Document:

<PAGE>

                                                                   EXHIBIT 10.24

                      CONSULTING AND SETTLEMENT AGREEMENT
                      -----------------------------------

     WHEREAS, Roger C. Beach ("Mr. Beach") ceased being Chief Executive Officer
and Chairman of the Board of Unocal Corporation and Union Oil Company of
California (jointly referred to as "Unocal") effective January 1, 2001.

     WHEREAS, Unocal and Mr. Beach wish to document the terms of said
termination of employment and the terms of his role as a Consultant to Unocal
Corporation.

     THEREFORE, Unocal Corporation and Union Oil Company of California and Roger
C. Beach ("Mr. Beach") hereby agree as follows:

1.   Mr. Beach is hereby retained by the Board of Directors of Unocal as a
Consultant for the period January 1, 2001 through December 31, 2001

2.   Mr. Beach shall be available for telephonic consultation and for such
meetings as the Board of Directors of Unocal may request. If travel is required,
Mr. Beach shall be reimbursed for reasonable expense within 30 days of
submitting documentation of such expenses.

3.   Mr. Beach shall be paid $350,000 (Three Hundred and Fifty Thousand Dollars)
for such consulting.  Said sum, less any applicable withholding, shall be paid
on or about February 15, 2001. This payment shall not been treated as "pay",
"earnings" or "compensation" under any plans or programs of Unocal.

4.   Mr. Beach's termination of employment from Unocal and Union Oil Company of
California shall be treated as "at the convenience of the Company" pursuant to
the Long-Term Incentive Plan of 1991, the Long-Term Incentive Plan of 1998 and
the Revised Incentive Compensation Plan. Therefore, Employee shall be entitled
to the delivery of shares of Restricted Stock, payment of Performance Shares and
the extended period to exercise vested stock options applicable under the terms
of said plans upon a termination of employment at the convenience of the
Company.
<PAGE>

5.   Employee's termination of employment shall not be deemed "Voluntary" or
"For Cause" under that Promissory Note dated as of March 16, 2000. Therefore,
the acceleration of the payment due date under said Promissory Note to 60 days
following termination of employment shall not be applicable to Mr. Beach.

6.   Mr. Beach has been granted a Performance Bonus Award pursuant to the Long-
Term Incentive Plan of 1998.  Mr. Beach's termination will be treated as other
than a "Voluntary Termination" or a "Termination for Cause".  Therefore, Mr.
Beach shall be entitled to payment of a Performance Bonus as if he had remained
in employment during the full Award Period, including without limitation, any
payment under the Change Of Control provisions thereof.

7.   Mr. Beach shall not be entitled to any other severance-type benefits,
including without limitation, Unocal Redeployment Program or Unocal Termination
Allowance Plan benefits, except as specifically noted above.  Mr. Beach shall
not be entitled to any payments under the Unocal Employee Agreement dated July
28, 1998 by and between Mr. Beach and Unocal Corporation.

8.   This CONSULTING AND SETTLEMENT AGREEMENT is a full and complete expression
of the intent of the parties with respect to the subject matter of this
Agreement.  No other agreement or representation, express or implied, has been
made by either party with respect to the subject matter of this Agreement.

9.   This CONSULTING AND SETTLEMENT AGREEMENT shall be interpreted to be valid
to the full extent possible under the laws of the State of California.

10.  This Agreement shall be construed as a whole according to its fair meaning.
It shall not be construed strictly for or against Employee, Company or any
Release. This Agreement shall be governed by the statutes and common law of the
State of California.

                                       2
<PAGE>

     IN WITNESS WHEREOF, this AGREEMENT AND GENERAL RELEASE has been executed in
duplicate originals.

UNION OIL COMPANY OF CALIFORNIA
 AND UNOCAL CORPORATION

By: /s/ Charles R. Williamson
    -------------------------

                                             /s/ R. C. Beach
                                             -------------------------------
                                             Signature

Charles R. Williamson                        R. C. Beach
-----------------------------                -------------------------------
Print Name                                   Print Name

March 1, 2001                                2/2/01
-----------------------------                -------------------------------
                                             Date

                                       3<PAGE>

                                                                   EXHIBIT 10.30

Amendment to the Unocal Employment Agreement of July 28, 1998

Section 4.3 (1) is hereby amended effective March 1, 2000, to read as follows:

   (1)  "The Company shall pay Employee a lump-sum severance amount within
        thirty (30) days following Termination Without Cause equal to two (2)
        times the sum of (a) the higher of the Employee's annual base salary at
        the time of Termination Without Cause or the annual base salary stated
        in Paragraph 3.1 hereinabove, and (b) the annual target Bonus applicable
        to Employee as of the beginning of the calendar year in which such
        Termination Without Cause occurs, reduced by the amount of any Unocal
        Employee Redeployment Program and/or Unocal Termination Allowance
        benefits payable to Employee."

