Document:

Separation of Employment Agreement and General Release (Edgar R. Nelson)

 Exhibit 10.22 
 SEPARATION OF EMPLOYMENT AGREEMENT AND GENERAL RELEASE 
 THIS SEPARATION OF EMPLOYMENT
AGREEMENT AND GENERAL RELEASE (the “Agreement”) is made as of this 19th day of November, 2008, by and between Hawker Beechcraft Corporation (the “Company”), Hawker Beechcraft, Inc. (“HBI”), and Edgar R. Nelson
(“Employee”). 
 WHEREAS, Employee was employed by the Company as the Senior VP of Product Development &
Engineering; and 
 WHEREAS, THE Employee and the Company have agreed that, effective as of December 1, 2008 (the
“Retirement Date”), Employee will retire from his position as Senior VP of Product Development & Engineering for the Company; and 
 WHEREAS, pursuant to the terms of separate Subscription Agreements dated as follows, entered into by and between the Employee and HBI, the Employee made the following share purchases: (i) on March 26,
2007, the Employee purchased a total of 1,755.3 shares of HBI common stock for a purchase price of $10.00 per share, (ii) on April 26, 2007, the Employee purchased a total of 11,081.2 shares of HBI common stock for a purchase price of
$10.00 per share, and (iii) on March 28, 2008, the Employee purchased a total of 2,000 shares of HBI common stock for a purchase price of $12.50 per share (such purchased shares in the aggregate to be referred to as the “Purchased
Shares”); and 
 WHEREAS, in connection with the Employee’s entry into the initial Subscription Agreement and purchase of
the first tranche of Purchased Shares, the Employee became party to an Amended and Restated Shareholders Agreement with HBI dated as of May 3, 2007 (the Shareholders Agreement”); and 
 WHEREAS, on March 26, 2007, upon the sale of Raytheon Aircraft Company, Raytheon cashed in all unvested restricted stock awards
(“RSAs”) granted to Raytheon Aircraft employees at $52.17 per share and created the Hawker Beechcraft Corporation Retention Program, designed to pay employees the value of their RSAs on their original vesting dates. The Company granted the
Employee the option of investing the value of the Retention Program, which resulted in the amount of 24, 665.9 shares of HBI common (the “Restricted Shares”), all of which will have vested as of Employee’s Retirement Date; and

 WHEREAS, pursuant to Section 6.1 of the Shareholders Agreement, upon the Employee’s Retirement Date, HBI shall have the
right to purchase for cash all or any portion of his Purchased Shares and vested Restricted Shares, as well as any shares purchased by Employee as a result of any exercise of stock options by the Employee (the “Equity Call Option”) at
their Fair Market Value (as defined in the Shareholders Agreement) on the date of HBI’s exercise of the Equity Call Option; and 
 WHEREAS, upon the approval of the HBI Board of Directors , HBI will exercise the Equity Call Option effective as of the Retirement Date to the extent stated herein and based upon the mutual agreements stated herein; and 

WHEREAS, in connection with the Employee’s retirement, the parties have agreed to a separation package and the resolution of any and all
disputes between them; 
  

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 NOW, THEREFORE, IT IS HEREBY AGREED by and between Employee and the Company as follows:

