Document:

Exhibit 10.2

    Exhibit
      10.2

     

    AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT

    

    This
      Amended and Restated Agreement (this “Agreement”)
      dated
      as of April 27, 2007, is between BE Aerospace, Inc., a Delaware corporation
      (the
“Company”)
      and
      Amin J. Khoury (“Executive”).
      

     

    WHEREAS,
      Executive and the Company entered into an amended and restated Employment
      Agreement dated as of July 31, 2006 (the “Employment
      Agreement”);
      and

     

    WHEREAS,
      Executive, having provided services to the Company since August 1, 1987, agrees
      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 further amend and restate the Employment
      Agreement in its entirety in the manner set forth herein;

     

    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      Employment Agreement is hereby restated, superseded and replaced in its entirety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.         
                	
              ARRANGEMENT.
                

            

    

     

    Executive
      shall provide to the Company, and the Company shall accept from Executive,
      the
      services set forth in Section 4.2 below, subject to the terms and conditions
      set
      forth in this Agreement.

     

    
      	3.         
                	
              TERM.

            

    

     

    Executive
      shall provide to the Company services hereunder during the term of this
      Agreement which, unless otherwise terminated pursuant to the provisions of
      Article 7 hereof, shall be the period ending three (3) years from any date
      as of
      which the term is being determined (the “Employment
      Term”).
      The
      date on which the Employment Term ends, including any extensions thereof, is
      sometimes hereinafter referred to as the “Expiration
      Date.”
      Pursuant to, and in accordance with, Section 7.7 hereof, the Company is required
      to engage Executive to render consulting services to the Company after Executive
      ceases to be employed by the Company. 

     

    
      	4.         
                	
              CAPACITY,
                SERVICES AND PERFORMANCE.

            

    

     

    
      	 4.1        
                	
              Capacity.

            

    

     

    Executive
      shall serve the Company as its Chairman of the Board of Directors of the Company
      (the “Board”)
      and
      Chief Executive Officer, or in such other Board or executive capacity as the
      Board may designate from time to time, but only upon agreement with
      Executive.

     

    
      	4.2        
                	
              Services.

            

    

     

    In
      the
      capacity set forth in Section 4.1 above, Executive shall be retained by the
      Company and shall perform such duties and responsibilities on behalf of the
      Company as Executive and the Board shall by mutual agreement from time to time
      determine.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	4.3        
                	
              Performance.

            

    

     

    During
      the
      Employment Term, Executive shall use his business judgment, skill and knowledge
      to the advancement of the Company's interests and to the discharge of his duties
      and responsibilities hereunder; provided,
      however,
      that
      Executive shall be required only to devote so much time as Executive determines
      is reasonably necessary to discharge his duties as Chairman of the Board and
      Chief Executive Officer, and, subject to the provisions of Section 6 below,
      Executive may engage in other business activities during the Employment
      Term.

     

    
      	5.         
                	
              COMPENSATION
                AND BENEFITS. 

            

    

     

    
      	  
              5.1           	
              Salary.
                Effective as of January 1, 2007 

            

    

     

    Executive
      shall receive an annual salary (the “Salary”)
      of
      nine-hundred and thirty-six thousand dollars ($936,000) during each year of
      the
      Employment Term. The Salary shall be subject to adjustment from time to time
      by
      the Board; provided,
      however,
      that at
      no time shall the Salary be adjusted below the Salary for the preceding year.
      Commencing on January 1, 2007, and on January 1st of each year thereafter during
      the Employment Term, the Salary then in effect 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
      consecutive twelve (12) month period (January through December) immediately
      preceding such January 1. If the Index is no longer issued, the Board and
      Executive shall agree upon a substitute index issued by such agency which 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, and
      shall be pro-rated for any period of service less than a full year.

     

    
      	  
              5.2           	
              Bonuses.
                

            

    

     

    Executive
      may receive bonuses from the Company when, as and if determined from time to
      time by the Board. Any such bonuses paid to Executive shall be in addition
      to
      the Salary then in effect.

     

    
      	5.3        
                	
              Benefits.
                

            

    

     

    So
      long as
      employed, Executive shall be entitled to participate in all employee benefit
      plans, life insurance plans, disability income plans, incentive compensation
      plans and other benefit plans, other than retirement plans, as may be from
      time
      to time in effect for executives of the Company generally. In addition,
      Executive and his spouse, for as long as they each may live, shall be entitled
      to (i) all medical, dental and health benefits available from time to time
      to
      the Company's executive officers and their spouses, respectively (other than
      medical reimbursement plans) on similar terms and conditions as active employees
      (provided that the level of such benefits is not greater than the benefits
      available to Executive on December 31, 2004 (and which included 100%
      reimbursement of all medical and dental benefits incurred by Executive and
      his
      family, the cost of which is fully paid by the Company), and (ii) the benefits
      available under the Company's executive medical reimbursement plan in effect
      as
      of March 1, 2001.

     

    
      	5.4        
                	
              Business
                Expenses.
                

            

    

     

    So
      long as
      employed, the Company shall pay or reimburse Executive for all reasonable
      business expenses incurred or paid by him in the performance of his services.
      Any reimbursement shall be paid in accordance with Company policy, but in any
      event, no later than March 15th
      of the
      year following the year in which the expense reimbursement accrues.

     

    
      
        
        

      

      
        2
          

        
          

        

      

      
        
        

      

       

    

     

    
      	5.5        
                	
              Automobile.
                

            

    

     

    So
      long as
      employed, Executive shall receive either, an automobile owned or leased by
      the
      Company or a monthly automobile allowance, as determined by the Company, which
      automobile or allowance shall be at least equivalent to that which the Company
      was providing to Executive as of April 30, 2006. The automobile allowance,
      if
      applicable, shall be paid in accordance with Company policy, but in any event,
      no later than March 15th
      of the
      year following the year in which the automobile allowance was
      accrued.

     

    
      	5.6        
                	
              Equity
                Incentive Compensation.

            

    

     

    So
      long as
      employed, Executive shall be entitled to participate in any applicable equity
      incentive compensation program of the Company.

     

    
      	6.         
                	
              PROPRIETARY
                RIGHTS AND NON-COMPETITION.

            

    

     

    Executive
      acknowledges that the Company is engaged in a continuous program of research,
      development and production in connection with its business, present and future,
      and hereby covenants as follows:

     

    
      	6.1        
                	
              Confidentiality.
                

            

    

     

    Executive
      will maintain in confidence and will not disclose or use, either during or
      after
      the Employment Term, any proprietary or confidential information or know-how
      belonging to the Company (“Proprietary
      Information”
      hereinafter defined), whether or not in written form, except to the extent
      required to perform duties on behalf of the Company. For purposes of this
      Agreement, “Proprietary Information” shall mean any information, not generally
      known to the relevant trade or industry, which was obtained from the Company,
      or
      which was learned, discovered, developed, conceived, originated or prepared
      by
      Executive in connection with this Agreement. Such Proprietary Information
      includes, without limitation, software, technical and business information
      relating to the Company's inventions or 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 Executive's performance under this Agreement, and any other
      information which is identified as confidential by the Company, but only so
      long
      as the same is not generally known in the relevant trade or
      industry.

     

    
      	6.2        
                	
              Inventions.

            

    

     

    
      	6.2.1     
                	
              Definition
                of Inventions.
                For purposes of this Agreement, “Inventions” shall mean any new or useful
                art, discovery, contribution, finding or improvement, whether or
                not
                patentable, and all related know-how. Inventions shall include, without
                limitation, all designs, discoveries, formulae, processes, manufacturing
                techniques, semiconductor designs, computer software, inventions,
                improvements and ideas.

            

    

     

    
      	6.2.2     
                	
              Disclosure
                and Assignment of Inventions.
                Executive will promptly disclose and describe to the Company all
                Inventions which he may solely or jointly conceive, develop, or reduce
                to
                practice during the Employment Term or the Consulting Period (as
                defined
                in Section 7.7) (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
                secret
                information, or (iii) which resulted from any work performed by Executive
                for the Company (the “Company's
                Inventions”).
                Executive hereby assigns to the Company all of his right, title and
                interest world-wide in and to the Company's Inventions and in all
                intellectual property rights based upon the Company's Inventions;
                provided,
                however,
                that Executive does not assign or agree to assign any Inventions,
                whether
                or not relating in any way to the Company's business or demonstrably
                anticipated research and development, which were made by him prior
                to the
                date of this Agreement, or which were developed by him independently
                during the Employment Term and not under the conditions stated in
                subparagraph (ii) above.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    
      	6.3        
                	
              Documents
                and Materials.
                

            

    

     

    Upon
      termination of this Agreement or at any other time upon the Company's request,
      Executive will promptly deliver to the Company, without retaining any copies,
      all documents and other materials furnished to him by the Company (other than
      personal copies of documents relating to Executive’s employment terms), prepared
      by him for the Company or otherwise relating to the Company's business,
      including, without limitation, all written and tangible material in his
      possession incorporating any Proprietary Information.