                                                              Unocal Corporation
                                                               February 28, 2000

AGREED TO:

/s/ Dennis P.R. Codon                        Date:  3/09/00
---------------------
Signature

Dennis P.R. Codon
-----------------
Print Name<PAGE>

                                                                   EXHIBIT 10.55

                           HAWKER PACIFIC AEROSPACE

                                February 6, 200l

By Facsimile

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

          Re: Exchange of Promissory Note of Hawker Pacific Aerospace

Dear Dr. Janssen:

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

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

     2.   Exchange of Promissory Note.
          ---------------------------

          (a)  At the Closing (as defined below) LHT shall exchange (i) the
     $9,300,000 in principal and (ii) the accrued interest as of the Closing (to
     be $443,300.00), under the Promissory Note issued by Hawker and owned by
     LHT dated September 20, 2000 (the "Note").
                                       ----
          (b)  In exchange for the tendered Note, Hawker will issue to LHT a
     number (rounded to the nearest whole number) of shares of Hawker's common
     stock ("Common Stock") equal to (i) the sum of the principal plus accrued
             ------------
     interest through the Closing under the Note divided by (ii) the Market
     Price. "Market Price" means $3.125, which is the average of the last bid
             ------------
     prices of a share of the Common Stock on the NASDAQ Stock Market for each
     of the five (5) trading days preceding and including the trading day prior
     to the date hereof.
<PAGE>

Mr. Knut Wiszniewski
Lufthansa Technik AG
February 6, 200l
Page 2

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

         (a)  Hawker has the corporate power and authority to execute, deliver
    and perform this Agreement and to issue, sell and deliver the shares of
    Common Stock hereunder. The issuance and delivery of the shares of Common
    Stock hereunder and the execution, delivery and performance of this
    Agreement by Hawker have been, or as of the Closing will have been, duly
    authorized by all necessary corporate action of Hawker.

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

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

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

 Mr. Knut Wiszniewski
 Lufthansa Technik AG
 February 6, 200l
 Page 3

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

          (f) No representation or warranty by Hawker in this Agreement or any
     schedule hereto, or any certificate furnished or to be furnished by Hawker
     in connection with this Agreement, contains or will contain an untrue
     statement of material fact, or omits or will omit to state a material fact
     necessary to make the statements contained herein or therein, in light of
     the circumstances in which they were made, not misleading.

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

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

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

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

          (d) LHT is an "accredited investor" within the meaning of Rule 501(a)
under the Securities Act of 1933, as amended (the "Securities Act").
                                                       --------------
          (e) LHT understands that the shares of Common Stock acquired hereunder
will be "restricted securities" under the U.S. federal securities laws inasmuch
as they will acquired from Hawker in a transaction not involving a public
offering and that, under such laws and applicable regulations, such shares may
not be resold without registration under the Securities Act, except in certain
limited circumstances. In this connection LHT represents that it is familiar
with Rule 144 under the Securities Act, as presently in effect, and understands
the resale limitations imposed thereby and by the Securities Act.

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

     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN
<PAGE>

Mr. Knut Wiszniewski
Lufthansa Technik AG
February 6, 200l
Page 4

     ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
     SALE OR DISTRIBUTION THEREOF IN VIOLATION OF APPLICABLE SECURITIES LAWS. NO
     SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
     STATEMENT RELATED THERETO OTHER THAN PURSUANT TO AN EXEMPTION FROM THE
     REGISTRATION REQUIREMENTS OF THE SECURITIES ACT 1933."

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

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

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

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

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

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

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

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

Mr. Knut Wiszniewski
Lufthansa Technik AG
February 6, 200l
Page 5

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

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

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

          (a)  Payments to FUSI. Upon the satisfaction of any amounts owed to
               ----------------
     First Union Securities, Inc. ("FUSI"), such sum to be paid from funds
                                    ----
     other than the proceeds of the loan made to Hawker pursuant to the Loan
     Agreement, Hawker shall deliver to LHT (i) a written acknowledgement from
     FUSI of the satisfaction and payment in full of any fees owed to it
     pursuant to that certain agreement dated October 1, 1999 by and between
     Hawker and FUSI (the "FUSI Agreement") and the release in full of Hawker of
                           --------------
     any further obligations of Hawker under the FUSI Agreement or claims FUSI
     may have against Hawker and (ii) copies of all written documentation
     evidencing such payment; provided, however, in accordance with that certain
                              --------  -------
     Indemnification Agreement by and between the Sellers (as that term is
     defined in that certain Stock Purchase Agreement dated September 20,200O by
     and between LHT and the shareholders listed therein) and Hawker, Hawker
     shall in no event pay in excess of $250,000 to FUSI, and any amounts owed
     FUSI above $250,000 shall be the sole liability of the Sellers. The
     covenant set forth in this paragraph (a) shall survive until LHT has
     received the written documentation referred to in clauses (i) and (ii)
     above.

