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      Exhibit
        10.2

      AMENDED
        AND RESTATED EMPLOYMENT AGREEMENT 

       

      AMENDED
        AND RESTATED EMPLOYMENT AGREEMENT
        (this
“Agreement”)
        dated
        as of May 6, 2008 between FOSTER
        WHEELER LTD.,
        a
        Bermuda company (the “Company”),
        and
RAYMOND
        J. MILCHOVICH
        (the
“Executive”).

       

      WHEREAS,
        the
        Executive and the Company are parties to that certain employment agreement
        (the
“Employment Agreement”), dated as of August 11, 2006 and amended as of January
        30, 2007 and February 27, 2007;

       

      WHEREAS,
        the
        Executive and the Company wish to further amend and restate the Employment
        Agreement on the terms and conditions set forth in this Agreement.

       

      ACCORDINGLY,
        the
        Company and the Executive hereby agree to amend and restate the Employment
        Agreement in its entirety as follows:

       

      
        	 	
                1.

              	
                Employment,
                  Duties and Acceptance.

              

      

       

      1.1 Employment,
        Duties.
        The
        Company hereby employs the Executive for the Term (as defined in Section
        2.1),
        to render exclusive and full-time services to the Company, in the capacity
        of
        chief executive officer of the Company and to perform such other duties
        consistent with such position (including service as a director or officer
        of any
        affiliate of the Company if elected) as may be assigned by the Board of
        Directors of the Company (the “Board”); provided, however, that the Executive
        may, subject to approval by the Board, serve on the Board of Directors of
        not
        more than two for-profit businesses at any time during the Term that do not
        compete with the Company and may participate in civic, charitable and industry
        organizations to the extent that such participation does not materially
        interfere with the performance of his duties hereunder. The Executive’s title
        shall be Chief Executive Officer, or such other titles of at least equivalent
        level consistent with the Executive’s duties from time to time as may be
        assigned to the Executive by the Board, and the Executive shall have all
        authorities as are customarily and ordinarily exercised by executives in
        similar
        positions in similar businesses in the United States. The Executive shall
        report
        solely to the Board. The Company agrees to use its best efforts to cause
        the
        Executive to be elected to the Board, and to have the Executive serve as
        Chairman of the Board throughout his service on the Board during the
        Term.

       

      1.2 Acceptance.
        The
        Executive hereby accepts such continued employment and agrees to render the
        services described above. During the Term, and consistent with the above,
        the
        Executive agrees to serve the Company faithfully and to the best of the
        Executive’s ability, to devote the Executive’s entire business time, energy and
        skill to such employment, and to use the Executive’s best efforts, skill and
        ability to promote the Company’s interests.

       

      1.3 Fiduciary
        Duties to the Company. Executive
        acknowledges and agrees that Executive owes a fiduciary duty of loyalty,
        fidelity and allegiance to act at all times in the best interests of the
        Company
        and to do no act which would, directly or indirectly, injure the Company’s
        business, interests, or reputation. It is agreed that any direct or indirect
        interest in, connection with, or benefit from any outside activities,
        particularly commercial activities, which interest might in any way adversely
        affect Company, involves a possible conflict of interest. In keeping with
        Executive’s fiduciary duties to the Company, Executive agrees that Executive
        shall not knowingly become involved in a conflict of interest with the Company,
        or upon discovery thereof, allow such a conflict to continue. Moreover,
        Executive shall not engage in any activity which might involve a possible
        conflict of interest without first obtaining approval in accordance with
        the
        Company’s policies and procedures. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      1.4 Location.
        The
        duties to be performed by the Executive hereunder shall be performed primarily
        at the Company’s offices in Clinton, New Jersey, subject to reasonable travel
        requirements consistent with the nature of the Executive’s duties from time to
        time on behalf of the Company. The Executive shall keep his primary residence
        within reasonable daily commute of the Clinton, New Jersey area throughout
        the
        Term.

       

      
        	 	
                2.

              	
                Term
                  of Employment.

              

      

       

      2.1 Term.
        The
        term of the Executive’s employment under this Agreement (the “Term”)
        shall
        commence on August 11, 2006 (the “Effective
        Date”),
        and
        shall end on the earlier of (i) the third anniversary of the Effective Date
        and
        (ii) such earlier date on which the Term is terminated pursuant to Section
        4;
        provided, however, that upon the third anniversary of the Effective Date,
        and
        upon each anniversary thereafter, the Term shall be automatically extended
        for
        one (1) year unless either the Company or the Executive shall have given
        written
        notice to the other at least ninety (90) days prior thereto that the Term
        shall
        not be so extended.

       

      
        	 	
                3.

              	
                Compensation;
                  Benefits.

              

      

       

      3.1 Salary.
        As
        compensation for all services to be rendered pursuant to this Agreement,
        the
        Company agrees to pay to the Executive during the Term a base salary, payable
        monthly in arrears, at the initial annual rate for fiscal 2008 of $1,031,940
        (the “Base
        Salary”).
        On
        each anniversary of the Effective Date or such other appropriate date as
        may be
        agreed by the parties during the Term, the Company shall review the Base
        Salary
        and determine if, and by how much, the Base Salary should be increased. Once
        the
        Base Salary has been increased hereunder, it shall not be decreased. All
        payments of Base Salary or other compensation hereunder shall be less such
        deductions or withholdings as are required by applicable law and
        regulations.

       

      3.2 Bonus.
        In
        addition to the amounts to be paid to the Executive pursuant to Section 3.1,
        if
        the Company achieves 100% or more of the Company’s target objectives for a
        fiscal year of the Company, such target objectives which are recommended
        by the
        Executive and approved by the Compensation Committee of the Board (the
“Compensation
        Committee”)
        not
        later than March 31 of such year, the Executive shall receive an annual bonus
        (an “Annual
        Bonus”)
        equal
        to the product of (i) the Executive’s Base Salary at the rate in effect at
        the beginning of such fiscal year and (ii) 100%. Should the Company achieve
        objectives in a fiscal year which are recommended by the Executive and approved
        by the Compensation Committee not later than March 31 to be significantly
        beyond
        expectations for the Company’s performance for such year, the 100% multiplier
        set forth in clause (ii) of the preceding sentence shall be increased up to
        a maximum of two (2) times the foregoing multiplier. Upon recommendation
        by the
        Executive and approval by the Compensation Committee not later than March
        31 of
        the year to which it relates, a formula will be established to provide for
        recognition of threshold objectives below the target and for pro rata awards
        between the threshold award opportunity and the maximum award opportunity.
        Any
        Annual Bonus earned hereunder shall be payable not later than two and one-half
        months following the end of the fiscal year to which it relates. Except in
        the
        event of a termination of the Executive’s employment pursuant to Section 4.4, in
        the event that the Executive’s employment shall terminate other than on a date
        which is the last day of a fiscal year of the Company, the Executive’s Annual
        Bonus with respect to the fiscal year in which employment terminates shall
        be
        prorated at target for the actual number of days of the Executive’s employment
        by the Company during such fiscal year, and such Annual Bonus, if any, shall
        be
        payable on the date that executive bonuses are paid generally, whether or
        not
        the Executive remains employed on such date, provided, however, that payment
        shall be made not later than two and one-half months following the end of
        the
        fiscal year to which it relates. The Executive shall be entitled to no Annual
        Bonus in respect of the fiscal year of the Company in which his Employment
        terminates if such termination is pursuant to Section 4.4.

