Document:

Exhibit 10.7

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This Employment Agreement (this "Agreement") is made as of this 31st day of
December, 2005, by and between BE Aerospace, Inc., a Delaware corporation (the
"Company") and Michael B. Baughan (the "Executive").

                                    RECITALS

     WHEREAS, Executive and the Company entered into an Employment Agreement
dated as of May 28, 1999 (the "Employment Agreement") pursuant to which the
Executive served as the Company's Group Vice President and General
Manager-Seating Products Group;

     WHEREAS, the Company wishes to offer the Executive a promotion to the
positions of President and Chief Operating Officer;

     WHEREAS, Executive, having provided services to the Company since May 28,
1999, agrees to accept such promotion and to provide services for an additional
period as provided herein and the Company wishes to procure such services; and

     WHEREAS, Executive and the Company wish to amend and restate the Employment
Agreement in its entirety.

     NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth, the parties agree as follows:

1. Reference to Employment Agreement. The Employment Agreement is hereby
restated, superseded and replaced in its entirety by this Agreement.

2. Employment. The Company shall employ the Executive, and the Executive shall
perform services for and continue in the employment of the Company, for an
initial period of two (2) years commencing on January 1, 2006 and ending on
December 31, 2007; provided, however, that the Executive's employment hereunder
shall automatically be extended from year to year for additional one (1) year
periods on and after January 1, 2008, until either the Company or the Executive
gives the other party at least ninety (90) days written notice prior to the
then-applicable "Expiration Date" (as hereinafter defined) of its or his desire
to terminate this Agreement, unless the Executive's employment is terminated
earlier pursuant to this Agreement. For purposes of this Agreement (i) the term
"Employment Term" shall mean the initial two (2) year period and all automatic
one (1) year extensions thereof, and (ii) the term "Expiration Date" shall mean
December 31st of either calendar year 2007 or any subsequent calendar year if
the Employment Term is extended on and after December 31, 2007.

3. Position and Duties. The Executive shall serve the Company in the capacity of
President and Chief Operating Officer, or in such other positions as the Chief
Executive Officer of the

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Company, his designee or the Board of Directors of the Company (the "Board") may
designate from time to time, and shall be accountable to, and shall have such
other powers, duties and responsibilities, consistent with this capacity, as the
Chief Executive Officer of the Company, his designee or the Board shall
determine in its sole discretion. The Executive shall report directly to the
Chief Executive Officer of the Company. The Executive shall perform and
discharge, faithfully, diligently and to the best of his ability, such duties
and responsibilities. The Executive shall devote substantially all of his
working time and efforts to the business and affairs of the Company. Consistent
with the Company's practices, the Executive's performance will be reviewed by
the Chief Executive Officer on at least an annual basis.

4. Compensation.

     (a) Salary. During the Employment Term, the Executive shall receive a
salary (the "Salary") payable at the rate of $440,000 per annum. Such rate shall
be subject to adjustment from time to time by the Board; provided, however, that
it shall at no time be adjusted below the Salary for the preceding year. On
January 1st of each year during the Employment Term, the Salary shall be
increased by an amount not less than the amount determined by applying to the
Salary then in effect the percentage increase in the U.S. Bureau of Labor
Statistics Consumer Price Index Revised - Urban Wage Earners and Clerical
Workers - National - All Items (1982-84=100) (the "Index") for the twelve (12)
month period (January through December) immediately preceding such January 1st.
If the Index is no longer issued, the Board and the Executive shall agree upon a
substitute adjustment index issued by such agency that most reasonably reflects
the criteria utilized in the most recent issue of the Index. Except as otherwise
provided in this Agreement, the Salary shall be payable biweekly or in
accordance with the Company's current payroll practices, less all required
deductions.

     (b) Incentive Bonus. During the Employment Term, the Executive may receive
an incentive bonus (the "Bonus") of up to 120% of the Salary for each fiscal
year or portion thereof during which the Executive has been employed hereunder
as determined by the Board at the end of the applicable fiscal year in its sole
discretion.

     (c) Expenses. During the Employment Term, the Executive shall be entitled
to receive prompt reimbursement for all reasonable business expenses incurred by
him on behalf of the Company in accordance with the Company's policies in effect
from time to time.

