Document:

a50803406_ex1031.htm

Exhibit 10.31

 

CONSULTING AGREEMENT

 

This CONSULTING AGREEMENT (this “Agreement”) between B/E Aerospace, Inc., through its Consumables Management Segment (“BEA”) and Richard M. Sharpe (“Consultant”) is entered into and effective as of December 10, 2013, and sets forth the terms and conditions on which Consultant has agreed to provide certain services to BEA.  In return for Consultant’s engagement by BEA, Consultant agrees as follows:

 

	
1.

	
Terms of Engagement

 

	
1.1.

	
BEA is engaged in the business of, among other things, logistics, warehousing, distributing, developing, manufacturing, buying, and selling of aerospace fasteners and consumables through various channels and mediums including most recently, e-commerce.  BEA’s business is highly unique and specialized, and the market for its products and services is worldwide, highly competitive and price sensitive.

 

	
1.2.

	
BEA wishes to engage Consultant (the “Engagement”) to provide certain services set forth on Exhibit 1 to this Agreement (collectively, the “Services”).  If possible, the Services may be performed electronically or telephonically.

 

	
1.3.

	
The Engagement commences on March 1, 2014, and terminates on February 28, 2017, unless extended as provided herein (the “Consulting Period”).

 

	
1.4.

	
Consultant agrees to make no representations, warranties or commitments on behalf of BEA to any third-party and shall not execute any agreement on BEA’s behalf in providing the Services without BEA’s specific prior written consent.

 

	
1.5.

	
During the Consulting Period, Consultant shall be required to be reasonably available to devote no more than sixty (60) hours during any given calendar month to performing the Services, as specified by BEA from time to time.  BEA shall set deadlines and goals for the performance of the Services under this Agreement and may limit Consultant’s access to BEA’s property to certain hours, but Consultant shall maintain discretion as an independent contractor to perform the Services under this Agreement within those deadlines, goals and limitations.

 

	
1.6.

	
On a monthly basis, BEA shall compensate Consultant at a rate of Thirty Seven Thousand Two Hundred Twenty-Five Dollars ($37,225) per month, payable in arrears on the last day of the month (pro-rated for partial months) (“Consulting Fees”).

 

	
1.7.

	
BEA has a valuable proprietary interest in the Proprietary Information and the Company Inventions (each as defined in the Proprietary Rights Agreement, as defined below).  By virtue of the Engagement, Consultant has and will have access to such Proprietary Information, and has created and will create or participate in the creation of such Company Inventions, both of which are owned and shall continue to be owned by BEA.

 

	
1.8.

	
As a condition of this Agreement, Consultant and BEA shall enter into a Proprietary Rights Agreement in the form attached hereto as Exhibit 2 (the “Proprietary Rights Agreement”), which is hereby incorporated herein by reference, and which shall be in addition to and not in lieu of Consultant’s existing Proprietary Rights Agreement (“Existing Proprietary Rights Agreement”) that Consultant entered into in connection with his employment, which is attached hereto as Exhibit 3.  A violation of the Proprietary Rights Agreement shall constitute a violation of this Agreement.  During the Engagement, Consultant shall comply with BEA’s Code of Conduct.  The provisions relating to non-solicitation in this Agreement and in the Proprietary Rights Agreement shall be deemed separate and distinct provisions, and each applicable time period shall run concurrently in accordance with its terms for the benefit of BEA.

 

  

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2.

	
Subcontractors; Assignability

 

	
  

	
Consultant agrees to perform the Services hereunder himself.  Consultant may not subcontract any or all of Consultant’s obligations to BEA under the Engagement.  Consultant may not assign this Agreement or any of the rights or obligations hereunder (whether in whole or in part).

 

	
3.

	
Acknowledgment of Reasonableness

 

In connection with the limited protection afforded to BEA by the covenants contained in the Proprietary Rights Agreement, Consultant acknowledges that Consultant’s right to compete and disclose Proprietary Information have been limited only to the extent necessary to protect BEA, and in the event the Engagement terminates for any reason, Consultant will be able to continue with Consultant’s business without violating the restrictions contained in the Proprietary Rights Agreement.  Consultant further acknowledges that the restrictions contained in the Proprietary Rights Agreement are reasonable and necessary for the protection of BEA’s legitimate business interests.

 

	
4.

	
Independent Contractor; Benefits; Taxes

 

	
4.1.

	
Consultant acknowledges and agrees that during the Consulting Period, Consultant is solely an independent contractor and is not an employee, agent or partner of BEA or any of its affiliates for any purpose.  Consultant has no authority to bind BEA in any contractual manner, or to represent to others that the relationship between BEA and Consultant is other than as stated herein.  Accordingly, BEA will have no obligation or liability to Consultant for the payment of any fringe benefits, medical expense reimbursement, health insurance, disability insurance, life insurance, pension, profit sharing or other retirement plan, contribution, or expense, social security, taxes, vacation pay, sick pay, workers’ compensation insurance, general or professional liability insurance, or other similar items in connection with the Engagement, all of which costs and expenses shall be borne solely by Consultant.  Without limiting the generality of the foregoing, the parties hereby acknowledge and agree that BEA shall have no responsibility to (i) withhold any federal or state income taxes; (ii) withhold federal social security tax (FICA); (iii) pay any federal or state unemployment taxes for the account of Consultant; or (iv) pay workers’ compensation insurance premiums for coverage for Consultant.

 

  

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4.2.