     

    
      	6.4        
                	
              Competitive
                Employment.
                

            

    

     

    During
      the
      Employment Term, the Consulting Period (as defined in Section 7.7), if
      applicable, and for a period of two (2) years thereafter (collectively, the
      “Extended
      Term”),
      Executive will not engage in any employment, consulting, or other activity
      in
      any business competitive with the Company without the Company's written consent,
      which consent shall not be unreasonably withheld; provided,
      however,
      that
      nothing in this Section 6.4 shall preclude Executive from serving as a director
      of any other corporation, or a partner or investor in a private equity firm.
      

     

    
      	6.5        
                	
              Non-Solicitation.
                

            

    

     

    During
      the
      Extended Term, Executive will not solicit or encourage, or cause others to
      solicit or encourage, any employees of the Company to terminate their employment
      with the Company.

     

    
      	6.6        
                	
              Acts
                to Secure Proprietary Rights.

            

    

     

    
      	6.6.1     
                	
              Further
                Acts.
                Executive agrees to perform, during and after the Employment Term
                and the
                Consulting Period, if applicable, all acts deemed necessary or desirable
                by the Company to permit and assist it, at its expense, in perfecting
                and
                enforcing the full benefits, enjoyment, rights and title throughout
                the
                world in the Company's Inventions. Such acts may include, without
                limitation, execution of documents and assistance or cooperation
                in the
                registration and enforcement of applicable patents and copyrights
                or other
                legal proceedings.

            

    

     

    
      	6.6.2     
                	
              Appointment
                of Attorney-In-Fact.
                In
                the event that the Company is unable, for any reason whatsoever,
                to secure
                Executive's signature to any lawful and necessary document required
                to
                apply for or execute any patent, copyright or other applications
                with
                respect to any of the Company's Inventions (including improvements,
                renewals, extensions, continuations, divisions or continuations in
                part
                thereof), Executive hereby irrevocably appoints the Company and its
                duly
                authorized officers and agents as his agents and attorneys-in-fact
                to
                execute and file any such application and to do all other lawfully
                permitted acts to further the prosecution and issuance of patents,
                copyrights or other rights thereon with the same legal force and
                effect as
                if executed by him, intending hereby to create a so-called “durable power”
                which will survive any subsequent
                disability.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    
      	6.7        
                	
              No
                Conflicting Obligations.
                

            

    

     

    Executive's
      performance of this Agreement does not breach and will not breach any agreement
      to keep in confidence proprietary information, knowledge or data acquired by
      him.

     

    
      	6.8        
                	
              Corporate
                Opportunities.
                

            

    

     

    Executive
      agrees that during the Employment Term and the Consulting Period, if applicable,
      he will first present to the Board, for its acceptance or rejection on behalf
      of
      the Company, any opportunity to create or invest in any company which is or
      will
      be involved in equipping or furnishing airplane cabin interiors, which comes
      to
      his attention and in which he, or any of his affiliates, might desire to
      participate. If the Board rejects the same or fails to act thereon in a
      reasonable time, Executive shall be free to invest in, participate or present
      such opportunity to any other natural person, corporation, limited liability
      company, limited or general partnership, or any other entity (each, a
“Person”).

     

    
      	6.9        
                	
              Specific
                Performance.
                

            

    

     

    Executive
      acknowledges that a breach of any of the promises or agreements contained herein
      could result in irreparable and continuing damage to the Company for which
      there
      may be no adequate remedy at law, and the Company shall be entitled to seek
      injunctive relief and/or a decree for specific performance.

     

    
      	7.         
                	
              TERMINATION
                AND CHANGE OF CONTROL.

            

    

     

    
      	7.1        
                	
              Termination
                Date; Termination or Resignation other than Contemporaneously with
                a
                Change of Control. 

            

    

     

    
      	7.1.1     
                	
              Termination
                Date.
                The term “Termination
                Date”
                shall mean the date on which Executive's employment with the Company
                terminates for any reason prior to the Expiration Date.
                

            

    

     

    
      	7.1.2     
                	
              Termination
                by Executive.
                If
                Executive resigns his employment for any reason other than (i) death
                pursuant to Section 7.2, (ii) incapacity pursuant to Section 7.3,
                (iii)
                Good Reason following a Change of Control pursuant to Section 7.4.3
                or
                (iv) contemporaneously with a Change of Control pursuant to Section
                7.4.2,
                then on the Termination Date, Executive shall receive payment of
                (A) any
                accrued and unpaid Salary through the Termination Date, (B) the entire
                remaining unpaid balance of the Retirement Compensation pursuant
                to
                Section 7.6 hereof, determined as of the Termination Date, and (C)
                the
                Severance Pay pursuant to Section 7.5 hereof. In addition, Executive
                and
                his spouse shall continue to be entitled to medical, dental and health
                benefits pursuant to Section 5.3 hereof and the Company shall engage
                Executive to render consulting services to the Company in accordance
                with
                Section 7.7 hereof.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	7.1.3     
                	
              Termination
                by the Company.
                If
                the Company terminates Executive’s employment hereunder for any reason
                other than (i) death pursuant to Section 7.2, (ii) incapacity pursuant
                to
                Section 7.3 or (iii) contemporaneously with a Change of Control pursuant
                to Section 7.4.2, then on the Termination Date, Executive shall receive
                payment of (A) any accrued and unpaid Salary through the Termination
                Date,
                (B) any bonuses payable to Executive for any fiscal periods of the
                Company
                ending prior to the Termination Date, (C) a lump sum equal to his
                Salary
                from the Termination Date through the Expiration Date, (D) the entire
                remaining unpaid balance of the Retirement Compensation pursuant
                to
                Section 7.6 hereof, determined as of the Expiration Date, and (E)
                the
                Severance Pay pursuant to Section 7.5 hereof. In addition, (x) Executive
                and his spouse shall continue to be entitled to medical, dental and
                health
                benefits pursuant to Section 5.3 hereof, (y) any stock options, restricted
                stock awards or other equity awards granted to Executive that would
                not
                vest on or prior to the Termination Date shall vest and be exercisable
                immediately, and, notwithstanding
                any termination of employment provisions set forth in the applicable
                agreement, all
                stock options shall continue to be exercisable until their original
                stated
                expiration date and (z) the
                Company shall engage Executive to render consulting services to the
                Company in accordance with Section 7.7 hereof.

            

    

     

    
      	7.2        
                	
              Death.
                

            

    

     

    
      	7.2.1     
                	
              Executive's
                employment hereunder shall terminate upon his death. In such event,
                the
                Company shall, within thirty (30) days following the date of death,
                pay to
                such Person as 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 payment equal to (i) the Salary that would have been due
                to
                Executive had this Agreement been in effect from the date of his
                death
                until the Expiration Date and (ii) the entire remaining unpaid balance
                of
                the Retirement Compensation as provided in Section 7.6 below, determined
                as of the Termination Date. 

            

    

     

    
      	7.2.2     
                	
              Upon
                Executive’s death during or after the Employment Term, the Company shall,
                within thirty (30) days following the date of death, also pay to
                such
                Person as 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 death benefit in the amount of three (3) million dollars
                in
                accordance with the Death Benefit Agreement attached as Exhibit
                A
                hereto.

            

    

     

    
      	7.2.3     
                	
              The
                Company shall, within thirty (30) days following Executive’s date of
                death, also pay to such Person as 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 equal to (i) any accrued and
                unpaid
                Salary through his date of death, and (ii) any bonuses payable to
                Executive for any fiscal periods of the Company ending prior to the
                date
                of death. Executive’s spouse shall continue to be entitled to medical,
                dental and health benefits pursuant to Section 5.3
                hereof.

            

    

     

    
      	7.3        
                	
              Incapacity.
                If
                Executive shall
                for at least six (6) consecutive months during the Employment Term
                have
                been unable to perform his material duties under this
                Agreement
                by
                reason of any medically determinable physical or mental impairment
                which
                can be expected to result in death or can be expected to last for
                a
                continuous period of not less than 12 months, the Company may terminate
                Executive's employment as provided in this Section 7.3. If the Company
                desires to so terminate Executive's employment, the Company
                shall:

            

    

     

    
      	(i) 
                    	
              give
                prompt notice to Executive of any such termination;
                

            

    

     

    
      	(ii)    
                	
              until
                the Expiration Date, continue to pay to Executive an annual amount
                equal
                to two (2) times the Salary in effect on the Termination Date. The
                payments shall be made in equal bi-monthly installments commencing
                on the
                first payroll period following the Termination
                Date;

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    
      	(iii)   
                	
              pay
                to Executive the entire remaining unpaid balance of the Retirement
                Compensation as provided in Section 7.6 and below, determined as
                of the
                Termination Date;

            

    

     

    
      	(iv)   
                	
              pay
                to Executive within ten (10) business days after the Termination
                Date a
                lump-sum equal to (A) any accrued and unpaid Salary through the
                Termination Date and (B) any bonuses payable to Executive for any
                fiscal
                periods of the Company ending prior to the Termination Date;
                and

            

    

     

    
      	(v)    
                	
              continue
                to provide medical, dental and health benefits as provided in Section
                5.3
                hereof.