     (d) Benefits. During the Employment Term, the Executive shall be entitled
to participate in or receive benefits under any life or disability insurance,
health, pension, retirement, accident, and other employee benefit plans,
programs and arrangements made generally available by the Company to its
executive, subject to and on a basis consistent with the terms, conditions and
overall administration of such plans and arrangements. In accordance with the
Company policies as in effect from time to time, the Executive shall also be
entitled to paid vacation in any fiscal year during the Employment Term as well
as all paid holidays given by the Company to its employees.

     (e) Automobile. During the Employment Term, the Executive shall be
furnished with an automobile allowance of $1,100 per month.

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     (f) Option Grant. The Executive acknowledges that on December 27, 2005, the
Company granted him an option to purchase 75,000 shares of the Company's common
stock under the Company's 2005 Long Term Incentive Plan (the "Option"). The
Option has an exercise price of $22.18, which was the fair market value of the
Common Stock on the date of grant and is subject to the Company's standard form
of option agreement (the "Option Agreement").

5. Termination and Compensation Thereon.

     (a) Termination. Subject to the terms and conditions of this Agreement, the
Executive's employment pursuant to this Agreement may be terminated either by
the Executive or the Company at any time and for any reason. The term
"Termination Date" shall mean the earlier of (i) the Expiration Date; or (ii) if
the Executive's employment is terminated (x) by his death, the date of his death
or (y) for any other reason, the date on which such termination is to be
effective pursuant to the notice of termination given by the party terminating
the employment relationship.

     (b) Death. Upon the Executive's death, the Company shall pay to such person
as the Executive shall have designated in a notice filed with the Company, or,
if no such person shall have been designated, to his estate, a lump sum amount
equal to the Salary (at the rate in effect as of the Termination Date) that
would have been due to the Executive had this Agreement been in effect and he
remained employed from the date of his death until the Expiration Date.

     (c) Incapacity. If, in the reasonable judgment of the Board, as a result of
the Executive's incapacity due to physical or mental illness or otherwise, the
Executive shall for at least six (6) consecutive months during the Employment
Term have been unable to perform his duties under this Agreement on a full-time
basis, the Company may terminate the Executive's employment hereunder by notice
to the Executive. In such event, the Company shall continue to pay the Executive
his Salary in accordance with the Company's payroll practices (at the rate in
effect as of the Termination Date) and (to the extent legally and
administratably possible) extend to him the applicable benefits pursuant to
Sections 4(d) and 4(e) hereof until the Expiration Date. If, following the
Executive's termination due to incapacity, the Executive accepts employment or a
consulting assignment with a third party, the Company's obligations pursuant to
this Section 5(c) shall be reduced by any compensation and benefits the
Executive receives from his subsequent employment or consulting assignment. Any
dispute between the Board and the Executive with respect to the Executive's
incapacity shall be settled by reference to a competent medical authority
mutually agreed to by the Board and the Executive, whose decision shall be
binding on all parties.

     (d) Termination by the Company for Cause; Resignation by the Executive. If
the Executive's employment is terminated by the Company for Cause or the
Executive resigns his employment for any reason, the Company shall have no
further obligations to the Executive hereunder after the Termination Date,
except for unpaid Salary and benefits accrued through the Termination Date. For
purposes of this Agreement, "Cause" shall mean (i) the Executive's material
failure, refusal or neglect to perform and discharge his duties and
responsibilities hereunder (including duties prescribed by the Board pursuant to
Section 3), other material breach of the terms hereof, or breach of any
fiduciary duties he may have because of any

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position he holds with the Company or any subsidiary or affiliate thereof or
(ii) a felony conviction or a conviction for any crime involving the Executive's
personal dishonesty or moral turpitude.

     (e) Change of Control. If a "Change of Control" occurs during the
Employment Term and as a result of such Change of Control this Agreement or the
Executive's employment is terminated without Cause, within thirty (30) days
after the Termination Date, the Company or its successor in interest shall (i)
pay to the Executive a lump sum amount equal to three (3) times the Executive's
Salary (at the rate in effect as of the Termination Date), which lump sum amount
shall not be pro-rated and (ii) provide the Executive with the benefits and
automobile allowance set forth in Section 4 above (as in effect on the date of
the Change of Control) for a period of one (1) year following the Termination
Date. For purposes of this Agreement, a "Change of Control" shall have the
meaning ascribed thereto under Section 409A the U.S. Internal Revenue Code of
1986, as amended (the "Code") and the regulations and guidance promulgated
thereunder. The obligations of the Company pursuant to this Section 5(e) shall
survive any termination of this Agreement or the Executive's employment or any
resignation of such employment by the Executive pursuant to this Section 5(e).