	
Consultant will be responsible for and will pay all taxes on all amounts paid to Consultant by BEA in connection with the Engagement, including all applicable federal or state income taxes, federal social security taxes, and federal or state unemployment taxes.  As an inducement for BEA to enter into this Agreement, Consultant hereby agrees to indemnify, defend and hold harmless BEA and its stockholders, directors, officers, agents, employees and affiliates from and against any loss, cost, expense, or damage (including attorney’s fees) arising from any determination by the Internal Revenue Service, any other federal, state or foreign governmental agency, or any insurance company, that BEA is required to withhold or pay payroll taxes or to provide workers’ compensation insurance coverage for Consultant.

 

	
4.3.

	
Consultant represents and warrants that Consultant is free to enter into this Agreement and that this Agreement does not violate any agreement to which Consultant is a party.

 

	
4.4.

	
Consultant agrees that if Consultant or any agent or employee of Consultant operates a motor vehicle in performing the Services, BEA shall not be responsible for any damage or loss sustained by the use of such motor vehicle.

 

	
5.

	
General Provisions

 

	
5.1.

	
Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida, without giving effect to the conflicts of laws principles thereof.  Consultant agrees that jurisdiction over any dispute arising out of or in connection with this Agreement or the Engagement will be vested exclusively in the state and/or federal courts located in Palm Beach County, Florida, and Consultant irrevocably submits and consents to such jurisdiction and venue.

 

	
5.2.

	
Entire Agreement.  This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all other prior and contemporaneous agreements, understandings, and commitments between the parties with respect to the subject matter hereof.  No provision of this Agreement may be terminated, amended, modified, or waived, by course of dealing or otherwise, unless such termination, amendment, modification, or waiver is set forth in a written agreement referencing this Agreement and executed by Consultant and BEA.  Any variance from, or addition to, the terms and conditions of this Agreement in any present or future document delivered from one party to the other will be of no effect unless agreed to in writing by an authorized representative of the party receiving the document.

 

	
5.3.

	
Severability.  The provisions of this Agreement are severable.  If any provision is found to be unenforceable in whole or in part, it shall be construed or limited in such a way as to make it enforceable, consistent with the manifest intentions of the parties.  If such construction or limitation is not possible, the unenforceable provision shall be stricken, and the remaining provisions of this Agreement shall remain valid and enforceable.

 

	
5.4.

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

 

  

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5.5.

	
Waiver.  BEA’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 BEA 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 BEA of a breach of or non-compliance with any provision of this Agreement by Consultant will not operate or be construed as a waiver of any other or subsequent breach or non-compliance by Consultant.

 

	
5.6.

	
Counterparts; Signatures.  This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.  Facsimile or electronically transmitted signatures shall be deemed to be originals.

 

 

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

 

	B/E AEROSPACE, INC.	  	
RICHARD M. SHARPE

	 	 	 	 
	(“BEA”)	  	
(“Consultant”)

	 	  	  	  
	
By:

	 	  	  
	Name:  Norris Powell	  	  
	Title:  Vice President, Corporate	  	  
	Human Resources	  	  

  

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EXHIBIT 1

 

(Description of Consulting Services)

 

Assist as needed post-retirement with special projects for Consumables Management as may be requested from time-to-time by John Cuomo, Werner Lieberherr, or Tom McCaffrey, including but not limited to:

 

● Providing perspective and continuity with leadership team (strengths / weaknesses / training plan) summary of segment value proposition, position in the marketplace, operational footprint, growth opportunities;

 

● Assisting with key customer / supplier executive introductions and relationship-building;

 

● Remaining on-call as reference for any questions related to the business; 

 

● Leveraging Consultant's relationships in maintaining advantageous executive customer relationships that benefit B/E Aerospace (for example, with Boeing, Honeywell, Aviation Partners Boeing, Standard Aero, KHI, etc.);

 

● Supporting potential aerospace company acquisitions in the investigative and due diligence phases as requested;

 

● Supporting Operational Excellence activities in the Consumables Management Segment / major workshops as requested; and

 

● Supporting any other business request.

 

  

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EXHIBIT 2

 

Proprietary Rights Agreement

 

This Proprietary Rights Agreement (“Agreement”) is intended to set forth in writing my responsibility to B/E Aerospace, Inc. and/or any of its subsidiaries or affiliated businesses (collectively the “Company”) during my employment, consultancy, and/or tenure as an independent contractor with the Company and thereafter. I recognize that the Company is engaged in a continuous program of research, development and production respecting its business, present and future. As part of my employment, consultancy, and/or tenure as an independent contractor with the Company, I have certain obligations relating to business, confidential and/or proprietary information of the Company, as well as to inventions which I may develop during my employment, consultancy, and/or tenure as an independent contractor with the Company.

 

I acknowledge and agree that:

 

	
1.

	
Agreement, Effective Date. This Agreement shall be effective on, the first day of my employment, consultancy, and/or tenure as an independent contractor with the Company and shall continue in effect throughout my employment, consultancy, and/or tenure as an independent contractor (the “Agreement Period”). As an inducement to and in consideration of my acceptance and/or continuation of employment, consultancy, and/or tenure as an independent contractor with the Company, and the Company’s compensating me for services and extending to me certain other benefits of a compensatory nature, but without any obligation on the Company’s part to continue such employment, compensation or benefits for any specified period whatsoever, I agree to protect, safeguard and maintain the integrity and confidentiality of the Company’s valuable assets and legitimate business interests in accordance with the terms and conditions set forth in this Agreement.