          (b)  Stock Transactions. Hawker shall not, without prior notice to
               ------------------
     and consent of LHT, (i) take any action that would have the effect of
     preventing LHT from exercising the Warrant or otherwise acquiring Common
     Stock, (ii) issue any Common Stock or other securities convertible into or
     exchangeable for Common Stock, (iii) issue any stock dividend, (iv)
     subdivide the outstanding Common Stock, (v) propose to dissolve, liquidate
     or wind-up voluntarily, (vi) change the number of authorized or outstanding
     Common Stock or issue any Common Stock or any warrants, options, or other
     rights to subscribe for or to purchase any Common Stock or securities
     convertible into or exchangeable or exercisable for any of its Common
     Stock, (vii) enter into any capital reorganization or any reclassification
     of its Common Stock, (viii) issue any Common Stock distribution; (ix)
     issue, sell, distribute or grant any rights to subscribe or purchase any
     Common Stock, or any warrants or options to purchase any Common Stock,
     except
<PAGE>

Mr. Knut Wiszniewski
Lufthansa Technik AG
February 6, 200l
Page 6

     for any such option grants made pursuant to the 1997 Stock Option Plan as
     approved by Hawker's Board of Directors and that are consistent with
     Hawker's past practice as of September 20, 2000 or (x) amend or grant any
     waiver to the Rights Agreement to any Person other than LHT or its
     Affiliates.

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

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

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

               (iv)  Legally Compelled Disclosure. In the event that any party
                     ----------------------------
                     is requested or becomes legally compelled (including
                     without limitation, pursuant to securities laws and
                     regulations) to disclose the existence of this Agreement or
                     any of the Terms in contravention of the provisions of this
                     Section 8(c), such party (the "Disclosing Party") shall
                                                    ----------------
                     provide the other parties (the "Non-Disclosing Party") with
                                                     --------------------
                     prompt written notice of that fact so that the appropriate
                     party may seek (with the cooperation and reasonable efforts
                     of the other parties) a protective order, confidential
                     treatment or other appropriate remedy. In such event, the
                     Disclosing Party shall furnish only that portion of the
                     information which is legally required or which has been
                     previously released in a public filing and shall exercise
                     reasonable efforts to obtain reliable assurance that
                     confidential treatment shall be accorded such information
                     to the extent reasonably requested by any Non-Disclosing
                     Party. Notwithstanding the preceding, each party
                     acknowledges that the other party shall be required to make
                     certain filings with SEC with respect to this Agreement;
                     each Disclosing Party shall provide the Non-Disclosing
                     Party with prior notice of any such filings, and no such
                     filing shall be made without
<PAGE>

Mr. Knut Wiszniewski
Lufthansa Technik AC
February 6, 200l
Page 7

                     the prior written approval of the Non-Disclosing Party to
                     the applicable disclosures; provided, however, that the
                                                 --------  -------
                     text of this Agreement may be filed by either party without
                     the prior written approval of the other party.

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

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

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

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

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

Mr. Knut Wiszniewski
Lufthansa Technik AG
February 6, 200l
Page 8

                    term expiring at second succeeding annual meeting of
                    Hawker's shareholders held following such election to the
                    respective class;

                    (C)  At the Annual Meeting, elect and establish a board
                    which, pursuant to Article IV of the Articles of
                    Incorporation of Hawker (as may be amended at the Annual
                    Meeting), shall be classified into two classes. At the
                    Annual Meeting, Class I shall be comprised of four directors
                    and Class II shall be comprised of three directors. Upon the
                    increase of the board to nine directors pursuant to
                    paragraph (A) above, Class I shall be comprised of five
                    directors and Class II shall be comprised of four directors.
                    At the Annual Meeting, the directors of Class I shall be
                    elected to hold office for a term expiring at the next
                    succeeding annual meeting of the shareholders following the
                    Annual Meeting and the directors of Class II shall be
                    elected to hold office for a term expiring at the second
                    succeeding annual meeting of the shareholders following the
                    Annual Meeting. At each subsequent annual meeting of
                    Hawker's shareholders, the successors to the class of
                    directors whose term shall then expire shall be elected to
                    hold office for a term expiring at the second succeeding
                    annual meeting of Hawker's shareholders;

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

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

               (ii) Hawker shall use its best efforts to cause (A) all actions
                    set forth in clause (i) to be taken on or before June
                    30, 200l and (B) such actions to be proposed to Hawker's
                    shareholders for their approval, if required, on or before
                    June 30, 2001, unless otherwise specified
<PAGE>

Mr. Knut Wiszniewski
Lufthansa Technik AG
February 6, 200l
Page 9

                     in clause (i).