 1. Severance Compensation and Accrued Vacation: Employee will receive salary continuance payments for a
twelve-(12) month period, from December 1, 2008 through December 4, 2009 at Employee’s base pay as of December 1, 2008, subject to normal statutory withholding. The Employee shall receive any payroll amounts earned, accrued
or owing but not yet paid to Employee up through and including the Final Payroll Date, including, but not limited to any benefits accrued or earned, which will be distributed in accordance with the terms of the applicable benefit plans and programs
of the Company. The Employee shall receive any vacation time earned and accrued or owing but not yet paid to Employee up through and including December 1, 2008, according to the Exempt Employee Vacation Policy existing as of December 1,
2008. 
 2. Equity Call Option: Pursuant to the Equity Call Option by HBI and approval of the HBI Board of Directors, Employee will
receive, no later than January 9, 2009, a lump sum cash payment equal to the Equity Call Purchase Price, which shall be equal to the fair market value on the Retirement Date, in consideration for HBI’s re-purchase of 39,502.4 shares of
Hawker Beechcraft Inc. common stock purchased by or awarded to the Employee. 
 3.
Vested Options: As a result of the Employee’s retirement as stated herein, and pursuant to the Nonqualified Stock Option Agreements entered into between HBI and the Employee, the following options shall vest on the Retirement Date or the
end of the revocation period for the Release, whichever is later: (i) a total of 17,060 shares of the Employee’s 85,300.2 Time-Vesting Options that vested on March 26, 2008; (ii) a total of 17,060 shares of Time-Vesting Options
that vest as a result of the retirement; (iii) a total of 9,595.9 of the Employee’s 47,979.1 Performance-Vesting, Type A Options that vested as a result of achievement of the EBITDA target for 2007; (iv) a total of 9,595.9 of the
Employee’s Performance-Vesting, Type A Options if the EBITDA Target for the year of retirement is met; (v) a total of 9,595.9 of the Employee’s 47,979.1 Performance-Vesting, Type B Options that vested as a result of achievement of the
EBITDA target for 32007; and (vi) a total of 9,595.9 of the Employee’s Performance-Vesting, Type B Options, if the EBITDA Target for the year of retirement is met. The Employee may exercise all or any part of the total number of vested
Options, 53,311.8 in total, at any time prior to the earliest to occur of the tenth (10th) anniversary of the Date of Grant and 5:00 p.m.
(Eastern Time) on the ninetieth (90th) day following the date of the Participant’s retirement. The Employee may exercise all or any part
of the Vested Portion of the 9,595.9 shares of Performance-Vesting, Type A Options and 9,595.9 shares of Performance-Vesting, Type B Options at any time prior to the earliest to occur of the tenth (10th) anniversary of the Date of Grant and 5:00 p.m. (Eastern Time) on the ninetieth (90th) day following the date the Participant is notified in writing by the Company whether the Target for the year of retirement has been attained, and thus, whether such options have vested. All other HBI options held by the Employee
other than the Vested Options shall become null and void, and be unexercisable and of no further force and effect, as of the Retirement Date or the end of the revocation period for the Release, whichever is later. 
 4. Fringe Benefits: You may continue, on an active employee basis, in Company-sponsored welfare benefit plans, except for Long-Term Disability,
Flexible Spending Accounts, and Company Travel Insurance, for the period of time you are on severance. If you are not eligible to participate in an employer-sponsored medical plan at the end of this period, COBRA benefits will be made available at
that time for a period not to exceed eighteen (18) months. Your 401(k) deductions will cease effective your last day worked. 
  

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 5. Reduction of Separation Benefits: The Company and HBI each reserve the right to make deductions
in accordance with applicable law for any monies owed to the Company or HBI, respectively, by the Employee or the value of the Company or HBI property that the Employee has retained in his possession. 
 6. (a) Employee, for and in consideration of the commitments of the Company and HBI as set forth in paragraphs 1 through 4 of this Agreement, and
intending to be legally bound, does hereby REMISE, RELEASE AND FOREVER DISCHARGE the Company and HBI, their affiliates, subsidiaries and parents, and their officers, directors, employees, and agents, and their respective successors and assigns,
heirs, executors, and administrators (collectively, “Releasees”) from all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which Employee ever had, now has, or hereafter may have, whether known or unknown,
or which Employee’s heirs, executors, or administrators may have, by reason of any matter, cause or thing whatsoever, from the beginning of Employee’s employment to the Final Payroll Date, and particularly, but without limitation of the
foregoing general terms, any claims arising from or relating in any way to Employee’s employment relationship with the Company and/or HBI, the terms and conditions of that employment relationship, and the termination of that employment
relationship, including, but not limited to, any claims arising under the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act (“OWBPA”), Title VII of The Civil Rights Act of 1964, the Americans with Disabilities
Act, the Family and Medical Leave Act of 1993, the Employee Retirement Income Security Act of 1974, the Rehabilitation Act, the Fair Labor Standards Act (29 U.S.C. 201 et seq.), the Kansas Act Against Discrimination (K.S.A. 44-1001 et seq.), the
Kansas Age Discrimination in Employment Act (K.S.A. 44-1111 et seq.), the Kansas Wage Payment Act (K.S.A. 44-313 et seq.), and any other claims under any federal, state, or local common law, statutory, or regulatory provision, now or hereafter
recognized including, but not limited to, breach of contract, unlawful retaliation, and defamation, and any claims for attorneys’ fees and costs. This Agreement is effective without regard to the legal nature of the claims raised and without
regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort. 
 (b) To the
fullest extent permitted by law, Employee represents and affirms that (i), Employee has not filed or caused to be filed on Employee’s behalf any claim for relief against the Company, HBI or any Releasee and, to the best of Employee’s
knowledge and belief, no outstanding claims for relief have been filed or asserted against the Company, HBI or any Releasee on Employee’s behalf; and (ii), Employee has no knowledge of any improper, unethical or illegal conduct or activities
that Employee has not already reported to any supervisor, manager, department head, human resources representative, agent or other representative of the Company and/or HBI, to any member of the Company’s legal or compliance departments, or to
the ethics hotline; and (iii) Employee will not file, commence, prosecute or participate in any judicial or arbitral action or proceeding against the Company, HBI or any Releasee based upon or arising out of any act, omission, transaction,
occurrence, contract, claim or event existing or occurring on or before the Final Payroll Date. For the avoidance of doubt, nothing herein shall prevent Employee from cooperating, in good faith, with any governmental investigation or inquiry upon
appropriate request or demand by the authorities, but in any such case, Employee agrees to provide the Company with immediate notice that such request or demand has been made, except in any case where notification to the Company is strictly
prohibited by the governmental authority. 
  