 

	
2.

	
Confidentiality. I will maintain in confidence and will not disclose or use, either during or after the Agreement Period, any “Proprietary Information”, whether or not in written form, except to the extent required to perform my duties on behalf of the Company. Proprietary Information means all of the following materials and information that I use, receive, have access to, conceive or develop or have used, received, conceived or developed, in whole or in part, in connection with my employment, consultancy, and/or tenure as an independent contractor with the Company:

 

	
  

	
(i)

	
Written materials of the Company;

 

	
  

	
(ii)

	
The names and information relating to customers and prospective customers of the Company and/or persons, firms, corporations or other entities with whom the Company has provided goods or services at any time, including contact persons, addresses and phone numbers, their characteristics and preferences and types of services provided to or received from those customers and prospective customers;

 

	
  

	
(iii)

	
The terms of various agreements between the Company and any third parties, including without limitation, the terms of customer agreements, vendor or supplier agreements, lease agreements, advertising agreements, fee arrangements, terms of dealing and the like;

 

	
  

	
(iv)

	
Any data or database, trading algorithms or processes, or other information compiled by the Company, including, but not limited to, customer lists, customer information, information concerning the Company, or any business in which the Company is engaged or contemplates becoming engaged, any company with which the Company engages in business, any customer, prospective customer or other person, firm or corporation to whom or which the Company has provided goods or services or to whom or which any employee of the Company has provided goods or services on behalf of the Company, or any compilation, analysis, evaluation or report concerning or deriving from any data or database, or any other information;

 

	
  

	
(v)

	
All policies, procedures, strategies and techniques regarding the services performed by the Company or regarding the training, marketing and sales of the Company, either oral or written. The Company's internal corporate policies and practices related to its services, price lists, fee arrangements and terms of dealings with customers or potential customers or vendors. Information relating to formulas, records, research and development data, trade secrets, processes, other methods of doing business, forecasts and business and marketing plans;

 

  

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(vi)

	
Any other information, data, know-how or knowledge of a confidential or proprietary nature observed, used, received, conceived or developed by me in connection with my employment, consultancy, and/or tenure as an independent contractor by the Company, including and not limited to the Company’s methodologies, price strategies, price lists, costs and quantities sold, financial and sales information, including, but not limited to, the Company’s financial condition, business interests, initiatives, objectives, plans or strategies; internal information regarding personnel identity, skills, compensation, organizational charts, budgets or costs of individual departments, and the compensation paid to those working for or who provide services to the Company; and performance of investments, funds or portfolio companies, including any “track record” or other financial performance information or results;

 

	
  

	
(vii)

	
All other non-public information regarding the amount and nature of the capital and assets owned or controlled by, or net worth of, the Company and/or any of the Company's shareholders, members, partners, employees or investors; the investments made, directly or indirectly, by the Company (including, but not limited to, any partnerships, corporations or other entities in which the Company may invest and the assets which any of those entities acquires); the expected or actual rates of return or holding periods of any investment by the Company; the respective interest in any investment of any of its shareholders, members, partners or investors or the manner in which those interests are held; the identities of the other persons or entities who participate in any investment made by the Company; and financial statements, projections, budgets and market information;

 

	
  

	
(viii)

	
All discoveries, software (including, without limitation, both source code and object code), models, drawings, photographs, specifications, trademarks, formulas, patterns, devices, compilations and all other proprietary know-how and technology, whether or not patentable or copyrightable, and all copies and tangible embodiments of any of the foregoing, and that have been or will be created for the Company by me, whether alone or with others;

 

	
  

	
(ix)

	
The Company’s inventions, products, research and development, production processes, manufacturing and engineering processes, machines and equipment, finances, customers, marketing, and production and future business plans, information belonging to customers or suppliers of the Company disclosed incidental to my employment, consultancy, and/or tenure as an independent contractor and any other information which is identified as confidential by the Company; and

 

	
  

	
(x)

	
“Trade Secrets”, which shall include, but not be limited to, information regarding formulas, processes or methods that: (a) derive independent economic value, actual or potential, from not being generally known to or readily ascertainable by proper means, by other persons who can obtain economic value from its disclosure or use; and (b) is the subject of reasonable efforts by the Company to maintain its secrecy. “Trade Secrets” shall also include all other information or data that qualifies as a trade secret under applicable law.

 

	
3.

	
Inventions.

 

	
  

	
3.1

	
Definition of Inventions used in this Agreement: the term “Invention” means any new or useful art, discovery, contribution, finding or improvement, whether or not patentable, and all related know-how. Inventions include, but are not limited to, all designs, discoveries, formulas, processes, manufacturing techniques, semiconductor designs, computer software, inventions, improvements and ideas

 

  

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3.2

	
Disclosure and Assignment of Inventions.

 

	
  

	
  (i)

	
I will promptly disclose and describe to the Company all Inventions which I may solely or jointly conceive, develop, or reduce to practice during the Agreement Period (i) which relate, at the time of conception, development or reduction to practice of the Invention, to the Company’s business or actual or demonstrably anticipated research or development, (ii) which were developed, in whole or in part, on the Company’s time or with the use of any of the Company’s equipment, supplies, facilities or Trade Secrets, or (iii) which resulted from any work I performed for the Company (the “Company Inventions”). I assign all my right, title and interest worldwide in the Company Inventions and in all intellectual property rights based upon the Company Inventions. However, I do not assign or agree to assign any Inventions relating in any way to the Company business or demonstrably anticipated research and development which were made by me prior to my employment, consultancy, and/or tenure as an independent contractor with the Company, which Inventions, if any, are identified on Exhibit “A” to this Agreement. Exhibit “A” contains no confidential information. I have no rights in any Inventions other than the inventions specified in Exhibit “A”. If no such list is attached, I have no such Inventions or I grant an irrevocable, nonexclusive, royalty-free, worldwide license to the Company to make, use and sell Inventions developed by me prior to my employment, consultancy, and/or tenure as an independent contractor with the Company.

