Document:

First Amendment to the U.S. Pledge and Security Agreement

 Exhibit 10.2 
 EXECUTION COPY 
 FIRST AMENDMENT TO 

U.S. PLEDGE AND SECURITY AGREEMENT 
 THIS FIRST AMENDMENT TO U.S. PLEDGE AND SECURITY AGREEMENT (this “Amendment”) is dated as of March 27, 2012 and is entered into by and among HAWKER BEECHCRAFT, INC., a
Delaware corporation (“Holdings”), HAWKER BEECHCRAFT ACQUISITION COMPANY, LLC (the “U.S. Borrower”), the Subsidiary Parties party hereto and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH (formerly known as
Credit Suisse, Cayman Islands Branch and in its capacity as collateral agent for the Secured Parties, the “Agent”) and is made with reference to that certain U.S. Pledge and Security Agreement entered into as of March 26, 2007
by and among Holdings, the U.S. Borrower, the Subsidiary Parties from time to time a party thereto, and the Agent (as amended, supplemented or otherwise modified from time to time prior to giving effect to this Amendment, the “Existing
Pledge and Security Agreement”; the Existing Pledge and Security Agreement as amended by this Amendment and as further amended, supplemented or otherwise modified from time to time, the “Pledge and Security Agreement”).
Capitalized terms used herein without definition shall have the meanings given to such terms in the Pledge and Security Agreement or in the Credit Agreement. 
 RECITALS 
 WHEREAS, the Grantors have requested that the Agent (at
the direction of the Required Lenders) agree to amend the Existing Pledge and Security Agreement as provided for herein; and 

WHEREAS, subject to certain conditions set forth herein, the Agent (at the direction of the Required Lenders) is willing to agree
to such amendment of the Existing Pledge and Security Agreement. 
 NOW, THEREFORE, in consideration of the premises and
the agreements, provisions and covenants herein contained, the parties hereto agree as follows: 
 ARTICLE I 

AMENDMENT TO PLEDGE AND SECURITY AGREEMENT 
 Section 1.1 Amendment to Section 1.3: Definitions of Certain Terms Used Herein. 
 (a) Section 1.3 of the Existing Pledge and Security Agreement is hereby amended by adding the following definitions in proper alphabetical sequence: 

“Effective Date Senior Aircraft Security Agreements” means, collectively, the Senior Aircraft Security
Agreement and the Wells Senior Aircraft Security Agreement (as such terms are defined in the Third Amendment). 

“Excepted Equipment” means aircraft or aircraft engines in which the grant of a perfected security
interest in favor of the Agent pursuant to a filing with the FAA or the 

 
International Registry would not be permitted by applicable law, including, without limitation, International Traffic in Arms Regulations or Export Administration Regulations or in which a
security interest may not be perfected by filing a security agreement with the FAA. 
 “Excluded
Deposits” means segregated deposits given by customers on or after the Third Amendment Effective Date in connection with bona fide contracts to purchase aircraft. 

“FAA” means the United States Federal Aviation Administration. 

“International Interest” has the meaning provided in the Convention on International Interests in Mobile
Equipment (the “Convention”) and Protocol thereto on Matters Specific to Aircraft Equipment (the “Protocol”) concluded in Cape Town in November 2001 (the Convention and the Protocol, each, in the official English
language text thereof, are collectively referred to herein as the “Cape Town Convention”). 

“International Registry” means shall mean the international registry created pursuant to the Cape Town
Convention. 
 “Newly Registered Aircraft” has the meaning specified in
Section 4.1(e)(i). 
 “Post-Effective Date Senior Aircraft Security Agreement” has
the meaning specified in Section 4.1(h). 
 “Senior Aircraft Security Agreement” has
the meaning specified in the Third Amendment. 
 “Specified Aircraft” means (a) an aircraft
set forth in Schedule 1 to the Senior Aircraft Security Agreement or the Wells Senior Aircraft Security Agreement, in each case as of the Third Amendment Effective Date, (b) an aircraft owned by the Grantors, directly or indirectly, as of the
Third Amendment Effective Date as set forth in Exhibit A of the Third Amendment Officer’s Certificate, (c) any aircraft deemed to constitute a Specified Aircraft pursuant to the proviso to Section 4.1(h) and (d) any other
aircraft Designated as Senior Tranche Collateral pursuant to Section 5.5(c) below. 

“Specified Collection Account” means a deposit account of the U.S. Borrower specified in writing by the
U.S. Borrower to the Agent as the “Specified Collection Account” upon execution of a control agreement with respect thereto. 
 “Specified Engines” means (a) the aircraft engines owned by the Grantors, directly or indirectly, as of the Third Amendment Effective Date as set forth in Exhibit A of the Third
Amendment Officer’s Certificate (as updated pursuant to Section 5.5(f)) and (b) any other aircraft engine Designated as Senior Tranche Collateral pursuant to Section 5.5(b) below. An aircraft engine owned by any
Grantor shall cease to constitute a Specified Engine upon (i) Disposition thereof by such Grantor to a Person other than an Affiliate of Grantors in connection with a bona fide sale or (ii) the issuance by the FAA of an FAA registration
number for the airframe for which such aircraft engine has been designated for installation by any Grantor. 

  
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 “Termination Date” means the date on which the Forbearance
Period (as defined in the Third Amendment) shall terminate. 
 “Third Amendment Officer’s
Certificate” means the certificate of the Chief Financial Officer of the U.S. Borrower provided to the Agent on the Third Amendment Effective Date with respect to aircraft and engines owned by the Grantors as of such date. 

“Wells Senior Aircraft Security Agreement” has the meaning specified in the Third Amendment. 

“WIP Aircraft” means a work-in-process aircraft owned by the Grantors, directly or indirectly, as of the
Third Amendment Effective Date as set forth in Exhibit B-1 or B-2 of the Third Amendment Officer’s Certificate (excluding any such aircraft deemed to constitute a Specified Aircraft pursuant to the proviso to Section 4.1(h)).

 (b) The definition of “Excluded Assets” in the Existing Pledge and Security Agreement is hereby amended by
deleting “[Reserved]” from clause (e) thereof and substituting the following therefor: 

“Excluded Deposits”. 
 Section 1.2 Amendment to Section 4.1(c): Further Assurances. Section 4.1(c) of the Existing Pledge and Security Agreement is hereby amended by deleting clause (f) in its
entirety and substituting the following therefor: 
 “(f) the actions specified in Section 4.2(c),
Section 4.4, Section 4.7 and Section 4.11.” 
 Section 1.3 Amendment to Section 4.1(d):
Aircraft Collateral. Section 4.1(d) of the Existing Pledge and Security Agreement is hereby deleted in its entirety and the following is hereby substituted therefor: 

“(d) Aircraft Collateral (Specified Aircraft and WIP Aircraft). Each Grantor agrees that it shall cooperate
with the Agent to perfect all security interests in favor of the Agent, for the benefit of the Secured Parties, in Specified Aircraft or WIP Aircraft: 
 (A) constituting Transportation Fleet Aircraft by filing an Aircraft Security Agreement with the FAA not more than sixty (60) days (or such longer period as may be agreed by the Agent in its sole
discretion) following the Closing Date for the Transportation Fleet as of the Closing Date, and by supplement thereto within sixty (60) Business Days after aircraft are added to or removed from the Transportation Fleet; 

(B) constituting Demonstration Fleet Aircraft by filing an Aircraft Security Agreement with the FAA not more than one
hundred eighty (180) days (or such longer period as may be agreed by the Agent in its sole discretion) after the Closing Date for 

  
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Demonstration Fleet Aircraft as of the Closing Date, and by supplement thereto within one hundred eighty (180) Business Days after aircraft are added to or removed from the Demonstration
Fleet; and 
 (C) that constitutes a newly-manufactured aircraft for which a U.S. Federal Aviation certificate of
airworthiness has been received, by filing an Aircraft Security Agreement with the FAA not more than one hundred eighty (180) days (or such longer period as may be agreed by the Agent in its sole discretion) from receipt of U.S. Federal
Aviation certificate of airworthiness in respect of such newly-manufactured aircraft.” 
 Section 1.4 Amendment
to Section 4.1(e). Section 4.1(e) of the Existing Pledge and Security Agreement is hereby deleted in its entirety and the following is hereby substituted therefor: 

“(e) Aircraft Collateral. 