     (f) Severance Pay. If the Company fails to extend the Executive's
employment hereunder for a period of at least one (1) year beyond any applicable
Expiration Date at his then current Salary and otherwise on the terms and
conditions set forth herein, the Executive shall be entitled to continuation of
his then current Salary and medical and dental benefits as in effect at the
expiration of the Employment Term, or any extension thereof, for a period ending
on the twelve (12) month anniversary of the applicable Expiration Date;
provided, however, that the Executive's employment was not terminated for Cause
as set forth in Section 5(d) hereof.

     (g) Certain Additional Payments by the Company.

              (i) Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment, distribution or other action
by the Company to or for the benefit of the Executive (whether paid or payable
or distributed or distributable pursuant to the terms of this Agreement or
otherwise) including, without limitation any additional payments required under
this Section 5(g) (a "Payment") would be subject to an excise tax imposed by
Section 4999 of the Code, or any interest or penalties are incurred by the
Executive with respect to any such excise tax (such excise tax, together with
any such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), the Company shall make a payment to the Executive (a "Gross-Up
Payment") in an amount such that after payment by the Executive of all taxes
(including any Excise Tax) imposed upon the Gross-Up Payment, the Executive
retains (or has had paid to the Internal Revenue Service on his behalf) an
amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed
upon the Payments and (y) the product of any deductions disallowed because of
the inclusion of the Gross-Up Payment in the Executive's adjusted gross income
and the highest applicable marginal rate of federal income taxation for the
calendar year in which the Gross-Up Payment is to be made. For purposes of
determining the amount of the Gross-Up Payment, the Executive shall be deemed to
(i) pay federal income taxes at the at the highest marginal rate of taxation for
the calendar year in which the Gross-Up Payment is to be made, and (ii) pay
applicable state

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and local income taxes at the highest marginal rates of taxation for the
calendar year in which the Gross-Up Payment is to be made, net of the maximum
reduction in federal income taxes which could be obtained from deduction of such
state and local.

              (ii) Subject to the provisions of paragraph (iii) of this Section
5(g) all determinations required to be made under this Section 5(g), including
whether and when a Gross-Up Payment is required and the amount of such Gross-Up
Payment and the assumptions to be utilized in arriving at such determination,
shall be made by Deloitte & Touche LLP (the "Accounting Firm") which shall
provide detailed supporting calculations both to the Company and the Executive
within fifteen (15) days of the receipt of notice from the Executive that there
has been a Payment, or such earlier time as is requested by the Company. In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall
be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to
this Section 5(g), shall be paid by the Company to the Executive within five (5)
days of the receipt of the Accounting Firm's determination. If the Accounting
Firm determines that no Excise Tax is payable by the Executive, it shall furnish
the Executive with a written opinion that failure to report the Excise Tax on
the Executive's applicable federal income tax return would not result in the
imposition of a negligence or similar penalty. Any determination by the
Accounting Firm shall be binding upon the Company and the Executive. As a result
of the uncertainty in the application of Section 4999 of the Code at the time of
the initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 5(g) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

              (iii) The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment. Such notification shall be given
as soon as practicable but no later than ten (10) days after the Executive is
informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. The
Executive shall not pay such claim prior to the expiration of the thirty (30)
day period following the date on which the Executive gives such notice to the
Company (or such shorter period ending on the date that any payment of taxes
with respect to such claim is due). If the Company notifies the Executive in
writing prior to the expiration of such period that it desires to contest such
claim, the Executive shall;

                   (A) give the Company any information reasonably requested by
the Company relating to such claim;

                   (B) take such action in connection with contesting such claim
as the Company shall reasonably request in writing from time to time, including,
without

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limitation, accepting legal representation with respect to such claim by an
attorney reasonably selected by the Company;

                   (C) cooperate with the Company in good faith in order
effectively to contest such claim; and