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 (c) Employee does not waive any rights or release any claims arising out of or resulting from events
which occur after the Retirement Date. 
 7. In further consideration of the payments described in paragraphs 1 through 4, Employee agrees
that Employee will not file, charge, claim, sue or cause or permit to be filed, charged or claimed, any civil action, suit or legal proceeding seeking equitable or monetary relief (including damages, injunctive, declaratory, monetary or other
relief) for himself involving any matter released in paragraph 6. In the event that suit is filed in breach of this covenant not to sue, it is expressly understood and agreed that this covenant shall constitute a complete defense to any such suit.
In the event any Releasee is required to institute litigation to enforce the terms of this paragraph, Releasees shall be entitled to recover reasonable costs and attorneys’ fees incurred in such enforcement. Employee further agrees and
covenants that should any person, organization, or other entity file, charge, claim, sue, or cause or permit to be filed any civil action, suit or legal proceeding involving any matter occurring at any time in the past, Employee will not seek or
accept personal equitable or monetary relief in such civil action, suit or legal proceeding. 
 8. (a) Confidentiality. Employee
agrees that Employee shall not directly or indirectly, use, make available, sell, disclose or otherwise communicate to any person, other than in the course of the Employee’s assigned duties and for the benefit of the Company, either during the
period of the Employee’s employment or at any time thereafter, any nonpublic, proprietary or confidential information, knowledge or data relating to the Company, any of its subsidiaries, affiliated companies or businesses, which shall have been
obtained by the Employee during Employee’s employment by the Company or a subsidiary. 
 (b) Continued Cooperation. Employee
acknowledges that Company may need to consult with Employee from time to time on a reasonable basis after Employee’s Retirement Date on matters that Employee had worked on prior to the Retirement Date. Employee agrees to continue to cooperate
with Company and to provide any such information as is reasonably requested by Company. 
 (c) Non-Disparagement. Employee further
agrees that Employee will not disparage or subvert the Company or HBI, or make any statement reflecting negatively on the Company, on HBI, on their affiliated corporations or entities, or on any of their officers, directors, employees, agents or
representatives, including, but not limited to, any matters relating to the operation or management of the Company and HBI, Employee’s employment and Employee’s retirement, irrespective of the truthfulness or falsity of such. The Company
and HBI will undertake reasonable commercial efforts to ensure that their employees and owners do not disparage Employee or make any public statements reflecting negatively on Employee, irrespective of the truth or falsity of such. 
 9. Employee understands and agrees that the payments, benefits and agreements provided in this Agreement, to the extent specifically set forth as such
herein, are being provided to Employee in consideration for Employee’s acceptance and execution of, and in reliance upon Employee’s representations in, this Agreement, and that they are greater than the payments, benefits and agreements,
if any, to which the Employee would have received if Employee had not executed this Agreement. 
 10. Employee acknowledges and agrees that
the Company previously has satisfied any and all obligations owed to Employee under any employment agreement or offer letter Employee has with the Company and, further, that this Agreement fully supersedes any prior agreements or understandings,

  