       

      
        
          
          

        

        
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      3.3 Long-Term
        Incentive.
        The
        parties acknowledge and agree that on the Effective Date (known as the
“Grant
        Date”),
        and
        subject to the provisions of Section 4 of this Agreement, the Executive received
        the following:

       

      3.3.1 A
        grant
        of a number of shares of common stock of the Company (“Common
        Stock”)
        with
        an economic value as of the Grant Date equal to approximately $4,987,500
        (the
“Restricted
        Stock”).
        The
        Restricted Stock was granted under the Company’s Omnibus Incentive Plan. The
        Restricted Stock was issued on the Grant Date.

       

      3.3.2 A
        grant
        of stock options to purchase shares of Common Stock with an economic value
        as of
        the Grant Date equal to approximately $4,987,500 (the “Options”).
        The
        Options were granted under the Company’s Omnibus Incentive Plan and for purposes
        of such Plan (a) the Options are Nonqualified Stock Options, (b) the exercise
        price is equal to the Fair Market Value for a share of Common Stock as defined
        under the terms of the Company’s Omnibus Incentive Plan, and (c) the Expiration
        Date is the last business day immediately preceding the fifth anniversary
        of the
        Grant Date. The Options were issued on the Grant Date. For purposes of Section
        3.3.1 and Section 3.3.2 herein, the determination of the number of Restricted
        Stock and Options to be granted to Executive was consistent with the methodology
        used by Hewitt Associates for valuing restricted stock and stock options
        granted
        to employees of its publicly traded clients.

       

      With
        respect to the Restricted Stock and the Options issued on the Grant Date,
        one-third (33-1/3%) of both the Restricted Stock and the Options vested on
        the
        first anniversary of such Grant Date, another third vest on the second
        anniversary of such Grant Date, and the remaining one-third of both the
        Restricted Stock and the Options vest on the third anniversary of such Grant
        Date, provided that the Executive is employed on such dates, subject to the
        provisions of Section 4 of this Agreement. The Executive shall not be eligible
        to receive any additional regular cycle grants under the Company’s Omnibus
        Incentive Plan until after the third anniversary of the Grant Date.

       

      
        
          
          

        

        
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      The
        Restricted Stock and Options are governed by separate agreements entered
        into
        between the Executive and the Company, and in the event of any inconsistency
        between such separate agreements and the terms of this Agreement (including,
        but
        not limited to Section 4), this Agreement shall govern and control. For
        avoidance of doubt, nothing in the preceding sentence shall be construed
        to
        limit the application of any provision of such separate agreements that
        expressly refers to and incorporates a provision of this Agreement.

       

      3.4 Business
        Expenses.
        The
        Company shall pay or reimburse the Executive for all reasonable expenses
        actually incurred or paid by the Executive during the Term in the performance
        of
        the Executive’s services under this Agreement, subject to and in accordance with
        applicable expense reimbursement and related policies and procedures as in
        effect from time to time.

       

      3.5 Vacation.
        During
        each year of the Term, the Executive shall be entitled to a paid vacation period
        or periods of five (5) weeks taken in accordance with applicable vacation
        policy
        as in effect from time to time.

       

      3.6 Fringe
        Benefits; Perquisites; Executive Cooperation.

       

      (i) During
        the Term, the Executive shall be entitled to participate in those employee
        pension benefits plans, group insurance, medical, dental, disability and
        other
        benefit plans and perquisites of the Company as from time to time in effect
        and
        made available to senior executives of the Company generally; provided, however,
        that the Executive shall not be entitled to participate in any non-tax qualified
        defined benefit or defined contribution plan offered by the Company or in
        any
        Company split-dollar management life insurance program.

       

      (ii) During
        the Term, the Executive shall be provided by the Company with the following
        perquisites:

       

      (a) supplemental
        term life insurance equal to Executive’s Base Salary;

       

      (b) an
        annual
        physical examination;

       

      (c) home
        office equipment and associated services for business use in Executive’s
        homes;

       

      (d) should
        the personal security of the Executive become an issue, reasonable security
        measures shall be provided by the Company, as required and determined by
        the
        Executive and subject to approval by the Compensation Committee of the Board;
        

       

      (e) annual
        reimbursement for the reasonable fees associated with financial planning
        and
        income tax advice and document preparation; and

       

      (f) Company-furnished
        automobile or automobile allowance at a level no less favorable than any
        other
        executive at or below the Executive’s level.

       

      
        
          
          

        

        
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      (iii) Should
        the Company so elect, the Executive will cooperate in assisting the Company
        in
        obtaining a key man life insurance policy on the life of the Executive, the
        beneficiary of which shall be the Company, including completing all necessary
        application materials and submitting to one or more physical examinations
        with a
        physician of the Company’s choice.

       

      
        	 	
                4.

              	
                Termination.

              

      

       

      4.1 General.
        Except
        as otherwise provided in this Section 4, following any termination of the
        Executive’s employment, the Company shall pay to, provide to, or allow the
        retention by, the Executive, or his estate or beneficiary, as the case may
        be,
        (i) Base Salary earned through the date of such termination; (ii) except
        in the
        case of a termination described in Section 4.4, any earned, but unpaid, annual
        cash incentive or other incentive awards; (iii) a payment representing the
        Executive’s accrued but unpaid vacation; (iv) any vested, but not forfeited,
        benefits on the date of such termination under the Company’s employee benefit
        plans in accordance with the terms of such plans; (v) the vested portion
        of his
        Restricted Stock and Options granted under Section 3.3 of this Agreement;
        and
        (vi) benefit continuation and conversion rights to which the Executive is
        entitled under the Company’s employee benefit plans and this
        Agreement.

       

      4.2 Death.
        In
        addition to those payments and benefits described in Section 4.1, if the
        Executive shall die during the Term, the Term shall immediately terminate
        and
        the Executive shall be entitled to no further payments or benefits hereunder,
        except: (i) the Company shall make a lump sum cash payment to the Executive’s
        estate or beneficiary, as the case may be, within two (2) months following
        such
        termination equal to one (1) year of the Base Salary on the date of such
        termination; (ii) continuing receipt of the medical benefits described in
        Section 3.6(i) during the twenty-four (24) month period commencing on the
        date
        of such termination; (iii) any granted but unvested Options set forth in
        Section
        3.3 herein shall become vested and exercisable and shall remain so for the
        period commencing the date of such termination through the earlier of (Y)
        the
        second anniversary of such termination, or (Z) the original expiration date;
        and
        (iv) any granted but unvested Restricted Stock set forth in Section 3.3 shall
        become vested.