                   (D) permit the Company to participate in any proceedings
relating to such claim; provided, however, that the Company shall bear and pay
directly all costs and expenses (including additional interest and penalties)
incurred in connection with such contest and shall indemnify and hold the
Executive harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties with respect thereto) imposed as a result of
such representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 5(g)(iii), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Executive agrees
to prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis and shall
indemnify and hold the Executive harmless, on an after-tax basis, from any
Excise Tax or income tax (including interest or penalties with respect thereto)
imposed with respect to such advance or with respect to any imputed income with
respect to such advance; and further provided that any extension of the statute
of limitations relating to payment of taxes for the taxable year of the
Executive with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company's control of
the contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

              (iv) If, after the receipt by the Executive of an amount advanced
by the Company pursuant to Section 5(g)(iii), the Executive becomes entitled to
receive any refund with respect to such claim, the Executive shall (subject to
the Company's complying with the requirements of Section 5(g)(iii)) promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 5(g)(iii), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of thirty (30) days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to
be paid.

6. Amendments. No amendment to this Agreement or any schedule hereto shall be
effective unless it shall be in writing and signed by each party hereto.

7. Notices. All notices and other communications hereunder shall be in writing
and shall be

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deemed given when delivered personally or sent by telecopy or three days after
being mailed by registered or certified mail (return receipt requested) to the
parties at the following addresses (or at such other address for a party as
shall be specified by like notice):

         If to the Company, to it at:

                  BE Aerospace, Inc.
                  1400 Corporate Center Way
                  Wellington, FL  33414
                  Attention: Chief Executive Officer

                  with a copy to:

                  BE Aerospace, Inc.
                  1400 Corporate Center Way
                  Wellington, FL  33414
                  Attention:  General Counsel

         If to the Executive, to him at:

                  Michael B. Baughan
                  343 Fairfax Drive
                  Winston-Salem, NC  27104

8. Entire Agreement. This Agreement and the Option Agreement constitute the
entire agreement among the parties hereto pertaining to the subject matter
hereof and supersedes all prior and contemporaneous agreements, understandings,
negotiations and discussions, whether oral or written, of the parties; provided,
however, that this Agreement shall not supersede the Proprietary Rights
Agreement dated as of the date hereof between the Executive and the Company
attached as Exhibit A which is incorporated herein by reference.

9. Headings. The headings in this Agreement are for convenience of reference
only and shall not alter or otherwise affect the meaning hereof.

10. Counterparts. This Agreement may be executed in any number of counterparts
which together shall constitute one instrument.

11. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida.

12. Withholding. All payment made by the Company under this Agreement shall be
reduced by any tax or other amounts required to be withheld by the Company under
applicable law.

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13. Section 409A.

              (a) Notwithstanding any provision of this Agreement to the
contrary, if Executive is a "specified employee" as defined in Section 409A of
the Code he shall not be entitled to any payments upon a termination of his
employment until the earlier of (i) the date which is the first business day
following the date that is six months after the Executive's termination of
employment for any reason other than death or (ii) the Executive's date of
death. The provisions of this Section 13(a) shall only apply if required to
comply with Section 409A of the Code.

              (b) If any provision of this Agreement contravenes any regulations
or Treasury guidance promulgated under Section 409A of the Code, or could cause
any amounts or benefits hereunder to be subject to taxes, interest and penalties
under Section 409A of the Code, the Company may, in its sole discretion and
without the Executive's consent, modify the Agreement to: (i) comply with, or
avoid being subject to, Section 409A of the Code, (ii) avoid the imposition of
taxes, interest and penalties under Section 409A of the Code, and/or (iii)
maintain, to the maximum extent practicable, the original intent of the
applicable provision without contravening the provisions of Section 409A of the
Code. This Section 13(b) does not create an obligation on the part of the
Company to modify this Agreement and does not guarantee that the amounts or
benefits owed under this Agreement will not be subject to interest and penalties
under Section 409A of the Code.

              (c) The provisions of Section 5(g) of this Agreement, mutatis
mutandis, shall apply to any imposition of taxes on Executive under Section 409A
of the Code so that Executive shall be fully grossed up for the amount of, and
shall not be adversely affected by, such taxes.

14. Enforceability; Waiver. The invalidity and unenforceability of any term or
provision hereof shall not affect the validity or enforceability of any other
term or provision hereof. The Executive's or the Company's failure to insist
upon strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right that the Executive or the Company
may have hereunder, shall not be deemed to be a waiver of such provision or
right or any other provision or right of this Agreement. Similarly, the waiver
by any party hereto of a breach of any provision of this Agreement by the other
party will not operate or be construed as a waiver of any other or subsequent
breach by such other party.