 

	
  

	
(ii)

	
I recognize that Inventions relating to my activities while working for the Company and conceived or made by me, along or with others, within one (1) year after termination of the Agreement Period may have been conceived in significant part while I was retained by the Company. Accordingly, I agree that such Inventions shall be presumed to have been conceived during my employment, consultancy, and/or tenure as an independent contractor with the Company and are to be assigned to the Company as a Company Invention unless and until I have established the contrary. I agree to disclose promptly in writing to the Company all Inventions made or conceived by me for one (1) year after the Agreement Period, whether or not I believe such Inventions are subject to this Agreement, to permit a determination by the Company as to whether or not the Inventions should be the property of the Company. Any such information will be received in confidence by the Company.

 

	
  

	
3.3

	
Nonassignable Inventions. This Agreement does not apply to an invention which qualifies fully as a nonassignable invention.

 

	
4.

	
Use and Return of Proprietary Information and Trade Secrets:

 

	
  

	
(i)

	
I agree that under no circumstance and at no time shall any of the Proprietary Information and Trade Secrets be taken from the Company’s premises and that under no circumstances and at no time shall any of the Proprietary Information and Trade Secrets be duplicated, in whole or in part, without the express written permission of the Company, which permission may be granted or denied in the Company’s sole and absolute discretion;

 

	
  

	
(ii)

	
I agree that, upon termination of my employment (if applicable) and/or tenure as an independent contractor with the Company for any reason (regardless of whether or not the Company retains me as a consultant) or at any other time upon the Company’s request, I shall return to Company, without retaining any copies, all Proprietary Information and Trade Secrets, as well as all other Company’s documents and other materials, which are in my possession regardless of the form in which any such materials are kept;

 

	
  

	
(iii)

	
I covenant and agree that all right, title and interest in any Proprietary Information and Trade Secrets shall be and shall remain the exclusive property of the Company and shall be and hereby are vested and assigned by me to the Company. I agree to promptly disclose to the Company all Proprietary Information and Trade Secrets developed in whole or in part by me within the scope of this Agreement. In relation to my employment, consultancy, and/or tenure as an independent contractor or the performance of this Agreement, I have created or may create certain work product for the Company that may be copyrighted or copyrightable under the laws of the United States. To the extent that any such work product is created, I will be considered to have created a Work Made for Hire as defined in 17 U.S.C. § 101, and the Company shall have the sole right to the copyright. In the event that any such work product created by me does not qualify as a Work Made for Hire, I hereby assign the copyright and all rights, throughout the world, in and to the work product to the Company, as provided for in paragraph (v) below. I agree to turn over to the Company all physical manifestations of the Proprietary Information and Trade Secrets in my possession or under my control at the request of the Company;

 

  

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(iv)

	
I acknowledge that all documents, in hard copy or electronic form, received, created or used by me in connection with my employment, consultancy, and/or tenure as an independent contractor with the Company are and will remain the property of the Company. I agree to return all such documents (including all copies) promptly upon the termination of my employment, consultancy, and/or tenure as an independent contractor, certify that no other documents remain, and agree that, during or after my employment, consultancy, and/or tenure as an independent contractor, I will not, under any circumstances, without the written consent of the Company, disclose those documents to anyone outside the Company or use those documents for any purpose other than the advancement of the Company's interests;

 

	
  

	
(v)

	
I agree to assist the Company, or its designee, at the Company’s expense, in every proper way to secure the Company’s rights in the work product (including Proprietary Information and/or Trade Secrets) and any rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem proper or necessary in order to apply for, register, obtain, maintain, defend, and enforce such rights and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title and interest in and to such work product and any rights relating thereto, and testifying in a suit or other proceeding relating to such work product and any rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this Agreement. In connection with my execution of this Agreement, I hereby irrevocably grant to the Company an irrevocable power of attorney designating and appointing the Company’s duly authorized officer as my agent and attorney in fact, should I become unable because of my mental or physical incapacity or for any other reason, to sign any documents with respect to any work product including, without limitation, permitting the Company to apply for or pursue any application for any United States or foreign patents or copyright registrations covering such work product. In connection with such power of attorney, I permit the agent to act for and on my behalf and stead to execute and file any papers, oaths and to do all other lawfully permitted acts with respect to such work product with the same legal force and effect as if executed or done by me.

 

	
  

	
(vi)

	
In case the governing law mentioned in Article 8.1 of the Agreement would be deemed inapplicable by a judge or an arbitrator, the following provisions shall apply:

 

In the course of the Services, I may realize works of the mind including, but not limited to, brochures, literary works, drawings, illustrations, plans or databases (the “Creations”).

 

I hereby acknowledge to assign to BEA all intellectual property rights in and in relation to the Creations as and when they are created, including, but not limited to, registered and non-registered copyrights, designs, trademarks, and all related goodwill, applications for registration for any such rights as may exist anywhere in the world, and the right to make such applications (the “Intellectual Property Rights”).