       

      4.3 Disability.
        In
        addition to those payments and benefits described in Section 4.1, if during
        the
        Term the Executive shall become physically or mentally disabled (a “Disability”),
        whether totally or partially, such that the Executive is unable to perform
        the
        Executive’s principal services hereunder for a period of not less than one
        hundred eighty (180) consecutive days, the Company may at any time after
        the
        last day of such period (provided that such disability is continuing), by
        written notice to the Executive, terminate the Term and Executive shall be
        entitled to no further payments or benefits hereunder, except that the Executive
        shall be entitled to receive the payments and benefits described in Section
        4.2
        above, less any payments made to the Executive pursuant to a Company disability
        insurance plan.

       

      
        
          
          

        

        
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      4.4 For
        Cause.
        In
        addition to those payments and benefits described in clauses (i), (ii), (iii),
        (iv) and (vi) of Section 4.1, if the Company terminates the Executive’s
        employment for Cause, the Term shall terminate immediately and (i) the Executive
        shall be entitled to receive no further amounts or benefits hereunder, except
        as
        required by law; (ii) all unvested Options and Restricted Stock set forth
        in
        Section 3.3 herein shall be immediately forfeited; and (iii) all vested Options
        and Restricted Stock set forth in Section 3.3 herein which are not forfeited
        pursuant to clause (ii) of this sentence shall be forfeited on the date which
        is
        ninety (90) days following such termination, provided,
        however,
        that,
        for the avoidance of doubt, such Options may not be exercised on a date later
        than their original expiration date. For purposes of this Agreement,
“Cause”
shall
        mean the Executive (i) being convicted of, or pleading guilty or no contest
        to,
        a felony (except for motor vehicle violations); (ii) engaging in conduct
        that
        constitutes gross misconduct or fraud in connection with the performance
        of his
        duties to the Company; (iii) materially breaching this Agreement which the
        Executive does not cure within thirty (30) days after the Company provides
        written notice of such breach to the Executive; or
        (iv)
        committing a
        material violation of the Foster Wheeler Code of Business Conduct and Ethics.
        

       

      4.5 Without
        Cause; For Good Reason.
        In
        addition to those payments and benefits described in Section 4.1, if during
        the
        Term the Company terminates the Executive’s employment without Cause or if the
        Executive terminates his employment with Good Reason, the Term shall immediately
        terminate and the Executive shall be entitled to no further payments or benefits
        hereunder, except: (i) the Company shall make a lump sum cash payment to
        the
        Executive within two (2) months following such termination equal to the sum
        of
        (a) two hundred percent (200%) of the Base Salary on the date of such
        termination and (b) two hundred percent (200%) of the Executive’s Annual Bonus
        at target; (ii) continuing receipt of those benefits described in Section
        3.6(i)
        during the twenty-four month period commencing on the date of such termination,
        provided,
        however,
        that
        with regard to any benefits described in Section 3.6(i) which are not health
        or
        welfare benefits, the Company shall determine, in its reasonable discretion,
        the
        value of any such benefits and pay such value in a lump sum within 30 days
        following such termination; (iii) any granted but unvested Options set forth
        in
        Section 3.3 herein shall become vested and exercisable and shall remain so
        for
        the period commencing the date of such termination through the earlier of
        (Y)
        the second anniversary of such termination, or (Z) the original expiration
        date;
        (iv) any granted but unvested Restricted Stock set forth in Section 3.3 shall
        become vested; and (v) the Company shall pay the reasonable cost of
        executive-level career assistance services for the Executive by a firm
        designated by the Executive for a period of twelve months following such
        termination. 

       

      For
        purposes of this Agreement, “Good
        Reason”
shall
        mean a material negative change in the employment relationship without the
        Executive’s consent, as evidenced by the occurrence of any of the following: (i)
        a material change in the Executive’s position causing it to be of materially
        less stature or responsibility, or a change in the Executive’s reporting
        relationship; (ii) following a “Change
        of Control”
(as
        defined in Section 4.6.2), the relocation of the Executive’s principal place of
        employment by more than fifty (50) miles; (iii) the Company materially breaches
        this Agreement; (iv) the Executive is not nominated for election to the Board
        or, if elected to the Board, is not named as its Chairman, or the Executive
        is
        not timely renominated for election to the Board or is involuntarily removed
        from the Board under circumstances that would not constitute Cause or Disability
        hereunder; or (v) resignation in compliance with securities/corporate governance
        applicable law (such as the US Sarbanes-Oxley Act) or rules of professional
        conduct specifically applicable to such Executive. For each event described
        in
        the definition of Good Reason set forth above, the Executive must notify
        the
        Company within ninety (90) days of the occurrence of the event and the Company
        shall have thirty (30) days after receiving such notice in which to cure.
        

       

      
        
          
          

        

        
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      The
        Company shall not terminate the Executive’s employment without Cause prior to
        the date which is thirty (30) days following the date on which the Company
        provides written notice of such termination to the Executive; provided, however,
        that the Executive may waive such notice period in writing. 

       

      4.6 Change
        of Control.

       

      4.6.1 In
        addition to those payments and benefits described in Section 4.1, if during
        the
        Term the Company terminates the Executive’s employment without Cause or the
        Executive terminates his employment with Good Reason, in each case within
        the
        thirteen (13) month period following a Change of Control, or if the Executive
        terminates his employment for any reason during the thirty (30) day period
        commencing on the date which is twelve (12) months following a Change of
        Control, the Term shall immediately terminate and the Executive shall be
        entitled to no further payments or benefits hereunder, except (i) the Company
        shall within 30 days following such termination make a lump sum cash payment
        to
        the Executive equal to the sum of (a) three hundred percent (300%) of the
        Base
        Salary on the date of such termination and (b) three hundred percent (300%)
        of
        the Executive’s Annual Bonus at target; (ii) continuing receipt of those
        benefits described in Section 3.6(i) during the thirty-six month period
        commencing on the date of each termination
        provided, however,
        that
        with regard to any benefits described in Section 3.6(i) which are not health
        or
        welfare benefits, the Company shall determine, in its reasonable discretion,
        the
        value of any such benefits and pay such value in a lump sum within 30 days
        following such termination; (iii) any granted but unvested Options set forth
        in
        Section 3.3 herein shall become vested and exercisable and shall remain so
        for
        the period commencing on the date of such termination through the second
        anniversary of such termination, or if earlier, through the remainder of
        the
        term of such Options; (iv) any granted but unvested Restricted Stock set
        forth
        in Section 3.3 shall become vested; (v) the Company shall pay the reasonable
        cost of executive-level career assistance services for the Executive by a
        firm
        designated by the Executive for a period of twelve months following such
        termination; and (vi) the payment required, if any, pursuant to Sections
        4.6.3.1-7.