(i) From and after the Third Amendment Effective Date, the Grantors shall not request the issuance by the FAA of an FAA
registration number for any airframe or aircraft not registered with the FAA as of the Third Amendment Effective Date unless (A) such aircraft is airworthy and (B) such Grantor applies for a certificate of airworthiness from the FAA
concurrently with such registration (any aircraft subject to any such registration, a “Newly Registered Aircraft”). 
 (ii) Each Grantor agrees that it shall cooperate with the Agent to perfect all security interests in favor of the Agent, for the benefit of the Secured Parties, in any Newly Registered Aircraft by filing
an Aircraft Security Agreement with the FAA and registering an International Interest with the International Registry as soon as practicable upon, and in any event within two (2) Business Days (or such later date as Agent shall agree in its
sole discretion) of, issuance by the FAA of an FAA registration number for such aircraft.” 
 Section 1.5
Addition of Sections 4.1(h), (i) and (j). Section 4.1 of the Existing Pledge and Security Agreement is hereby amended to insert the following new paragraphs (h), (i) and (j) at the end
thereof: 
 “(h) Post-Closing Requirement. Without limiting Section 4.1(d), each Grantor
agrees that (i) it shall cooperate with the Agent to perfect all security interests in the Specified Aircraft, WIP Aircraft and Specified Engines and all propellers owned by the Grantors as of the Third Amendment Effective Date (other than
those subject to the Effective Date Senior Aircraft Security Agreements) by (x) filing an Aircraft Security Agreement, in form and substance reasonably satisfactory to the Agent, with the FAA naming the Agent as secured party (each, a
“Post-Effective Date Senior Aircraft Security Agreement”) and registering an International Interest with the International Registry not more than seven (7) Business Days (or such longer period as may be agreed to by the Agent
in its sole discretion) from the Third Amendment Effective Date, and (y) taking all other action as necessary or advisable so that the Agent shall have a first priority perfected security interest in such aircraft, aircraft engines and
propellers. Each Post-Effective Date Senior Aircraft Security Agreement shall specify the following: 
 (A) the
security interest in favor of the Agent in the Specified Aircraft, the Specified Engines and all propellers owned by the Grantors as of the Third Amendment Effective Date shall be for the benefit of the Agent and the Senior Tranche Lenders and shall
secure solely the Senior Tranche Obligations and certain Obligations owing favor of Agent (in a manner similar to the Effective Date Senior Aircraft Security Agreements); and 

  
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 (B) the security interest in favor of the Agent in the WIP Aircraft shall be
for the benefit of the Secured Parties and shall secure (x) the Senior Tranche Obligations and certain Obligations owing in favor of Agent (in a manner similar to the Effective Date Senior Aircraft Security Agreements) and (y) all other
Secured Obligations in an amount, in the case of this clause (y), equal to the excess, if any, of (1) the aggregate value of the Grantors’ inventory of airframes, aircraft and parts maintained for production of commercial aircraft
upon which the Agent for the benefit of the Secured Parties has a perfected first-priority security interest as of the Third Amendment Effective Date over (2) the aggregate value of the Grantors’ inventory of airframes, aircraft and parts
maintained for production of commercial aircraft upon which the Agent for the benefit of the Secured Parties has a perfected first-priority security interest as of the Termination Date; 

provided, that upon any aircraft set forth on Exhibit B-1 to the Third Amendment Officer’s Certificate obtaining an
airworthiness certificate from the FAA, (i) such aircraft shall be deemed to thereafter constitute a Specified Aircraft for all purposes of this Agreement and (ii) such aircraft shall be excluded from the determination of the amount set
forth in the foregoing clause (B)(y). The Grantors shall not obtain airworthiness certificates from the FAA with respect to any aircraft except in the ordinary course of business consistent with past practice. 

(i) Engines and Propellers. Each Grantor agrees that it shall cooperate with the Agent to perfect all security
interests in favor of the Agent, for the benefit of the Secured Parties, in any aircraft engine and propeller owned by any Grantor, directly or indirectly (other than Specified Engines), to the extent subject to the regime for perfection of security
interests provided for by, in the case of the following clause (i), the FAA, and in the case of the following clause (ii), the International Registry, by: 

(i) (A) in the case of any aircraft engine that ceases to be a Specified Engine as a result of the operation of
clause (ii) of the second sentence of the definition of “Specified Engines”, filing an Aircraft Security Agreement with the FAA as soon as practicable upon, and in any event within two (2) Business Days of, such
aircraft engine so ceasing to be a Specified Engine and (B) in the case of any other aircraft engine or propeller, filing an Aircraft Security Agreement with the FAA as soon as practicable upon, and in any event within four (4) Business
Days of, such Grantor acquiring ownership thereof; and 

  
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 (ii) (A) in the case of any aircraft engine that ceases to be a
Specified Engine as a result of the operation of clause (ii) of the second sentence of the definition of “Specified Engines”, registering an International Interest with the International Registry as soon as practicable
upon, and in any event within two (2) Business Days of, such aircraft engine so ceasing to be a Specified Engine and (B) in the case of any other aircraft engine or propeller, registering an International Interest with the International
Registry as soon as practicable upon, and in any event within four (4) Business Days of, such Grantor acquiring ownership thereof. 
 Any time period specified for delivery or filing of any document pursuant to this paragraph (i) may be extended by the Agent in its sole discretion. 

(j) Excepted Equipment. Notwithstanding anything to the contrary in this Section 4.1, no Grantor shall
be required to file any Aircraft Security Agreement with the FAA or register any International Interest with the International Registry, in each case, with respect to any Excepted Equipment.” 

Notwithstanding anything herein or in the other Loan Documents to the contrary, with respect to the assets on which Liens are or are intended to be
granted pursuant to the Effective Date Senior Aircraft Security Agreements or any Post-Effective Date Senior Aircraft Security Agreement, the parties hereto each reserve all rights with respect to the validity, enforceability and perfection of the
Liens of the Agent thereon as of the date hereof before giving effect to such agreements and any filing or registration made with respect thereto. 
 Section 1.6 Amendment to Section 4.11: Bank Accounts. Section 4.11 of the Existing Pledge and Security Agreement is hereby amended and restated in its entirety as follows:

 “Section 4.11. Bank Accounts.

(a) The Grantors shall (i) within thirty (30) days of the Third Amendment Effective Date (or such later date as
Agent shall agree in its sole discretion), implement control agreements, in form and substance reasonably satisfactory to Agent, relating to such of Grantors’ deposit accounts as Agent shall request and (ii) prior to opening any new
deposit accounts from and after the Third Amendment Effective Date, implement control agreements, in form and substance reasonably satisfactory to Agent, with respect to such accounts; provided, that in the case of each of the foregoing
clauses (i) and (ii), no such control agreement shall be required with respect to (x) any deposit account or accounts which, individually or in the aggregate, have average daily balances not in excess of $1,000,000, (y) any deposit
account in which only Excluded Deposits are maintained or (z) any deposit account that is (1) a bona fide payroll, employee benefits, tax or escrow account, (2) a disbursement account containing amounts on deposit not materially
greater than expected disbursements in accordance with past practices, (3) a zero balance account or (4) held outside of the United States. 
 (b) From and after delivery to the Agent of a control agreement with respect to the Specified Collection Account, each Grantor shall cause all proceeds of the sale of

  
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Specified Aircraft and Specified Engines to be deposited to the Specified Collection Account promptly following receipt thereof (and in any event with two Business Days following receipt of
available funds). No funds shall be deposited to the Specified Collection Account other than proceeds of sales of Specified Aircraft and Specified Engines. The Grantors shall utilize the proceeds of each withdrawal from the Specified Collection
Account in accordance with the Approved Budget (subject to variances permitted pursuant to Section 6.11 of the Credit Agreement). 
 (c) Subject to paragraphs (a) and (b) above, each Grantor shall continue its cash management practices from and after the Third Amendment Effective Date generally in accordance
with its practices prior to the Third Amendment Effective Date.” 
 Section 1.7 Addition of new
Section 4.12: Foreign Registration of Aircraft. Section 4.12 is hereby added to the Existing Pledge and Security Agreement as follows: 

“Section 4.12. Foreign Registration. The Grantors shall not permit any aircraft owned by any Grantor to be
registered with a foreign Governmental Authority without the written consent of Agent, it being understood that registrations with the International Registry shall not be subject to this Section 4.12.” 