            

    

     

    Any
      dispute between the Board and Executive with respect to Executive's incapacity
      shall be settled by reference to a competent medical authority mutually agreed
      to by the Board and Executive or his personal representative, whose decision
      shall be binding on all parties. 

     

    
      	7.4        
                	
              Change
                of Control; Definitions.

            

    

     

    
      	7.4.1     
                	
              Change
                of Control.
                If
                a “Change of Control” of the Company occurs, the Company will be obligated
                as provided in this Section 7.4.1. For purposes of determining the
                Company’s obligations under this Section 7.4.1, the date on which a Change
                of Control occurs shall be referred to as the “Change
                of Control Date.”
                If a Change of Control occurs during the Employment Term, the Company
                or
                its successor in interest shall:

            

    

     

    
      	(i)     
                	
              within
                five (5) business days after the Change of Control Date, pay to Executive
                the amount of any Gross-Up Payment payable by the Company to Executive
                under Section 7.8 hereof; 

            

    

     

    
      	(ii)    
                	
              continue
                to provide to Executive and his spouse, for their respective lifetimes,
                medical, dental and health benefits as provided in Section 5.3 hereof;
                provided,
                however,
                that the terms and level of such benefits shall be substantially
                similar
                as Executive and his spouse were receiving as of the Change of Control
                Date, or if greater, as they were receiving on December 31,
                2004;

            

    

     

    
      	(iii)   
                	
              provide
                that any stock options, restricted stock awards or other equity awards
                granted to Executive that would not vest on or prior to the Change
                of
                Control Date shall vest and, if applicable, be exercisable upon the
                earlier of (i) the Change of Control Date and (ii) the execution
                of an
                agreement, if any, that would constitute a Change of Control (regardless
                of whether such agreement is consummated), and, notwithstanding
                any termination of employment provisions set forth in the applicable
                agreement, such
                stock options (or similar equity awards) shall continue to be exercisable
                until their original stated expiration date;
                and

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    
      	7.4.2     
                	
              Termination
                or Resignation Contemporaneous with a Change of Control.
                If, contemporaneously
                with a Change of Control, Executive’s employment is terminated by the
                Company for any reason or Executive resigns his employment for any
                reason
                the Company shall:

            

    

     

    
      	(i)     
                	
              pay
                to Executive within ten (10) business days after the Termination
                Date a
                lump-sum equal to (A) any accrued and unpaid Salary through the
                Termination Date and (B) any bonuses payable to Executive for any
                fiscal
                periods of the Company ending prior to the Termination
                Date;

            

    

     

    
      	(ii)    
                	
              pay
                to Executive the entire remaining unpaid balance of the Retirement
                Compensation, as provided in Section 7.6 and below, determined as
                of the
                Termination Date;

            

    

     

    
      	(iii)   
                	
              continue
                to provide medical, dental and health benefits as provided in Section
                5.3
                hereof;

            

    

     

    
      	(iv)   
                	
              engage
                Executive to render consulting services to the Company in accordance
                with
                Section 7.7 hereof; and 

            

    

     

    
      	(v)    
                	
              pay
                to Executive the Severance Payment pursuant to Section 7.5
                hereof.

            

    

     

    
      	7.4.3     
                	
              Resignation
                for Good Reason following a Change of Control.
                If,
                following a Change of Control, Executive resigns his employment for
                Good
                Reason, then on the Termination Date, Executive shall receive payment
                of
                (A) any accrued and unpaid Salary through the Termination Date, (B)
                any
                bonuses payable to Executive for any fiscal periods of the Company
                ending
                prior to the Termination Date, (C) a lump sum equal to his Salary
                from the
                Termination Date through the Expiration Date, (D) the entire remaining
                unpaid balance of the Retirement Compensation pursuant to Section
                7.6
                hereof, determined as of the Expiration Date, and (E) the Severance
                Pay
                pursuant to Section 7.5 hereof. In addition, (x) Executive and his
                spouse
                shall continue to be entitled to medical, dental and health benefits
                pursuant to Section 5.3 hereof, (y) any stock options, restricted
                stock
                awards or other equity awards granted to Executive that would not
                vest on
                or prior to the Termination Date shall vest and be exercisable
                immediately, and, notwithstanding
                any termination of employment provisions set forth in the applicable
                agreement, all
                stock options shall continue to be exercisable until their original
                stated
                expiration date and (z) the
                Company shall engage Executive to render consulting services to the
                Company in accordance with Section 7.7 hereof.

            

    

     

    
      	7.4.4     
                	
              Grantor
                Trust.
                If, at anytime during the Employment Term it appears that a Change
                of
                Control is likely to occur, the Company hereby agrees to establish
                a
                grantor trust pursuant to Subpart E, part I, subchapter J, chapter
                I,
                subtitle A of the Code. The grantor trust shall serve as a vehicle
                for
                accumulating assets to secure its potential obligations to Executive
                in
                the event of a Change of Control. Such obligation may be paid from
                the
                general assets of the Company or from the assets of any such rabbi
                trust.
                Any trust so established and any assets held therein will be subject
                to
                the claims of the Company’s
                creditors.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    
      	7.4.5     
                	
              Definitions.
                

            

    

     

    
      	(i)     
                	
              For
                purposes of this Agreement, a “Change
                of Control”
                means:

            

    

     

    
      	(A)    
                	
              Individuals
                who, as of January 1, 2005 (the “Effective
                Date”)
                constitute the Board (the “Incumbent
                Board”)
                cease for any reason to constitute at least a majority of the Board,
                provided
                that any Person becoming a director subsequent to the Effective Date
                whose
                election, or nomination for election by the Company's shareholders,
                was
                approved by a vote of at least a majority of the directors then comprising
                the Incumbent Board (other than an election or nomination of an individual
                whose initial assumption of office is in connection with an actual
                or
                threatened election contest relating to the election of the directors
                of
                the Company, as such terms are used in Rule 14a-11 of Regulation
                14A
                promulgated under the Securities Exchange Act) shall be, for purposes
                of
                this Agreement, considered as though such Person were a member of
                the
                Incumbent Board; 

            

    

     

    
      	    
              (B)       	
              a
                transaction or other event occurs such that any Person or Persons
                acting
                as a group acquires ownership of stock of the Company that, together
                with
                stock held by such Person or group, constitutes more than 50% of
                the total
                fair market value or total voting power of the stock of the
                Company;

            

    

     

    
      	(C)    
                	
              a
                transaction or other event occurs such that any one Person or group
                acquires (or has acquired during the 12-month period ending on the
                date of
                the most recent acquisition by such Person or group) ownership of
                stock of
                the Company possessing 35% or more of the total voting power of the
                stock
                of the Company; or

            

    

     

    
      	(D)    
                	
              a
                transaction or other event occurs such that any one Person or group
                acquires (or has acquired during the 12-month period ending on the
                date of
                the most recent acquisition by such Person or group) ownership of
                assets
                of the Company that have a total gross fair market value equal to
                or more
                than 40% of the total gross fair market value of all of the assets
                of the
                Company immediately prior to such acquisition or acquisitions;
                provided,
                however,
                that no acquisition of ownership of the assets of the Company shall
                be
                deemed a Change of Control if the acquiring Person or group
                is:

            

    

     

    
      	(1)   
                	
              A
                shareholder of the Company in exchange for or with respect to its
                stock;

            

    

     

    
      	(2)   
                	
              Any
                Majority Owned Entity, as defined below, of the
                Company;

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    
      	(3)   
                	
              A
                Person or group of which the Company is a Majority Owned Entity;
                or

            

    

     

    
      	(4)   
                	
              A
                Majority Owned Entity of any Person or group described by (3),
                above.

            

    

     

    
      	(ii)       	
              For
                the purposes of this Section 7.4.5, Persons will not be considered
                to be
                acting as a group solely because they purchase or own stock of the
                same
                corporation at the same time, or as the result of the same public
                offering. However, Persons will be considered to be acting as a group
                if
                they are owners of a Person that enters into a merger, consolidation,
                purchase or acquisition of stock or assets or similar business transaction
                with the Company.

            

    

     

    
      	(iii)      	
              For
                the purposes of this Section 7.4.5, a “Majority
                Owned Entity”
of
                any Person is any entity, 50% or more of the total value or voting
                power
                of which is owned, directly or indirectly, by such
                Person.

            

    

     

    
      	(iv)      	
              A
                Change of Control shall occur on the effective date of any event
                specified
                in Section 7.4.5(i) above. In connection with any determination of
                ownership for purposes of Section 7.4.5(i) above, the attribution
                rules of
                Section 318(a) of the Internal Revenue Code of 1986, as amended,
                (the
                “Code”)
                shall apply.