       

      4.6.2 For
        purposes of this Agreement, a “Change
        of Control”
shall
        be deemed to occur upon: (i) the sale, lease, conveyance or other disposition
        of
        all or substantially all of the Company’ s assets as an entirety or
        substantially as an entirety to any person, entity or group of persons acting
        in
        concert other than in the ordinary course of business; (ii) any transaction
        or
        series of related transactions (as a result of a tender offer, merger,
        consolidation or otherwise) that results in any Person (as defined in Section
        13(h)(8)(E) under the Securities Exchange Act of 1934) becoming the beneficial
        owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934),
        directly or indirectly, or more than 20% of the aggregate voting power of
        all
        classes of common equity of the Company, except if such Person is (w) a
        subsidiary of the Company, (x) an employee benefit plan for employees of
        the
        Company or (y) a company formed to hold the Company’ s common equity securities
        and whose shareholders constituted, at the time such company became such
        holding
        company, substantially all the shareholders of the Company; or (iii) a change
        in
        the composition of the Board over a period of thirty-six (36) consecutive
        months
        or less such that a majority of the then current Board members ceases to
        be
        comprised of individuals who either (a) have been Board members
        continuously since the beginning of such period, or (b) have been elected
        or nominated for election as Board members during such period by at least
        a
        majority of the Board members described in clause (a) who were still in
        office at the time such election or nomination was approved by the
        Board.

       

      
        
          
          

        

        
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      4.6.3.1 If
        it
        shall be determined that any payment or distribution of any type to or in
        respect of the Executive made directly or indirectly, by the Company, whether
        paid or payable or distributed or distributable pursuant to the terms of
        this
        Agreement or otherwise (the “Total
        Payments”),
        is or
        will be subject to the excise tax imposed by Section 4999 of the Internal
        Code
        of 1986, as amended (the “Code”),
        or
        any interest or penalties with respect to such excise tax (such excise tax,
        together with any such interest and penalties, are collectively referred
        to as
        the “Excise
        Tax”),
        then
        the Executive shall be entitled to receive an additional payment (a
“Gross-Up
        Payment”)
        in an
        amount such that after payment by the Executive of all taxes (including any
        interest or penalties imposed with respect to such taxes) imposed upon the
        Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment
        equal
        to the Excise Tax imposed upon the Total Payments.

       

      4.6.3.2 All
        computations and determinations relevant to this Section 4.6.3 shall be made
        by
        a national accounting firm selected and reimbursed by the Company from among
        the
        five (5) largest accounting firms in the United States (the “Accounting
        Firm”),
        subject to the Executive’s consent (not to be unreasonably withhold), which firm
        may be the Company’s accountants. Such determinations shall include whether any
        of the Total Payments are “parachute
        payments”
(within
        the meaning of Section 280G of the Code). In making the initial determination
        hereunder as to whether a Gross-Up Payment is required, the Accounting Firm
        shall determine that no Gross-Up Payment is required if the Accounting Firm
        is
        able to conclude that no “Change of Control” has occurred (within the meaning of
        Section 280G of the Code). If the Accounting Firm determines that a Gross-Up
        Payment is required, the Accounting Firm shall provide its determination
        (the
“Determination”),
        together with detailed supporting calculations regarding the amount of any
        Gross-Up Payment and any other relevant matter both to the Company and the
        Executive by no later than ten (10) days following the termination date,
        if
        applicable, or such earlier time as is requested by the Company or the Executive
        (if the Executive reasonably believes that any of the Total Payments may
        be
        subject to the Excise Tax). If the Accounting Firm determines that no Excise
        Tax
        is payable by the Executive, it shall furnish the Executive and the Company
        with
        a written statement that such Accounting Firm has concluded that no Excise
        Tax
        is payable (including the reasons therefor) and that the Executive has
        substantial authority not to report any Excise Tax on his federal income
        tax
        return.

       

      4.6.3.3 If
        a
        Gross-Up Payment is determined to be payable, it shall be paid to the Executive
        within twenty (20) days after the Determination (and all accompanying
        calculations and other material supporting the Determination) is delivered
        to
        the Company by the Accounting Firm. Any determination by the Accounting Firm
        shall be binding upon the Company and the Executive, absent manifest
        error.

       

      
        
          
          

        

        
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      4.6.3.4 As
        a
        result of 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 not made by the Company should have been made
        (“Underpayment”),
        or
        that Gross-Up Payments will have been made by the Company which should not
        have
        been made (“Overpayments”).
        In
        either such event, the Accounting Firm shall determine the amount of the
        Underpayment or Overpayment that has occurred. In the case of an Underpayment,
        the amount of such Underpayment (together with any interest and penalties
        payable by the Executive as a result of such Underpayment) shall be promptly
        paid by the Company to or for the benefit of the Executive.

       

      4.6.3.5 In
        the
        case of an Overpayment, the Executive shall, at the direction and expense
        of the
        Company, take such steps as are reasonably necessary (including the filing
        of
        returns and claims for refund), follow reasonable instructions from, and
        procedures established by, the Company, and otherwise reasonably cooperate
        with
        the Company to correct such Overpayment, provided, however, that (i) the
        Executive shall not in any event be obligated to return to the Company an
        amount
        greater than the net after-tax portion of the Overpayment that he has retained
        or has recovered as a refund from the applicable taxing authorities and (ii)
        this provision shall be interpreted in a manner consistent with the intent
        of
        this Section 4.6.3, which is to make the Executive whole, on an after-tax
        basis,
        from the application of the Excise Taxes, it being acknowledged and understood
        that the correction of an Overpayment may result in the Executive repaying
        to
        the Company an amount which is less than the Overpayment.

       

      4.6.3.6 The
        Executive shall notify the Company in writing of any claim by the Internal
        Revenue Service relating to the possible application of the Excise Tax under
        Section 4999 of the Code to any of the payments and amounts referred to herein
        and shall afford the Company, at its expense, the opportunity to control
        the
        defense of such claim (for the sake of clarity, if the Internal Revenue Service
        is successful in any such claim or the Executive reaches a final settlement
        with
        the Internal Revenue Service with respect to such claim (after having afforded
        the Company, at its expense, the opportunity to control the defense of such
        claim), the amount of the Excise Tax resulting from such successful claim
        or
        settlement shall be determinative as to whether or not there has been an
        Underpayment or an Overpayment for purposes of Section 4.6.3.4).

