Document:

EX-10.11

 Exhibit 10.11 
 Foster Wheeler Annual Executive 
 Short-term Incentive Plan

 (As Amended and Restated effective February 28, 2013) 

 Table of Contents 

 

							
	Article 1.	 	 Introduction
	  	 	1	  
	 1.01
	 	 Establishment and Applicability of Plan
	  	 	1	  
	 1.02
	 	 Effective Date and Term
	  	 	1	  
	 1.03
	 	 Governing Provisions
	  	 	1	  
			
	Article 2.	 	 Definitions
	  	 	2	  
	 2.01
	 	 Applicable Period
	  	 	2	  
	 2.02
	 	 Base Pay
	  	 	2	  
	 2.03
	 	 Board
	  	 	2	  
	 2.04
	 	 Cause
	  	 	2	  
	 2.05
	 	 CEO
	  	 	2	  
	 2.06
	 	 Code
	  	 	2	  
	 2.07
	 	 Committee
	  	 	2	  
	 2.08
	 	 Company
	  	 	2	  
	 2.09
	 	 Disabled
	  	 	3	  
	 2.10
	 	 Good Reason
	  	 	3	  
	 2.11
	 	 Leave of Absence
	  	 	3	  
	 2.12
	 	 Participant
	  	 	3	  
	 2.13
	 	 Plan
	  	 	3	  
	 2.14
	 	 Senior Executive
	  	 	3	  
	 2.15
	 	 Short-Term Incentive Target Percentage Opportunity
	  	 	3	  
			
	Article 3.	 	 Participation and Eligibility
	  	 	4	  
	 3.01
	 	 Eligibility for Participation
	  	 	4	  
	 3.02
	 	 Partial Year Eligibility
	  	 	4	  
			
	Article 4.	 	 Annual Incentive Award
	  	 	4	  
	 4.01
	 	 Annual Incentive Award
	  	 	4	  
	 4.02
	 	 Approval Process
	  	 	5	  
			
	Article 5.	 	 Plan Administration
	  	 	5	  
	 5.01
	 	 Committee
	  	 	5	  
	 5.02
	 	 Guarantees
	  	 	5	  
	 5.03
	 	 Governance
	  	 	5	  
	 5.04
	 	 Repayment of Overpayments
	  	 	6	  

  
 i 

							
	Article 6.	 	 Miscellaneous
	  	 	6	  
	 6.01
	 	 Plan Changes
	  	 	6	  
	 6.02
	 	 Participant Covenants/Recoupment
	  	 	6	  
	 6.03
	 	 Assignments
	  	 	7	  
	 6.04
	 	 No Contract
	  	 	7	  
	 6.05
	 	 Superseding Provisions
	  	 	7	  
	 6.06
	 	 Prevailing Law
	  	 	7	  
	 6.07
	 	 Indemnification of Committee and Board
	  	 	7	  
	 6.08
	 	 No Prior Right of Award
	  	 	8	  
	 6.09
	 	 Specified Employee
	  	 	8	  

  
 ii 

 FOSTER WHEELER ANNUAL EXECUTIVE 

SHORT-TERM INCENTIVE PLAN 
 (As Amended and Restated Effective February 28, 2013) 
 Article 1.

 Introduction 
  

	1.01	Establishment and Applicability of Plan. 

 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, December 8, 2008 and November 4, 2010. 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. Thereafter, the Plan was
amended and restated effective February 28, 2013. The objectives of the Plan are to provide the Company with a vehicle through which it may award short-term incentive compensation to eligible Senior Executives (as defined in Section 2.14
of this Plan) of the Company as determined by the Chief Executive Officer of the Company (the “CEO”) and the Compensation and Executive Development Committee (the “Committee”) of the Board of Directors of the Company (the
“Board”). 
 Only Senior Executives are eligible for a short-term incentive compensation award under this Plan.
Management retains its usual authority and discretion regarding short-term incentive compensation for other officers, employees, and consultants of the Company and its affiliates. 

 

	1.02	Effective Date and Term.  

 The Plan originally became effective January 1, 2002. Unless superseded or terminated, the Plan, as amended from time to time, will continue in effect during subsequent calendar years. This plan is a
successor plan to and supersedes in all respects the incentive compensation provisions of the “Executive Compensation Plan” of the Company (which Executive Compensation Plan was first approved by the Board on January 1, 1988 and
amended from time to time until the adoption of the present Plan). 
  

	1.03	Governing Provisions. 

 For each full or partial year that the Plan is effective, the provisions applicable to each Participant shall consist of (i) the Plan document set forth herein and (ii) written determinations by
the CEO and the Committee regarding the Participant’s short-term incentive compensation. 

 Article 2. 
 Definitions 
  

	2.01	Applicable Period. 

“Applicable Period” shall have the meaning assigned to such term in Section 4.02 of this Plan. 

 

	2.02	Base Pay. 

“Base Pay” shall mean the Participant’s base salary rate generally in effect during the calendar year for which an award of
short-term incentive compensation, if any, is made. 
  

	2.03	Board. 

“Board” shall mean the Board of Directors of the Company. 

 

	2.04	Cause 

“Cause” shall mean (a) if the Participant is a party to an employment agreement that defines “Cause” or a
substantially similar term, the same meaning as in the Participant’s employment agreement with the Company or one of its affiliates, or (b) if the Participant is not a party to an employment agreement with the Company or one of its
affiliates, the same meaning as “discharge for cause” or such other similar term in the severance pay plan or other document that would govern any right the Participant may have to severance pay following the Participation’s
termination of employment. 
  

	2.05	CEO. 

“CEO” shall mean the Chief Executive Officer of the Company. 

 

	2.06	Code 

“Code” shall have the meaning assigned to such term in Section 4.02 of this Plan. 