15. Assignment. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective heirs, successors and permitted assigns.
This Agreement may be assigned by the Company. The Executive may not assign or
delegate his duties under this Agreement without the Company's prior written
approval.

16. Survival. The entitlement of the Executive and the obligations of the
Company pursuant to Section 5 hereof shall each survive any termination or
expiration of this Agreement, or any termination or resignation of the
Executive's employment, as the case may be.

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

                                    EXECUTIVE

                                    /s/ Michael B. Baughan
                                   --------------------------------
                                   Michael B. Baughan

                                   BE AEROSPACE, INC.

                                   /s/ Thomas P. McCaffrey
                                   --------------------------------
                                   Name:  Thomas P. McCaffrey
                                   Title:  Chief Financial Officer

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                                    Exhibit A

                          Proprietary Rights AgreementExhibit 10.10

                              RETIREMENT AGREEMENT

              THIS RETIREMENT AGREEMENT, dated as of December 31, 2005 (the
"Agreement"), by and between BE Aerospace, Inc., a Delaware corporation (the
"Company") and Robert J. Khoury (the "Executive").

              WHEREAS, the Company and the Executive are parties to a certain
Employment Agreement, dated as of August 1, 2005 (the "Employment Agreement");

              WHEREAS, the Company and the Executive have agreed to the
Executive's retirement as an employee and an officer of the Company; and

              WHEREAS, except as otherwise set forth herein, the parties intend
that this Agreement shall set forth the terms of the Executive's retirement and
that this Agreement shall supersede all prior agreements between the parties
regarding the subject matter contained herein, including the Employment
Agreement.

              NOW, THEREFORE, in consideration of the covenants and agreements
hereinafter set forth in this Agreement, the parties hereto hereby agree as
follows:

              1. Retirement. (a) Except as set forth in Section 1(b) below, the
Executive hereby retires from his position as President and Chief Executive
Officer of the Company, and from all other positions, offices and directorships
with the Company and any of its subsidiaries (collectively, the "Company
Group"), effective as of December 31, 2005 (the "Effective Date").

              (b) Following the Effective Date, the Executive will remain a
member of the Board of Directors of the Company (the "Board") for the remainder
of his current term. The Company shall nominate the Executive as a director for
at least one additional term thereafter. For so long as the Executive continues
to serve on the Board and he is not an employee of the Company, the Executive
shall be entitled to all compensation and benefits afforded to "non-employees
directors."

              2. Severance Payments and Benefits. In consideration of the
covenants set forth herein and the waiver and release of claims set forth below,
and provided that the Executive does not revoke this Agreement during the
Revocation Period (as defined in Section 6 below), the Company shall provide the
Executive with the following severance payments and benefits:

              (a) Severance Payments. The Company shall pay the Executive a lump
sum cash payment equal to $ 792,500, which shall be payable on the first
business day following the six-month anniversary of the Effective Date, or as
soon as administratively practicable thereafter (the "Payment Date").

              (b) Retirement Payments. The Executive acknowledges that the
Company has deposited to the Executive's Retirement Trust a pre-tax lump-sum
amount of $198,124.99 (the "Final Deposit"), which represents his remaining
unfunded Retirement Compensation under Section 7.6 of the Employment Agreement.
Within thirteen (13) business days following the Final Deposit, all funds in the
Executive's Retirement Trust will be transferred to the Executive in a lump sum
amount in accordance with the terms and conditions of the trust agreement.

<PAGE>

              (c) Treatment of Stock Options. All stock options previously
granted or awarded to the Executive under any stock options plan of the Company,
including, without limitation, the Amended and Restated 1989 Stock Option Plan,
the 1996 Stock Option Plan and the 2001 Stock Option Plan (together with the
individual grant documents, the "Stock Option Plans") shall, to the extent
vested as of the Effective Date, remain exercisable in accordance with, the
terms of the applicable Stock Option Plan, through their stated expiration
dates. Attached hereto as Exhibit A, is a list of the Executive's outstanding
stock options as of the Effective Date and their stated expiration dates.