Section 1.8 Addition of new Section 5.5: Designation as Senior Tranche Collateral. Section 5.5 is hereby
added to the Existing Pledge and Security Agreement as follows: 
 “5.5. Designation as Senior Tranche
Collateral. 
 (a) Defined Terms. For purposes of this Section 5.5: 

“Aggregate Available Value” means, as any time, an amount equal to (i) the aggregate Value of all
Specified Aircraft sold following the Third Amendment Effective Date minus (iii) the aggregate Value of all aircraft Designated as Senior Tranche Collateral following the Third Amendment Effective Date. 

“Designate as Senior Tranche Collateral” means, with respect to any asset subject to an Aircraft Security
Agreement delivered after the Third Amendment Effective Date pursuant to Section 4.1(e), to cause the obligations secured by such asset pursuant to such Aircraft Security Agreement to be limited solely to (a) Obligations described
in clause first of Section 2.16(a) of the Credit Agreement and (b) the Senior Tranche Obligations. The Grantors and Agent agree that each Aircraft Security Agreement executed after the Third Amendment Effective Date
pursuant to Section 4.1(e) shall specify a process reasonably acceptable to the parties providing for a mechanism to cause such assets to secure solely such obligations described in the foregoing clauses (a) and (b),
to the extent any such assets are Designated as Senior Tranche Collateral. 
 “Initial Aggregate
Specified Engine Value” means the aggregate Value of the aircraft engines constituting Specified Engines as of the Third Amendment Effective Date. 

  
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 “Termination Date Specified Engine Value” means the
aggregate Value of the aircraft engines constituting Specified Engines as of the Termination Date. 

“Value” means, (a) with respect to any aircraft engine, an amount equal to 60% of the cost of such
engine when first acquired (other than from an Affiliate) by any Grantor, (b) with respect to any newly manufactured aircraft, the applicable Grantor’s list price for such model of aircraft as of the Third Amendment Effective Date,
(c) with respect to any used aircraft, the “Aircraft Bluebook Price Digest” price therefor as of the date of any Disposition thereof and (d) with respect any demo aircraft, an amount equal to 97% of the applicable Grantor’s
list price as of the Third Amendment Effective Date for the applicable model. 
 (b) Engines. Upon the
occurrence of the Termination Date, if the Termination Date Specified Engine Value shall be less than the Initial Aggregate Specified Engine Value, promptly upon the request of the U.S. Borrower, the Agent shall Designate as Senior Tranche
Collateral aircraft engines (other than aircraft engines attached to aircraft) selected in accordance with the following sentence. The Agent and the U.S. Borrower shall cooperate reasonably in selecting for designation aircraft engines (i) of
similar models and types as the aircraft engines that ceased to constitute Specified Engines after the Third Amendment Effective Date (to the extent of aircraft engines available to be Designated as Senior Tranche Collateral) and (ii) having an
aggregate Value as closely as reasonably possible matching (but not exceeding) such deficiency; provided, that the aggregate Value of aircraft engines Designated as Senior Tranche Collateral shall not, together with the aggregate cash
proceeds received by the Grantors after the Third Amendment Effective Date in respect of sales of Specified Aircraft, exceed $40,000,000. 
 (c) Aircraft. Upon the sale of a Specified Aircraft, the U.S. Borrower shall provide written notice to the Agent of (a) the date of consummation of such sale, (b) the aircraft subject to
such sale, (c) the Value of such aircraft, (d) the cash proceeds in respect of the sale of such aircraft received after the Third Amendment Effective Date, (e) the aggregate cash proceeds received by the Grantors after the Third
Amendment Effective Date in respect of the sale of Specified Aircraft and (f) the Aggregate Available Value after giving effect to such sale. Promptly upon receipt of such notice, the Agent shall Designate as Senior Tranche Collateral one or
more Newly Registered Aircraft selected in accordance with the following sentence. The Agent and the U.S. Borrower shall cooperate reasonably in selecting Newly Registered Aircraft for designation as follows: 

(i) if the Specified Aircraft sold is a jet, (A) a jet of the same model shall be selected and (B) if no jet of
the same model is available for designation, one or more jets of different models and propeller aircraft shall be selected having an aggregate Value as closely as reasonably possible matching (but not exceeding) such Aggregate Available Value (with
jets of different models being selected first to the extent available and to the extent such jets can be selected without exceeding such Aggregate Available Value); and 

(ii) if the Specified Aircraft sold is a propeller plane, (A) a propeller plane of the same model shall be selected
and (B) if no propeller plane of the 

  
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same model is available for designation, one or more propeller planes of different models and jets shall be selected having an aggregate Value as closely as reasonably possible matching (but not
exceeding) such Aggregate Available Value (with propeller planes of different models being selected first to the extent available and to the extent such propeller planes can be selected without exceeding such Aggregate Available Value). 

(d) Cap. Notwithstanding anything to the contrary herein, the Agent shall not be obligated to Designate as Senior
Tranche Collateral any assets in connection with any sale of a Specified Aircraft occurring after the earlier to occur of (i) the Termination Date or (ii) the sale of a Specified Aircraft as a result of which (such sale, the “Final
Designation Sale”) the aggregate cash proceeds received by the Grantors after the Third Amendment Effective Date in respect of sales of Specified Aircraft shall exceed $40,000,000. In the case of the Final Designation Sale, for the purposes
of paragraph (c) above, the Value of the related Specified Aircraft shall be reduced by a percentage equal to (A) the excess described in the foregoing clause (ii) divided by (B) the total cash proceeds received in
respect of such sale. 
 (e) Specified Engine Update. As soon as practicable after, and in any event
within five (5) Business Days of, the Third Amendment Effective Date (or such later date as Agent shall agree in its sole discretion), the U.S. Borrower shall deliver to the Agent an update to the Third Amendment Officer’s Certificate
setting forth the aircraft engines owned by the Grantors as of the Third Amendment Effective Date (to the best of its knowledge following reasonable diligence). 
 (f) No Condition. For the avoidance of doubt, it shall not be a condition to the sale of any Specified Aircraft that any aircraft be Designated as Senior Tranche Collateral.” 

ARTICLE II 

CONDITIONS TO EFFECTIVENESS 
 Section 2.1 Effectiveness. This Amendment shall become effective as of the date hereof only upon the satisfaction of all of the following conditions precedent (the date of satisfaction
of such conditions being referred to herein as the “First Amendment to Pledge and Security Agreement Effective Date”): 
 (a) Execution. The Agent shall have received a counterpart signature page of this Amendment duly executed by each of the Grantors; and 

(b) Representations and Warranties. The representations and warranties contained in Section 2.2 of this Amendment are
and will be true and correct in all material respects on and as of the First Amendment to Pledge and Security Agreement Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case they were true and correct in all material respects on and as of such earlier date. 