 

	2.07	Committee. 

“Committee” shall mean the Compensation and Executive Development Committee of the Board. 

 

	2.08	Company. 

“Company” shall mean Foster Wheeler AG. 

  
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	2.09	Disabled. 

“Disabled” shall mean a Participant’s being physically or mentally unable to perform the material duties of the
Participant’s position for a continuous period of 18 months. 
  

	2.10	Good Reason 

“Good Reason” shall mean (a) if the Participant is a party to an employment agreement with the Company or one of its
affiliates that defines resignation for “Good Reason” or a substantially similar term, the same meaning as in the Participant’s employment agreement, or (b) if the Participant is not a party to an employment agreement with the
Company or one of its affiliates, the same meaning as “resignation for good reason” or such other similar term in the severance pay plan or other document that would govern any right the Participant may have to severance pay following the
Participation’s termination of employment. If neither (a) nor (b) applies to a particular Participant, the Participant shall not be deemed to have resigned for Good Reason under this Plan. 

 

	2.11	Leave of Absence 

“Leave of Absence” shall mean an approved leave of absence from the Company which qualifies under the Family Medical Leave Act
of 1993, as amended, or any other approved leave of absence accepted as such by the Committee. 
  

	2.12	Participant. 

“Participant” shall mean an employee designated as described in Sections 3.01 and 3.02. 

 

	2.13	Plan. 

“Plan” shall mean the Foster Wheeler Annual Executive Short-Term Incentive Plan, as set forth herein and as amended from time to
time. 
  

	2.14	Senior Executive. 

“Senior Executive” shall mean those persons defined as such in the 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 1934, as amended) 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. 
  

	2.15	Short-Term Incentive Target Percentage Opportunity 

 “Short-Term Incentive Target Percentage Opportunity” shall mean the “target opportunity” or similar number set forth in employment agreements or otherwise

  
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established by the CEO, Committee, and/or Board and used as part of the calculation of bonuses, short-term incentives, or annual incentives (which bonuses and incentives can vary, in the
CEO’s and Committee’s discretion, from year to year and can incorporate the effect of factors including, but not limited to, market comparability data, Base Pay, and performance-based adjustments). 

Article 3. 

Participation and Eligibility 
  

	3.01	Eligibility for Participation. 

 Each Senior Executive of the Company or any affiliate of the Company who is designated by name or title by the CEO as eligible for a calendar year shall be a Participant for that calendar year. Except as
noted in Section 3.02 below, in order to participate in the Plan, the Senior Executive must have been a full-time employee of the Company as of January 1 of any calendar year with respect to which a short-term incentive compensation award
is made. A Participant in this Plan in any given year is ineligible for participation in any other short-term incentive compensation plan or program within the Company or its affiliated companies for that year. 

 

	3.02	Partial Year Eligibility. 

 In addition, Senior Executives hired after January 1, and Senior Executives who cease to be active full-time Senior Executives for the entire calendar year due to death, Disability, Leave of Absence,
termination by the Company without Cause, or resignation for Good Reason shall remain Participants for the calendar year in which any of the foregoing events occurs. Generally, the Participants described in this Section 3.02 will be eligible to
receive an annual short-term incentive compensation award proportionate to their period of active service for the subject calendar year. For the avoidance of doubt, the CEO and Committee have the absolute discretion to make or withhold any award to
any person who was a Participant or Senior Executive at any point during a given year so long as such award is made pursuant to the procedures set forth elsewhere in this Plan. 
 Article 4. 
 Annual Short-Term Incentive Award 

 

	4.01	Annual Short-Term Incentive Award. 

 Subject to the other provisions of the Plan, the annual short-term incentive awards, if any, payable to a Participant for a calendar year shall be recommended by the CEO. Within a reasonable time after
the end of each calendar year, the CEO shall set forth in writing (i) the Participants eligible for awards; (ii) the amount of the award (by individual or class of individuals and stated as a dollar amount or a percentage of Base Pay); and
(iii) any factors that should be considered by the Committee in connection therewith. The awards recommended by the CEO shall only be paid to the extent they are approved pursuant to Section 4.02. 

  
 4 

	4.02	Approval Process. 

The CEO’s recommendation shall be considered by the Committee. The Committee may approve the recommendation with respect to any or
all Participants, approve a different amount of award for any or all Participants or deny an award to any or all Participants. In no event may the amount of an award be based upon a calculation of more than two times the Participant’s
Short-Term Incentive Target Percentage Opportunity; provided, however, that, for the avoidance of doubt, the foregoing is not intended to limit the CEO’s or the Committee’s discretion to adjust the amount of an award upward or downward
based upon other appropriate factors including, among other things, company, business group, or operating unit performance. To the extent an award has been approved, it shall be paid as directed by the Committee. Awards will be paid in a lump sum as
soon as practical following the Committee’s approval, but not earlier than January 1 and not later than March 15 of the year following the calendar year to which they relate (the “Applicable Period”). To the extent that an
award is not paid within the Applicable Period but is paid by December 31 of the calendar year which includes the Applicable Period, then it is intended that such payment shall be treated as made at a “specified time” for purposes of
complying with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). 
 Article 5.

 Plan Administration 
  

	5.01	Committee. 

Subject to the terms hereof, the Committee shall have authority to control and manage the operation and administration of the Plan,
including all rights and powers necessary or convenient to the carrying out of its functions hereunder, whether or not such rights and powers are specifically enumerated herein. The Committee may, in its discretion, delegate any of its authority
with regard to the administration of the Plan, or any portion of the Plan, to any entity, officer or committee, with or without Committee oversight, and, in such case, references to the Committee shall be deemed to refer to the delegatee.

  

	5.02	Guarantees. 

 The
CEO, with the approval of the Committee, may authorize award guarantees, for up to one year, for any new Plan Participant. Each proposed guarantee will be decided on an individual basis taking into account such factors as the Committee deems
relevant. 
  