 

  

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Therefore, I acknowledge to assign to BEA all Intellectual Property Rights, in the entire world, for the duration of protection of such Intellectual Property Rights, for any present and future purposes and use, including, without limitation, the right to use, the right to reproduce, the right to adapt and the right to represent, being specified that:

	 	 
	 	
·

	
the right to use includes the right to use the Creations and the Intellectual Property Rights on the Creations, for any purposes and in any manner;

	 	 	 
	 	
·

	
the right to reproduce includes the right to reproduce the whole or part of the Creations by any means and in any form and format, whether known at present or to be discovered in the future, on any supports including analogical or digital media, by any process whether known at present or to be discovered in the future, in any language and in any territory, and to make or have made unlimited number of any original or copies;

	 	 	 
	 	
·

	
the right to adapt includes the right to correct mistakes, to make any version, in any language, and notably in computer language, of all or part of the Creations, and more generally the right to translate, arrange, modify, transform all or part of the Creations in writing, orally, or in an analogical or digital way, for any kind of use and/or exploitation;

	 	 	 
	 	
· 

	
the right to represent includes the right to publicly represent or have represented the Creations, by any means whether known at present or to be discovered in the future, notably the diffusion, the broadcasting in analogical and/or digital way, on any computer and telecommunication networks, open and/or private, national and/or international, in the specialized or mass diffusion networks.

	 	 	 
	 	
I expressly agree that my compensation for the assignment of the Intellectual Property Rights consists of a lump sum, due to the fact that the basis of calculation of a proportionate compensation cannot be determined in practice. I agree that such compensation is included in the global compensation described in Article 1.4 of the Agreement and corresponds to 5% of the latter.

 

	
5.

	
Competitive Employment. During the Agreement Period, including any extensions thereof (as applicable), I agree that I will not directly or indirectly own, manage, work for, provide services to, obtain financial interest in, control or participate in the ownership, management or control of, or be employed or engaged by or otherwise affiliated or associated as a consultant, director, agent, independent contractor or otherwise with any other corporation, partnership, proprietorship, firm, association or other entity that is engaged in any manner in the business of the Company.

 

	
  

	
I further agree that during the same period I will not directly or indirectly own, manage, work for, provide services to, obtain financial interest in, control or participate in the ownership, management or control of, or be employed or engaged by or otherwise affiliated or associated as a consultant, director, agent, independent contractor or otherwise with any business entity that is not engaged in the business of the Company in any market in which the Company conducts business or provides services where such other business entity could utilize or gain a business or economic advantage through the use of Proprietary Information, Trade Secrets, my training by the Company, my relationship with the Company’s customers, suppliers, vendors, clients or investors or prospective customers, suppliers, vendors, clients or investors or the Company’s goodwill.

 

	
  

	
I may make passive investments in publicly traded entities not to exceed 3% of the outstanding voting securities of such public entity, provided, however, that such investment do not prevent me from abiding by this Agreement, including this Paragraph 5.

 

	
6.

	
Non-solicitation. During the Agreement Period and for a period of two (2) years thereafter, I will not solicit or encourage, or cause others to solicit or encourage, any employees, suppliers, vendors, or consultants of/to the Company to terminate their employment or other relationship, as applicable, with the Company.

 

  

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7.

	
Acts to Secure Proprietary Rights.  I agree to perform, during and after the Agreement Period, all acts deemed necessary or desirable by the Company to permit and assist it, at the Company’s expense, in perfecting and enforcing the full benefits, enjoyment, rights and title throughout the world in the Company Inventions. Such acts may include, but are not limited to, execution of documents and assistance or cooperation in the registration and enforcement of applicable patents and copyrights or other legal proceedings.

 

	
8.

	
No Conflicting Obligations. My performance of this Agreement does not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me prior to my employment, consultancy, and/or tenure as an independent contractor with the Company. I will not disclose, induce, or permit the Company to, either directly or indirectly, use, any confidential or proprietary information or material belonging to any previous employer or other person or entity. I am not a party to any other agreement that will interfere with my full compliance with this Agreement. I will not enter into any agreement, whether written or oral, conflicting with the provisions of this Agreement.

 

	
9.

	
Survival. Notwithstanding the termination of the Agreement Period, this Agreement shall survive such termination and continue in accordance with its terms and conditions. Unless provided otherwise in a written contract with the Company, this Agreement does not in any way restrict my right or the right of the Company to terminate my employment, consultancy, and/or tenure as an independent contractor at any time, for any reason or for no reason.

 

	
10.

	
Specific Performance. A breach of any of the promises or agreements contained herein will result in irreparable and continuing damage to the Company for which there will be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a decree for specific performance, and such other relief as may be proper (including monetary damages, if appropriate).

 

	
11.

	
Waiver. The waiver by the Company of a breach of any provision of this Agreement by me will not operate or be construed as a waiver of any other or subsequent breach by me.

 

	
12.

	
Severability. If any part of this Agreement is found invalid or unenforceable, that part will be amended to achieve as nearly as possible the same economic effect as the original provision and the remainder of this Agreement will remain in full force.

 

	
13.

	
Governing Law. This Agreement will be governed by and construed in accordance with the laws (other than the conflict of laws rules) of the state of Florida.

 

	
14.