              (d) Continuation of Health Insurance. The Executive and his
spouse, for as long as they each may live, shall be entitled to all medical,
dental and health benefits available from time to time to the Company's
executive officers and their spouses, respectively, and the Executive and his
spouse, for as long as they each may live, shall be entitled to the benefits
available under the Company's executive medical reimbursement plan in effect as
of March 1, 2001.

              (e) Accrued Amounts. Within ten (10) business days following the
expiration of the Revocation Period, the Company shall pay the Executive a lump
sum cash payment in an amount equal to (i) all accrued but unpaid compensation
as of the Effective Date and (ii) all accrued and unpaid bonuses the Executive
was awarded as of the Effective Date.

              (f) 2005 Bonus. The Executive shall be entitled to a bonus with
respect to calendar year 2005 in an amount determined by the Company in
accordance with policies applicable to executive bonuses generally. Such amount
shall be paid to the Executive on the date bonuses are generally paid to
executives of the Company and in any event not later than March 15, 2006.

              (g) Continued Indemnification. The Executive shall continue to be
indemnified to the fullest extent permitted under applicable laws, rules and
regulations and the corporate governance documents of the Company and any other
member of the Company Group in accordance with their terms. The Company agrees
that for purposes of this Section 2(g) it (or any member of the Company Group,
as the case may be) shall interpret and/or apply any provision of applicable law
or any corporate governance document relating to indemnification (including
advancement of expenses) with respect to the Executive in a manner consistent
with how such provisions are interpreted and applied by the Company (or the
relevant member of the Company Group) to then active senior officers of the
Company or of the relevant member of the Company Group. The Executive shall
continue to be covered under the Company's directors' and officers' liability
insurance policies in effect from time to time to the same extent he would have
been covered if he were employed when a claim is made. The Executive agrees to
promptly notify the Company of any claims made against the Executive in his
capacity as a former officer/employee of the Company or any other member of the
Company Group.

              (h) Certain Additional Payments by the Company. Section 7.8 of the
Employment Agreement is hereby incorporated into this Retirement Agreement by
reference as if its provisions were set forth herein in full.

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              (i) Vested Benefits. The Executive shall be entitled to any vested
benefits under all employee benefit, pension, profit sharing, insurance and
other plans and otherwise payable in accordance with the terms and conditions of
such plans.

              3. Proprietary Rights and Cooperation.

              (a) Proprietary Rights. Sections 6.1, 6.2, 6.3 and 6.6 of the
Employment Agreement are hereby incorporated into this Retirement Agreement by
reference as if their provisions were set forth herein in full.

              (b) Cooperation. From and after the Effective Date, the Executive
shall cooperate in all reasonable respects with the Company Group and their
respective directors, officers, attorneys and experts in connection with the
conduct of any action, proceeding, investigation or litigation involving the
Company Group, including any such action, proceeding, investigation or
litigation in which the Executive is called to testify.

              4. Releases.

              (a) General Release by Executive. In consideration of the payments
and benefits provided to the Executive under this Agreement and after
consultation with counsel, the Executive, and each of the Executive's respective
heirs, executors, administrators, representatives, agents, successors and
assigns (collectively, the "Releasors") hereby irrevocably and unconditionally
release and forever discharge the Company Group and each of their respective
officers, employees, directors, shareholders and agents from any and all claims,
actions, causes of action, rights, judgments, obligations, damages, demands,
accountings or liabilities of whatever kind or character (collectively,
"Claims"), including, without limitation, any Claims under any federal, state,
local or foreign law, that the Releasors may have, or in the future may possess,
arising out of (i) the Executive's employment relationship with and service as
an employee or officer of the Company Group, and the termination of such
relationship or service, or (ii) the Employment Agreement; provided, however,
that the release set forth in this Section 4(a) shall not apply to (i) the
obligations of the Company under this Agreement and (ii) any indemnification
rights the Executive may have in accordance with the governance instruments of
any member of the Company Group or under any director and officer liability
insurance maintained by any member of the Company Group with respect to
liabilities arising as a result of the Executive's service as an officer,
director or employee of any member of the Company Group. The Releasors further
agree that the payments and benefits described in this Agreement shall be in
full satisfaction of any and all claims for payments or benefits, whether
express or implied, that the Releasors may have against the Company Group
arising out of the Executive's employment relationship or the Executive's
service as an employee and officer of the Company Group and the termination
thereof.