	5.03	Governance. 

 The
Committee shall have sole and exclusive authority to construe and interpret the Plan, decide all questions of fact and questions of eligibility and determine the amount, manner and time of payment of any short-term incentive payment hereunder, which
shall be final and binding. 

  
 5 

	5.04	Repayment of Overpayments. 

  

	 	(a)	If the Company discovers that it inadvertently overpaid a Participant or former Participant with respect to any portion of a short-term incentive compensation award,
the Participant agrees to repay the overpayment amount to the Company within 30 days of a written request. If the Participant or former Participant does not make such repayment within 30 days, and has not provided the Committee with clear and
specific evidence (as determined by the Committee in its discretion) establishing his or her entitlement to the amount the Company considers to have been overpaid, the Company can recover such overpayment by offsetting the overpayment amount against
any money that might then or later be due from the Company to the Participant or former Participant, including money that is or becomes due as wages, base pay or short-term incentive compensation to the Participant or former Participant.

  

	 	(b)	The Company’s right under this section to recover overpayments through offset is not the exclusive means by which it may pursue recovery of said overpayment. In
addition to or in lieu of offset, the Company may also pursue ordinary collection efforts or legal action against the Participant or former Participant. 

 Article 6. 
 Miscellaneous 

 

	6.01	Plan Changes. 

 The
Company reserves the right to modify or amend the Plan, at any time, and from time to time, by action of the Committee. The Company, through the Committee, also reserves the right to terminate the Plan at any time. Neither amendment nor termination
of the Plan may adversely affect any short-term incentive payments fully awarded and approved pursuant to Article 4 before the amendment or termination effective date, and any such short-term incentive payment will be paid notwithstanding the
amendment or termination of the Plan. 
  

	6.02	Participant Covenants/Recoupment. 

  

	 	(a)	If a Participant fails to adhere to his/her material obligations to the Company, including, but not limited to his/her restrictive covenant obligations, the CEO and the
Committee, jointly and severally, shall have the right to either revoke or amend the Participant’s participation, and his or her entitlement to short-term incentive compensation payments (including fully awarded and approved short-term
incentive compensation payments), as they deem appropriate in their sole discretion. 

  
 6 

	 	(b)	In addition to the foregoing, awards under this Plan may be subject to repayment pursuant to any clawback or other mandatory repayment policy adopted by the Company,
including without limitation any such policy adopted pursuant to either Section 304 of the Sarbanes-Oxley Act of 2002 or Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any such policy shall, to the extent
determined by the Committee, be deemed incorporated into any Participant’s entitlement to any amounts or benefits hereunder. 

  

	6.03	Assignments. 

 No
Participant may sell, assign, transfer, discount or pledge as collateral for a loan or otherwise anticipate the right to any distribution under this Plan. 
  

	6.04	No Contract. 

 This
Plan does not constitute a contract of employment with the Company for a specified term. 
  

	6.05	Superseding Provisions. 

 The Plan supersedes any previous short-term incentive compensation plans affecting the Participant for the term covered by the Plan. 

There are no oral agreements or understandings between the Company and any Participant affecting or relating to the Plan which are not
referenced herein. No alteration, modification or change of the Plan shall be effective unless approved in writing by the Committee. 
  

	6.06	Prevailing Law. 

The Plan shall be construed and enforced in accordance with the laws of the State of New Jersey, without giving effect to its conflict of
laws provisions. The Plan is not subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended. 
  

	6.07	Indemnification of Committee and Board. 

 In additions to such other rights of indemnification as they may have, the members of the Committee and the Board shall be indemnified by the Company against all costs and expenses reasonably incurred by
them in connection with any action, suit or proceeding to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any award granted pursuant hereto, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by legal counsel selected by the Company) or paid by them in satisfaction of any judgment in any such action, suit or proceeding, except a judgment based upon a finding of bad
faith, provided that upon institution of any such action, suit or proceeding, the Committee or Board member desiring indemnification shall give the Company an opportunity, at its own expense, to handle and defend the same. 

  
 7 

	6.08	No Prior Right of Award. 

 Nothing in the Plan shall be deemed to give any officer or employee, or his or her legal representative or assigns or any other person or entity claiming under or through him or her, any contractual right
to a bonus or short-term incentive compensation award or otherwise to participate in the benefits of the Plan, and in all cases, each short-term incentive compensation award shall be subject to the approval and discretion of the CEO and the
Committee. 
  

	6.09	Specified Employee. 

If a Participant constitutes a “specified employee” as of his “separation from service” (as both terms are defined and
applied in Section 409A of the Code), to the extent payment under this Plan constitutes deferred compensation (after taking into account any applicable exemptions from Section 409A of the Code), and to the extent required by
Section 409A of the Code, payment may not be made to the Participant until the earlier of: (i) the first day following the sixth-month anniversary of the Participant’s separation from service, or (ii) the Participant’s date
of death. 
  