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whether written or oral, between the parties. Employee acknowledges that, except as set forth expressly herein, neither the Company, HBI, the Releasees, nor
their agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, or written or oral. 
 11.
Employee agrees not to disclose the terms of this Agreement to anyone, except his/her spouse, attorney and, as necessary, tax/financial advisor. It is expressly understood that any violation of the confidentiality obligation imposed hereunder
constitutes a material breach of this Agreement. 
 12. Employee represents that Employee does not presently have in his/her possession any
records and business documents, whether on computer or hard copy, and other materials (including but not limited to computer disks and tapes, computer programs and software, office keys, correspondence, files, customer lists, technical information,
customer information, pricing information, business strategies and plans, sales records and all copies thereof) (collectively, the “Corporate Records”) provided by the Company and/or its predecessors, subsidiaries or affiliates or obtained
as a result of Employee’s prior employment with the Company and/or its predecessors, subsidiaries or affiliates, or created by Employee while employed by or rendering services to the Company and/or its predecessors, subsidiaries or affiliates.
Employee acknowledges that all such Corporate Records are the property of the Company. 
 13. Employee agrees and recognizes that should
Employee breach any of the obligations or covenants set forth in this Agreement, the Company and HBI will have no further obligation to provide Employee with the consideration set forth herein, and will have the right to seek repayment of all
consideration paid up to the time of any such breach. Further, Employee acknowledges in the event of a breach of this Agreement, Releasees may seek any and all appropriate relief for any such breach, including equitable relief and/or money damages,
attorney’s fees and costs. 
 14. Employee further agrees that the Company and HBI shall be entitled to preliminary and permanent
injunctive relief, without the necessity of proving actual damages, as well as to an equitable accounting of all earnings, profits and other benefits relating to or arising out of any violations of this Agreement, which rights shall be cumulative
and in addition to any other rights or remedies to which the Company and/or HBI may be entitled. Employee irrevocably and unconditionally (i) agrees that any suit, action or other legal proceeding relating to or arising out of this Agreement,
including without limitation, any action commenced by the Company or HBI for preliminary and permanent injunctive relief or other equitable relief, may be brought in Kansas, (ii) consents to the non-exclusive jurisdiction of any such court in
any such suit, action or proceeding, and (iii) waives any objection which Employee may have to the laying of venue of any such suit, action or proceeding in any such court. Employee also irrevocably and unconditionally consents to the service
of any process, pleadings, notices or other papers by personal service or by registered or certified mail, return receipt requested, or by overnight express courier service, addressed to Employee at the home address which Employee most recently
communicated to the Company in writing. 
 15. This Agreement and the obligations of the parties hereunder shall be construed, interpreted
and enforced in accordance with the laws of the State of Kansas. 
 16. Employee certifies and acknowledges as follows: 
 (a) That Employee has read the terms of this Agreement, and that Employee understands its terms and effects, including the fact that Employee has agreed
to RELEASE AND FOREVER 

  

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DISCHARGE the Company and HBI and each and everyone of its affiliated entitles from any legal action arising out of Employee’s employment relationship
with the Company and the termination of that employment relationship; 
 (b) That Employee has signed this Agreement voluntarily and
knowingly in exchange for the consideration described herein, which Employee acknowledges is adequate and satisfactory to Employee and which Employee acknowledges is in addition to any other benefits to which Employee is otherwise entitled;

 (c) That Employee has been and is hereby advised in writing to consult with an attorney prior to signing this Agreement; 
 (d) That Employee does not waive rights or claims that may arise after the date this Agreement is executed; 
 (e) That the Company has provided Employee with a period of twenty-one (21) days within which to consider this Agreement, and that Employee has
signed on the date indicated below after concluding that this Agreement is satisfactory to Employee; and 
 (f) Employee acknowledges that
this Agreement may be revoked by Employee within seven (7) days after Employee’s execution, and it shall not become effective until the expiration of such seventh day revocation period. Any revocation within this period must be submitted,
in writing, to Company and state, “I hereby revoke my acceptance of our Agreement.” The revocation must be personally delivered to Rich Jiwanlal, or his designee, or mailed to Rich Jiwanlal, 10511 E. Central, Wichita, KS 67206, and
postmarked within seven (7) calendar days of Employee’s execution of this Agreement. If the last day of the revocation period is a Saturday, Sunday, or legal holiday in Kansas, then the revocation period shall not expire until the next
following day which is not a Saturday, Sunday, or legal holiday. In the event of a timely revocation by Employee, this Agreement will be deemed null and void and the Company and HBI will have no obligations hereunder. 
 Intending to be legally bound hereby, Employee, the Company, and HBI have executed the foregoing Separation of Employment Agreement and General Release
this 19 day of November, 2008. 
  