       

      4.6.3.7 Without
        limiting the intent of this Section 4.6.3 to make the Executive whole, on
        an
        after-tax basis, from the application of the Excise Taxes, all determinations
        by
        the Accounting Firm shall be made with a view to minimizing the application
        of
        Sections 280G and 4999 of the Code of any of the Total Payments, subject,
        however, to the following: the Accounting Firm shall make its determination
        on
        the basis of “substantial
        authority”
(within
        the meaning of Section 6230 of the Code) and shall provide opinions to that
        effect to both the Company and the Executive upon the request of either of
        them.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

         

      

      4.6.4 As
        soon
        as technically possible following a Change of Control, the Executive shall
        receive an immediate payment in cash of the Annual Bonus under the Foster
        Wheeler Annual Executive Short-Term Incentive Plan, or any successor plan,
        for
        the year in which the Change of Control takes place equal to the Annual Bonus
        the Executive received (if any) for the calendar year immediately preceding
        the
        year in which the Change of Control took place. If it is determined, after
        the
        end of the year in which the Change of Control took place, that the amount
        of
        the Annual Bonus that is actually due to the Executive for such year under
        the
        Foster Wheeler Annual Executive Short-Term Incentive Plan, or any successor
        plan, exceeds the amount paid pursuant to the preceding sentence, the excess
        shall be paid to the Executive no later than the fifteenth day of the third
        month of the fiscal year next following the fiscal year for which this Annual
        Bonus is paid under this Section 4.6.4. It is expressly agreed that the overall
        Annual Bonus paid for the year in which the Change of Control takes place
        in no
        event shall be lower than the Recent Annual Bonus. For purposes of this
        Agreement, a “Recent
        Annual Bonus”
shall
        mean a prior year’s Annual Bonus in cash equal to at least the highest “annual
        short-term incentive award” (as such terminology is defined in the Foster
        Wheeler Annual Executive Short-Term Incentive Plan) received by the Executive
        under the Foster Wheeler Annual Executive Short-Term Incentive Plan, or any
        comparable bonus under any predecessor or successor plan, including any bonus
        or
        portion thereof that has been awarded but deferred, for the last three full
        fiscal years prior to the Change of Control. Notwithstanding anything to
        the
        contrary, in the event that during any three year look-back period above,
        any
        annual bonus paid and received by Executive under the Foster Wheeler Annual
        Executive Short-Term Incentive Plan (or any respective predecessor annual
        incentive plan) was paid by a Foster Wheeler affiliate other than the Company,
        then any such annual bonus paid by either the Company or any other Foster
        Wheeler affiliate during the three-year look-back period shall be deemed
        to be
        paid by the Company for purposes of this computation. 

       

      4.7 End
        of
        Term.
        In
        addition to those payments and benefits described in Section 4.1, if the
        Term of
        this Agreement terminates by reason of the Company’s written notice pursuant to
        Section 2.1 herein not to extend the Term, the Executive shall be entitled
        to no
        further payments or benefits, except that the Company shall make a lump sum
        cash
        payment to the Executive within two (2) months following such termination
        equal
        to two hundred percent (200%) of the Base Salary on the date of such
        termination.

       

      4.8 No
        Mitigation.
        Upon
        termination of the Executive’s employment with the Company, the Executive shall
        be under no obligation to seek other employment or otherwise to mitigate
        the
        obligations of the Company under this Agreement.

       

      4.9 Without
        Good Reason.
        In
        addition to those payments and benefits described in Section 4.1, if during
        the
        Term the Executive voluntarily terminates his employment other than for Good
        Reason, the exercise period set forth in Section 5(e)(ii) of the Employee
        Nonqualified Stock Option Agreement issued to the Executive as of August
        11,
        2006 (the “Option Agreement”), shall allow the Executive to exercise any vested
        Option through August 11, 2011. The Executive shall not voluntarily terminate
        his employment without Good Reason prior to the date which is thirty (30)
        days
        following the date on which the Executive provides written notice of such
        termination to the Company; provided, however, that the Company may waive
        such
        notice period in writing.

       

      4.10 Extension
        for Securities Laws Restrictions.
        In the
        event that on the last date on which an Option may be exercised under this
        Agreement or the Option Agreement, or on the last date on which Restricted
        Stock
        may be sold by the Executive under Section 4.4 of this Agreement, applicable
        law
        would preclude the Executive from exercising or selling such Option or
        Restricted Stock, then the expiration of the applicable exercise and sale
        periods under this Agreement and the Option Agreement shall be tolled and
        extended until the last trading day that is 30 days following the date upon
        which the exercise or sale of the Option or Restricted Stock would first
        no
        longer violate applicable laws. For the purpose of this section 4.10, applicable
        law shall be deemed to so preclude the Executive if, among other things,
        his
        legal counsel has advised him or the Company in writing that he is so precluded.
        

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

         

      

      4.11 Health
        Benefits.
        With
        regard to any continuation of medical and dental benefits (i.e., health
        benefits) provided under this Section 4, for each month during the 24-month
        or
        36-month (as applicable) continuation period following the Executive’s
        termination date, (i) the Company shall make a cash payment each month equal
        to
        the full monthly premium for such medical and dental benefits minus the active
        employee cost of such coverage, such full monthly premium to be grossed-up
        for
        any applicable income taxes and (ii) the Executive (or his Estate or
        beneficiaries, as the case may be) shall remit monthly premiums each month
        for
        the full cost of any such medical and dental benefits.

       

      
        	 	
                5.

              	
                Protection
                  of Confidential Information:
                  Non-Competition.

              

      

       

      5.1 The
        Executive acknowledges that the Executive’s services will be unique, that they
        will involve the development of Company-subsidized relationships with key
        customers, suppliers, and service providers as well as with key Company
        employees and that the Executive’s work for the Company will give the Executive
        access to highly confidential information not available to the public or
        competitors, including trade secrets and confidential marketing, sales, product
        development and other data and information which it would be impracticable
        for
        the Company to effectively protect and preserve in the absence of this Section
        5
        and the disclosure or misappropriation of which could materially adversely
        affect the Company. Accordingly, the Executive agrees:

       

      5.1.1 except
        in
        the course of performing the Executive’s duties provided for in Section 1.1, not
        at any time, whether before, during or after the Executive’s employment with the
        Company, to divulge to any other entity or person any confidential information
        acquired by the Executive concerning the Company’s or its affiliates’ financial
        affairs or business processes or methods or their research, development or
        marketing programs or plans, or any other of its or their trade secrets.
        The
        foregoing prohibitions shall include, without limitation, directly or indirectly
        publishing (or causing, participating in, assisting or providing any statement,
        opinion or information in connection with the publication of) any diary,
        memoir,
        letter, story, photograph, interview, article, essay, account or description
        (whether fictionalized or not) concerning any of the foregoing, publication
        being deemed to include any presentation or reproduction of any written,
        verbal
        or visual material in any communication medium, including any book, magazine,
        newspaper, theatrical production or movie, or television or radio programming
        or
        commercial. In the event that the Executive is requested or required to make
        disclosure of information subject to this Section 5.1.1 under any court order,
        subpoena or other judicial process, then, except as prohibited by law, the
        Executive will promptly notify the Company, take all reasonable steps requested
        by the Company to defend against the compulsory disclosure and permit the
        Company to control with counsel of its choice any proceeding relating to
        the
        compulsory disclosure. The Executive acknowledges that all information, the
        disclosure of which is prohibited by this section, is of a confidential and
        proprietary character and of great value to the Company.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

         

      

      5.1.2 to
        deliver promptly to the Company on termination of the Executive’s employment
        with the Company, or at any time that the Company may so request, all
        confidential memoranda, notes, records, reports, manuals, drawings, blueprints
        and other documents (and all copies thereof) relating to the Company’s business
        and all property associated therewith, which the Executive may then possess
        or
        have under the Executive’s control.