			
	FOSTER WHEELER AG
		
	By:	 	 /s/ J. Kent Masters

	Name:	 	J. Kent Masters
	Title:	 	Chief Executive Officer

  
 8EX-10.19

 Exhibit 10.19 
 TEMPLATE FORM—November 2012 
 FOSTER WHEELER AG OMNIBUS INCENTIVE
PLAN 
 Notice of Employee Nonqualified Stock Option Grant 

Employee:              

Pursuant to the attached Employee Nonqualified Stock Option Agreement, you have been granted a nonqualified stock option to purchase
registered shares of Foster Wheeler AG, a Swiss company (the “Company”) as follows: 
  

					
	Grant Date:	  	[November     , 2012]
		
	Exercise Price Per Share:	  	The greater of          US dollars (USD) per Share or the par value of a Share (as such par value is defined in Article 4 of
the Company’s Articles of Association), denominated in Swiss francs (CHF) on the date of delivery of the Share
		
	Total Number of Shares Subject to this Option:	  	                     registered
shares
		
	Type of Option:	  	Nonqualified Stock Option
		
	Expiration Date:	  	Seventh (7th) anniversary of the Grant Date
		
	Vesting/Exercise Schedule:	  	So long as you are continuously employed by the Company or any Affiliate, and except as otherwise set forth in Section 5 of the Option Agreement, the Shares
underlying this Option shall vest and become exercisable in accordance with the following schedule:
			
		  	    •	  	One-third of the Shares subject to the Option shall vest and become exercisable on the first (1st) anniversary of the Grant Date;
			
		  	    •	  	Another one-third of the Shares subject to the Option shall vest and become exercisable on the second (2nd) anniversary of the Grant Date;
and
			
		  	    •	  	The remaining one-third of the Shares subject to the Option shall vest and become exercisable on the third (3rd) anniversary of the Grant
Date.

					
		
	Termination Period:	  	Following your termination of employment with the Company and all its Affiliates, the Option may be exercised, but only as to Shares that were vested on the date of
such termination, through the Expiration Date set forth above; provided, however, the Option may terminate as of an earlier date in connection with certain events as set forth in the Plan and in Section 5 of the Option
Agreement.
		
		  	You are responsible for keeping track of the periods during which the Option may be exercised, including those periods that apply following your termination of
employment with the Company and all its Affiliates for any reason. The Company will not provide further notice of such exercise periods.
		
	Transferability:	  	Unless otherwise provided in the Option Agreement or the Plan, this Option may not be transferred.

 By your signature and the signature of the Company’s representative below, you and the Company agree
that this Option is granted under and governed by the terms and conditions of the Foster Wheeler AG Omnibus Incentive Plan, provided herewith, and the Employee Nonqualified Stock Option Agreement, attached hereto, both of which are made a part of
this document. 
 In addition, you agree and acknowledge that your rights to any Shares underlying the Option vest only as you
provide services to the Company or its Affiliates over time, that the grant of the Option is not as consideration for services you rendered to the Company or its Affiliates prior to your Grant Date, and that nothing in this Notice or the documents
attached or provided herewith confers upon you any right to continue your employment relationship with the Company or its Affiliates for any period of time, nor does it interfere in any way with your right or the Company’s (or its
Affiliates’) right to terminate that relationship at any time, for any reason, with or without cause. 
  

							
		 		 	FOSTER WHEELER AG
			
	  
	 		 	  

	Participant	 		 	By:	 	Lisa Z. Wood
		 		 	Its:	 	Controller

  
 2 

 FOSTER WHEELER AG OMNIBUS INCENTIVE PLAN 

Employee Nonqualified Stock Option Agreement 
 1. Grant of Option. Foster Wheeler AG, a Swiss company (the “Company”), hereby grants to
                     (“Optionee”), an option (the “Option”) to purchase the total number of registered shares (the
“Shares”) subject to the Option, set forth in the Notice of Employee Nonqualified Stock Option Grant (the “Notice”), at the exercise price per Share set forth in the Notice (the “Exercise Price”),
subject to the terms, definitions and provisions of the Foster Wheeler AG Omnibus Incentive Plan (the “Plan”) adopted by the Company, which is incorporated in this Employee Nonqualified Stock Option Agreement (the “Option
Agreement”) by reference. Unless otherwise defined in this Option Agreement (including, for the avoidance of doubt, definition by incorporation through Section 6 of this Option Agreement), the terms used in this Option Agreement shall
have the meanings defined in the Plan; provided, however, that the term “Shares” as defined above shall be interpreted to refer to the specific number of shares set forth in the Notice but shall otherwise have the meaning set forth
in the Plan. This Option Agreement shall be deemed executed by the Company and Optionee upon execution by such parties of the Notice. 
 2. Designation of Option. This Option is intended to be a Nonqualified Stock Option. 
 3. Exercise of Option. This Option shall be exercisable during its term in accordance with the Vesting/Exercise Schedule set out in the Notice and with the provisions of Section 5 of
this Option Agreement as follows: 
 (a) Right to Exercise. 

(i) This Option may not be exercised for a fraction of a registered share. 

(ii) In the event of Optionee’s death, Disability, Retirement (which, for the avoidance of doubt and for purposes of
this Option Agreement, is as defined in the Plan), or other termination of employment, the exercisability of the Option is governed by Section 5 below, subject to the limitations contained in this Section 3. 

(iii) In no event may this Option be exercised after the Expiration Date of the Option as set forth in the Notice.

 (b) Method of Exercise. 

(i) This Option shall be exercisable by delivering to the Company a written Notice of Exercise (containing substantially
the information described in Exhibit A hereto, and substantially in the form attached as Exhibit A, or in any other form acceptable to the Committee) which shall state Optionee’s election to exercise the Option, the number of
Shares in respect of which the Option is being exercised, and such other representations and agreements as to the holder’s investment intent with respect to such Shares as may be required by the Company pursuant to the provisions of the Plan.
Such written notice shall be signed by Optionee and shall be delivered to the Company by such means as are determined by the Committee in its discretion to constitute adequate delivery. The written notice shall be accompanied by payment of the
Exercise Price. This Option shall be deemed to be exercised upon receipt by the Company of such written notice accompanied by payment of the Exercise Price. Swiss law requires the execution of a specific form of exercise notice for Shares to issue
out of the conditional capital of the Company. By signing this Agreement, you appoint the Company’s Secretary and each of its Assistant Secretaries your proxy with the right of substitution to execute and deliver the requisite form of exercise
notice at or about the time you provide the Company a Notice of Exercise. 