									
	EDGAR R. NELSON	 		 	HAWKER BEECHCRAFT CORPORATION
				
	 /s/    Edgar R. Nelson
	 		 	By:	 	 /s/    Gail E. Lehman

					
	Witness:	 	 /s/    Nita Long
	 		 		 	
	Name:	 		 		 		 	
	Title:	 		 		 		 	

									
				
	HAWKER BEECHCRAFT INC.	 		 		 	
					
	By:	 	 /s/    Gail E. Lehman
	 		 		 	
	Name:	 		 		 		 	
	Title:	 		 		 		 	

  

 Page 6Separation Agreement (James E. Schuster)

 Exhibit 10.23.1 
 SEPARATION AGREEMENT 
 SEPARATION AGREEMENT, dated as of November 20, 2008 (this
“Agreement”), by and between Hawker Beechcraft Corporation, a Kansas corporation (the “Company”), and James E. Schuster (the “Executive,” together with the Company, the “Parties”).

 WHEREAS, the Executive has been employed by the Company as Chief Executive Office and has served as a member of the board of directors of
the Company (the “Board”) pursuant to that certain Employment Agreement dated as of March 26, 2007, between the Company and the Executive (the “Employment Agreement”); 
 WHEREAS, the Company desires to continue to employ the Executive as Chief Executive Officer for the period commencing on November 21, 2008, and
ending on the earlier of (i) the date the Executive’s successor (other than an interim Chief Executive Officer) commences his or her employment with the Company and (ii) the date the Board determines that the Transition Period should
terminate (the “Transition Period”); 
 WHEREAS, the Executive and the Company mutually agree that the Executive’s
employment as Chief Executive Officer of the Company and his service as a member of the Board shall terminate effective as of the Separation Date (defined below); and 
 WHEREAS, the Parties desire to set forth their respective rights and obligations with respect to the Transition Period and with respect to the termination of the Executive’s employment on the Separation Date.

 NOW, THEREFORE, in consideration of the covenants and conditions set forth herein, the Parties, intending to be legally bound, agree as
follows: 
  

	1.	Transition Period. 

  

	 	A.	Position and Duties. The Company and the Executive agree that, during the Transition Period, the Executive shall continue to be employed by, and serve as the Chief Executive
Officer of the Company, and shall report directly to the Board. In such position, the Executive shall have the authorities customary for a chief executive officer of a company of similar size and nature as the Company, plus such additional duties,
consistent with the foregoing, as the Board may reasonably assign, including the duty to cooperate with the Board and senior management in connection with their search for the Executive’s successor and to facilitate a smooth transition of
leadership. During the Transition Period, the Executive shall also continue to serve as a member of the Board, including his membership on the Board committees of which he is a member on the date hereof. 

  

	 	B.	Exclusivity. During the Transition Period, the Executive shall devote such portion of his business time and efforts as may be necessary to the performance of his duties as
described above, shall faithfully serve the Company, and shall in all material respects conform to and comply with the lawful and reasonable directions and instructions given to him by the Board. 

	 	C.	Compensation and Benefits. The Executive shall receive, as compensation for his services during the Transition Period, the following compensation and benefits:

  

	 	(i)	Salary. A base salary at an annualized rate of $630,000, to be paid in accordance with regular payroll practices of the Company. 

  

	 	(ii)	Bonus. The Executive shall be eligible to receive an annual bonus up to a maximum of $630,000 for the full calendar year ending December 31, 2008, in accordance with the
Company’s existing Management Incentive Plan (the “MIP”), payable at the same time as bonuses are paid to other senior executives participating in such plan and based on the existing performance criteria established for the
plan and the Executive for 2008; provided, that, amounts determined to be payable to the Executive in accordance with the MIP shall be made to the Executive whether or not he is an executive and an employee on the date such payment is made.
Following the 2008 year, the Executive will only be entitled to bonus compensation as the Board in its sole discretion, may award. 

  

	 	(iii)	Benefits. The Executive, and his eligible dependents, shall continue to participate in the Company’s health and welfare benefits plans as an active employee during the
Transition Period. 

  

	 	(iv)	Reimbursement of Expenses. During the Transition Period, the Executive shall be entitled to reimbursement of reasonable business expenses incurred during the Transition
Period upon presentation of such expenses to the Company and otherwise in accordance with the Company’s reimbursement policy. 