            

    

     

    
      	(v)       	
              For
                purposes of this Agreement, “Good
                Reason”
                means:

            

    

     

    
      	(A)    
                	
              Any
                decrease in Executive’s Salary or a failure by the Company to pay any
                material compensation due and payable to Executive in connection
                with his
                employment;

            

    

     

    
      	(B)    
                	
              Any
                change in Executive’s responsibilities, positions, duties, status title or
                reporting relationships;

            

    

     

    
      	(C)     
               	
              Executive
                ceasing to be the Chief Executive Officer of a publicly traded company
                pursuant to this Agreement;

            

    

     

    
      	(D)    
                	
              Following
                a Change of Control, the Company (or its successor) requiring Executive
                to
                be based at any office or location other than Executive’s principal place
                of employment immediately prior to the effective date of the Change
                of
                Control, if applicable; or

            

    

     

    
      	(E)    
                	
              A
                material breach by the Company of any term of this
                Agreement;

            

    

     

    provided
      that
      Executive has given notice thereof to the Company and the Company has not cured
      the Good Reason within thirty (30) days after receiving such notice.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     

    
      	7.5         
               	
              Severance
                Pay.
                

            

    

     

    If
      Executive's employment with the Company is terminated for any reason, other
      than
      due to (i) Executive's death pursuant to Section 7.2 hereof, or (ii) Executive's
      incapacity pursuant to Section 7.3 hereof, then within five (5) business days
      after Executive's Termination Date, the Company shall pay to Executive, a lump
      sum amount equal to the Salary in effect on the Termination Date, which lump
      sum
      shall not be pro-rated. The obligations of the Company pursuant to this Section
      7.5 are in addition to any other obligations under Section 7
      hereof.

     

    
      	7.6        
                	
              Retirement
                Compensation.
                

            

    

     

    
      	7.6.1     
                	
              Amount
                of Retirement Compensation.
                In
                recognition that Executive founded the Company and will not be eligible
                for any retirement plan to be offered by the Company to its executives
                (as
                provided in Section 5.3 above), Executive shall be entitled to retirement
                compensation (“Retirement
                Compensation”)
                equal to the product of (i) 150% times (ii) the annual Salary then
                in
                effect (the “Specified
                Annual Salary”)
                multiplied by (iii) the number of years of service provided by Executive
                to the Company, such service having commenced as of August 1, 1987
                (“Commencement
                Date”),
                with a ratable adjustment should Executive's final period of service
                be
                less than a full year. The Retirement Compensation as so determined
                shall
                be paid to Executive (or in the event of Executive's subsequent death,
                to
                such Person as Executive shall have designated in a notice filed
                with the
                Company or, if no such Person shall have been designated, to his
                estate)
                at the times specified in Section 7.6.2 below, or contributed to
                the
                Retirement Trust described in Section 7.6.3 below in accordance with
                that
                Section. The amount of the Retirement Compensation so due and payable
                shall not be present-valued or otherwise reduced by use of any other
                discount or discounting
                method.

            

    

     

    
      	7.6.3     
                	
              Payment
                of Retirement Compensation.

            

    

     

    
      	(i)     
                	
              Within
                five business days after the date on which the BE Aerospace, Inc.
                Executive Compensation Trust II dated April 21, 1999, as amended,
                is
                terminated (the “Distribution
                Date”),
                the Company will distribute the amount of Retirement Compensation
                that
                would have been payable to Executive under Section 7.6.1 as of the
                Distribution Date, based on his years of service through the Distribution
                Date and his then Specified Annual
                Salary.

            

    

     

    
      	(ii)    
                	
              Within
                five (5) business days after Executive's actual Termination Date,
                the
                Company shall pay to Executive an amount equal to (x) the Retirement
                Compensation payable to Executive as determined in Section 7.6.1
                hereof
                less (y) the sum of (1) the amount of Retirement Compensation previously
                distributed to Executive pursuant to Section 7.6.2(i) hereof, and
                (2) the
                amounts previously distributed pursuant to Section 7.6.3(i) or 7.6.3(ii).
                

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    
      	7.6.4     
                	
              Retirement
                Trust.

            

    

     

    
      	(i)     
                	
              Within
                ninety days after the Distribution Date, the Company shall establish
                a
                trust for the duration of the Employment Term, and, commencing on
                such
                date and on a quarterly basis thereafter, each a “Contribution
                Date”
                the Company shall contribute to the trust (the “Retirement
                Trust”)
                for the benefit of Executive an amount equal to (a) the Retirement
                Compensation that would be payable to Executive under Section 7.6.2(ii)
                if
                the Contribution Date was his Termination Date minus (b) the total
                of all
                contributions made to the Retirement Trust by the Company as of such
                Contribution Date. The Retirement Trust to which the Company shall
                make
                these contributions shall be irrevocable. The Retirement Trust shall
                provide that Executive may withdraw from the Retirement Trust, within
                the
                30 day period beginning on the date on which he receives notice from
                the
                Company that the Company has made a contribution pursuant to this
                Section
                7.6.3(i) an amount up to but not to exceed the amount of that
                contribution. If and to the extent that Executive fails to exercise
                this
                withdrawal right within the 30 day period, such withdrawal right
                shall
                lapse. The Retirement Trust also shall contain such other provisions
                as
                the Company and Executive reasonably agree are necessary in order
                for the
                Retirement Trust to qualify as a grantor trust under Section 671
                of the
                Code with Executive as the grantor. The trust agreement for the Retirement
                Trust shall provide that any assets remaining in the Retirement Trust,
                after payment of all the Retirement Compensation payable pursuant
                to this
                Section 7.6, shall be paid to Executive, and that the Retirement
                Trust
                shall be exempt from the claims of the Company's
                creditors.

            

    

     

    
      	(ii)    
                	
              As
                of the last day of each calendar quarter ending on or after the
                Distribution Date, during the Employment Term, the trustee of the
                Retirement Trust shall be required to distribute to Executive 25%
                of the
                amount by which (x) the Assumed Taxes that the Company reasonably
                estimates will be assessed upon Executive for the calendar year for
                which
                the distribution is being made as a result of his beneficial interest
                in
                the Retirement Trust, exceeds (y) the amount withdrawn by Executive
                in
                such calendar year pursuant to Section 7.6.3(i). For this purpose,
                the
                term “Assumed Taxes” shall mean the Federal, State and local income and
                employment taxes that would be payable by Executive for the year
                in
                question, assuming that the amount taxable would be subject to the
                highest
                Federal and applicable State and local income and employment
                taxes.

            

    

     

    
      	7.7        
                	
              Consulting
                Arrangement.
                In
                the event that Executive's employment terminates for any reason
                (including, without limitation, Executive's voluntary resignation)
                other
                than death pursuant to Section 7.2 or incapacity pursuant to Section
                7.3,
                then the Company shall retain Executive to perform consulting services
                for
                a period of five (5) years following the Termination Date (the
                “Consulting
                Period”).
                The terms of Executive’s consulting arrangement are set forth on
                Exhibit
                B
                attached hereto.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    
      	7.8        
                	
              Certain
                Additional Payments by the Company.

            

    

     

    
      	7.8.1     
                	
              Anything
                in this Agreement to the contrary notwithstanding, in the event it
                shall
                be determined that any payment, distribution, benefit, equity-based
                or
                other compensation or other transfer or action by the Company to
                or for
                the benefit of Executive (whether paid or payable or distributed
                or
                distributable pursuant to the terms of this Agreement or otherwise
                and
                including without limitation any additional payments required under
                this
                Section 7.8) (a “Payment”)
                would be subject to an excise tax imposed by Section 4999 of the
                Code, or
                any interest or penalties are incurred by 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 Executive (a “Gross-Up
                Payment”)
                in an amount such that after payment by Executive of all taxes (including
                any Excise Tax) imposed upon the Gross-Up Payment, 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 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, Executive
                shall be deemed to (i) pay federal income taxes at the highest marginal
                rates of federal income taxation for the calendar year in which the
                Gross-Up Payment is to be made, and (ii) pay applicable state and
                local
                income taxes at the highest marginal rate 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.

            

    

     

    
      	7.8.2     
                	
              Subject
                to the provisions of Section 7.8.3, all determinations required to
                be made
                under this Section 7.8, 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 Executive within 15 business days of the receipt of notice from
                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, 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 7.8, shall be paid by the Company to Executive within
                five
                days of the receipt of the Accounting Firm's determination. If the
                Accounting Firm determines that no Excise Tax is payable by Executive,
                it
                shall furnish Executive with a written opinion that failure to report
                the
                Excise Tax on 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
                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
                7.8 and
                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 Executive.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

     

    
      	7.8.3     
                	
              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 business days after 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. Executive shall not pay such claim prior to the expiration
                of the
                30-day period following the date on which it 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
                Executive in writing prior to the expiration of such period that
                it
                desires to contest such claim, Executive
                shall:

            

    

     

    
      	(i)     
                	
              give
                the Company any information reasonably requested by the Company relating
                to such claim,

            

    

     

    
      	(ii)    
                	
              take
                such action in connection with contesting such claim as the Company
                shall
                reasonably request in writing from time to time, including, without
                limitation, accepting legal representation with respect to such claim
                by
                an attorney reasonably selected by the
                Company,

            

    

     

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

            

    

     

    
      	(iv)   
                	
              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 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 7.8.3, 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 Executive to pay the tax claimed and
      sue
      for a refund or contest the claim in any permissible manner, and 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 Executive to pay such claim and sue for a refund, the
      Company shall advance the amount of such payment to Executive, on an
      interest-free basis and shall indemnify and hold 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 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 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.