  
 3 

 (ii) For the sole purpose of enabling electronic trading of the awarded
Shares on the NASDAQ Global Select Market, Optionee shall assign and transfer the awarded Shares to Cede & Co., the Nominee of the Depository Trust Company, a US clearing agency. Such assignment and transfer shall be signed by Optionee and
shall be delivered to the Company by such means as are determined by the Committee in its discretion to constitute adequate delivery. The foregoing assignment and transfer will not adversely affect Optionee’s beneficial ownership of, or ability
to trade, the awarded Shares. 
 (iii) As a condition to the exercise of this Option and as further set forth in
Article 20 of the Plan, Optionee agrees to make adequate provision for federal, state or other tax withholding obligations, if any, which arise upon the vesting or exercise of the Option. Optionee may satisfy withholding tax obligations through
either (a) giving instructions to a broker for the sale on the open market of a sufficient number of registered shares of the Company to pay the applicable withholding tax or (b) depositing with the Company an amount of funds equal to the
estimated withholding tax liability. If Optionee fails to satisfy such obligations in this regard, the Company may require that the Shares otherwise scheduled to become vested on any given date be forfeited. 

(iv) The Company is not obligated, and will have no liability for failure, to issue or deliver any Shares upon exercise of
the Option unless such issuance or delivery would comply with the Applicable Laws, with such compliance determined by the Company in consultation with its legal counsel. This Option may not be exercised if the issuance of such Shares upon such
exercise or the method of payment of consideration for such shares would constitute a violation of any applicable federal or state securities or other law or regulation, including any rule under Part 221 of Title 12 of the Code of Federal
Regulations as promulgated by the Federal Reserve Board, or other Applicable Laws. As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by the
Applicable Laws. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to Optionee on the date on which the Option is exercised with respect to such Shares. The Company may postpone issuing and delivering any
Shares for so long as the Company reasonably determines to be necessary to satisfy the following: 
 (A) its
completing or amending any securities registration or qualification of the Shares or its or the Optionee’s satisfying any exemption from registration under any federal or state law, rule, or regulation; 

(B) its receiving proof it considers satisfactory that a person seeking to exercise the Option after the Optionee’s
death is entitled to do so; 
 (C) the Optionee complying with any requests for representations under the Plan;

 (D) the Optionee complying with any federal, state, or local tax withholding obligations; and/or 

(E) its compliance with the restrictions of Code Section 409A to the extent applicable, including any regulations
issued pursuant thereto, including the Committee’s right to amend any provision of this Option Agreement, to the extent necessary to comply with Code Section 409A. 

  
 4 

 4. Method of Payment. Payment of the Exercise Price (in US dollars) shall be
by any of the following, or a combination of the following, at the election of Optionee: 
 (a) cash or
cashier’s check; 
 (b) through a cashless (broker-assisted) exercise; or 

(c) a combination of paragraphs (a) and (b) immediately above. 

5. Termination of Relationship; Vesting Acceleration on Certain Events. Following the date of the Optionee’s
termination of employment for any reason (the “Termination Date”), Optionee may exercise the Option only as set forth in the Notice and this Section 5. The Committee has the discretion to determine the Optionee’s
Termination Date for purposes of the Option. To the extent that the Optionee is not vested in the Shares as of his or her Termination Date according to this Section 5 or other provision of this Option Agreement, the Option shall terminate as to
unvested Shares as of the Termination Date. If Optionee does not exercise this Option as to vested Shares prior to the earlier of the Expiration Date of the Option as set forth in the Notice or the relevant dates specified below in this
Section 5, the Option shall terminate in its entirety. In no event may the Option be exercised as to any Shares after the Expiration Date of the Option as set forth in the Notice. 

(a) Termination as a Result of Death or Disability. In the event of the Optionee’s termination of
employment as a result of his or her death or Disability, any unvested Shares under the Option shall immediately become fully vested and exercisable and all remaining Shares subject to the Option shall remain exercisable until the earlier of:

 (i) the Expiration Date; or 

(ii) the one (1) year anniversary of the day the Optionee terminates employment or service due to death or
Disability. 
 In the event of the Optionee’s death, the Optionee’s beneficiary or estate may exercise the vested
Shares under the Option. 
 (b) Termination as a Result of Involuntary Termination or Resignation for Good
Reason. In the event of the Optionee’s termination of employment other than during a Change in Control Period but as a result of his or her Involuntary Termination or Resignation for Good Reason, Optionee may, to the extent he or she is
otherwise vested in the Option at the Termination Date, exercise such Options and such Options shall remain exercisable until the earlier of: 
 (i) the Expiration Date; or 
 (ii) the six (6) month
anniversary of the day the Optionee terminates employment due to an Involuntary Termination or Resignation for Good Reason; provided, however, that in the event that applicable securities law (including Section 306 of the Sarbanes-Oxley Act), a
rule or listing requirement of the principal stock exchange on which the Company’s Shares are listed, or the Company’s blackout or stock trading policy prohibits the Optionee from trading in Shares (collectively, a
“Blackout”) during any portion of the six-month exercise period, then the running of such six-month exercise period shall be 

  
 5 

 
suspended until the first date on which the Blackout is lifted by the Company as it relates to the Optionee, or in the opinion of the Company’s legal counsel or legal compliance officer, the
Blackout no longer applies, but in no event shall such Option be exercisable after the Expiration Date. 
 In the event of the
Optionee’s termination of employment other than during a Change in Control Period but as a result of the Optionee’s Involuntary Termination or Resignation for Good Reason, the unvested portion of the Option shall be immediately be
forfeited; provided, however, that if the Optionee is a party to an Other Agreement (as defined in this Option Agreement) and such Other Agreement contains provisions regarding the vesting or forfeiture of stock options upon Involuntary Termination
or Resignation for Good Reason other than during a Change in Control Period (or the substantial equivalent thereof), the unvested portion of the Option shall vest or be forfeited in accordance with the terms of the Optionee’s Other Agreement.

