Document:

Exhibit 10.7

 

Second Amendment to the 

FOSTER WHEELER

Annual Executive Short-Term Incentive Plan

(As Amended and Restated Effective January 1, 2006)

 

The Foster Wheeler Annual Executive Short-Term
Incentive Plan (the “Plan”) is hereby amended as follows, pursuant to
resolutions adopted by the Foster Wheeler Ltd. Board of Directors at its
meeting held December 8, 2008 (the “Resolutions”):

 

1.             The first sentence of Section 1.01 is replaced in
its entirety with the following language:

 

Foster Wheeler Ltd. (“FWL”)
established the Foster Wheeler Annual Executive Short-Term Incentive Plan (the “Plan”)
effective January 1, 2002.  The Plan
was subsequently amended and restated effective January 1, 2006, and
further amended on May 6, 2008.  FWL
moved the place of organization of the parent company of its group of companies
from Bermuda to Switzerland by means of a scheme of arrangement (“Scheme of
Arrangement”) between FWL and Foster Wheeler AG, a wholly-owned subsidiary of
FWL registered in Switzerland, and certain related agreements described in FWL’s
Proxy Statement for the Special Court-Ordered Meeting of Common Shareholders
held on January 27, 2009.  Effective
upon the completion of the Scheme of Arrangement, Foster Wheeler AG, a Swiss
company (the “Company”) assumed the Plan.

 

2.             Section 2.05 is replaced in its entirety with the
following language:

 

2.05        Company.

 

“Company” shall mean
Foster Wheeler AG.

 

3.             Section 2.10 is replaced in its entirety with the
following language:

 

2.10        Senior Executive.

 

“Senior Executive” shall
mean those persons defined as such in the Foster Wheeler AG Compensation
Committee Charter and such other senior executives whom the CEO may designate
from time-to-time as being covered by the Plan; provided, however, that in all
cases, all officers (as the term is defined in Rule 16a-1 of the
Securities Exchange Act) of the Company and all named executive officers (as
the term is defined in 17 CFR 229.402) of the Company shall be deemed to be
Senior Executives for the purposes of this Plan.

 

4.             The Amendment shall take effect upon the completion of
the Scheme of Arrangement (as described in the Resolutions) and shall apply to
all awards outstanding on, and/or made after, the completion of the Scheme of
Arrangement.

 

 

IN WITNESS WHEREOF, the Company has caused this Second Amendment to the
Plan to be executed.

 

	
   

  	
  FOSTER WHEELER LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter
  J. Ganz

  
	
   

  	
  Name: 

  	
  Peter J. Ganz

  
	
   

  	
  Title: 

  	
  Exec. V.P., General Counsel & Secretary

  
				

 

2Exhibit 10.8

 

 

PETER J. GANZ

 

	
  Executive
  Vice President, General Counsel

  	
  Tel:

  	
  908-730-4020

  
	
  &
  Secretary

  	
  Fax:

  	
  908-730-5300

  
	
   

  	
  Email:
  

  	
  peter_ganz@fwc.com

  

 

	
  To:

  	
  [NAME]

  
	
   

  	
   

  
	
  Date:

  	
  February 9, 2009

  
	
   

  	
   

  
	
  Re:

  	
  Notice and Acknowledgement
  Regarding Redomestication of Foster Wheeler Ltd.

  

 

NOTICE

 

I am sending you this Notice
and Acknowledgement on behalf of Foster Wheeler Ltd., Foster Wheeler Inc., and Foster
Wheeler International Corporation because you are a party to an employment
agreement with Foster Wheeler Ltd.  You
also have received one or more equity awards pertaining to shares of Foster
Wheeler Ltd. common stock which include provisions regarding a change of
control of Foster Wheeler Ltd.

 

On December 9, 2008,
the Board of Directors of Foster Wheeler Ltd. voted to approve a “redomestication”
transaction (“Redomestication”) consisting of several steps pursuant to which
Foster Wheeler Ltd. would become a wholly-owned subsidiary of a new parent
corporation organized under Swiss law (Foster Wheeler AG), which parent would
be formed by Foster Wheeler Ltd. and owned by the shareholders of Foster
Wheeler Ltd. proportionately to the interests they held in Foster Wheeler Ltd.
immediately prior to the Redomestication. 
As a result of the Redomestication, shares of Foster Wheeler Ltd. will
cease to be listed on NASDAQ and instead Foster Wheeler AG shares will be
listed on NASDAQ.  For more details about
the Redomestication, please refer to the proxy statement filed with the
Securities and Exchange Commission on December 19, 2008, as the same may
be amended (the “Proxy”).