  

	 	D.	 Vesting of Options. As of the date hereof, 40% of the option granted to the Executive pursuant to stock option agreement attached hereto as Exhibit A
(the “Time Vested Option”) shall be or become vested (506,384.8 shares). As of the date hereof, 20% of the options granted to the Executive pursuant to stock option agreements attached hereto as Exhibit B and Exhibit C
(the “Performance Vested Options”) shall be vested (142,420.7 shares with respect to Exhibit B, and 142,420.7 shares with respect to Exhibit C). The remaining 60% of the Time Vested Option and 80% of the Performance Vested
Options shall terminate on the date hereof. The portions of the options that are vested as of the date hereof (the “Vested Options”) shall, remain outstanding and exercisable until December 31, 2011 and shall otherwise continue
to be governed by the Option Agreements; provided, that, the extension of the exercise period until December 31, 2011 shall be conditioned on (i) the Board’s satisfaction, in its sole discretion, with the Executive’s
performance of his duties during the Transition Period and (ii) the Executive remaining employed by the Company until the end of the Transition Period. In the event that the Board, in its sole discretion, is not satisfied with the
Executive’s performance during the Transition Period or the Executive does not remain employed by the Company until the end of the Transition Period, the Vested Options shall remain exercisable for ninety (90) days following the 

  

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Separation Date. The Executive acknowledges and agrees that the Time Vested Option and the Performance Vested Options are the only stock options that have
been granted to the Executive. 

  

	 	E.	Notice. The Executive shall be given at least five (5) business days’ notice of the end of the Transition Period. 

  

	2.	Separation Date. The Executive and the Company agree that the Executive’s employment as Chief Executive Officer of the Company shall terminate effective as
of the earlier of (i) the close of business on the last day of the Transition Period and (ii) such earlier date on which the Executive voluntarily leaves the Company (the “Separation Date”). The Executive also agrees that,
effective as of the Separation Date, the Executive shall resign from all positions he holds as an officer, director, employee and member of the boards of directors (and any committee thereof) of the Company and its affiliates, and shall be required
to execute such writings as are required to effectuate the foregoing. The Executive understands and agrees that, from and after the Separation Date, he will no longer be authorized to act on behalf of the Company or any of its subsidiaries or to
incur any expenses, obligations or liabilities on behalf of the Company or any subsidiary. 

  

	3.	Separation Benefits. In consideration of the obligations herein, the Company agrees to provide the Executive with the following severance payments and benefits:

  

	 	A.	Severance Payment. The Company agrees to pay the Executive an amount equal to $321,068. This amount shall be paid pursuant to, and in full satisfaction of the Company’s
obligations, under Sections 3.2(a) and 3.3 of the Employment Agreement, and shall be paid in twenty-four (24) equal monthly installments following the Separation Date, payable on the first day of the calendar month commencing with the calendar
month next following the Separation Date. 

  

	 	 B.
	 Health and Welfare Benefits. The Company agrees to provide the Executive and his eligible dependents with the
health and welfare benefits available to the Executive and his eligible dependents immediately prior to the Separation Date, on the same basis as active employees of the Company, until the earlier of (i) the first (1st) anniversary of the Separation Date and (ii) the Executive obtaining full-time employment, with COBRA benefits commencing after such period.

  

	4.	Retention Program. The Company and the Executive agree that the Executive is not entitled to any further payments pursuant to the Hawker Beechcraft Corporation
Retention Program, adopted on March 26, 2007, and that all of the Company’s obligations to the Executive with respect to such retention program have been satisfied. 

  

	5.	 Restricted Stock. As of the date hereof, the Executive shall be or become vested in 257,149.8 shares of restricted stock. The Company and the
Executive agree that the Company shall purchase from the Executive 75,000 of these shares of common stock of the Company, par value $0.01 (“Common Stock”) at a purchase price of $10 per share, with an aggregate purchase price of
$750,000, such purchase to occur within thirty (30) days after the Separation Date; provided, that, such repurchase of Common Stock by the 

  

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Company from the Executive shall be conditioned on (i) the Board’s satisfaction, in its sole discretion, with the Executive’s performance of
his duties during the Transition Period and (ii) the Executive remaining employed by the Company until the end of the Transition Period. 
  

	6.	Additional Payment. The Company may also pay the Executive an additional amount equal to $1,000,000 (the “Additional Payment”), which shall be paid in
twenty-four (24) equal monthly installments following the Separation Date, payable on the first day of the calendar month commencing with the calendar month next following the Separation Date; provided, that, payment of this Additional
Payment to the Executive shall be conditioned on (i) the Board’s satisfaction, in its sole discretion, with the Executive’s performance of his duties during the Transition Period and (ii) the Executive remaining employed by the
Company until the end of the Transition Period. 