 (c) Termination as a Result of Retirement. In the event of the Optionee’s termination of
employment as a result of his or her Retirement (which, for the avoidance of doubt and for purposes of this Option Agreement, is as defined in the Plan), the vesting of the Option shall accelerate such that Optionee shall be vested in and able to
exercise the Option as of the Termination Date as to that number of Shares subject to the Option that equals the product of: 
 (i) the total number of Shares subject to the Option, times  
 (ii) a ratio, the numerator of which is the total number of months of employment from the Grant Date to the end of the month in which the date of termination due to Retirement occurs, and the denominator
of which is thirty-six (36), rounded to the nearest whole number; less 
 (iii) the total number of
Shares in which Optionee has previously vested prior to his or her date of Retirement. 
 The remaining portion of the unvested
and unexercisable Option which is not accelerated for vesting purposes shall be immediately forfeited. 

Example: The following example is included merely for demonstrative purposes. 

Ann is granted 1,000 Options on March 4, 2011. She will vest in her Options as follows: (1) 333 Options on
the 1st anniversary of the Grant Date, (2) 333
Options on the 2nd anniversary of the Grant Date, and
(3) 334 Options on the 3rd anniversary of the Grant
Date. Ann subsequently terminates her employment by Retirement effective August 18, 2012. 
 As of August 18, 2012, Ann
will immediately vest in additional Shares underlying and subject to the unvested Options equal to the amount of 167 (equal to 1,000 Options multiplied by 18 months of employment divided by 36 reduced by 333
Options previously vested). 
 All vested Shares subject to the Option (including those Shares under the Option which become
immediately vested and exercisable pursuant to this paragraph (c)) shall remain exercisable until the earlier of: 
 (A) the Expiration Date; or 
 (B) the thirty-sixth (36) month
anniversary of the day the Optionee terminates employment due to Retirement. 

  
 6 

 The unvested portion of the Option shall be immediately forfeited. 

(d) Termination for Cause. In the event the Optionee’s employment is terminated for Cause, all unvested
Shares under the Option and all unexercised, vested Shares under the Option shall expire immediately, be forfeited and considered null and void, and the provisions of Section 9 of this Option Agreement shall control. 

(e) Termination — General. In the event of the Optionee’s termination of employment other than as
a result of Optionee’s death, Disability, Involuntary Termination, Resignation for Good Reason, Retirement, or Cause, Optionee may, to the extent he or she is otherwise vested in the Option at the Termination Date, exercise such Options and
such Options shall remain exercisable until the earlier of: 
 (i) the Expiration Date; or 

(ii) the date which is thirty (30) days after the day the Optionee terminates employment for reasons other than as a
result of Optionee’s death, Disability, Involuntary Termination, Resignation for Good Reason, Retirement, or Cause; provided, however, that in the event of a Blackout during any portion of the 30-day exercise period, then the running of such
30-day exercise period shall be suspended until the first date on which the Blackout is lifted by the Company as it relates to the Optionee, or in the opinion of the Company’s legal counsel or legal compliance officer, the Blackout no longer
applies, but in no event shall such Option be exercisable after the Expiration Date. 
 The unvested portion of the Option shall
be immediately forfeited. 
 (f) Change in Control Acceleration. In the event of the
Optionee’s termination of employment during a Change in Control Period as a result of Optionee’s Involuntary Termination or Resignation for Good Reason, any unvested Shares under the Option shall immediately become fully vested and
exercisable as of the date of such termination and all remaining Shares subject to the Option shall remain exercisable through the earlier of the Expiration Date or the date which is three (3) years after the date of such termination of
service, provided, however, that if the Optionee is a party to an Other Agreement and such Other Agreement contains provisions regarding the vesting or forfeiture of stock options upon such termination during a Change in Control Period (or the
substantial equivalent of any of the foregoing) in a manner consistent with Article 18 of the Plan, the unvested portion of the Option shall vest or be forfeited in accordance with the terms of the Optionee’s Other Agreement. Notwithstanding
the foregoing, in connection with a Change in Control, the Optionee shall receive the greater of the benefits provided under Article 18 of the Plan or any such Other Agreement to which the Optionee is a party, without duplication. 

(g) Other Termination Events. Notwithstanding anything to the contrary contained in this Option Agreement,
the Option will terminate and expire immediately upon the occurrence of the circumstances set forth in Section 11.2 of the Plan, and the provisions of Section 9 of the Option Agreement shall control. 

6. Relation of Other Agreement(s) to Option. As an express condition to acceptance of this Option, subject to the special
exception provided under Section 5(f) of this Option Agreement (which governs a Change in Control situation), Optionee agrees that: 
 (a) Except to the extent Optionee is or subsequently becomes a party to an Other Agreement (which, for the avoidance of doubt and for purposes of this Agreement, is as defined in the Plan), the only
vesting and lapse of forfeiture restriction provisions that govern the Option under this Option Agreement are set forth in Section 5 of this Option Agreement; 

  
 7 

 (b) To the extent that the vesting and lapse of forfeiture restriction
provisions of this Option Agreement or the Plan’s terms are inconsistent with an Other Agreement, the provisions of Optionee’s Other Agreement shall govern and control, subject to the special exception provided under Section 5(f) of
this Option Agreement (which governs a Change in Control situation); and 
 (c) Except as expressly provided in
paragraph (b) above, the terms of any Other Agreement shall in no way alter or amend, or provide additional rights or benefits, under the Option governed by this Option Agreement. 

7. Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of
descent or distribution and may be exercised during the lifetime of Optionee only by him or her. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of Optionee. 