 

We hereby advise you that
the Redomestication will not constitute a change of control under your
employment agreement or any equity awards that may have been granted to
you.  Foster Wheeler AG is assuming Foster
Wheeler Ltd.’s equity compensation plans and arrangements and any equity awards
that have been granted to you under those plans and arrangements.  The terms of any equity awards granted under
Foster Wheeler Ltd.’s or Foster Wheeler Inc.’s equity compensation plans and
arrangements will remain in full force and effect according to their terms, except
that wherever there is a reference to Foster Wheeler Ltd. (including in any
change of control provision) such reference instead will be deemed to refer to
Foster Wheeler AG, and any equity awards that are to be settled in Foster
Wheeler Ltd. shares will instead be settled in Foster Wheeler AG shares.

 

In addition, your employment
agreement with Foster Wheeler Ltd. is being assigned to and assumed by Foster Wheeler
Inc. (the “Subsidiary”) and the Subsidiary will be your employer after the
Redomestication.  Following the
Redomestication and the assignment of your agreement to the Subsidiary, the
following clarifications regarding your employment agreement shall apply:

 

 

1.               Other than as set forth below, all references
to the “Company” shall be references to the Subsidiary.

 

2.               If your agreement specifies a specific title
or reporting relationship, those titles and reporting relationships shall be as
to Foster Wheeler AG, and to the extent applicable, as to the Subsidiary as
well.  You will not, however, have an
employment relationship with Foster Wheeler AG.

 

3.               All references to grants of equity shall be
to equity of Foster Wheeler AG.  The
adjustment of equity awards (e.g. number of shares and exercise price, if any)
for the Redomestication shall be consistent with the adjustment for holders of
common stock of Foster Wheeler Ltd. as described in the Proxy.

 

4.               All references to the “Company” in any Change
of Control provisions shall be to Foster Wheeler AG.

 

5.               All references to the “Company” in
Confidential Information, Non-Competition, and Non-Solicitation provisions
shall be to Foster Wheeler AG.

 

6.               To the degree salary, bonus, and equity
awards were subject to review and approval by Foster Wheeler Ltd.’s Board of
Directors and/or the Compensation Committee of that board they will be so subject
to review and approval by Foster Wheeler AG’s Board of Directors and/or the
Compensation Committee of that board.

 

7.               If your agreement refers to the judgment of
the “Board” in its definition of “Cause,” the reference shall be to the Board
of Directors of Foster Wheeler AG.

 

8.               To the degree the terms of your employment
agreement with Foster Wheeler Ltd. supersede those of other agreement or plans,
including those of equity award agreements and/or plans, they will continue to
do so.

 

9.               Foster Wheeler International Corporation
hereby unconditionally guarantees all of the Subsidiary’s obligations under
your employment agreement.

 

To acknowledge your
understanding of the Redomestication and its effect on your employment
agreement and any equity awards that may have been granted to you, please sign
and return a copy of this Notice and Acknowledgment, at your earliest convenience
and by no later than [DATE] to John Doyle, Assistant Secretary, Foster Wheeler
Ltd., Perryville Corporate Park, Clinton, New Jersey 08809-4000.  The changes described above are effective
upon the completion of the Redomestication.

 

A second copy of this Notice
and Acknowledgement is enclosed for your files. 
You should keep it in a secure place. 
If you have any questions regarding this matter, please contact me.

 

[Signatures and Acknowledgment
Follow]

 

2

 

	
  FOSTER WHEELER LTD.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: Peter J. Ganz

  	
   

  
	
  Title: Exec. Vice President, General Counsel &
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  FOSTER WHEELER INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: Peter J. Ganz

  	
   

  
	
  Title: Exec. Vice President, General Counsel, Secretary
  & CGO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  FOSTER WHEELER
  INTERNATIONAL CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: Peter J. Ganz

  	
   

  
	
  Title: Exec. Vice President & Secretary

  	
   

  

 

ACKNOWLEDGMENT

 

I have read the above Notice
regarding the Redomestication and related matters, and hereby acknowledge and
agree to its terms.