     

    
      	7.8.4     
                	
              If,
                after the receipt by Executive of an amount advanced by the Company
                pursuant to Section 7.8.3, Executive becomes entitled to receive
                any
                refund with respect to such claim, Executive shall (subject to the
                Company's complying with the requirements of Section 7.8.3 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
                Executive of an amount advanced by the Company pursuant to Section
                7.8.3,
                a determination is made that Executive shall not be entitled to any
                refund
                with respect to such claim and the Company does not notify Executive
                in
                writing of its intent to contest such denial of refund prior to the
                expiration of 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.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

     

    7.9  
Restricted
      Stock Award.
      On July
      31, 2006, the Company granted to Executive, without payment by Executive,
      387,878 shares of restricted common stock of the Company (the “Restricted
      Stock”).
      The
      Restricted Stock was granted pursuant to and on the terms provided in the
      Company’s 2005 Long-Term Incentive Plan, as amended (the “Plan”),
      and,
      to the extent not inconsistent with the terms hereof, the applicable Restricted
      Stock Award Document (as defined in the Plan). The Restricted Stock granted
      to
      Executive pursuant to this Section 7.9 will vest and become unrestricted ratably
      over a four-year period commencing on July 31, 2007, the first anniversary
      of
      the grant date and or each anniversary thereafter, provided
      that
      Executive is employed by the Company or is rendering consulting services
      pursuant to Section 7.7 hereof on each vesting date. In addition, the Restricted
      Stock will immediately become fully vested and unrestricted, (i) immediately
      prior to a Change of Control, (ii) upon Executive’s death or termination due to
      incapacity, or (iii) upon termination of Executive’s employment by the Company
      for any reason. For the avoidance of doubt, all vesting of the Restricted Stock
      pursuant to this Section 7.9 shall be subject to the provisions of Sections
      7.8
      and 12 of this Agreement. 

     

    
      	8.         
                	
              WITHHOLDING.
                

            

    

     

    Without
      limiting the effect of Sections 7.8 and 12, all payments made by the Company
      under this Agreement shall be reduced by any amounts in respect of income,
      social security, FICA and other similar taxes at the then-prevailing rates
      required to be withheld by the Company under applicable law.

     

    
      	9.         
                	
              INDEMNIFICATION.
                

            

    

     

    To
      the
      maximum extent permitted under Florida law
      as
      from time to time in effect, and subject to any mandatory exclusion of
      indemnification under Delaware law applicable to the indemnification of
      Executive under this Section 9, the Company hereby agrees to indemnify Executive
      and hold him harmless from, against and in respect of any and all damages,
      deficiencies, actions, suits, proceedings, demands, assessments, judgments,
      claims, losses, costs, expenses, obligations and liabilities arising from or
      related to the performance of the services under this Agreement by
      Executive.

     

    
      	10.       
                	
              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.  

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

     

    
      	11.       
                	
              UNFUNDED
                STATUS.

            

    

     

    This
      Agreement is intended to constitute an unfunded plan for incentive compensation.
      Except with respect to the Retirement Compensation, nothing contained herein
      shall give Executive any rights that are greater than those of a general
      unsecured creditor of the Company. In its sole discretion, the Stock Option
      and
      Compensation Committee of the Board may authorize the creation of trusts,
      acquisition of life insurance policies or other arrangements to meet the
      obligations created under this Agreement.

     

    
      	12.       
                	
              SECTION
                409A. 

            

    

     

    
      	12.1      
                	
              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
                first business day following the date which is six months after
                Executive’s termination of employment for any reason other than death or
                (ii) Executive’s date of death. The Company shall establish a trust
                pursuant to Rev. Proc. 92-64, promulgated under subpart
                E, part I, subchapter J, chapter 1, subtitle A of the Code,
                as
                modified by Notice 2000-56, and fund any such payments that are deferred
                pursuant to this Section 12.1 that otherwise would be immediately
                payable
                to Executive. The provisions of this Section 12.1 shall only apply
                if
                required to comply with Section 409A of the
                Code.

            

    

     

    
      	12.2      
                	
              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 Executive hereunder,
                this Agreement or any provision hereof may be reformed by 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. Executive agrees in good
                faith to
                consider any such reformation proposed by the
                Company.

            

    

     

    
      	12.3      
                	
              The
                provisions of Section 7.8 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.

            

    

     

    
      	13.       
                	
              WAIVER.
                

            

    

     

    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 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.

     

    
      	14.       
                	
              SEVERABILITY.
                

            

    

     

    If
      any
      part of this Agreement is found to be invalid or unenforceable, that part will
      be deemed 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 and effect.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

     

    
      	15.       
                	
              NOTICES.
                

            

    

     

    Any
      notice
      or other communication in connection with this Agreement shall be deemed to
      be
      delivered if in writing, addressed as provided below (or to such other Person
      or
      address as to which either party may notify the other in accordance with this
      Section 15) and actually delivered at said address:

    If
      to
      Executive, to him at:

    

    Amin
      J.
      Khoury

            149
      South Beach Road

    Hobe
      Sound, FL 33455

    

    If
      to the
      Company, to it at:

    

    BE
      Aerospace, Inc.

    1400
      Corporate Center Drive

    Wellington,
      FL 33414

    Attention:
      General Counsel

    

    
      	16.       
                	
              SURVIVAL.
                

            

    

     

    The
      provisions of Sections 5.3 and 6 through 17 inclusive hereof shall each survive
      any termination or expiration of this Agreement. 

     

    
      	17.       
                	
              MISCELLANEOUS.
                

            

    

     

    This
      Agreement, including the attached exhibits, constitutes the entire understanding
      of the parties with respect to the subject matter hereof, and supersedes all
      prior and contemporaneous understandings and agreements, whether oral or
      written, regarding such subject matter. This Agreement may be amended or
      modified only by a written instrument signed by Executive and by a duly
      authorized representative of the Company. This Agreement may be executed in
      any
      number of counterparts, which together shall constitute one and the same
      instrument.  Except
      as
      otherwise provided in this Agreement, this
      Agreement shall be governed by and construed in accordance with the laws (other
      than the conflicts of law rules) of the State of Florida.

    

    

    IN
      WITNESS
      WHEREOF, the parties hereto have hereunto set their hands, as of the date first
      above written.

    

      
        	
                EXECUTIVE

              	
                BE
                  AEROSPACE, INC.

              
	 	 
	 	 
	
                ____________________________

              	
                By:____________________________

              
	 	
                Title:
                  

              
	 	 
	 	 
	 	
                By:
                  ____________________________

              
	 	
                Title:

              

      

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
 

    Exhibit
      A

     

    Death
      Benefit Agreement

    

    

    

    

     

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

     

    Exhibit
      B

     

    Consulting
      Terms

     

     

     

     

     

    B-1Exhibit 10.3

    Exhibit
      10.3

     

    AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT

     

    This
      Amended and Restated Employment Agreement (this “Agreement”)
      is made
      as of April 27, 2007 by and between BE Aerospace, Inc., a Delaware corporation
      (the “Company”),
      and
      Thomas P. McCaffrey (“Executive”).

     

    RECITALS

     

    WHEREAS,
      Executive and the Company entered into an Amended and Restated Employment
      Agreement dated as of July 31, 2006 (the “Employment
      Agreement”);
      and

     

    WHEREAS,
      Executive, having provided services to the Company since May 1, 1993, agrees
      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 further amend and restate the Employment
      Agreement in its entirety in the manner set forth herein; 

     

    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.  Term.
      Unless
      otherwise terminated pursuant to the provisions of Section 5 hereof, Executive
      shall provide to the Company services hereunder during the term of his
      employment under this Agreement, which shall be the period ending three (3)
      years from any date as of which the term is being determined (the “Employment
      Term”).
      The
      date on which the Employment Term ends, including any extensions thereof, is
      sometimes hereinafter referred to as the “Expiration
      Date.”

     

    3.  Position
      and Duties.
      Executive shall serve the Company in the capacity of Senior Vice President
      of
      Administration and Chief Financial Officer, or in such other position as the
      Chief Executive Officer of the 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. Executive shall perform and discharge, faithfully, diligently and
      to
      the best of his ability, such duties and responsibilities. Executive shall
      devote substantially all of his working time and efforts to the business and
      affairs of the Company.