8. Changes in Company’s Capital Structure. Subject to any required action by the Company’s Board and
stockholders, as may be determined to be appropriate and equitable by the Committee, to prevent dilution or enlargement of rights, the Committee shall: 
 (a) adjust proportionately the number of Shares covered by the Option and the Exercise Price for any increase or decrease in the number of issued and outstanding registered shares resulting from a
subdivision or combination of such shares or the payment of a stock dividend or any other increase or decrease in the number of such outstanding registered shares of the Company effected without the receipt of consideration by the Company;

 (b) if the Company is a participating corporation in any merger or consolidation and provided the Option is
not terminated upon consummation of such merger or consolidation, modify such Option to pertain to and apply to the securities or other property to which a holder of the number of shares subject to the unexercised portion of this Option would have
been entitled upon such consummation; and 
 (c) for the avoidance of doubt, make any other adjustments,
modifications, replacements, or exchanges permitted by the Plan, including without limit, the Plan’s Articles 18 and 19. 
 Notwithstanding
anything to the contrary, any such actions taken by the Committee shall be final, binding and conclusive. 
 9. Forfeiture
Events. Upon the occurrence of any of the events set forth in Section 11.2 of the Plan (a “Forfeiture Event”), Optionee, without any further action by the Company or Optionee, shall forfeit, as of the first day of any
such Forfeiture Event: 
 (a) all rights and interest to this Option; 

(b) any Shares issued upon exercise of the Option then owned by or for the benefit of the Optionee; and 

(c) any and all profits realized by the Optionee, on an after-tax basis, pursuant to any sales or transfer of any Shares
previously subject to the Option within the six (6) month period prior to the date of such Forfeiture Event. 

  
 8 

 Additionally, the Company shall have the right to issue a stop transfer order and other appropriate
instructions and other documents implementing the above-described forfeiture to its transfer agent, Cede & Co., the depository or any of its nominees, and/or any other person with respect to this Option and the Shares, and the Company
further shall be entitled to reimbursement from the Optionee of any fees and expenses (including attorneys’ fees) incurred by or on behalf of the Company in enforcing the Company’s rights under this Section 9. By accepting this Option
Grant, the Optionee hereby consents to a deduction from any amounts the Company owes to Optionee from time to time (including amounts owed to the Optionee as compensation as well as any other amounts owed to Optionee by the Company), to the extent
of any amounts that the Optionee owes to the Company under this Section 9. Whether or not the Company elects to make any set-off in whole or in part, if the Company does not recover by means of set-off the full amount the Optionee owes to the
Company, calculated as set forth above, the Optionee agrees to pay immediately the unpaid balance to the Company. The Optionee hereby grants the Company a proxy on his or her behalf, and the Optionee hereby agrees to execute any documents necessary
or appropriate to carry out the foregoing. 
 10. US Tax Consequences. Below is a brief summary as of the date of
this Option of certain United States federal tax consequences of exercise of this nonqualified stock option and disposition of the Shares under the laws in effect as of the Grant Date. THIS SUMMARY IS INCOMPLETE, AND THE TAX LAWS AND REGULATIONS
ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. There may be a regular federal (and state) income tax liability upon Optionee’s exercise of the Option. Optionee will be
treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Optionee is an Employee, the Company will
be required to withhold from Optionee’s compensation or collect from Optionee and pay to the applicable taxing authorities an amount of income and employment taxes equal to a percentage of this compensation income at the time of exercise. If
Shares issued upon exercise of this Option are held for at least one year, any gain realized on disposition of those Shares will be treated as long-term capital gain for federal income tax purposes. Optionee is obligated as a condition of exercise
of this Option to satisfy any applicable withholding tax obligations that apply thereto. 
 11. Effect of Agreement.
Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof (and has had an opportunity to consult counsel regarding the Option terms), and hereby accepts this Option and
agrees to be bound by its contractual terms as set forth herein and in the Plan. Optionee hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Committee regarding any questions relating to the Option. In
the event of a conflict between the terms and provisions of the Plan and the terms and provisions of the Notice and this Option Agreement, and, for the avoidance of doubt, in the event this Option Agreement does not address an issue addressed by the
Plan, the Plan terms and provisions shall prevail. 
 12. Governing Law. The laws of the state of New Jersey,
without giving effect to principles of conflicts of law, will apply to the Plan, to the Option and the Option Agreement (including the Notice). The Company agrees, and Optionee agrees as a condition to acceptance of the Option, to submit to the
jurisdiction of the courts located in the jurisdiction in which the Optionee is employed, or was most recently employed, by the Company. 
 13. Data Protection. Optionee acknowledges and agrees (by executing this Option Agreement) to the collection, use, processing and transfer of certain personal data as described in this
Section 13. The 

  
 9 

 
Optionee understands that he or she is not obliged to consent to such collection, use, processing and transfer of personal data. However, the Optionee understands that his or her failure to
provide such consent may affect his or her ability to participate in the Plan. The Optionee understands that the Company may hold certain personal information about the Optionee, including his or her name, social security number (or other tax
identification number), salary, nationality, job title, position evaluation rating along with details of all past awards and current awards outstanding under the Plan, for the purpose of managing and administering the Plan (the
“Data”). The Company, or its Affiliates, will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of the Plan. The Company and/or any of it Affiliates may further transfer
Data to any third parties assisting the Company in the implementation, administration and management of the Plan. These various recipients of Data may be located elsewhere throughout the world. The Optionee authorizes these various recipients of
Data to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Plan, including any required transfer of such Data as may be required for the subsequent
holding of Shares subject to the Option on the Optionee’s behalf by a broker or other third party with whom the Optionee may elect to deposit any Shares subject to the Option acquired pursuant to the Plan. The Optionee understands that he or
she may, at any time, review Data with respect to the Optionee and require any necessary amendments to such Data. The Optionee also understands that he or she may withdraw the consents to use Data herein by notifying the Company in writing; however,
the Optionee understands that by withdrawing his or her consents to use Data, the Optionee may affect his or her ability to participate in the Plan. 
 14. Employment Matters. The award of this Option does not form part of Optionee’s entitlement to remuneration or benefits in terms of Optionee’s employment with his or her
employer. Optionee’s terms and conditions of employment are not affected or changed in any way by this Option or by the terms of the Plan or this Option Agreement. No provision of this Option Agreement or of the Option granted hereunder shall
give the Optionee any right to continue in the service or employ of the Company or any Affiliate, create any inference as to the length of employment or service of the Optionee, affect the right of the Company or any Affiliate to terminate the
employment or service of the Optionee, with or without Cause, or give the Optionee any right to participate in any employee welfare or benefit plan or other program (other than the Plan) of the Company or any Affiliate. Optionee acknowledges and
agrees (by executing this Option Agreement) that the granting of Options under this Option Agreement are made on a fully discretionary basis by the Company and that this Option Agreement does not lead to a vested right to further Option awards in
the future. Further, the Options set forth in this Option Agreement constitute a non-recurrent benefit and the terms of this Option Agreement are only applicable to the Options distributed pursuant to this Option Agreement. 