       

      5.2 In
        consideration of the Company’s entering into this Agreement, the Executive
        agrees that at all times during the Term and thereafter, until the first
        anniversary of the date of the termination of the Term for any reason, the
        Executive shall not, directly or indirectly, for himself or on behalf of
        or in
        conjunction with, any other person, company, partnership, corporation, business,
        group, or other entity (each, a “Person”):

       

      5.2.1 provide
        services to a “Competitor”
(as
        defined below), as an officer, director, shareholder (excluding
        any such shareholding by the Executive of no more than 5% of the shares of
        a
        publicly-traded company),
        owner,
        partner, joint venturer, or in any other capacity, whether as an executive,
        independent contractor, consultant, advisor, or sales representative;
        or

       

      5.2.2 call
        upon
        any Person who is or that is, at such date of termination, engaged in activity
        on behalf of the Company or any affiliate of the Company for the purpose
        or with
        the intent of enticing such Person to cease such activity on behalf of the
        Company or such affiliate.

       

      For
        purposes of this Agreement, “Competitor” means, on any date, a person or entity
        that is primarily engaged in a material line of business conducted by the
        Company.

       

      5.3 If
        the
        Executive commits a breach of any of the provisions of Section 5.1 or 5.2
        hereof, the Company shall have the right and remedy to have the provisions
        of
        this Agreement specifically enforced by any court having equity jurisdiction,
        it
        being acknowledged and agreed that any such breach will cause irreparable
        injury
        to the Company and that money damages will not provide an adequate remedy
        to the
        Company, and, if the Executive attempts or threatens to commit a breach of
        any
        of the provisions of Section 5.1 or 5.2, the right and remedy to be granted
        a
        preliminary and permanent injunction in any court having equity jurisdiction
        against the Executive committing the attempted or threatened breach, it being
        agreed that each of such rights and remedies shall be independent of the
        others
        and shall be severally enforceable, and that all of such rights and remedies
        shall be in addition to, and not in lieu of, any other rights and remedies
        available to the Company under law or in equity.

       

      5.4 If
        any of
        the covenants contained in Section 5.1, 5.2 or 5.3, or any part thereof,
        hereafter are construed to be invalid or unenforceable, the same shall not
        affect the remainder of the covenant or covenants, which shall be given full
        effect, without regard to the invalid portions.

       

      5.5 The
        period during which the prohibitions of Section 5.2 are in effect shall be
        extended by any period or periods during which the Executive is in violation
        of
        Section 5.2.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

         

      

      5.6 If
        any of
        the covenants contained in Section 5.1 or 5.2, or any part thereof, are held
        to
        be unenforceable because of the duration of such provision or the area covered
        thereby, the parties agree that the court making such determination shall
        have
        the power to reduce the duration and/or area of such provision so as to be
        enforceable to the maximum extent permitted by applicable law and, in its
        reduced form, said provision shall then be enforceable.

       

      5.7 The
        parties hereto intend to and hereby confer jurisdiction to enforce the covenants
        contained in Sections 5.1, 5.2 and 5.3 upon the courts of any state within
        the
        geographical scope of such covenants. In the event that the courts of any
        one or
        more of such states shall hold such covenants wholly unenforceable by reason
        of
        the breadth of such covenants or otherwise, it is the intention of the parties
        hereto that such determination not bar or in any way affect the Company’s right
        to the relief provided above in the courts of any other states within the
        geographical scope of such covenants as to breaches of such covenants in
        such
        other respective jurisdictions, the above covenants as they relate to each
        state
        being for this purpose severable into diverse and independent
        covenants.

       

      
        	 	
                6.

              	
                Inventions
                  and Patents.

              

      

       

      6.1 The
        Executive agrees that all processes, technologies and inventions (collectively,
        “Inventions”),
        including new contributions, improvements, ideas and discoveries, whether
        patentable or not, conceived, developed, invented or made by him during the
        Term
        shall belong to the Company, provided that such Inventions grew out of the
        Executive’s work with the Company or any of its subsidiaries or affiliates, are
        related in any manner to the business (commercial or experimental) of the
        Company or any of its subsidiaries or affiliates or are conceived or made
        on the
        Company’s time or with the use of the Company’s facilities or materials. The
        Executive shall further: (a) promptly disclose such Inventions to the Company;
        (b) assign to the Company, without additional compensation, all patent and
        other
        rights to such Inventions for the United States and foreign countries; (c)
        sign
        all papers necessary to carry out the foregoing; and (d) give testimony in
        support of the Executive’s inventorship.

       

      6.2 The
        Executive agrees that the Executive will not assert any rights to any Invention
        as having been made or acquired by the Executive prior to the date of this
        Agreement, except for Inventions, if any, disclosed to the Company in writing
        prior to the date hereof.

       

      
        	 	
                7.

              	
                Intellectual
                  Property.

              

      

       

      Notwithstanding
        and without limiting the provisions of Section 6, the Company shall be the
        sole
        owner of all the products and proceeds of the Executive’s services hereunder,
        including, but not limited to, all materials, ideas, concepts, formats,
        suggestions, developments, arrangements, packages, programs and other
        intellectual properties that the Executive may acquire, obtain, develop or
        create in connection with or during the Term, free and clear of any claims
        by
        the Executive (or anyone claiming under the Executive) of any kind or character
        whatsoever (other than the Executive’s right to receive payments hereunder), the
        Executive shall, at the request of the Company, execute such assignments,
        certificates or other instruments as the Company may from time to time deem
        necessary or desirable to evidence, establish, maintain, perfect, protect,
        enforce or defend its right, title or interest in or to any such
        properties.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

         

      

      
        	 	
                8.

              	
                Indemnification.

              

      

       

      In
        addition to any rights to indemnification to which the Executive is entitled
        under the Company’s charter and by-laws, to the extent permitted by applicable
        law, the Company will indemnify, from the assets of the Company supplemented
        by
        insurance in an amount determined by the Company, the Executive at all times,
        during and after the Term, and, to the maximum extent permitted by applicable
        law, shall pay the Executive’s expenses (including reasonable attorneys’ fees
        and expenses, which shall be paid in advance by the Company as incurred,
        subject
        to recoupment in accordance with applicable law) in connection with any
        threatened or actual action, suit or proceeding to which the Executive may
        be
        made a party, brought by any shareholder of the Company directly or derivatively
        or by any third party by reason of any act or omission or alleged act or
        omission in relation to any affairs of the Company or any subsidiary or
        affiliate of the Company of the Executive as an officer, director or employee
        of
        the Company or of any subsidiary or affiliate of the Company. The Company
        shall
        maintain during the Term and thereafter insurance coverage sufficient in
        the
        determination of the Company to satisfy any indemnification obligation of
        the
        Company arising under this Section 8.

       

      
        	 	
                9.

              	
                Notices.

              

      

       

      All
        notices, requests, consents and other communications required or permitted
        to be
        given hereunder shall be in writing and shall be deemed to have been duly
        given
        if delivered personally, one day after sent by overnight courier or three
        days
        after mailed first class, postage prepaid, by registered or certified mail,
        as
        follows (or to such other address as either party shall designate by notice
        in
        writing to the other in accordance herewith):

       

      If
        to the
        Company, to:

       

      Foster
        Wheeler, Inc.