  
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 Section 2.2 Representations and Warranties. In order to induce the Agent
(at the direction of the Required Lenders) to enter into this Amendment and to amend the Pledge and Security Agreement in the manner provided herein, each Grantor represents and warrants to the Agent, that the following statements are true and
correct in all material respects: 
 (a) Enforceability. This Amendment has been duly executed and delivered by
each Grantor party hereto and each of this Amendment and the Pledge Agreement as amended hereby is the legal, valid and binding obligation of each Grantor, and is enforceable against each Grantor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by equitable principles relating to enforceability; and 

(b) Authorization; No Conflicts. Its execution, delivery and performance of this Amendment and the Pledge Agreement as
amended hereby, are within each Grantor’s, as applicable, corporate or limited liability company powers and have been duly authorized by all necessary corporate, limited liability company and, if required, stockholder action of each Grantor.
The execution, delivery and performance of this Amendment and the Existing Pledge Agreement as amended hereby (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority,
including the FAA, except (A) such as have been obtained or made and are in full force and effect, (B) for filings and registrations necessary to perfect Liens created pursuant to the Loan Documents, or (C) consents or approvals the
failure of which to obtain would not reasonably be expected to result in a Material Adverse Effect, (b) will not violate any Requirement of Law applicable to any Grantor or any of the Restricted Subsidiaries which would result in a Material
Adverse Effect, (c) will not result in a default under any Material Indebtedness, and (d) will not result in the creation or imposition of any Lien on any asset of any Grantor or any of the Restricted Subsidiaries, except Liens created
pursuant to the Loan Documents. 
 (c) Aircraft and Aircraft Engines. As of the date hereof, to the Grantors’
knowledge after appropriate due inquiry, the aircraft and aircraft engines subject to the Effective Date Aircraft Security Agreements constitute a true, complete and correct list of each aircraft registered with the FAA owned by the Grantors,
directly or indirectly, and each aircraft engine owned by the Grantors, directly or indirectly, other than (x) any aircraft or aircraft engine owned by the Grantors, directly or indirectly, subject to an Aircraft Security Agreement (other than
the Effective Date Aircraft Security Agreements) as of the date hereof, (y) any aircraft or aircraft engines separately identified in the Third Amendment Officer’s Certificate; provided, that, with respect to aircraft engines, this
clause (y) shall be deemed to (i) include any other aircraft engines owned by the Grantors as of the date hereof and (ii) exclude any aircraft engines set forth in such certificate which have been sold by the Grantors since
March 7, 2012 pursuant to a disposition in the ordinary course to a Person other than an Affiliate of the Grantors, and (z) Excluded Equipment 

  
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 ARTICLE III 
 MISCELLANEOUS 
 Section 3.1 References to and Effect on the
Pledge and Security Agreement and the Other Loan Documents. 
 (a) On and after the First Amendment to Pledge and
Security Agreement Effective Date, each reference in the Pledge and Security Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Pledge and Security
Agreement, and each reference in the other Loan Documents to the “Pledge and Security Agreement”, “thereunder”, “thereof” or words of like import referring to the Pledge and Security Agreement shall mean and be a
reference to the Existing Pledge and Security Agreement as amended by this Amendment. 
 (b) Except as specifically amended by
this Amendment, the Existing Pledge and Security Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. 
 (c) The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of any Agent or Lender under, the
Pledge and Security Agreement or any of the other Loan Documents. 
 Section 3.2 Applicable Law. THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

 Section 3.3 Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from
multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. 
 Section 3.4 Facsimile or Electronic Signatures. This Amendment may be executed by fax or electronic mail, in PDF format, and no party hereto may contest this Amendment’s validity
solely because a signature was faxed or otherwise sent electronically. 
 [Remainder of Page Intentionally Left Blank]

  
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 IN WITNESS WHEREOF, each Grantor and the Agent have executed this Amendment as of the date
first above written. 
  

			
	HAWKER BEECHCRAFT, INC.
		
	By:	 	 /s/ K.J. Tjon

		 	Name: K.J. Tjon
		 	Title: Chief Financial Officer and Treasurer
	
	HAWKER BEECHCRAFT ACQUISITION COMPANY, LLC
	
	By: HAWKER BEECHCRAFT, INC., its Sole Member
		
	By:	 	 /s/ K.J. Tjon

		 	Name: K.J. Tjon
		 	Title: Chief Financial Officer and Treasurer
	
	HAWKER BEECHCRAFT CORPORATION
		
	By:	 	 /s/ K.J. Tjon

		 	Name: K.J. Tjon
		 	Title: Chief Financial Officer and Treasurer
	
	HAWKER BEECHCRAFT GLOBAL CUSTOMER SUPPORT CORPORATION
		
	By:	 	 /s/ K.J. Tjon

		 	Name: K.J. Tjon
		 	Title: Chief Financial Officer and Treasurer

  
 [Signature
Page to First Amendment to U.S. Pledge and Security Agreement] 

 
			
	HAWKER BEECHCRAFT FINANCE CORPORATION
		
	By:	 	 /s/ K.J. Tjon

		 	Name: K.J. Tjon
		 	Title: President, Chief Financial Officer and Treasurer
	
	ARKANSAS AEROSPACE, INC.
		
	By:	 	 /s/ K.J. Tjon

		 	Name: K.J. Tjon
		 	Title: President and Chief Financial Officer
	
	HAWKER BEECHCRAFT QUALITY SUPPORT COMPANY
		
	By:	 	 /s/ K.J. Tjon

		 	Name: K.J. Tjon
		 	Title: Chief Financial Officer and Treasurer
	
	TRAVEL AIR INSURANCE COMPANY, LTD.
		
	By:	 	 /s/ K.J. Tjon

		 	Name: K.J. Tjon
		 	Title: President and Treasurer
	
	HAWKER BEECHCRAFT REGIONAL OFFICES, INC.
		
	By:	 	 /s/ K.J. Tjon

		 	Name: K.J. Tjon
		 	Title: Chief Financial Officer and Treasurer

  
 [Signature
Page to First Amendment to U.S. Pledge and Security Agreement] 

 
					
	TRAVEL AIR INSURANCE COMPANY (KANSAS)
		
	By:	 	 /s/ K.J. Tjon

		 	Name:	 	K.J. Tjon
		 	Title:	 	President and Treasurer
	
	BEECHCRAFT AVIATION COMPANY
		
	By:	 	 /s/ K.J. Tjon

		 	Name:	 	K.J. Tjon
		 	Title:	 	President, Chief Financial Officer and Treasurer
	
	HAWKER BEECHCRAFT NOTES COMPANY
		
	By:	 	 /s/ K.J. Tjon

		 	Name:	 	K.J. Tjon
		 	Title:	 	Chief Financial Officer and Treasurer
	
	HAWKER BEECHCRAFT HOLDING, INC.
		
	By:	 	 /s/ K.J. Tjon

		 	Name:	 	K.J. Tjon
		 	Title:	 	President, Chief Financial Officer and Treasurer
	
	HAWKER BEECHCRAFT INTERNATIONAL DELIVERY CORPORATION
		
	By:	 	 /s/ K.J. Tjon

		 	Name:	 	K.J. Tjon
		 	Title:	 	President, Chief Financial Officer and Treasurer

  
 [Signature
Page to First Amendment to U.S. Pledge and Security Agreement] 

 
					
	 HAWKER BEECHCRAFT DEFENSE COMPANY, LLC
  

By: HAWKER BEECHCRAFT CORPORATION, its Sole Member

		
	By:	 	 /s/ K.J. Tjon

		 	Name:	 	K.J. Tjon
		 	Title:	 	Chief Financial Officer and Treasurer

  
 [Signature
Page to First Amendment to U.S. Pledge and Security Agreement] 

 
			
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
		
	By:	 	 /s/ Didier Siffer

		 	Name: Didier Siffer
		 	Title: Authorized Signatory
		
	By:	 	 /s/ Megan Kane

		 	Name: Megan Kane
		 	Title: Authorized Signatory

  
 [Signature
Page to First Amendment to U.S. Pledge and Security Agreement]Senior Aircraft Security Agreement

 Exhibit 10.3 
 EXECUTION VERSION 
 SENIOR AIRCRAFT SECURITY AGREEMENT 

THIS SENIOR AIRCRAFT SECURITY AGREEMENT (as it may be amended or modified from time to time, this “Agreement”) is
entered into as of March 27, 2012 by and among HAWKER BEECHCRAFT CORPORATION (the “Debtor”), and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH in its capacity as collateral agent for the Secured Parties (as defined in the Credit
Agreement) (in such capacity, the “Agent”). 
 1. Preliminary Statements and Interpretation. 