	
Entire Agreement. Except for that certain Consulting Agreement between me and the Company, this Agreement and the Exhibits to this Agreement constitute the entire agreement between the parties relating to this subject matter and supersede all prior or simultaneous representations, discussions, negotiations and agreements, whether written or oral, except for prior proprietary rights agreements which shall for the period prior to the effective date of this agreement be deemed to be in addition to, and not in lieu of, this Agreement for such prior period. This Agreement may be amended or modified only with the written consent of both me and the Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever.

 

  

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15.

	
Assignment. This Agreement may be assigned by the Company. I may not assign or delegate my duties under this Agreement without the Company’s prior written approval. This Agreement shall be binding upon my heirs, successors and permitted assignees.

 

	  	  	  	
CONSULTANT

	  	  	  	  	  
	
Date:

	  	  	  
	  	  	  	
(Name)

	  	  	  	  	  
	  	  	  	  
	  	  	  	
(Printed Name)

	  	  	  	  	  
	 	 	 	 	 
	
Date:

	  	  	
B/E AEROSPACE, INC.

	  	  	  	  	  
	  	  	  	
By:

	  
	  	  	  	  	  
	  	  	  	
Title:

	
Vice President, Human Resources

 

  

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EXHIBIT A

 

  

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EXHIBIT 3

 

(Prior Proprietary Rights Agreement)

 

10a50803406_ex1032.htm

Exhibit 10.32

 

 

AMENDED AND RESTATED

MEDICAL CARE REIMBURSEMENT PLAN FOR

EXECUTIVES OF

B/E AEROSPACE, INC.

 

 

 

 

 

  

  

  

 

ARTICLE I

PURPOSE AND ESTABLISHMENT

 

1.1           Purpose.  The purpose of this Plan is to reimburse eligible Executives for Medical Care Expenses not reimbursed by any other plan or arrangement.

1.2           Name.  The Plan shall be named the Amended and Restated Medical Care Reimbursement Plan for Executives of B/E Aerospace, Inc.

1.3           Effective Date. The effective date of this Plan is January 1, 2014.

 

ARTICLE II

DEFINITIONS

 

2.1           Board of Directors means the Board of Directors of B/E Aerospace, Inc.

2.2           Code means the Internal Revenue Code of 1986, as amended from time to time.

2.3           Committee shall mean the Benefits Committee designated by the Board of Directors in accordance with Article VI of the Plan.

2.4           Company shall mean B/E Aerospace, Inc.

2.5           Eligible Dependent means a Dependent that is eligible to be covered by a Health Plan maintained by the Participant's Employer.

2.6           Employer shall mean B/E Aerospace, Inc. and any of its subsidiaries and affiliates that, with the consent of B/E Aerospace, adopt this Plan.

2.7           Dependent means a Participant's spouse, domestic partner, or any of his or her dependents as defined in Code Section 152.

2.8           Executive means each executive of the Employer selected by the Committee, in writing, for eligibility from among the group of highly compensated or managerial employees of the Employer.

2.9           Health Plan means the health plan of the Participant's Employer under which the

 

Participant and his Eligible Dependants are covered.

 

2.10          Participant means an Executive who satisfies the requirements of Section 3.1

 

2.11          Plan means this Amended and Restated Medical Care Reimbursement Plan for Executives of B/E Aerospace, Inc., as amended from time to time.

2.12          Plan Year means the twelve-month period commencing on January 1 and ending on the following December 31.

 

  

  

  

 

2.13            Medical Care Expense shall have the meaning given to it in Section 4.3 of this Plan.

 

2.14            Reimbursement Account means the aggregate amount that has accrued on behalf of a Participant for the reimbursement of Medical Care Expenses for a Plan Year, reduced by any such reimbursements actually made by Employer to, or on behalf of, such Participant during such Plan Year.

2.15            Termination means the termination of a Participant's employment as an Executive, whether by reason of change in job classification, discharge, layoff, voluntary termination, disability, retirement, death or otherwise.

ARTICLE III

ELIGIBILITY FOR PARTICIPATION

 

3.1            Generally.  An Executive shall be eligible to participate in the Plan at such times as shall be designated by the Committee.

3.2            Termination of Participation.  An Executive's participation in the Plan shall cease immediately upon Termination of his or her employment with Employer, and the balance (excluding any then pending unreimbursed expense claims) of his or her Reimbursement Account shall be forfeited, provided, however, that such Executive may submit eligible Medical Care Expenses incurred prior to Termination until the last day of the third month following the Plan Year in which the Termination occurs.  Notwithstanding the foregoing, or anything to the contrary in this Plan, if an Executive has a separate agreement with the Company that provides for such Executive to continue to participate in the Plan or receive Plan Benefits for any period of time post-Termination, then for the purposes of this Plan only, a Termination of such Executive’s employment shall be deemed not to have occurred during such stated period of time.

ARTICLE IV

BENEFITS

 

4.1            Generally.  Each Participant will be entitled to receive for each Plan Year reimbursement of Medical Care Expenses which are incurred during the Plan Year and which are not fully reimbursed under the Health Plan or by other medical plans (sometimes referred to herein as the "Benefits").   A Participant's right to receive reimbursement of expenses incurred for himself or herself or any Eligible Dependent during a Plan Year shall be limited to 10% of the Participant's base salary as of the first day of the Plan Year (or, in the case of an Executive who first becomes a Participant during the Plan Year, the date on which the Executive becomes a Participant, or in the case of Benefits to be provided post-Termination pursuant to contract, then the amount shall be limited to 10% of the Participant’s annual base salary as of the day prior to the date of Termination, and such amount shall be renewed in full on January 1st of each succeeding calendar year for which the Participant is contractually entitled to receive such Benefits following his or her Termination).