      Perryville
        Corporate Park

      Clinton,
        NJ 08809-4000

      Attention:
        General Counsel

       

      If
        to the
        Executive, to the Executive’s principal residence as reflected in the records of
        the Company.

       

      
        	 	
                10.

              	
                General.

              

      

       

      10.1 This
        Agreement shall be governed by and construed and enforced in accordance with
        the
        laws of the State of New Jersey applicable to agreements made between residents
        thereof and to be performed entirely in New Jersey.

       

      10.2 The
        section headings contained herein are for reference purposes only and shall
        not
        in any way affect the meaning or interpretation of this Agreement.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

         

      

      10.3 Except
        as
        otherwise provided herein, this Agreement sets forth the entire agreement
        and
        understanding of the parties relating to the subject matter hereof, and
        supersedes all prior agreements, arrangements and understandings, written
        or
        oral, relating to the subject matter hereof. No representation, promise or
        inducement has been made by either party that is not embodied in this Agreement,
        and neither party shall be bound by or liable for any alleged representation,
        promise or inducement not so set forth.

       

      10.4 Other
        than as expressly set forth in this Agreement, nothing in this Agreement
        shall
        prevent or limit the Executive’s continuing or future participation in any plan,
        program, policy or practice provided by the Company or its affiliates and
        for
        which the Executive may qualify, nor, shall anything herein limit or otherwise
        affect such rights as the Executive may have under any other contract or
        agreement with the Company or its affiliates. For avoidance of doubt, it
        is
        agreed and understood that this Agreement shall not supersede or otherwise
        adversely affect any stock option, restricted stock or other form of equity
        grant or award provided to the Executive prior to the Effective Date (i.e.,
        August 11, 2006), or any indemnification agreement heretofore entered into
        between the Company and the Executive. Amounts which are vested benefits
        or
        which the Executive is otherwise entitled to receive under any plan, policy,
        practice or program of or any contract or agreement with the Company or any
        of
        the Company’s affiliates at or subsequent to the date of termination shall be
        payable in accordance with such plan, policy, practice or program or contract
        or
        agreement except as explicitly modified by this Agreement. Notwithstanding
        the
        foregoing, if the Executive receives payments and benefits pursuant to this
        Agreement in connection with the termination of the Executive’s employment, the
        Executive shall not be entitled to any severance pay or benefits under any
        severance plan, program or policy of the Company and its affiliates, unless
        specifically provided therein in a specific reference to this
        Agreement.

       

      10.5 The
        Company’s obligation to make the payments provided for in this Agreement and
        otherwise to perform its obligations hereunder shall not be affected by any
        set-off, counterclaim, recoupment, defense or other claim, right or action
        which
        the Company may have against the Executive or others. The Company agrees
        to pay
        as incurred (within ten days following the Company’s receipt of an invoice from
        the Executive, which invoice the Executive must submit to the Company not
        later
        than March 1 of the year following the year in which the expenses were
        incurred), to the full extent permitted by law, all legal fees and expenses
        which the Executive may reasonably incur as a result of any contest (regardless
        of the outcome thereof) by the Company, the Executive or others of the validity
        or enforceability of, or liability under, any provision of this Agreement
        or any
        guarantee of performance thereof (including as a result of any contest by
        the
        Executive about the amount of any payment pursuant to this Agreement), plus
        in
        each case interest on any delayed payment at the applicable Federal rate
        provided for in Section 7872(f)(2)(A) of the Code. 

       

      10.6 This
        Agreement, and the Executive’s rights and obligations hereunder, may not be
        assigned by the Executive, nor may the Executive pledge, encumber or anticipate
        any payments or benefits due hereunder, by operation of law or otherwise.
        The
        Company may assign its rights, together with its obligations, hereunder (i)
        to
        any affiliate or (ii) to a third party in connection with any sale, transfer
        or
        other disposition of all or substantially all of any business to which the
        Executive’s services are then principally devoted, provided that no assignment
        pursuant to clause (ii) shall relieve the Company from its obligations hereunder
        to the extent the same are not timely discharged by such assignee. The Company
        will require any successor (whether direct or indirect, by purchase, merger,
        consolidation or otherwise) to all or substantially all of the business and/or
        assets of the Company to assume expressly and agree to perform this Agreement
        in
        the same manner and to the same extent that the Company would be required
        to
        perform it if no such succession had taken place.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

         

      

      10.7 The
        respective rights and obligations of the parties hereunder shall survive
        any
        termination of this Agreement or the Term to the extent necessary to the
        intended preservation of such rights and obligations.

       

      10.8 This
        Agreement may be amended, modified, superseded, canceled, renewed or extended
        and the terms or covenants hereof may be waived, only by a written instrument
        executed by both of the parties hereto, or in the case of a waiver, by the
        Party
        waiving compliance. The failure of either party at any time or times to require
        performance of any provision hereof shall in no manner affect the right at
        a
        later time to enforce the same. No waiver by either party of the breach of
        any
        term or covenant contained in this Agreement, whether by conduct or otherwise,
        in any one or more instances, shall be deemed to be, or construed as, a further
        or continuing waiver of any such breach, or a waiver of the breach of any
        other
        term or covenant contained in this Agreement.

       

      10.9 This
        Agreement may be executed in two or more counterparts, each of which shall
        he
        deemed to be an original but all of which together will constitute one and
        the
        same instrument.

       

      10.10 (i)
        Notwithstanding any provision in this Agreement to the contrary, if the
        Executive is a “specified employee,” as defined and applied in Section 409A of
        the Code, as of his termination date, to the extent any payment under this
        Agreement 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, he shall not be entitled to any payments until
        the
        earlier of: (i) the first day following the sixth-month anniversary of the
        termination of the Term, or (ii) the Executive’s date of death; provided,
        however, that any payments delayed during this six-month period shall be
        paid in
        the aggregate as soon as administratively practicable following the sixth-month
        anniversary of the termination of the Term. For purposes of Section 409A
        of the
        Code, each “payment” (as defined by Section 409A of the Code) made under this
        Agreement shall be considered a “separate payment” for purposes of Section 409A
        of the Code. In
        addition, for purposes of Section 409A of the Code, the cash payments to
        facilitate post-termination medical and health coverage described in Article
        4
        shall be deemed exempt from Section 409A of the Code to the full extent possible
        under the “short-term deferral” exemption of Treasury Regulation
§ 1.409A-1(b)(4) and (with respect to amounts paid no later than the second
        calendar year following the calendar year containing the Executive’s termination
        date) the “two-years/two-times” separation pay exemption of Treasury Regulation
§ 1.409A-1(b)(9)(iii), which are hereby incorporated by
        reference.