 

	
   

  	
   

  
	
  Printed Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date

  	
   

  

 

3Exhibit 10.9

 

 

	
  To:

  	
  David Wardlaw

  
	
   

  	
   

  
	
  Date:

  	
  February 9, 2009

  
	
   

  	
   

  
	
  Re:

  	
  Notice and Acknowledgement
  Regarding Redomestication of Foster Wheeler Ltd.

  

 

NOTICE

 

We are sending you this
Notice and Acknowledgement on behalf of Foster Wheeler Ltd. and Foster Wheeler
Energy Limited because you are a party to an employment agreement with Foster
Wheeler Energy Limited that contains certain references to Foster Wheeler
Ltd.  You also have received one or more
equity awards pertaining to shares of Foster Wheeler Ltd. common stock which
include provisions regarding a change of control of Foster Wheeler Ltd.

 

On December 9, 2008,
the Board of Directors of Foster Wheeler Ltd. voted to approve a “redomestication”
transaction (“Redomestication”) consisting of several steps pursuant to which
Foster Wheeler Ltd. would become a wholly-owned subsidiary of a new parent
corporation organized under Swiss law (Foster Wheeler AG), which parent would
be formed by Foster Wheeler Ltd. and owned by the shareholders of Foster
Wheeler Ltd. proportionately to the interests they held in Foster Wheeler Ltd.
immediately prior to the Redomestication. 
As a result of the Redomestication, shares of Foster Wheeler Ltd. will
cease to be listed on NASDAQ and instead Foster Wheeler AG shares will be listed
on NASDAQ.  For more details about the
Redomestication, please refer to the proxy statement filed with the Securities
and Exchange Commission on December 19, 2008, as the same may be amended
(the “Proxy”).

 

We hereby advise you that
the Redomestication will not constitute a change of control under your
employment agreement or any equity awards that may have been granted to
you.  Foster Wheeler AG is assuming
Foster Wheeler Ltd.’s equity compensation plans and arrangements and any equity
awards that have been granted to you under those plans and arrangements.  The terms of any equity awards granted under
Foster Wheeler Ltd.’s or Foster Wheeler Inc.’s equity compensation plans and
arrangements will remain in full force and effect according to their terms, except
that wherever there is a reference to Foster Wheeler Ltd. (including in any
change of control provision) such reference instead will be deemed to refer to
Foster Wheeler AG, and any equity awards that are to be settled in Foster
Wheeler Ltd. shares will instead be settled in Foster Wheeler AG shares.

 

In addition, following the
Redomestication, the following clarifications regarding your employment
agreement shall apply:

 

1.               All references to grants of equity shall be
to equity of Foster Wheeler AG.  The
adjustment of equity awards (e.g. number of shares and exercise price, if any)
for the Redomestication shall be consistent with the adjustment for holders of
common stock of Foster Wheeler Ltd. as described in the Proxy.

 

2.               All references to the “Company” in any Change
of Control provisions shall be to Foster Wheeler AG.

 

 

3.               To the degree salary, bonus, and equity
awards were subject to review and approval by Foster Wheeler Ltd.’s Board of
Directors and/or the Compensation Committee of that board they will be so
subject to review and approval by Foster Wheeler AG’s Board of Directors and/or
the Compensation Committee of that board.

 

4.               For the avoidance of doubt, you will not have
an employment relationship with Foster Wheeler AG.

 

To acknowledge your
understanding of the Redomestication and its effect on your employment
agreement and any equity awards that may have been granted to you, please sign
and return copies of this Notice and Acknowledgment, at your earliest
convenience and by no later than March 1, 2009, to Francis Bird.  The changes described above are effective
upon the completion of the Redomestication.

 

A second copy of this Notice
and Acknowledgement is enclosed for your files. 
You should keep it in a secure place. 
If you have any questions regarding this matter, please contact us.

 

 

	
   

  	
  FOSTER WHEELER LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Peter J. Ganz

  
	
   

  	
  Exec. Vice President, General Counsel &
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOSTER WHEELER ENERGY LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Francis Bird

  
	
   

  	
  HR Director

  

 

ACKNOWLEDGMENT

 

I have read the above Notice
regarding the Redomestication and related matters, and hereby acknowledge and
agree to its terms.

 

	
   

  	
   

  
	
  Printed Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date

  	
   

  

 

2

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