  

	7.	Release from Purchase Obligation. Pursuant to the Stock Purchase Agreement, dated as of March 26, 2007 between the Executive and the Company (the
“Stock Purchase Agreement”), the Executive is required to purchase 124,934.4 shares of Common Stock at a purchase price of $10 per share, with an aggregate purchase price of $1,249,343.40 (the “Purchase
Obligation”), on the Separation Date. The Company agrees to release the Executive from this Purchase Obligation and the Parties agree that the Stock Purchase Agreement shall terminate as of the Separation Date; provided, that, the
Company shall not release the Executive from this purchase obligation unless (i) the Board is satisfied, in its sole discretion, with the Executive’s performance of his duties during the Transition Period and (ii) the Executive
remains employed by the Company until the end of the Transition Period. 

  

	8.	Extension of Call Right. If the Board decides, in its discretion, that the Vested Options shall remain outstanding and exercisable until December 31, 2011, the
call right (the “Call Right”) set forth in Section 6 of the Hawker Beechcraft, Inc. Amended and Restated Shareholders Agreement, dated as of May 3, 2007 (the “Shareholders Agreement”), shall be extended
until ninety (90) days after the exercise of the Vested Options. If the Board decides, in its discretion, that the Vested Options shall remain outstanding and exercisable only for ninety (90) days following the Separation Date, the Call
Right shall be extended until one hundred twenty (120) days after the Separation Date. 

  

	9.	Raytheon Retention Letter. The Company understands that the Executive entered into a retention letter with Raytheon Company on July 27, 2006 (the
“Retention Letter”), pursuant to which the Executive shall become entitled to receive an additional payment equal to $2,198,932 on the date hereof, with such payment to be paid in a lump sum within twenty (20) days following
second anniversary of the Closing (as defined in the Stock Purchase Agreement, dated as of December 20, 2006, among the Company, Greenbulb Limited, Raytheon Company, Raytheon Aircraft Holdings, Inc. and Raytheon Aircraft Services Limited (the
“Closing”)). The Company agrees that it will request that Raytheon Company wire to the Company any payment which the Executive is entitled to receive under the Retention Letter, and agrees to pay such amount to the Executive in
accordance with the terms of the Retention Letter if the Company receives such payment from Raytheon Company. 

  

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	10.	Conditions to Receipt of Payments Benefits. The effectiveness of this Agreement and the Company’s obligations hereunder shall be conditioned upon:
(i) the Executive’s continued compliance with his obligations under Section 4 of the Employment Agreement, and (ii) the non-revocation of the release attached hereto as Exhibit D (the “Release”), which
shall be executed as of the date hereof. In the event the Executive revokes the Release within the seven (7) day period commencing on the date hereof, the Executive’s entitlement to all of the benefits provided hereunder, including those
under Sections 1(C), 1(D), 3, 5, 6 and 7 shall terminate immediately, but the remainder of this Agreement shall continue in full force. In addition, a further condition to the Executive’s entitlement to the benefits provided in Sections 3, 5,
6, and 7 shall be the Executive’s re-execution, delivery and non-revocation of the Release on or after the Separation Date. In the event the Executive revokes the Release within the seven (7) day period commencing on the date the Release
is re-executed, the Executive’s entitlement to all of the benefits provided under Sections 3, 6, 7 and 8 shall terminate immediately, but the remainder of this Agreement shall continue in full force. 

  

	11.	Return of Company Property. The Executive agrees to return to the Company all documents, files, and other property of any kind belonging to the Company not later than
the Separation Date. 

  

	12.	Cooperation. Following the Separation Date, the Executive shall reasonably cooperate with the Company upon reasonable request of the Board and to be reasonably
available to the Company with respect to matters arising out of the Executive’s services to the Company and its subsidiaries. The Company shall reimburse the Executive for expenses reasonably incurred in connection with such matters.

  

	13.	Withholding Taxes. All amounts paid to the Executive under this Agreement shall be subject to withholding and other employment taxes imposed by applicable law. The
Executive shall be solely responsible for the payment of all taxes imposed on him relating to the payment or provision of any amounts or benefits hereunder. 

  

	14.	Miscellaneous. 

  

	 	A.	Arbitration. Each party irrevocably submits that all disputes arising out of or relating to this Agreement shall be resolved through the American Arbitration Association in
New York, New York. It is further agreed that each party will bear its own costs in connection with such arbitration. 