              (b) Specific Release of ADEA Claims by Executive. In further
consideration of the payments and benefits provided to the Executive under this
Agreement, the Releasors hereby unconditionally release and forever discharge
the Company Group, and each of their respective officers, employees, directors,
shareholders and agents from any and all Claims that the Releasors may have as
of the date the Executive signs this Agreement, arising under the Federal Age
Discrimination in Employment Act of 1967, as amended, and the applicable rules

                                       3
<PAGE>

and regulations promulgated thereunder ("ADEA"). By signing this Agreement, the
Executive hereby acknowledges and confirms the following: (i) the Executive was
advised by the Company in connection with his retirement to consult with an
attorney of his choice prior to signing this Agreement and to have such attorney
explain to the Executive the terms of this Agreement, including, without
limitation, the terms relating to the Executive release of claims arising under
ADEA and, the Executive has in fact consulted with an attorney; (ii) the
Executive was given a period of not fewer than 21 days to consider the terms of
this Agreement and to consult with an attorney of his choosing with respect
thereto; (iii) the Executive is providing the release and discharge set forth in
this Section 4(b) only in exchange for consideration in addition to anything of
value to which the Executive is already entitled; and (iv) that the Executive
knowingly and voluntarily accepts the terms of this Agreement.

              (c) Release by the Company. The Company, on behalf of itself and
the Company Group, in exchange for the consideration embodied in this Agreement,
hereby unconditionally and irrevocably waives, releases, and forever discharges
the Executive from all Claims which the Company Group may have or in the future
may possess against the Executive arising out of the Executive's employment
relationship with and service as an employee, officer or director of the Company
and its subsidiaries and affiliates, and the termination of such relationship or
service; provided, however, that the Company Group does not waive any rights
under this Agreement.

              (d) No Assignment. The Executive and the Company each represent
and warrant that they have not assigned any of the Claims being released under
this Section 4.

              (e) Claims. The Executive and the Company each agree that they
have not instituted, assisted or otherwise participated in connection with, any
action, complaint, claim, charge, grievance, arbitration, lawsuit, or
administrative agency proceeding, or action at law or otherwise against any
member of the Company Group or any of their respective officers, employees,
directors, shareholders or agents, with respect to the matters being released.

              5. Miscellaneous.

              (a) Entire Agreement. This Agreement, including the provisions
incorporated herein, sets forth the entire agreement and understanding of the
parties hereto with respect to the matters covered hereby and supersedes and
replaces any express or implied, written or oral, prior agreement, plan or
arrangement with respect to the terms of the Executive's employment and the
termination thereof which the Executive may have had with the Company Group
(including, without limitation, the Employment Agreement), but excluding the
Stock Option Plans and any of the plans referenced in Sections 2(d) or 2(i) of
this Agreement. Except as set forth in Section 5(b), this Agreement may only be
amended only by a written document signed by the parties hereto.

              (b) Section 409A.

              (i) Notwithstanding any provision of this Agreement or any plan,
         program, agreement or arrangement to the contrary, payment of any
         compensation to the Executive under any plan, program, agreement or
         arrangement shall not be made until the

                                       4
<PAGE>

         Payment Date. The provisions of this Section 5(b)(i) shall only apply
         if required to comply with Section 409A of the Code.

              (ii) If any provision of this Agreement contravenes any
         regulations or Treasury guidance promulgated under Section 409A of the
         Code, or if any tax is imposed under such Section 409A on any payment
         to be received by the Executive hereunder, this Agreement or any
         provision hereof may be reformed by the Executive, subject to the
         consent of the Company which consent shall not be unreasonably
         withheld, to maintain, to the maximum extent practicable, the original
         intent of the applicable provision without violating the provisions of
         Section 409A of the Code. The Executive agrees in good faith to
         consider any such reformation proposed by the Company.

              (iii) The provisions of Section 2(h) of this Agreement, mutatis
         mutandis, shall apply to any imposition of taxes on Executive under
         Section 409A of the Code so that Executive shall be fully grossed up
         for the amount of, and shall not be adversely affected by, such taxes.

              (c) Withholding Taxes. Any payments made or benefits provided to
the Executive under this Agreement shall be reduced by any applicable
withholding taxes.

              (d) Legal Fees. In the event of a dispute between the parties with
respect to any payments due hereunder in connection with a Change of Control,
the Company will pay the costs of any legal fees and related expenses incurred
in connection with such dispute. Such costs and expenses shall be advanced to
Executive currently as reasonably required to continue such action or
proceeding.