     

    4.  Compensation.
      

     

     (a)  Salary.
      Effective as of January 1, 2006, Executive shall receive an annual salary (the
      “Salary”)
      payable
      at the rate of four hundred forty-five thousand dollars ($445,000) per annum.
      Such rate shall be subject to adjustment from time to time by the Board as
      hereinafter provided; 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 month period (January through December) immediately preceding such
      January 1. If the Index is no longer issued, the Board and 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.
      So long
      as employed, Executive may receive an incentive bonus for each fiscal year
      or
      portion thereof during which Executive has been employed hereunder as determined
      by the Board at the end of the applicable fiscal year. The incentive bonus,
      if
      any, shall be paid in accordance with Company policy, but in any event, no
      later
      than March 15th
      of the
      year following the year in which it shall accrue.

     

     (c)  Expenses.
      So long
      as employed, Executive shall be entitled to receive prompt payment of, or
      reimbursement for, all reasonable business expenses incurred by him on behalf
      of
      the Company. Any reimbursement shall be paid in accordance
      with
      Company policy, but in any event, no later than March 15th
      of the
      year following the year in which it shall accrue.

     

     (d)  Benefits.
      Executive shall be entitled to participate in all employee benefit plans, life
      insurance plans, disability income plans, incentive compensation plans and
      other
      benefit plans, other than retirement plans, as may be from time to time in
      effect for executives of the Company generally. In accordance with Company
      policy, 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. In addition, upon termination of Executive’s employment with the
      Company due to his death or Incapacity, the Executive and his eligible
      dependents shall be entitled on similar terms and conditions as active
      executives, for a period of two (2) years, to participate in all medical, dental
      and health benefit plans available to the Company’s executive officers from time
      to time to the extent the Company plans constitute welfare plans for purposes
      of Section
      409A of the Internal Revenue Code of 1986, as amended and the regulations and
      guidance promulgated thereunder (the “Code”).

     

     (e)  Automobile.
      So long
      as employed, Executive shall receive an automobile either owned or leased by
      the
      Company or a monthly automobile allowance of $1,100 per month, at the discretion
      of the Company. The automobile allowance, if applicable, shall be paid in
      accordance with Company policy, but in any event, no later than March
      15th
      of the
      year following the year in which it shall accrue.

     

     (f)  Equity
      Compensation.
      So long
      as employed, Executive shall be entitled to participate in any applicable equity
      compensation program of the Company in effect from time to time.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

       

    

    5.  Termination
      and Compensation Thereon.

     

     (a)  Termination
      Date.
      The term
“Termination
      Date”
shall
      mean the date on which Executive’s employment with the Company is terminated for
      any reason.

     

     (b)  Death.
      

     

    (i)  Executive’s
      employment hereunder shall terminate upon his death. In such event, the Company
      shall, within thirty (30) days following the date of death, pay to such natural
      person, trust, corporation, limited liability company, limited or general
      partnership, or any other entity (each a “Person”)
      as
      Executive shall have designated in a notice filed with the Company, or, if
      no
      such Person shall have been designated, to his estate, (A) the entire remaining
      unpaid balance of the Retirement Compensation as provided in Section 5(g) below,
      determined as of the Termination Date and (B) a lump sum payment amount equal
      to
      the Salary that would have been due to Executive had this Agreement been in
      effect from the date of his death until the Expiration Date.

     

    (ii)  Upon
      Executive’s death during or after the Employment Term, the Company shall, within
      thirty (30) days following the date of death, also pay to such Person as
      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 death benefit
      in the amount of one (1) million dollars in accordance with the Death Benefit
      Agreement attached as Exhibit
      A
      hereto.

     

    (iii)  Upon
      Executive’s death, the Company shall, within thirty (30) days following the date
      of death, also pay to such Person as 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 equal to (A) any accrued and unpaid Salary through the date
      of death, and (B) any bonuses declared to be payable to Executive for any fiscal
      periods of the Company ending prior to the date of death. 

     

    (iv)  Following
      the Executive’s death, his eligible dependents shall be entitled to continuation
      of medical, dental and health benefits for two (2) years in accordance with
      Section 4(d) hereof.

     

     (c)  Incapacity.
      If the
      Executive shall, for at least six (6) consecutive months during the Employment
      Term, have been unable to perform his material duties under this Agreement
      by
      reason of any medically determinable physical or mental impairment which can
      be
      expected to result in death or can be expected to last for a continuous period
      of not less than 12 months, the Company may terminate Executive's employment
      as
      provided in this Section 5(c). If the Company desires to so terminate
      Executive's employment, the Company shall:

     

    (i)  give
      prompt notice to Executive of any such termination; 

     

    (ii)  until
      the
      Expiration Date, (A) pay to Executive the Salary in effect on the Termination
      Date, and (B) continue to provide Executive with the automobile allowance
      provided pursuant to Section 4(e) hereof immediately prior to the Termination
      Date in accordance with the Company’s payroll practices in effect on the
      Termination Date; 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (iii)  provide
      the Executive and his eligible dependents with continuation of medical, dental
      and health benefits for two (2) years in accordance with Section 4(d) hereof;
      

     

    (iv)  pay
      to the
      Executive, the entire remaining unpaid balance of the Retirement Compensation
      as
      provided in Section 5(g) below, determined as of the Termination Date;
      and

     

    (v)  pay
      to the
      Executive (A) any accrued and unpaid Salary through the Termination Date and
      (B)
      any bonuses declared to be payable to Executive for any fiscal periods ending
      prior to the Termination Date.

     

     (d)  Termination
      by the Company or the Executive.
      

     

    (i)  Termination
      by the Company for Cause.
      The
      Company may, at any time, terminate Executive’s employment hereunder with
“Cause.” Upon a termination for Cause, the Company shall have no further
      obligations to Executive hereunder, except for payment of any accrued and unpaid
      Salary through the Termination Date. For purposes of this Agreement,
“Cause”
shall
      mean any of the of the following: 

     

    (A)  the
      willful and continued (after a reasonable period following such demand) failure
      by the Executive to substantially perform his duties hereunder (other than
      (1)
      any such willful or continued failure resulting from his incapacity due to
      physical or mental illness or physical injury or (2) any such actual or
      anticipated failure after the issuance of a notice of termination by the
      Executive for Good Reason (as defined below)), after written demand for
      substantial performance is delivered by the Company to the Executive that
      specifically identifies the manner in which the Company believes the Executive
      has not substantially performed his duties; 

     

    (B)  the
      willful engaging by the Executive in misconduct which is materially injurious
      to
      the Company, monetarily or otherwise; or 

     

    (C)  the
      conviction of the Executive of a felony by a court of competent jurisdiction
      in
      a judgment which has become final and nonappealable if such conviction would
      render it impossible for the Executive to perform his obligations hereunder
      or
      if the reputation of the Company would be materially damaged by the continuance
      of the Executive’s employment hereunder. 

     

    For
      purposes of this Section 5(d)(i) no act, or failure to act, on the part of
      the
      Executive shall be considered “willful” unless done or omitted to be done by him
      in bad faith and without reasonable belief that his action or omission was
      in
      the best interest of the Company. If Executive’s employment is terminated by the
      Company for Cause pursuant to this Section 5(d)(i), the Company shall have
      no
      further obligations to Executive hereunder after the Termination Date, except
      for the payment of any unpaid Salary and benefits accrued through the
      Termination Date. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (ii)  Termination
      without Cause or for Good Reason other than Contemporaneously with a Change
      of
      Control.

     

    (A)  The
      Company may, at any time, terminate Executive’s employment hereunder without
      Cause and Executive may terminate Executive’s employment hereunder with “Good
      Reason” (as defined below). 

     

    (B)  If
      Executive’s employment is terminated by the Company without Cause or by
      Executive with Good Reason other than contemporaneously with a Change of Control
      (as defined below), then, on the Termination Date, Executive shall receive
      payment of:

     

    (1)
      any
      accrued and unpaid Salary through the Termination Date;

     

    (2)
      any
      bonuses declared to be payable to Executive for any fiscal periods of the
      Company ending prior to the Termination Date; 

     

    (3)
      a
      lump sum
      equal to his Salary from the Termination Date through the Expiration
      Date;

     

    (4)
      the
      entire remaining unpaid balance of the Retirement Compensation pursuant to
      Section 5(g) hereof, determined as of the Expiration Date; and 

     

    (5)
      the
      Severance Pay pursuant to Section 5(f) hereof. 

     

    (C)  In
      addition, upon a termination without Cause or for Good Reason other than
      contemporaneously with a Change of Control, any stock options or restricted
      stock awards (or other equity awards) (“Equity
      Awards”)
      granted
      to Executive that would not vest on or prior to the Termination Date shall
      vest
      and be exercisable immediately and, notwithstanding any termination of
      employment provisions set forth in the applicable agreement, such stock options
      shall continue to be exercisable until their original stated expiration date.
      

     

    (iii)  Termination
      by Executive without Good Reason.
      Executive may terminate his employment hereunder without Good Reason. If
      Executive’s employment is terminated by Executive without Good Reason, then, on
      the Termination Date, Executive shall receive payment of (A) any accrued and
      unpaid Salary through the Termination Date, (B) any bonuses declared to be
      payable to Executive for any fiscal periods of the Company ending prior to
      the
      Termination Date, and (C) the entire remaining unpaid balance of the Retirement
      Compensation pursuant to Section 5(g) hereof, determined as of the Termination
      Date.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (e)  Change
      of Control.
      