  

	 	B.	Assignment; No Third-Party Beneficiaries. This Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive, and any purported
assignment by the Executive in violation hereof shall be null and void. Nothing in this Agreement shall confer upon any Person not a party to this Agreement, or the legal representatives of such Person, any rights or remedies of any nature or kind
whatsoever under or by reason of this Agreement, except the personal representative of the deceased Executive may enforce the provisions hereof applicable in the event of the death of the Executive. The Company is authorized to assign this Agreement
to a successor to substantially all of its assets. 

  

 5 

	 	C.	Severability. Whenever possible, each provision or portion of any provision of this Agreement, including those contained in Section 4 of the Employment Agreement, will
be interpreted in such manner as to be effective and valid under applicable law but the invalidity or unenforceability of any provision or portion of any provision of this Agreement in any jurisdiction shall not affect the validity or enforceability
of the remainder of this Agreement in that jurisdiction or the validity or enforceability of this Agreement, including that provision or portion of any provision, in any other jurisdiction. In addition, should a court or arbitrator determine that
any provision or portion of any provision of this Agreement, including those contained in Section 4 of the Employment Agreement, is not reasonable or valid, either in period of time, geographical area, or otherwise, the Parties hereto agree
that such provision should be interpreted and enforced to the maximum extent which such court or arbitrator deems reasonable or valid. 

  

	 	D.	Entire Agreement. From and after the date hereof, this Agreement shall replace and supersede the Employment Agreement, except that Sections 4, 6 and 8.1 of the Employment
Agreement shall remain in effect. This Agreement, and Sections 4, 6 and 8.1 of the Employment Agreement, shall constitute the entire agreement between the Parties hereto, and supersede all prior representations, agreements and understandings
(including any prior course of dealings), both written and oral, between the Parties hereto with respect to the subject matter hereof. 

  

	 	E.	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one
and the same instrument. 

  

	 	F.	Binding Effect. This Agreement shall inure to the benefit of, and be binding on, the successors and assigns of each of the Parties, including, without limitation, the
Executive’s heirs and the personal representatives of the Executive’s estate and any successor to all or substantially all of the business and/or assets of the Company. 

  

	 	G.	Notices. Unless otherwise provided herein, all notices, requests, demands, claims and other communications provided for under the terms of this Agreement shall be in writing.
Any notice, request, demand, claim or other communication hereunder shall be sent by (i) personal delivery (including receipted courier service) or overnight delivery service, (ii) facsimile during normal business hours, with confirmation
of receipt, to the number indicated, (iii) reputable commercial overnight delivery service courier or (iv) registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below:

  

			
	If to the Company:	  	c/o GS Capital Partners
		  	85 Broad Street
		  	New York, NY 10004
		  	Attention: Sanjeev Mehra
		  	Facsimile: 212-357-5505
		
		  	and

  

 6 

			
		  	c/o Onex Partners Advisor LP
		  	161 Bay Street, 49th Floor
		  	Toronto, ON M5J 2S1
		  	Attention: Nigel Wright
		  	Facsimile: 416-362-5765
		
		  	with a copy to:
		
		  	Fried, Frank, Harris, Shriver & Jacobson LLP
		  	One New York Plaza
		  	New York, NY 10004
		  	Attention: Christopher Ewan, Esq.
		  	Facsimile: 212-859-4000
		
	If to the Executive:	  	James E. Schuster, to his principal residence as reflected in the records of the Company.

 All such notices, requests, consents and other communications shall be deemed to have been given
when received. Either party may change its facsimile number or its address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other Party hereto notice in the manner then set forth.

  

	 	H.	General Interpretive Principles. The name assigned this Employment Agreement and headings of the sections, paragraphs, subparagraphs, clauses and subclauses of this
Employment Agreement are for convenience of reference only and shall not in any way affect the meaning or interpretation of any of the provisions hereof. Words of inclusion shall not be construed as terms of limitation herein, so that references to
“include,” “includes” and “including” shall not be limiting and shall be regarded as references to non-exclusive and non-characterizing illustrations. 

 [signature page follows] 
  

 7 

 IN WITNESS WHEREOF, the Parties have executed this Separation Agreement as of the date first written
above. 
  

			
	HAWKER BEECHCRAFT CORPORATION
		
	By:	 	 /s/    Gail E. Lehman

	Name:	 	Gail E. Lehman
	Title:	 	 Vice President, General Counsel
 and
Secretary

	
	 /s/    James E. Schuster

	James E. Schuster

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