              (e) Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Florida, without giving
effect to the conflicts of laws principles thereof.

              (f) Waiver. The failure of any party to this Agreement to enforce
any of its terms, provisions or covenants shall not be construed as a waiver of
the same or of the right of such party to enforce the same. Waiver by any party
hereto of any breach or default by another party of any term or provision of
this Agreement shall not operate as a waiver of any other breach or default.

              (g) Severability. In the event that any one or more of the
provisions of this Agreement shall be held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remainder of the
Agreement shall not in any way be affected or impaired thereby. Moreover, if any
one or more of the provisions contained in this Agreement shall be held to be
excessively broad as to duration, activity or subject, such provisions shall be
construed by limiting and reducing them so as to be enforceable to the maximum
extent allowed by applicable law.

              (h) Notices. Any notices required or made pursuant to this
Agreement shall be in writing and shall be deemed to have been given when
delivered or mailed by United States certified mail, return receipt requested,
postage prepaid, as follows:

                                       5
<PAGE>

              if to Executive, to him at:

              Robert J. Khoury
              992 Genius Drive
              Winter Park, FL 32789

              if to the Company, to it at:

              BE Aerospace, Inc.
              1400 Corporate Center Drive
              Wellington, Florida 33414
              Attention:  General Counsel

              With a copy to Shearman & Sterling, LLP at:
              599 Lexington Avenue
              New York, NY 10022
              Attention: John J. Cannon III, Esq.

or to such other address as either party may furnish to the other in writing in
accordance with this Section 5(h). Notices of change of address shall be
effective only upon receipt.

              (i) Descriptive Headings. The paragraph headings contained herein
are for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

              (j) Counterparts. This Agreement may be executed in one or more
counterparts, which, together, shall constitute one and the same agreement.

              (k) Successors and Assigns. Except as otherwise provided herein,
this Agreement shall inure to the benefit of and be enforceable by the Executive
and the Company and their respective successors and assigns.

              6. Revocation. This Agreement may be revoked by the Executive
within the seven (7)-day period commencing on the date the Executive signs this
Agreement (the "Revocation Period"). In the event of any such revocation by the
Executive, all obligations of the parties under this Agreement shall terminate
and be of no further force and effect as of the date of such revocation. No such
revocation by the Executive shall be effective unless it is in writing, signed
by the Executive and received by the Company prior to the expiration of the
Revocation Period.

              7. Effective Date of Agreement. This Agreement shall not become
effective until the day following the last day of the Revocation Period.

                                       6
<PAGE>

              IN WITNESS WHEREOF, the Company has executed this Agreement as of
the date first set forth above and the Executive has executed this Agreement as
of the date set forth below (or, if the Executive does not include a date under
the Executive's signature line, the date set forth shall be the date this
Agreement, signed by the Executive, is received by the Company).

                                          BE AEROSPACE, INC.

                                          By:   /s/ Thomas P. McCaffrey
                                             ---------------------------------
                                          Name:  Thomas P. McCaffrey
                                          Title: Chief Financial Officer

THE EXECUTIVE HEREBY ACKNOWLEDGES THAT THE EXECUTIVE HAS READ THIS AGREEMENT,
THAT THE EXECUTIVE FULLY KNOWS, UNDERSTANDS AND APPRECIATES ITS CONTENTS, AND
THAT THE EXECUTIVE HEREBY ENTERS INTO THIS AGREEMENT VOLUNTARILY AND OF HIS OWN
FREE WILL.

ACCEPTED AND AGREED:

/s/ Robert J. Khoury
--------------------------------------------
Robert J. Khoury

Date:   December 31, 2005
     ---------------------------------------

                                       7

<PAGE>

                                                                       Exhibit A

                      Executive's Outstanding Stock Options

      -------------------------------------------------------------------------

       Number of Stock Options      Exercise Price          Expiration Date

      -------------------------------------------------------------------------

               90,000                    $4.433                09/25/2012

      -------------------------------------------------------------------------
              155,000                    $6.590                01/26/2014

      -------------------------------------------------------------------------
               75,000                    $5.590                02/02/2014

      -------------------------------------------------------------------------
               65,000                   $10.420                11/24/2014

      -------------------------------------------------------------------------

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