 

  

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4.2            Benefits Limited to Expenses Incurred During Plan Year.  For each Plan Year, the Benefits provided to a Participant pursuant to Section 4.1 hereof are, except as otherwise provided in a Participant’s written agreement, only available to reimburse expenses which are incurred during such Plan Year after becoming a Participant in the Plan and prior to Termination of employment with the Employer.  Expenses incurred by a Dependent and submitted by Participant or his or her designee shall not be reimbursed unless incurred while an Eligible Dependent and during the period that the expenses incurred by the Participant are otherwise eligible for reimbursement.  However, the Participant shall have until March 31st following the Plan Year to submit claims for expenses incurred by the Participant and his Eligible Dependents during the previous Plan Year.

4.3            Medical Care Expenses.  Medical Care Expenses shall include any expenses incurred by a Participant or his or her Eligible Dependents for related medical, health, hospice, dental or orthodontic care, optical/vision or mental care and services either provided or to be provided pursuant to a contractual agreement with a licensed professional.

4.4            Refund of Duplicate Reimbursement.  If a Participant receives a reimbursement under this Plan, and reimbursement for the same specific expense is made under another Company plan, he or she will be required to refund to the Employer the reimbursement received under this Plan, but only to the extent of such other reimbursement amount.  The amount, if any, refunded to the Employer pursuant to this Section 4.4 shall increase the Participant's Reimbursement Account for the Plan Year in which the reimbursement was originally made.

 

ARTICLE V

ADMINISTRATION

 

5.1           Committee.  The Plan shall be administered by the Benefits Committee appointed by the Board of Directors of the Company.  The members of the Committee are eligible to participate in the Plan provided they are included in the definition of Executive in Section 2.8 of the Plan.  The Committee shall have complete control of the administration of the Plan with all powers to enable it to carry out its duties in that respect, subject at all times to the limitations and conditions specified in or imposed by the Plan.

 

Each member of the Committee shall serve without compensation for services as such.  Each member of the Committee may, consistent with Employer policy, receive reimbursement of expenses properly and actually incurred in carrying out the duties of the Committee.  All such expenses incurred by the Committee, or a member thereof, in carrying out the duties of the Committee, shall be paid or reimbursed by the Employer.

 

  

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In the event of any vacancy on the Committee, the vacancy shall be filled by the Board of Directors.  Any member of the Committee may resign by written notice to the Board of Directors and the Secretary of the Committee, and such resignation shall become effective at delivery or at any later date specified therein.  The Secretary of the Committee need not be a member of the Committee.

5.2           Duties and Powers of the Committee.   The Committee shall have the following duties, responsibilities and authority with respect to the administration of the Plan:

 

(a) To construe and interpret the Plan, and decide all questions of eligibility and benefits (including all factual determinations relating thereto);

 

(b) To prescribe procedures to be followed by Participants making elections;

 

(c) To prepare and distribute information explaining the Plan to Participants;

 

(d) To receive from the Employer and from Participants such information as shall be necessary for the proper administration of the Plan;

 

(e) To furnish the Employer and Participants such annual reports with respect to the administration of the Plan as are reasonable and appropriate;

 

(f) To keep reports of claims and disbursements for claims under the Plan;

 

(g) To employ such persons, including, but not limited to, actuaries, accountants, and counsel, as it deems appropriate to perform such duties as may from time to time be required under ERISA and to render advice upon request with regard to any matters arising under the Plan;

 

(h) To promulgate claim forms to be used by Participants;

 

(i) To prepare and file any reports or returns with respect to the Plan required by applicable law;

 

(j) To provide each Participant, upon such Participant’s request, with respect to each calendar year, a written statement showing the total reimbursements to the Participant under this Plan;

(k) To correct any reimbursement of expenses made in error; and

 

(l) To take all other steps deemed necessary to properly administer the Plan in accordance with its terms and the requirements of applicable law.

 

The Company shall furnish the Committee with all the data and information available which the Committee may reasonably require in order to perform its functions hereunder.  The Committee may rely without question upon any such data or information furnished by the Employer.  Any interpretation or other decision made by the Committee shall be final, binding and conclusive upon all persons in the absence of a contractual obligation in such Participant’s written agreement providing otherwise, or clear and convincing evidence that the Committee acted arbitrarily and capriciously.

 

  

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5.3           Delegation and Allocation of Responsibilities of the Committee.

 

(a) The Committee may allocate its administrative responsibility and may designate persons who may be either named fiduciaries or persons other than named fiduciaries, to carry out such responsibilities.  Any such allocation or designation shall be made in writing and shall:

(1) specifically identify the person or persons to whom a duty is allocated or delegated; and

(2) specifically identify the nature and scope of the duty allocated.

 

(b) To the extent a duty or responsibility is allocated or delegated in accordance with the above procedure, the Committee shall not be liable for an act or omission of the person or persons carrying out said duty or responsibility except to the extent that the Committee:

 

(1) violated its responsibility hereunder with respect to making the allocation or delegation, or permitting the allocation or delegation to continue;

 

(2) knowingly participated in or attempted to conceal a known breach; or

 

(3) having knowledge of such a breach, failed to make reasonable efforts under the circumstances to remedy said breach.