15. Tax Provisions Applicable to Non-US Persons. This Section 15 shall apply to Optionee if he or she is resident in
and/or subject to the laws of a country other than the United States at the time of grant of this Option and during the period in which he or she holds this Option or the Shares issued pursuant thereto. 

(a) Applicable if Optionee is not a US person (including as to UK persons): Optionee hereby agrees to
indemnify and keep indemnified the Company and any Affiliate from and against any liability for, or obligation to pay, income tax and employer’s and/or employee’s national insurance or social security contributions arising on the grant of
the Option, vesting of the Shares or the exercise of the Option. 
 (b) Applicable if Optionee is a UK
person: Where any obligation to pay income tax or employee’s national insurance contributions or social security contributions (any such obligation or contribution, a “Tax Liability”) arises, the Company or any Affiliate may
recover from Optionee an amount of money sufficient to meet the Tax Liability by any of the following arrangements: 
 (i) deduction from salary or other payments due to Optionee; or 

(ii) withholding from the issuance to Optionee of that number of Shares (otherwise to be acquired by Optionee on exercise
of the Option) whose aggregate Fair Market Value on the date of exercise is, so far as possible, equal to but neither less than nor more than the amount of Tax Liability. 

  
 10 

 16. Severability. In the event that any provision of this Option Agreement
shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Option Agreement, and this Option Agreement shall be construed and enforced as if the illegal or invalid provision had not
been included. 
 17. Waiver; Cumulative Rights. The failure or delay of either party to require performance by
the other party of any provision hereof shall not affect its right to require performance of such provision unless and until such performance has been waived in writing. Each and every right hereunder is cumulative and may be exercised in part or in
whole from time to time. 
 18. Amendment of Nonqualified Stock Option. The Committee may at any time amend,
alter, suspend or discontinue the Plan, but no amendment, alteration, suspension or discontinuation (other than as explicitly permitted under the Plan) shall be made that would adversely affect Optionee’s rights under this Option Agreement
without his or her consent. 
 19. Representations. As a condition to Optionee’s receipt of this Option,
Optionee represents and warrants the following: 
 (a) Optionee is aware of the Company’s business affairs
and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to accept this Option; 
 (b) Optionee is acquiring the Option and the Shares subject thereto for investment only for his or her own account, and not with a view, or for resale in connection with, any “distribution”
thereof under Applicable Law; 
 (c) Optionee understands that neither Option nor the Shares have been registered
in all State jurisdictions within the United States, and that the exemption(s) from registration relied upon may depend upon his or her investment intent as set forth above; 

(d) Optionee further understands that prior to any resale by him or her of the Shares acquired upon exercise of this
Option without registration of such resale in relevant State jurisdictions, the Company may require him or her to furnish the Company with an opinion of counsel acceptable to the Company that he or she may sell or transfer such Shares pursuant to an
available exemption under Applicable Law; 
 (e) Optionee understands that the Company is under no obligation to
assist him or her in this process by registering the Shares in any jurisdiction or by ensuring that an exemption from registration is available; and 
 (f) Optionee further agrees that as a condition to exercise of this Option, the Company may require him or her to furnish contemporaneously dated representations similar to those set forth in this
Section 19. 

  
 11 

 EXHIBIT A 
 FOSTER WHEELER AG OMNIBUS INCENTIVE PLAN 
 Exercise Notice of Options
of Foster Wheeler AG 
  

			
	Date:	  	[Date]
		
	From:	  	[Name, Address, e-mail]
		
	To:	  	Foster Wheeler AG
		  	c/o Foster Wheeler Inc.
		  	Perryville Corporate Park
		  	53 Frontage Road
		  	PO Box 9000
		  	Hampton, NJ 08827-9000

 Ladies and Gentlemen, 
 I herewith exercise [number of options] granted to me in the Nonqualified Stock Option Grant dated [date of award agreement] under the [name of plan] which entitle me to [number of shares, which number
should be equal to the number of options set forth above] registered shares of Foster Wheeler AG with a par value of [  X  ] Swiss francs (CHF). 
 I unconditionally subscribe for the number of registered shares as stated above and undertake to pay the exercise price of [exercise price] US dollars (USD) per share as stated in the respective plan
and/or agreement. 
 I request that Foster Wheeler AG deliver [number of shares] out of its conditional capital according to Article 5 of its
Articles of Association after the receipt of my payment and I herewith assign and transfer these shares to Cede & Co. in its capacity as Nominee of the Depository Trust Company, New York City, in order to and with the sole purpose of
enabling the electronic trading of the aforementioned shares on the NASDAQ Global Select Market. 
  

	
	Yours sincerely,
	
	  

	[Name]

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