(a) Reference is hereby made to the Credit Agreement dated as of March 26, 2007 by and among HAWKER BEECHCRAFT, INC., a Delaware
corporation (“Holdings”), HAWKER BEECHCRAFT ACQUISITION COMPANY, LLC, a Delaware limited liability company (the “U.S. Borrower”), and HAWKER BEECHCRAFT LIMITED, a limited company incorporated under the laws of
England and Wales with registered number 06018571 (the “U.K. Borrower” and, together with the U.S. Borrower, the “Borrowers”), the Guarantors from time to time party thereto, the Lenders from time to time party
thereto, Credit Suisse AG, Cayman Islands Branch, in its capacity as administrative agent and collateral agent for the Lenders (the “Agent”) and the other parties party thereto (as amended by the First Amendment to Credit Agreement
dated as of December 19, 2008, the Second Amendment to Credit Agreement dated as of November 6, 2009, and the Forbearance Agreement and Third Amendment to Credit Agreement, dated as of March 27, 2012 (as the same may be amended or
modified from time to time, the “Third Amendment”), and as further amended, supplemented, waived or otherwise modified from time to time, the “Credit Agreement”). 

(b) In connection with the Third Amendment and the Senior Tranche Advances made pursuant thereto, the Debtor has agreed to grant a
perfected security interest in the Senior Tranche Collateral (as defined herein) to the Agent, for the benefit of the Agent and the Senior Tranche Lenders (the “Senior Tranche Secured Parties”), by entering into a separate security
agreement governing the grant and perfection of a security interest in certain of Debtor’s aircraft and aircraft engines. This Agreement implements that requirement. 
 (c) Capitalized terms used herein and not defined herein shall have the meanings provided in the Credit Agreement 
 (d) Additional Defined Terms: 
 “FAA” means the
United States Federal Aviation Administration. 
 “IDERA” means an Irrevocable De-Registration
and Export Request Authorization in the form of Exhibit “A” attached hereto and as provided for in the Cape Town Convention. 
 “International Interest” has the meaning provided in the Convention on International Interests in Mobile Equipment (the “Convention”) and Protocol thereto on Matters
Specific to Aircraft Equipment (the “Protocol”) concluded in Cape Town in November 2001 (the Convention and the Protocol, each, in the official English language text thereof, are collectively referred to herein as the “Cape
Town Convention”). 

 “Senior Mortgaged Aircraft” means (a) each aircraft
identified on Schedule 1, as amended from time to time in accordance with Section 5, together with all of the following (i) airframes, aircraft engines, propellers and spare parts, (ii) appurtenances, accessions,
instruments, avionics, accessories, equipment or parts, and (iii) logs, manuals and other documents reflecting use or maintenance of each aircraft, aircraft engine or propeller identified on Schedule 1, as amended from time to time in
accordance with Section 5 and (b) each aircraft engine and each propeller identified on Schedule 1, as amended from time to time in accordance with Section 5, together with all of the following (i) spare parts,
(ii) appurtenances, accessions, instruments, avionics, accessories, equipment or parts, and (iii) logs, manuals and other documents reflecting use or maintenance of each aircraft engine or propeller identified on Schedule 1, as
amended from time to time in accordance with Section 5. 
 2. Grant of Security Interest. To secure the prompt and
complete payment of the Senior Tranche Obligations and amounts payable pursuant to clause first of Section 2.16(a) of the Credit Agreement (collectively, “Senior Tranche Secured Obligations”), Debtor grants to Agent, on
behalf of and for the benefit of the Senior Tranche Secured Parties solely in their capacities as Agent and Senior Tranche Lenders, a security interest and an International Interest in the Senior Mortgaged Aircraft (the “Senior Tranche
Collateral”). 
 3. Representations, Warranties and Covenants of Debtor. As of the date hereof, Debtor
represents, warrants and covenants that: 
 (a) Debtor is situated in the “contracting state” (as defined in the Cape
Town Convention) of the United States of America. 
 (b) Debtor has good and valid rights in, or the power to transfer or
dispose of the Senior Mortgaged Aircraft and title to, the Senior Mortgaged Aircraft. 
 (c) Debtor is (or, to the extent that
the Senior Mortgaged Aircraft is to be acquired hereafter, will be) and will remain the sole lawful, owner, in sole, open and notorious possession of the Senior Mortgaged Aircraft, which will all be and remain under U.S. civil registration.

 (d) Debtor owns all Senior Mortgaged Aircraft free of any Liens, other than Permitted Liens. 

(e) The description of the Senior Mortgaged Aircraft (including the make, model, serial number and registration number) set forth in
Schedule 1 hereto is true correct and complete, subject to the periodic addition and removal of Senior Mortgaged Aircraft pursuant to Section 5. 

  
 2 

 (f) Upon the filing and recordation of this Agreement with the FAA, any supplemental
mortgage filed pursuant to Section 5(b), any UCC-1 financing statement filed in the State of Kansas, and the registrations of interests with the International Registry as applicable, Agent shall have a first priority perfected security interest
in the Senior Mortgaged Aircraft identified in Schedule 1 as amended from time to time in accordance with Section 5, subject only to any Permitted Liens. Debtor further represents and warrants that, except for the registration of
the Senior Mortgaged Aircraft and the filing of record of this Agreement with the FAA pursuant to Title 49 of the United States Code, entitled “Transportation,” and the Federal Aviation Regulations promulgated thereunder
(collectively, the “Transportation Code”), and except for the filing of a UCC-1 financing statement in the State of Kansas and the registrations of interests with the International Registry as applicable with respect to the Senior
Mortgaged Aircraft, no further action is necessary in order to perfect in favor of Agent a security interest in the Senior Mortgaged Aircraft against any third party under the applicable laws of any jurisdiction within the United States and as
against any third party in a “contracting state” under the Cape Town Convention, subject only to any Permitted Liens. 

(g) Debtor is a “transacting user entity” for purposes of the International Registry, has identified an
“administrator”, has appointed a “professional user entity” reasonably satisfactory to Agent and has paid all required fees and taken all other actions necessary to enable Agent to register any International Interest or other
interest necessary or advisable to perfect or protect the Agent’s interests created hereby with the International Registry. 
 4. Additional Covenants of Debtor 
 (a) Senior Tranche Collateral
Records. Debtor will maintain complete and accurate books and records as is consistent with its practices as of the date hereof in all material respects with respect to the Senior Tranche Collateral, and furnish to the Agent such reports
relating to the Senior Tranche Collateral as the Agent shall from time to time reasonably request. 

  
 3 

 (b) Other Financing Statements. Debtor will not authorize the filing of any financing
statement naming it as debtor covering all or any portion of the Senior Tranche Collateral, except to cover security interests that are Permitted Liens. Debtor acknowledges that it is not authorized to file any financing statement naming the Agent
as secured party or amendment or termination statement with respect to any such financing statement without the prior written consent of the Agent, subject to such Debtor’s rights under Section 9-509(d)(2) of the UCC. Debtor shall not take
any action to register or consent to the registration of any prospective or current International Interest or other interest (or any amendment, modification, supplement, subordination or subrogation thereof), in relation to the Senior Mortgaged
Aircraft, with the International Registry without the prior written consent of Agent, which may be withheld in Agent’s sole discretion. Debtor shall not execute or deliver any IDERA to any party other than the Agent unless Agent agrees in
writing. 
 (c) Change of Name, Etc. Debtor agrees to furnish to the Agent prompt written notice of any change in:
(i) Debtor’s name; (ii) the location of Debtor’s chief executive office or its principal place of business; (iii) Debtor’s organizational legal entity designation or jurisdiction of incorporation or formation; or
(iv) Debtor’s Federal Taxpayer Identification Number or organizational identification number assigned to it by its jurisdiction of incorporation or formation. Debtor agrees not to effect or permit any change referred to in the preceding
sentence unless all filings have been made under the Uniform Commercial Code or other applicable law that are required in order for the Agent to continue at all times following such change to have a valid, legal and perfected, first priority
security interest (subject to Permitted Liens that have priority by operation of applicable law) in the Senior Tranche Collateral for its benefit and the benefit of the other Senior Tranche Secured Parties. 