     

    (i)  If
      a
“Change of Control” (as defined in Section 5(e)(ii)) of the Company occurs, the
      Company will be obligated as provided in this Section 5(e). For purposes of
      determining the Company’s obligations under this Section 5(e), the date on which
      a Change of Control occurs shall be referred to as the “Change
      of Control Date.”
If
      a
      Change of Control occurs during the Employment Term, the Company or its
      successor in interest shall: 

     

    (A)  within
      five (5) business days after the Change of Control Date, pay to Executive,
      the
      amount of any Gross-Up Payment payable by the Company to Executive under Section
      5(h) hereof;

     

    (B)  provide
      that any Equity Awards granted to Executive that would not vest on or prior
      to
      the Change of Control Date shall vest and, if applicable, be exercisable upon
      the earlier of (x) the Change of Control Date and (y) the execution of an
      agreement, if any, that would constitute a Change of Control (regardless of
      whether such agreement is consummated), and, notwithstanding any termination
      of
      employment provisions set forth in the applicable agreement, such Equity Awards
      shall continue to be exercisable until their original stated expiration
      date.

     

    (ii)  Termination
      Contemporaneously
      with
      a
      Change of Control.
      If the
      Executive’s employment is terminated contemporaneously with a Change of Control,
      the Company shall pay to the Executive (i) within ten (10) business days after
      the Termination Date a lump-sum equal to (A) any accrued and unpaid Salary
      through the Termination Date and (B) any bonuses payable to Executive for any
      fiscal periods of the Company ending prior to the Termination Date, (ii) the
      entire remaining unpaid balance of the Retirement Compensation, as provided
      in
      Section 5(g) below determined as of the Termination Date; and (iii) the
      Severance Payment pursuant to Section 7.5 hereof. 

     

    (iii)  For
      purposes of this provision, a “Change
      of Control”
      means:

     

    (A)  Individuals
      who, as of January 1, 2005 (the “Effective
      Date”)
      constitute the Board (the “Incumbent
      Board”)
      cease
      for any reason to constitute at least a majority of the Board, provided
      that any
      Person becoming a director subsequent to the Effective Date whose election,
      or
      nomination for election by the Company’s shareholders, was approved by a vote of
      at least a majority of the directors then comprising the Incumbent Board (other
      than an election or nomination of an individual whose initial assumption of
      office is in connection with an actual or threatened election contest relating
      to the election of the directors of the Company, as such terms are used in
      Rule
      14a-11 of Regulation 14A promulgated under the Securities Exchange Act) shall
      be, for purposes of this Agreement, considered as though such Person were a
      member of the Incumbent Board; 

     

    (B)  a
      transaction or other event occurs such that any Person or Persons acting as
      a
      group acquires ownership of stock of the Company that, together with stock
      held
      by such Person or group, constitutes more than 50% of the total fair market
      value or total voting power of the stock of the Company;

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

       

    

    (C)  a
      transaction or other event occurs such that any one Person or group acquires
      (or
      has acquired during the 12-month period ending on the date of the most recent
      acquisition by such Person or group) ownership of stock of the Company
      possessing 35% or more of the total voting power of the stock of the Company;
      or

     

    (D)  a
      transaction or other event occurs such that any one Person or group acquires
      (or
      has acquired during the 12-month period ending on the date of the most recent
      acquisition by such Person or group) ownership
      of assets of the Company that have a total gross fair market value equal to
      or
      more than 40% of the total gross fair market value of all of the assets of
      the
      Company immediately prior to such acquisition or acquisitions; provided,
      however,
      that no
      acquisition of ownership of the assets of the Company shall be deemed a Change
      of Control if the acquiring Person or group is:

     

    (1)
      A
      shareholder of the Company in exchange for or with respect to its
      stock;

    

    (2)
      Any
      Majority Owned Entity, as defined below, of the Company;

    

    (3)
      A
      Person
      or group of which the Company is a Majority Owned Entity;
      or

    

    (4)
      A
      Majority
      Owned Entity of any Person or group described by (3), above.

    

    (iv)  For
      the
      purposes of this Section 5(e), Persons will not be considered to be acting
      as a
      group solely because they purchase or own stock of the same corporation at
      the
      same time, or as the result of the same public offering. However, Persons will
      be considered to be acting as a group if they are owners of a Person that enters
      into a merger, consolidation, purchase or acquisition of stock or assets or
      similar business transaction with the Company.

     

    (v)  For
      the
      purposes of this Section 5(e), a “Majority
      Owned Entity”
of
      any
      Person is any entity, 50% or more of the total value or voting power of which
      is
      owned, directly or indirectly, by such Person.

     

    (vi)  A
      Change
      of Control shall occur on the effective date of any event specified in Section
      5(e)(iii) above. In connection with any determination of ownership for purposes
      of Section 5(e)(iii) above, the attribution rules of Section 318(a) of the
      Code
      shall apply.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    (vii)  For
      purposes of this Agreement, “Good
      Reason”
      means:

     

    (A)  a
      decrease
      in Executive’s Salary or a failure by the Company to pay material compensation
      due and payable to Executive in connection with his employment;

     

    (B)  a
      change
      in Executive’s responsibilities, positions,
      duties, status, title or reporting relationships;

     

    (C)  Executive
      ceasing to be the Senior Vice President of Administration and Chief Financial
      Officer of a publicly traded company pursuant to this Agreement (or such other
      positions Executive holds (1) immediately prior to the Change of Control Date,
      if applicable, or (2), solely for purposes of Section 5(d), thirty (30) days
      prior to the Termination Date); 

     

    (D)  the
      Company’s requiring Executive to be based at any office or location that is
      anywhere other than Executive’s principal place of employment (1) immediately
      prior to the Change of Control Date, if applicable, or (2), solely for purposes
      of Section 5(d), thirty (30) days prior to the Termination Date; or

     

    (E)  a
      material
      breach by the Company of any term or provisions of this Agreement;

     

    provided
      that
      Executive has given notice thereof to the Company and the Company has not cured
      the Good Reason within thirty (30) days after receiving such
      notice.

     

    (f)  Severance
      Pay.
      

     

    (i)  If
      Executive’s employment hereunder is terminated at any time (A) by the Company
      without Cause or (B) by the Executive for Good Reason, then within five (5)
      business days after Executive’s Termination Date, the Company shall pay to
      Executive a lump sum amount equal to two (2) times the Salary (at the rate
      in
      effect as of the Termination Date), which lump sum shall not be
      pro-rated.

     

    (ii)  If
      Executive’s employment hereunder is terminated by Executive without Good Reason,
      then within five (5) business days after Executive’s Termination Date, the
      Company shall pay to Executive a lump sum amount equal to one (1) times the
      Salary (at the rate in effect as of the Termination Date), which lump sum shall
      not be pro-rated. For the avoidance of doubt, the severance payment pursuant
      to
      this Section 5(f)(ii) shall be payable upon the Executive’s retirement in
      accordance with Company policy. 

     

    (g)  Retirement
      Compensation.
      

     

    (i)  If
      Executive’s employment is terminated for any reason other than Cause, the
      Company shall pay to Executive a lump sum amount equal to the amount by which
      (A) the product of (1) one-half multiplied by Executive’s average annual salary
      for the three (3) year period preceding the Termination Date times (2) the
      number of years (including any partial year) since May 1, 1993 (the
“Retirement
      Compensation”)
      exceeds
      (B) the sum of any amounts previously distributed to Executive pursuant to
      Sections 5(g)(ii), 5(g)(iii) and 5(g)(iv). The lump sum amount to be paid shall
      not be present-valued or otherwise reduced by use of any other discount or
      discounting method. The payment will be made to Executive within five (5)
      business days following the Termination Date. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

     

    (ii)  Within
      five (5) business days after the date on which the BE Aerospace, Inc. Executive
      Compensation Trust II dated April 21, 1999, as amended, is terminated (the
      “Distribution
      Date”),
      the
      Company will distribute in a lump sum the amount of Retirement Compensation
      that
      would have been payable to Executive under Section 5(g)(i) as of the
      Distribution Date. 