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

               (iv)  Hawker shall recommend to its Board of Directors to
                     take such actions as are necessary for the removal of any
                     director upon the request of the party or parties
                     designating such director and for the election to its Board
                     of Directors of a substitute designated by such party.

               (v)   Hawker shall recommend that its Board of Directors take
                     such actions as are necessary or appropriate to ensure that
                     any vacancy on its Board of Directors (occurring for any
                     reason) be filled by the election to its Board of Directors
                     of a replacement designated by the party or parties who
                     designated the director whose failure to continue to serve
                     causes the applicable vacancy.

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

     9.   Dividends on Preferred Stock. On December 22, 2000, LHT exercised its
          ----------------------------
rights under Hawker's Certificate of Determination of Rights, Preferences,
Privileges and Restrictions of 8% Series C Convertible Preferred Stock (the
"Certificate of Determination") to convert all 300 of its shares of Hawker
 ----------------------------
Series C Convertible Preferred Stock (the "Preferred Stock") into shares of
                                           ---------------
Common Stock. In conjunction with the conversion, LHT also received partial
accrued dividends on the Preferred Stock. Pursuant to the terms of the
Certificate of Determination, upon shareholder approval, LHT has the right to
receive the remaining accrued dividends on the Preferred Stock in the form of
35,583 shares of Common Stock. On December 22, 2000, LHT requested that Hawker
seek shareholder approval to issue these 35,583 shares of Common Stock. Pursuant
to the Certificate of Determination, Hawker must use its best efforts to obtain
such shareholder approval not later than sixty (60) days after such request has
been made and if such shareholder approval is not obtained within such 6O-day
period, Hawker shall instead be required to make a cash payment to LHT pursuant
to a formula set forth in the Certificate of Determination. Pursuant to the
Certificate of Determination, if Hawker fails to make such cash
<PAGE>

Mr. Knut Wiszniewski
Lufthansa Technik AG
February 6, 200l
Page 10

payment in full, interest on any unpaid amount shall accrue at a rate of 18% per
year beginning as of December 22, 2000. Hawker hereby agrees that it shall seek
the shareholder approval to issue the foregoing 35,583 shares of Common Stock to
LHT at the Annual Meeting. Hawker further agrees that if the Annual Meeting does
not take place during the 60-day period required for such shareholder approval
pursuant to the Certificate of Determination, that LHT shall thereafter, at its
option, have the right to receive either (1) a cash payment, in accordance with
the terms of the Certificate of Determination or (2) in the event their issuance
is approved at the Annual Meeting, the 35,583 shares of Common Stock in accrued
dividends.

     10.  Termination Date. This Agreement may be terminated by either party if
          ----------------
the Closing shall not have occurred by September 30, 200l; provided, however,
                                                           --------  -------
that the right to terminate this Agreement under this Section 10 shall not be
available to either party whose material misrepresentation, inaccuracy, breach
of warranty, default or failure to fulfill any covenant or obligation under this
Agreement has been the cause of, or resulted in, the failure of the Closing to
occur on or before such date. In the event of any termination of this Agreement
pursuant to this Section 10, this Agreement shall be automatically rescinded and
of no further force or effect, and no party hereto (or any of its affiliates,
directors, trustees, executors, officers, agents or representatives) shall have
any liability or obligation hereunder. The provisions of Section 8 of this
Agreement (Covenants of Hawker) shall survive any termination of this Agreement
pursuant to this Section 10.

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

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

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

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

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

                           [Execution Page to Follow]
<PAGE>

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

                                Hawker Pacific Aerospace

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

Accepted and Agreed as of February 6, 200l

Lufthansa Technik AG

By:  /s/ Peter Janssen
    -----------------------
Name: Dr. Peter Janssen
Title: CEO

By:  /s/ Silke Richter
   ------------------------
Name: Silke Richter
Title: General Manager
<PAGE>

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

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

4.2  Capitalization.

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

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

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

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

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

4.5  Litigation

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

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