  
 4 

 (d) No Interference. Debtor agrees that it will not interfere with any right, power
and remedy of the Agent provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the Agent of any one or more of such rights, powers or remedies.

 (e) IDERA. In connection with the execution and delivery of this Agreement to Agent by Debtor, Debtor shall execute
and deliver to Agent an IDERA for each and every Senior Mortgaged Aircraft, as applicable, made subject to this Agreement, in the form of Exhibit “A” hereto, which will be filed with the FAA as an attachment to either this Agreement or any
amendment or supplement to this Agreement as applicable within five (5) Business Days of such aircraft becoming a Senior Mortgaged Aircraft. 
 5. Addition and Removal of Senior Mortgaged Aircraft from Collateral. 
 (a)
Without limiting Section 4.1(d), (e), (h), or (i) of the Security Agreement, the parties agree that, upon written notice by Debtor to Agent, Schedule 1 will be supplemented, amended or replaced so that it accurately represents the
Senior Mortgaged Aircraft, the subject of the security interests granted hereunder, as may be necessary to permit (i) any Disposition permitted under Section 6.06 of the Credit Agreement other than a Disposition to an Affiliate;
provided that no Default or Event of Default (other than a Specified Default (as defined in the Third Amendment) during the Forbearance Period (as defined in the Third Amendment)) under the Credit Agreement shall have occurred and be
continuing, and (ii) Debtor to cause any aircraft and/or aircraft engines to become Senior Mortgaged Aircraft subject to this Agreement as required by, and in accordance with, Section 4.1(h)(A) of the Security Agreement. In the case of any
Disposition permitted by clause (i) of the immediately preceding sentence, Agent agrees to discharge its International Interest, and any interest related thereto, with the International Registry in the Senior Mortgaged Aircraft that is the
subject of such Disposition and to execute a release to be filed with the FAA for recordation which releases Agent’s right, title and interest in and to such Senior Mortgaged Aircraft no later than five (5) Business Days prior to the
Scheduled Closing Date (as defined below) of such Disposition; provided that (i) Agent shall have received written notice (a “Disposition Notice”) from the Debtor no later than ten (10), and no earlier than twenty (20),
Business Days in advance of the proposed date on which such Disposition will be consummated (the “Scheduled Closing Date”), (ii) the Senior Mortgaged Aircraft that is the subject of such Disposition is a newly manufactured
aircraft, (iii) Debtor shall have received, no later than five (5) business days prior to the Scheduled Closing Date, a deposit in cash an amount of not less than 50% of the agreed purchase price of the Senior Mortgaged Aircraft that is
the subject of such Disposition, (iv) such Disposition is made in the ordinary course of Debtor’s business, on arm’s length terms and to a purchaser that is not an Affiliate of debtor and (v) such Disposition Notice shall contain
a certification of Debtor that such Disposition is expected to be consummated on the Scheduled Closing Date and that such each condition set forth in the foregoing clauses (ii) through (iv) has been satisfied, or shall be satisfied, no
later than five (5) Business Days prior to the Scheduled Closing Date. If any such Disposition shall fail to be consummated within five (5) Business Days of the Scheduled Closing Date (or such longer period as Agent may agree), the parties
agree that (x) Schedule 1 will, as soon as practicable and 

  
 5 

 
in any event within one (1) Business Day, be supplemented, amended or replaced to cause the aircraft that was the subject of such proposed Disposition to become a Senior Mortgaged Aircraft
subject hereto and (y) the International Interest in favor of Agent shall promptly be re-registered with the International Registry. In the case of any other Disposition permitted by clause (i) of the first sentence of this
Section 5(a), Agent agrees to promptly discharge its International Interest, and any interest related thereto, with the International Registry in the Senior Mortgaged Aircraft that is the subject of such Disposition and to execute a release to
be filed with the FAA for recordation which releases Agent’s right, title and interest in and to such Senior Mortgaged Aircraft. 
 (b) Any amendment to Schedule 1 hereto contemplated under Section 5(a) shall be by supplement hereto and in such form as Agent shall reasonably require. Debtor irrevocably authorizes
Agent and appoints Agent as its attorney to execute on behalf of Debtor any amendment to Schedule 1 hereto contemplated under Section 5(a). All authorized acts of said attorney are hereby ratified and approved by Debtor. The powers
conferred on Agent shall not impose any duty upon Agent or any Senior Tranche Secured Party to exercise any such powers. 
 6.
Further Assurances. Debtor will promptly, upon Agent’s written request and at Debtor’s sole cost and expense, execute, or otherwise authenticate, any document, record or instrument necessary or reasonably advisable for filing,
recording, protecting or perfecting the interest of Agent in the Senior Mortgaged Aircraft, and to establish and protect Agent’s rights and remedies under this Agreement, the other Loan Documents or otherwise with respect to the Senior
Mortgaged Aircraft. In addition, Debtor hereby expressly authorizes each of Agent, Agent’s designated FAA escrow agent (which may be FAA counsel) and Debtor’s “professional user entity” to file with the FAA or register with the
International Registry (i) an Aircraft Bill of Sale (FAA AC Form 8050-2), (ii) an Aircraft Registration Application (FAA AC Form 8050-1), (iii) an FAA Entry Point Filing Form, International Registry (FAA AC Form 8050-135),
(iv) any other documents or registrations evidencing Debtor’s ownership of the Senior Mortgaged Aircraft (including a “contract of sale,” as defined by the Cape Town Convention (as applicable)), (v) the International
Interest, and (vi) any other interests created by this Agreement in favor of Agent, in each case describing the Senior Mortgaged Aircraft and containing any other information required by or reasonably advisable under the Transportation Code,
the Cape Town Convention and any other applicable law, treaty or regulation. At the request of Agent following any expiration or termination of this Agreement, Debtor shall, at Debtor’s sole cost and expense, execute and deliver to Agent, for
filing with the FAA and/or registration with the International Registry, as applicable, such documents as Agent shall require to evidence and confirm the expiration or termination of this Agreement and the release of the Senior Mortgaged Aircraft
from the terms and conditions hereof, and if Debtor fails for any reason to execute and deliver such documents to Agent, Debtor hereby irrevocably consents to and authorizes Agent to sign Debtor’s name to such documents and to file such
documents with the FAA and/or to register (and/or instruct Debtor’s “professional user entity” to register) discharges of interests relating to such documents with the International Registry, as applicable. Other than as expressly
provided herein, Debtor shall not file any filings with the FAA (including any corrective, amendment or termination filings) relating to the Senior Mortgaged Aircraft or register any related interests with the International Registry created hereby,
without Agent’s prior written consent. 

  
 6 

 7. Use, Operation, Maintenance, Repair, Storage and Registration. Debtor shall use,
operate, maintain, store and repair the Senior Mortgaged Aircraft and retain actual and operational control and possession thereof in compliance with the following provisions: 
 (a) Debtor shall use, operate, maintain and store the Senior Mortgaged Aircraft, and every part thereof, properly, carefully and in material compliance with all applicable statutes, ordinances and
regulations of all jurisdictions in which the Senior Mortgaged Aircraft is operated or used, as well as all applicable insurance policies, manufacturer’s recommendations and operating and maintenance manuals. Debtor shall not use, attempt to
use, or suffer the Senior Mortgaged Aircraft to be used in any manner which may or does contravene any applicable law, rule or regulation governing the Senior Mortgaged Aircraft, including without limitation those relating to intoxicating liquors,
narcotics, firearms or similar products. 
 (b) The Senior Mortgaged Aircraft will be operated at all times by a currently
certificated pilot having the minimum total pilot hours and minimum pilot-in-command hours required by FAA rules or regulations or as required by applicable insurance policies, whichever requirements are stricter. Each Senior Mortgaged Aircraft is
and shall at all times be maintained by Debtor at its expense in good repair in the configuration and condition existing on the date hereof and in airworthy condition necessary for all aircraft licenses under the laws, ordinances, rules and
regulations of all jurisdictions in which the Senior Mortgaged Aircraft will at any time be operated, ordinary wear and tear excepted. Debtor shall ensure timely compliance with all applicable mandatory service bulletins, service letters,
manufacturer’s directives and airworthiness directives delivered to Debtor by the manufacturer in respect of any Senior Mortgaged Aircraft. Debtor shall submit written evidence of such maintenance and condition to Agent upon its written request
from time to time. Debtor shall use reasonable care to prevent the Senior Mortgaged Aircraft from being damaged or injured, and shall promptly replace any part or component of the Senior Mortgaged Aircraft which may be damaged, worn out, lost,
destroyed, confiscated or otherwise rendered unsatisfactory or unavailable for use in or upon the Senior Mortgaged Aircraft. 