     

    (iii)  Within
      ninety (90) business days of the Distribution Date, the Company shall establish
      a trust for the duration of the Employment Term, and, commencing on the
      Distribution Date and on a quarterly basis, thereafter (each a “Contribution
      Date”)
      the
      Company shall contribute to the trust (the “Retirement
      Trust”)
      for the
      benefit of Executive an amount equal to (A) the Retirement Compensation that
      would be payable to Executive under Section 5(g)(i) if the Contribution Date
      was
      his Termination Date minus (B) the total of all contributions made to the
      Retirement Trust by the Company as of such Contribution Date. The Retirement
      Trust to which the Company shall make these contributions shall be irrevocable.
      The Retirement Trust shall provide that Executive may withdraw from the
      Retirement Trust, within the thirty (30)-day period
      beginning on the date on which he receives notice from the Company that the
      Company has made a contribution pursuant to this Section 5(g)(iii) an amount
      up
      to but not to exceed the amount of that contribution. If and to the extent
      that
      Executive fails to exercise this withdrawal right within the thirty (30)-day
      periods, such withdrawal right shall lapse. The Retirement Trust also shall
      contain such other provisions as the Company and Executive reasonably agree
      are
      necessary in order for the Retirement Trust to qualify as a grantor trust under
      Section 671 of the Code with Executive as the grantor. The trust agreement
      for
      the Retirement Trust shall provide that any assets remaining in the Retirement
      Trust, after payment of all the retirement compensation payable pursuant to
      this
      Section 5(g)(iii), shall be payable to Executive, and that prior to payment
      of
      such retirement compensation, the assets of the Retirement Trust shall be exempt
      from the claims of the Company’s creditors.

     

    (iv)  As
      of the
      last day of each calendar quarter ending on or after the Distribution Date,
      during the Employment Term, the trustee of the Retirement Trust shall be
      required to distribute to Executive 25% of the amount of the Assumed Taxes
      that
      the Company reasonably estimates will be payable by Executive for the calendar
      year for which the distribution is being made and as a result of his beneficial
      interest in the Retirement Trust. For this purpose, the term “Assumed
      Taxes”
shall
      mean the federal, state and local income and employment taxes that would be
      payable by Executive for the year in question, assuming that the amount taxable
      would be subject to the highest federal and applicable state and local income
      and employment tax rates.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

       

    

    (h)  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, benefit, equity-based or other
      compensation or other transfer or action by the Company to or for the benefit
      of
      Executive (whether paid or payable or distributed or distributable pursuant
      to
      the terms of this Agreement or otherwise and including, without limitation,
      any
      additional payments required under this Section 5(h)) (a “Payment”)
      would
      be subject to an excise tax imposed by Section 4999 of the Code, or any interest
      or penalties are incurred by 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 Executive (a “Gross-Up
      Payment”)
      in an
      amount such that after payment by Executive of all taxes (including any Excise
      Tax) imposed upon the Gross-Up Payment, 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 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, Executive shall be deemed to (i) pay federal income taxes 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 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 income
      taxes.

     

    (ii)  Subject
      to
      the provisions of paragraph (iii) of this Section 5(h) all determinations
      required to be made under this Section 5(h), 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 Executive
      within fifteen (15) days
      of the
      receipt of notice from 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, 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(h), shall be paid
      by
      the Company to 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 Executive, it shall furnish Executive with a written opinion that
      failure to report the Excise Tax on 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
      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(h) and 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
      Executive.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

       

    

    (iii)  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
      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. Executive shall not pay such claim prior to the expiration of the thirty
      (30)-day period
      following the date on which 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 Executive in writing prior to the
      expiration of such period that it desires to contest such claim, 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 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 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(h)(iii), the Company
      shall control all proceedings taken in connection with such contest and, at
      its
      sole option, may pursue or forgo 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 Executive to pay the
      tax
      claimed and sue for a refund or contest the claim in any permissible manner,
      and
      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 Executive to pay such claim and sue for a refund, the
      Company shall advance the amount of such payment to Executive, on an
      interest-free basis and shall indemnify and hold 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 provided further
      that any
      extension of the statute of limitations relating to payment of taxes for the
      taxable year of 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 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.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

       

    

    (iv)  If,
      after
      the receipt by Executive of an amount advanced by the Company pursuant to
      Section 5(h)(iii),
      Executive becomes entitled to receive any refund with respect to such claim,
      Executive shall (subject to the Company’s complying with the requirements of
      Section 5(h)(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
      Executive of an amount advanced by the Company pursuant to Section 5(h)(iii),
      a
      determination is made that Executive shall not be entitled to any refund with
      respect to such claim and the Company does not notify 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.

     

    (i)  Restricted
      Stock Award.
      On July
      31, 2006, the Company granted to the Executive, without payment by the
      Executive, 104,242 shares of restricted common stock of the Company (the
“Restricted
      Stock”).
      The
      Restricted Stock was granted pursuant to and on the terms provided in the
      Company’s 2005 Long-Term Incentive Plan, as amended (the “Plan”),
      and,
      to the extent not inconsistent with the terms hereof, the applicable Restricted
      Stock Award Document (as defined in the Plan). The Restricted Stock granted
      to
      the Executive pursuant to this Section 5(i) will vest and become unrestricted
      ratably over a four-year period commencing on July 31, 2007, the first
      anniversary of the grant date, and on each anniversary thereafter, provided
      that the
      Executive is employed by the Company on each vesting date. In addition, the
      Restricted Stock will immediately become fully vested and unrestricted (i)
      immediately prior to a Change of Control, (ii) upon the Executive’s termination
      due to death or incapacity, (iii) upon the termination of the Executive’s
      employment by the Company without Cause, or (iv) upon the termination by the
      Executive with Good Reason. For the avoidance of doubt, all vesting of the
      Restricted Stock pursuant to this Section 5(i) shall be subject to the
      provisions of Sections 5(h) and 12 of this Agreement. 

     

    (j)  Grantor
      Trust.
      If,
      at any
      time during the Employment Term the Board determines that a Change of Control
      is
      likely to occur, the Company hereby agrees to establish a grantor trust pursuant
      to Subpart E, part I, subchapter J, chapter I, subtitle A of the Code. The
      grantor trust shall serve as a vehicle for accumulating assets to secure its
      potential obligations to the Executive in the event of a Change of Control.
      Notwithstanding the establishment of a trust, the Company’s obligation upon a
      Change of Control may be paid from the general assets of the Company or from
      assets of the trust. Any trust so established and any assets held therein will
      be subject to the claims of the Company’s creditors. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

       

    

    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
      deemed given when delivered personally or sent by telecopy or three (3) 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:
      General Counsel 

    

    If
      to
      Executive, to him at:

    

    Thomas
      P.
      McCaffrey

    4821
      South
      Flagler Drive

    West
      Palm
      Beach, FL 33405

    

    8.  Entire
      Agreement.
      This
      Agreement constitutes 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 Executive and the Company attached as Exhibit
      B
      which is
      incorporated herein by reference.

     

    9.  Withholding.
      Without
      limiting the effect of Sections 5(h) and 12, all payments made by the Company
      under this Agreement shall be reduced by any amounts in respect of income,
      social security, FICA and other similar taxes at the then-prevailing rates
      required to be withheld by the Company under applicable law.

     

    10.  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.  

     

    11.  Unfunded
      Status.
      This
      Agreement is intended to constitute an unfunded plan for incentive compensation.
      Except with respect to the Retirement Compensation, nothing contained herein
      shall give the Executive any rights that are greater than those of a general
      unsecured creditor of the Company. In its sole discretion, the Stock Option
      and
      Compensation Committee of the Board may authorize the creation of trusts,
      acquisition of life insurance policies or other arrangements to meet the
      obligations created under this Agreement.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    12.  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
      first business day following the date which is six months after Executive’s
      termination of employment for any reason other than death or (ii) Executive’s
      date of death. The Company shall establish a trust pursuant to Rev. Proc. 92-64,
      promulgated under subpart E, part I, subchapter J, chapter 1, subtitle A of
      the
      Code, as modified by Notice 200-56, and fund any such payments that are deferred
      pursuant to this Section 12 that otherwise would be immediately payable to
      Executive. The provisions of this Section 12 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 if any tax is imposed under
      such
      Section 409A on any payment to be received by Executive hereunder, this
      Agreement or any provision hereof may be reformed by 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. Executive agrees in good faith to consider any such reformation proposed
      by the Company. 

     

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

     

    13.  Miscellaneous.
      

     

    (a)  Enforceability.
      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
      headings in this Agreement are for convenience of reference only and shall
      not
      alter or otherwise affect the meaning hereof. This Agreement may be executed
      in
      any number of counterparts which together shall constitute one instrument and
      shall be governed by and construed in accordance with the laws (other than
      the
      conflict of laws rules) of the State of Florida.

     

    (b)  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. Executive may not assign or delegate Executive’s
      duties under this Agreement without the Company’s prior written
      approval.

     

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    

    (c)  Waiver.
      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 Executive or the Company may have hereunder, including,
      without limitation, the right of Executive to terminate employment for Good
      Reason pursuant to Section 5(e) of this Agreement, 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.

     

    (d)  Survival.
      The
      provisions of Sections 4, 5, 6 and 7 through 13 inclusive hereof shall each
      survive any termination or expiration of this Agreement.

     

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

     

    

      
        	 	
                EXECUTIVE

              
	 	 
	 	
                ______________________________

              
	 	 
	 	 
	 	 
	 	
                BE
                  AEROSPACE, INC.

              
	 	 
	 	
                
                  ______________________________

                

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    Exhibit
      A

     

    Death
      Benefit Agreement

    

    

     

     

    
 

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

     

    Exhibit
      B

     

    Proprietary
      Rights Agreement

     

     

     

     

     

     B-1

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