(c) The named fiduciary or other person to whom a responsibility or duty of the Committee is allocated or delegated in accordance with Section 5.3(a) of the Plan shall be responsible only for the performance of that responsibility or duty according to the terms of the delegation or allocation, and shall not be liable for the act or omission of any other person with respect thereto unless:

 

(1) by its failure to properly administer its specific responsibility he or she has enabled such other person to commit a breach of fiduciary responsibility;

 

(2) he or she  knowingly participates in, or  knowingly  undertakes  to conceal, an act or omission of another person, knowing such act or omission to be a breach; or

 

  

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(3) having knowledge of the breach of another, he or she fails to make reasonable efforts under the circumstances to remedy said breach.

 

(d) Any person or group of persons may serve in more than one fiduciary capacity with respect to the Plan.

 

ARTICLE VI

CLAIMS PROCEDURE

 

6.1            Submission of Claims.  Participants shall make claims for reimbursements under the Plan in writing following such procedures, including deadlines and documentation requirements, and using such forms, as are prescribed by the Committee.  Claims which are approved by the Committee shall be paid monthly as soon as administratively feasible.  Participants may file claims for expenses incurred during a Plan Year until the March 31st following the end of the Plan Year.  Where a Participant has a Termination, the period for filing claims and the claims which may be filed are, except if provided otherwise in such Participant’s written agreement, as described in the Plan.

 

6.2            Review of Denial of Claims. If any claim for Benefits under the Plan is wholly or partially denied, the claimant shall be given notice in writing of such denial within a reasonable period of time, but not later than 60 days after the claim is filed. Such notice shall set forth the following information:

 

(a) The specific reason or reasons for the denial;

 

(b) Specific reference to pertinent Plan provisions on which the denial is based;

 

(c) A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary;

 

(d) An explanation that a full and fair review by the Committee of the decision denying the claim may be requested by the claimant or his or her authorized representative by filing with the Committee, within 90 days after such notice of denial has been received, a written request for such review; and

 

(e) If such request is so filed, the claimant or his or her authorized representative may review pertinent documents and submit issues and comments in writing within the same 90 day period specified in subsection 6.2(d) above.

 

The decision of the Committee, or a subcommittee appointed by the Chairman of the Committee, on review shall be made promptly, but not later than 60 days after the Committee's receipt of the request for review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered as soon as possible, but not later than 120 days after receipt of the request for review.  The decision on review shall be made in writing and shall include specific reasons for the denial, written in a pertinent Plan provisions on which the denial is based.

  

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ARTICLE VII

FUNDING

 

All Benefits paid under this Plan shall be payable directly to applicable Participants or to the provider of the health care and solely out of the general assets of the Employer.  The Employer shall not establish a trust or fund for the contribution to or payment of benefits under this Plan, except as mandated by law.  The Employer shall have no obligation to insure any of the benefits under this Plan.

 

ARTICLE VIII

AMENDMENTS; TERMINATION

 

The Board of Directors and the Committee each shall have the right to alter, amend or terminate this Plan in whole or in part at any time it determines to be appropriate, however such action shall not affect the obligations of the Company to any Executive pursuant to a separate written agreement, which shall continue in full force in accordance with its terms and intent.

Neither the Board of Directors nor the Committee shall amend, alter, or terminate this Plan retroactively except to comply with applicable laws.

In the event of the Plan termination, a Participant's eligible expenses shall be dealt with in the manner set forth in Section 3.2 hereof.

 

ARTICLE IX

MISCELLANEOUS

 

9.1           No Employment Contract.  Nothing in this Plan shall be construed as a contract of employment between the Employer and any Executive, nor as a guarantee of any Executive to be continued in the employment of the Employer, nor as a limitation on the right of the Employer to discharge any of its Executives with or without cause.

9.2           No Assignment.  A Participant's rights, interests or benefits under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, prior to being received by the persons entitled thereto under the terms of this Plan, and any such attempt shall be void.

 

  

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9.3           Choice of Law.  This Plan shall be construed, administered and governed in all respects under applicable federal law, and to the extent not preempted by federal law, under the laws of the State of Florida.

9.4           Severability.  If any provision of this Plan shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions shall continue to be fully effective.

9.5           Gender, Singular and Plural References.  References in this Plan to one gender shall include both genders, singular references shall include the plural, and plural references shall include the singular, unless the context clearly requires otherwise.

 

ARTICLE X

ADOPTION BY EMPLOYERS

 

10.1           Method of Adoption.  Any affiliate of B/E Aerospace, Inc. may, with the written - consent of B/E Aerospace, Inc., adopt this Plan.

10.2           Delegation Upon Adoption.  Upon the effective date of the Plan with respect to an Employer which adopts the Plan, such Employer delegates all fiduciary and other responsibilities allocated under the Plan to the Board of Directors, Committee and fiduciaries appointed by the Committee pursuant to Section 5.3.

10.3           Employer Contributions.  Each Employer, upon adopting the Plan, shall have the obligation to pay, or to have paid on its behalf, the Benefits required hereunder with respect to its own Executives and no other Employer shall have such obligation.

10.4           Withdrawal or Removal.  Any Employer may withdraw its adoption of the Plan at any time without affecting the other Executives in the Plan by delivering to the Board of Directors a copy of resolutions of its board of directors to such effect.  The Board of Directors may, in its absolute discretion, terminate the participation in the Plan of any Employer at any time such Employer fails to discharge its obligations under the Plan.

 

	  	
B/E AEROSPACE, INC.

	  	  
	  	  
	  	  
	  	
By:

	  	
Title:

 

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