
     20, 2000.

     The Company may be obligated, upon shareholder approval, to issue a stock
     dividend of 35,583 shares of common stock to LHT in accordance with the
     Certificate of Determination for the Series C preferred stock.

     A complete list of all outstanding shareholders, option holders and other
     security holders of the Company with 5% or more ownership interest is as
     follows:

            Lufthansa Technik AG
            Royce & Associates, Inc.
            Dimensional Fund Advisors, Inc.

     Daniel Toomey is no longer a director of the Company, and Dennis Biety is
     no longer an officer of the Company.

4.5  Litigation

     First Union Securities Inc. commenced an arbitration against the Company on
     October 18, 2000, with regard to collecting a transaction fee related to
     the LHT purchase of Company stock.

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