(c) The International Interest created by this Agreement in the Senior Mortgaged Aircraft pursuant to the provision of the Cape Town
Convention shall be registered with the International Registry, and Debtor hereby consents to such registration and authorizes Agent to effect all such registrations with the International Registry. Subject to Section 5(a), no International
Interest created in favor of Agent shall be discharged without the prior written consent of Agent. 
 8. Indemnification and
Insurance. 
 (a) Debtor hereby agrees to indemnify Agent, and its respective successors, assigns, agents and employees
(each an “Indemnitee”), from and against any and all losses, claims, damages, penalties, liabilities, and related expenses imposed on, incurred by or asserted against Agent, or its respective successors, assigns, agents and
employees, in any way relating to or arising out of this Agreement, or the ownership, delivery, lease, possession, use, operation, condition, sale, return or other disposition of any Senior Mortgaged Aircraft in accordance with this Agreement,
except to the extent that such losses, claims, damages, penalties, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Indemnitee. 

  
 7 

 (b) Debtor shall at all times bear all risk of loss, damage, destruction or confiscation of
or to the Senior Mortgaged Aircraft. Debtor shall secure and maintain in effect, at its own expense and at all times, insurance with financially sound and reputable insurance companies in such amounts and against such risks, as are customarily
maintained by similarly situated companies engaged in the same or similar businesses operating in the same or similar locations (after giving effect to any self-insurance reasonable and customary for similarly situated companies). Without limiting
the generality of the foregoing, Debtor shall secure and maintain: (i) all-risk aircraft hull and engine insurance (including, without limitation, with respect to engine or part thereof while removed from the Senior Mortgaged Aircraft and
foreign object damage insurance); and (ii) confiscation, appropriation and war risk and allied perils (including, without limitation, terrorism) insurance and hijacking insurance. All such policies shall name Agent (for the benefit of the
Senior Tranche Secured Parties) as a loss payee and shall be in form and substance satisfactory to Agent, which provide that: (a) all proceeds thereunder with respect to the Senior Mortgaged Aircraft shall be payable to Agent; (b) no such
insurance shall be affected by any act or neglect of the insured or owner of the Senior Mortgaged Aircraft described in such policy; and (iii) such policy and loss payable may be canceled, amended, or terminated only upon at least thirty
(30) days prior written notice given to Agent. Agent may at its option apply insurance proceeds, in whole or in part, to (i) repair or replace the Senior Mortgaged Aircraft or any part thereof or (ii) satisfy any of the Senior Tranche
Secured Obligations in accordance with the Credit Agreement. 
 9. Debtor’s Possession. Until the exercise of
Agent’s power of sale or foreclosure upon any Senior Mortgaged Aircraft pursuant to Section 11 of this Agreement, Debtor may possess the Senior Mortgaged Aircraft and use it in any lawful manner not inconsistent with this Agreement or the
Loan Documents. Agent or its agents may examine and inspect the Senior Mortgaged Aircraft, wherever located, at any reasonable time upon prior written notice to Debtor, on land and in flight. 

10. Default. Debtor shall be in default under this Agreement upon the occurrence and during the continuance of any of the
following: 
 (a) an Event of Default (other than a Specified Default (as defined in the Third Amendment) during the Forbearance
Period (as defined in the Third Amendment)); or 
 (b) failure by Debtor to maintain at all times insurance coverage as required
by Section 8(b) of this Agreement. In case Agent is permitted to and changes the insurance requirements, it will give written notice to Debtor of the new requirements and will grant Debtor 30 days after written notice, to comply with those
requirements. 

  
 8 

 11. Remedies of Agent: 

(a) Upon the occurrence and during the continuance of an Event of Default (other than a Specified Default (as defined in the Third
Amendment) during the Forbearance Period (as defined in the Third Amendment)), the Agent may exercise any or all of the following rights and remedies: 
  

	 	(i)	those rights and remedies provided in this Agreement, the Credit Agreement or any other Loan Document; provided that this Section 11(a)(i) shall not be
understood to limit any rights available to the Agent or the Lenders prior to an Event of Default; 

  

	 	(ii)	those rights and remedies available to a secured party under the UCC, the Cape Town Convention or under any other applicable law (including, without limitation, any law
governing the exercise of a bank’s right of setoff or bankers’ Lien) or in equity when a debtor is in default under a security agreement; 

  

	 	(iii)	procure the deregistration of the registration of the aircraft and export of the aircraft to a jurisdiction of Agent’s choice pursuant to the IDERA and as
authorized by the Cape Town Convention; and 

  

	 	(iv)	without notice (except as specifically provided in Section 11.2 of the Security Agreement or elsewhere herein), demand or advertisement of any kind to Debtor or
any other Person, enter the premises of Debtor where any Senior Tranche Collateral is located (through self-help and without judicial process) to collect, receive, assemble, process, appropriate, sell, lease, assign, grant an option or options to
purchase or otherwise dispose of, deliver, or realize upon, the Senior Tranche Collateral or any part thereof in one or more parcels at public or private sale or sales (which sales may be adjourned or continued from time to time with or without
notice and may take place at Debtor premises or elsewhere), for cash, on credit or for future delivery without assumption of any credit risk, and upon such other terms as the Agent may deem commercially reasonable. 

(b) Debtor acknowledges and agrees that the compliance by the Agent, on behalf of the Senior Tranche Secured Parties, with any applicable
state or federal law requirements in connection with a disposition of the Senior Tranche Collateral and compliance will not be considered to adversely affect the commercial reasonableness of any sale of the Senior Tranche Collateral. 

(c) The Agent shall have the right upon any public sale or sales and, to the extent permitted by law, upon any private sale or sales, to
purchase for the benefit of the Agent and the Senior Tranche Secured Parties, the whole or any part of the Senior Tranche Collateral so sold, free of any right of equity redemption in favor of Debtor, which equity redemption Debtor hereby expressly
releases. 

  
 9 

 (d) Until the Agent is able to effect a sale, lease, transfer or other disposition of Senior
Tranche Collateral, the Agent shall have the right to hold or use Senior Tranche Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Senior Tranche Collateral or the value of the Senior Tranche
Collateral, or for any other purpose deemed appropriate by the Agent. The Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of Senior Tranche Collateral and to enforce any of the Agent’s remedies (for
the benefit of the Agent and Senior Tranche Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment. 
 (e) Notwithstanding the foregoing, neither the Agent nor the Senior Tranche Secured Parties shall be required to (i) make any demand upon, or pursue or exhaust any of their rights or remedies
against, Debtor, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Senior Tranche Obligations or to pursue or exhaust any of their rights or remedies with respect to any Senior Tranche Collateral therefor
or any direct or indirect guarantee thereof, (ii) marshal the Senior Tranche Collateral or any guarantee of the Senior Tranche Obligations or to resort to the Senior Tranche Collateral or any such guarantee in any particular order, or
(iii) effect a public sale of any Senior Tranche Collateral. 
 (f) Upon the written request of the Agent after the
occurrence and during the continuance of an Event of Default (other than a Specified Default (as defined in the Third Amendment) during the Forbearance Period (as defined in the Third Amendment)), Debtor will: 

 

	 	(i)	upon reasonable advance notice, assemble and make available to the Agent the Senior Tranche Collateral and all books and records relating thereto at any place or places
reasonably specified by the Agent, whether at Debtor’s premises or elsewhere; and 

  

	 	(ii)	permit the Agent, by the Agent’s representatives and agents, to enter, occupy and use any premises where all or any part of the Senior Tranche Collateral, or the
books and records relating thereto, or both, are located, to take possession of all or any part of the Senior Tranche Collateral or the books and records relating thereto, or both, to remove all or any part of the Senior Tranche Collateral or the
books and records relating thereto, or both, and to conduct sales of the Senior Tranche Collateral, without any obligation to pay Debtor for such use and occupancy. 

(g) Agent shall apply the proceeds of any collection, sale, foreclosure or other realization upon any Senior Tranche Collateral pursuant
to this Section 11 in accordance with Section 2.16(a) of the Credit Agreement. Except as otherwise provided herein, the Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in
accordance with this Agreement. Upon any sale of Senior Tranche Collateral by the Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Senior Tranche Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Agent or such officer
or be answerable in any way for the misapplication thereof. 

  
 10 

 (h) Notwithstanding anything to the contrary contained in this Agreement or any other Loan
Document, prior to exercising any of its remedies set forth in this Section 11 with respect to the Senior Tranche Collateral, Agent shall have exercised its remedies against the Specified Collection Account (as defined in the Security
Agreement) and applied the full amount of proceeds therefrom to satisfy the Senior Tranche Secured Obligations in accordance with Section 2.16(a) of the Credit Agreement. 
 12. Waivers. Except as otherwise specifically provided herein, Debtor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in
connection with this Agreement or any Mortgaged Collateral. No waiver by Agent of any Event of Default shall operate as a waiver of any other Event of Default or of the same Event of Default on a future occasion. 

13. Reports. Debtor shall promptly notify Agent (i) at least 30 days’ prior to any change in its “contracting
state” (for purposes of the Cape Town Convention), (ii) at least 30 days prior to any permanent or indefinite relocation of the Senior Mortgaged Aircraft or its home airport, (iii) immediately upon the Senior Mortgaged Aircraft
being lost, stolen, missing, confiscated, appropriated, seized, sequestered, destroyed or materially damaged, (iv) immediately upon any material accident involving the Senior Mortgaged Aircraft, or (v) immediately upon Debtor becoming
aware of any Lien attaching or being made against the Senior Mortgaged Aircraft (other than any Permitted Lien). Such notice shall contain all reasonable details of the event being reported, and shall be supplemented promptly upon Agent’s
reasonable request. 
 14. Miscellaneous: 
 (a) This Agreement may or may not be assigned, in whole or in part, by the parties in accordance with the assignment provisions set forth in the Credit Agreement. 

(b) All notices to be given in connection with this Agreement shall be delivered as set forth in the Credit Agreement. 

(c) No waiver, amendment or other variation of the terms, conditions or provisions of this Agreement whatsoever shall be valid unless in
writing signed by Agent with the concurrence or at the direction of the Lenders required under Section 9.02 of the Credit Agreement and then only to the extent in such writing specifically set forth. However, notwithstanding the foregoing, this
Agreement and Schedule 1 hereto may be supplemented, amended or replaced from time to time in accordance with Section 5 of this Agreement. 
 (d) This Agreement shall be binding upon and inure to the benefit of each party hereto and their respective heirs, executors, representatives, successors and permitted assigns. 

(e) Any provision in any part of this Agreement that is held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as
to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction, and to this end the provisions
of this Agreement are declared to be severable. 

  
 11 

 (f) This Agreement, together with the Credit Agreement and the other Loan Documents,
embodies the entire agreement and understanding between Debtor and Agent relating to the Senior Mortgaged Aircraft and supersedes all prior agreements and understandings between Debtor and Agent relating to the Senior Mortgaged Aircraft. Section
headings in this Agreement are for convenience only, and shall not affect the construction or interpretation hereof. 
 (g)
DEBTOR AND AGENT HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR THE
RELATIONSHIP ESTABLISHED HEREUNDER. 
 (h) This Agreement shall continue in full force and effect until all of the Senior
Tranche Secured Obligations have been paid in full. This Agreement shall continue to be effective or reinstated, as the case may be, in the event that payment and performance of the Senior Tranche Secured Obligations, or any part thereof, is
rescinded, reduced, restored or returned, in which case such part of the Senior Tranche Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. 

(i) THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK; REGARDLESS OF THE LOCATION OF
THE SENIOR MORTGAGED AIRCRAFT. DEBTOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK IN THE BOROUGH OF MANHATTAN IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT AND DEBTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE
VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF AGENT TO BRING PROCEEDINGS AGAINST DEBTOR IN THE COURTS OF ANY OTHER JURISDICTION. 

(j) This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same
instrument, and either of the parties hereto may execute this Agreement by signing any such counterpart. Signed counterparts of this Agreement may be delivered by facsimile or electronic.pdf signature. 

(k) Debtor hereby expressly waives the provisions of Articles 11(2) and 13(2) of the Convention and Article IX(6) of the
Protocol. 
 (l) In the case of a conflict between this Agreement and the Loan Documents, this Agreement shall govern to the
extent of such conflict. 

  
 12 

 [Remainder of page intentionally left blank] 

  
 13 

 IN WITNESS WHEREOF, each Debtor and the Agent have executed this Agreement as of the date first above
written. 
  

			
	AGENT:
	
	Credit Suisse, Cayman Islands Branch
		
	By:	 	 /s/ Didier Siffer

		
	Name:	 	 Didier Siffer

		
	Title:	 	 Authorized Signatory

		
	By:	 	 /s/ Megan Kane

		
	Name:	 	 Megan Kane

		
	Title:	 	 Authorized Signatory

	
	DEBTOR:
	
	Hawker Beechcraft Corporation
		
	By:	 	 /s/ Alexander L.W. Snyder

		
	Name:	 	 Alexander L.W. Snyder

		
	Title:	 	 Vice President, General Counsel & Secretary

  
 14 

 Exhibit A 
 Irrevocable De-Registration and Export Request Authorization 

                         , 2012

  

	To:	United States of America 

Federal Aviation Administration 
  

	Re:	 Irrevocable De-Registration and Export Request Authorization1 

 The undersigned is the registered owner of                      model
                     bearing manufacturer’s serial number              [if
applicable, add IR drop down information] and United States registration mark N             (together with all installed, incorporated or attached accessories, parts and equipment, the
“Aircraft”). 
 This instrument is an irrevocable de-registration and export request authorization issued by the undersigned in favor
of                      (the “Authorized Party”) under the authority of Article XIII of the Protocol to the Convention on International
Interests in Mobile Equipment on Matters Specific to Aircraft Equipment. In accordance with that Article, the undersigned hereby requests. 
 (i) recognition that the Authorized Party or the person it certifies as its designee is the sole person entitled to: 
 a. procure the de-registration of the Aircraft from the United States Civil Aircraft Register maintained by the Federal Aviation Administration Civil Aircraft Registry for the purposes of Chapter III of
the Convention on International Civil Aviation, signed at Chicago, on 7 December 1944; and 
 b. procure the export and
physical transfer of the Aircraft from the United States of America; and 
 (ii) confirmation that the Authorized Party or the
person it certifies as its designee may take the action specified in clause (i) above on written demand without the consent of the undersigned and that, upon such demand, the authorities in the United States of America shall co-operate with the
Authorized Party with a view to the speedy completion of such action. 
 The rights in favor of the Authorized Party established
by this instrument may not be revoked by the undersigned without the written consent of the Authorized Party. 
 Agreed to and lodged this
     day of                     , 2012. 
 [Registered Owner] 
  

			
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

	1 	 Filed in connection with and made a part of the Senior Aircraft Security Agreement dated as of March 27, 2012, between Hawker Beechcraft Corporation,
as Debtor, and Credit Suisse AG, Cayman Islands Branch as Agent, filed with the FAA [simultaneously herewith][on March     , 2012 ]. 

  
 15 

 Schedule 1 to Senior Aircraft Security Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}]]