       

      (ii)
        If
        any provision of this Agreement contravenes any regulations or Treasury guidance
        promulgated under Section 409A of the Code, or could cause any amounts or
        benefits hereunder to be subject to taxes, interest or penalties under Section
        409A of the Code, the Company may, in its sole discretion and without the
        Executive’s consent, modify the Agreement to: (i) comply with, or avoid being
        subject to, Section 409A of the Code and avoid the imposition of taxes, interest
        and penalties under Section 409A of the Code, and (ii) maintain, to the maximum
        extent practicable, the original intent of the applicable provision without
        contravening the provisions of Section 409A of the Code. This Section 10.8
        does
        not create an obligation on the part of the Company to modify this Agreement
        and
        does not guarantee that the amounts or benefits owed under the Agreement
        will
        not be subject to interest and penalties under Section 409A of the
        Code.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

         

      

      10.11 The
        Executive agrees that Foster Wheeler’s Share Ownership Guidelines, adopted and
        effective November 6, 2006, apply to the Restricted Stock and Options (as
        well
        as any shares resulting from the exercise of the Options) awarded to him
        on
        August 11, 2006, notwithstanding any provision in the foregoing Guidelines
        to
        the contrary.

       

      
        	 	
                11.

              	
                Dispute
                  Resolution.

              

      

       

      Subject
        to the rights of the Company pursuant to Section 5.3 above, any controversy,
        claim or dispute arising out of or relating to this Agreement, the breach
        thereof, or the Executive’s employment by the Company shall be settled by
        arbitration with three arbitrators. The arbitration will be administered
        by the
        American Arbitration Association in accordance with its National Rules for
        Resolution of Employment Disputes. The arbitration proceeding shall be
        confidential, and judgment on the award rendered by the arbitrators may be
        entered in any court having jurisdiction. Any such arbitration shall take
        place
        in the Clinton, New Jersey area, or in any other mutually agreeable location.
        In
        the event any judicial action is necessary to enforce the arbitration provisions
        of this Agreement, sole jurisdiction shall be in the federal and state courts,
        as applicable, located in New Jersey. Any request for interim injunctive
        relief
        or other provisional remedies or opposition thereto shall not be deemed to
        be a
        waiver or the right or obligation to arbitrate hereunder. The arbitrator
        shall
        have the discretion to award reasonable attorneys’ fees, costs and expenses to
        the prevailing party. To the extent a party prevails in any dispute arising
        out
        of this Agreement or any of its terms and provisions, all reasonable costs,
        fees
        and expenses relating to such dispute, including the parties’ reasonable legal
        fees shall be borne by the party not prevailing in the resolution of such
        dispute, but only to the extent that the arbitrator or court, as the case
        may
        be, deems reasonable and appropriate given the merits of the claims and defenses
        asserted.

       

      
        	 	
                12.

              	
                Free
                  to Contract.

              

      

       

      The
        Executive represents and warrants to the Company that he is able freely to
        accept engagement and employment by the Company as described in this Agreement
        and that there are no existing agreements, arrangements or understandings,
        written or oral, that would prevent him from entering into this Agreement,
        would
        prevent him or restrict him in any way from rendering services to the Company
        as
        provided herein during the Term or would be breached by the future performance
        by the Executive of his duties hereunder. 

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      
        	 	
                13.

              	
                Subsidiaries
                  and Affiliates.

              

      

       

      As
        used
        herein, the term “subsidiary”
shall
        mean any corporation or other business entity controlled directly or indirectly
        by the corporation or other business entity in question, and the term
“affiliate”
shall
        mean and include any corporation or other business entity directly or indirectly
        controlling, controlled by or under common control with the corporation or
        other
        business entity in question.

       

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

      

        
          	 	
                  FOSTER
                    WHEELER LTD.

                
	 	 
	 	
                  By:

                	
                   /s/
                    Diane C. Creel

                
	 	 	
                  Diane
                    C. Creel

                
	 	 	
                  Chair,
                    Compensation Committee

                
	 	 	 
	 	
                  /s/
                    Raymond J. Milchovich

                
	 	 	
                  Raymond
                    J. Milchovich

                

        

      

    

     

    
      
        
        

      

      
        18Unassociated Document

    Exhibit
      10.3

    AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT

     

    AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT
      (this
“Agreement”) dated as of May 6, 2008, between FOSTER
      WHEELER LTD.,
      a
      Bermuda company (the “Company”), and
      PETER J. GANZ
      (the
“Executive”).

     

    WHEREAS,
      the
      Executive and the Company are parties to that certain Employment Agreement
      (the
“Employment Agreement”), dated as of October 10, 2005 and amended as of October
      6, 2006, and that certain Change of Control Agreement (the “CoC Agreement”),
      dated as of October 10, 2005;

     

    WHEREAS,
      the
      Executive and the Company wish to further amend and restate the Employment
      Agreement to provide for certain amendments thereto and to incorporate the
      provisions of the CoC Agreement therein.

     

    Accordingly,
      the Company and the Executive hereby agree to amend and restate the Employment
      Agreement in its entirety as follows:

     

    
      	 	
              1.

            	
              Employment,
                Duties and Acceptance.

            

    

     

    1.1 Employment,
      Duties.
      The
      Company hereby agrees to employ the Executive for the Term (as defined in
      Section 2.1), to render exclusive and full-time services to the Company, in
      the capacity of Executive
      Vice President and General Counsel
      of the
      Company and to perform such other duties consistent with such position
      (including service as a director or officer of any affiliate of the Company
      if
      elected) as may be assigned by the Chief Executive Officer; provided, however,
      that the Executive may participate in civic, charitable, industry, and
      professional organizations to the extent that such participation does not
      materially interfere with the performance of Executive’s duties hereunder. The
      Executive’s title shall be Executive Vice President and General Counsel, or such
      other titles of at least equivalent level consistent with the Executive’s duties
      from time to time as may be assigned to the Executive by the Company consistent
      with such position, and the Executive shall have all authorities as are
      customarily and ordinarily exercised by executives in similar positions in
      similar businesses of similar size in the United States. 

     

    1.2 Acceptance.
      The
      Executive hereby accepts such employment and agrees to render the services
      described above. During the Term, and consistent with the above, the Executive
      agrees to serve the Company faithfully and to the best of the Executive’s
      ability, to devote the Executive’s entire business time, energy and skill to
      such employment, and to use the Executive’s best efforts, skill and ability to
      promote the Company’s interests.

     

    1.3 Fiduciary
      Duties to the Company.
      Executive
      acknowledges and agrees that Executive owes a fiduciary duty of loyalty,
      fidelity and allegiance to act at all times in the best interests of the Company
      and to do no act which would, directly or indirectly, injure the Company’s
      business, interests, or reputation. It is agreed that any direct or indirect
      interest in, connection with, or benefit from any outside activities,
      particularly commercial activities, which interest might in any way adversely
      affect Company, involves a possible conflict of interest. In keeping with
      Executive’s fiduciary duties to the Company, Executive agrees that Executive
      shall not knowingly become involved in a conflict of interest with the Company,
      or upon discovery thereof, allow such a conflict to continue. Moreover,
      Executive shall not engage in any activity which might involve a possible
      conflict of interest without first obtaining approval in accordance with the
      Company’s policies and procedures.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4 Location.
      The
      duties to be performed by the Executive hereunder shall be performed primarily
      at the Company’s offices in Clinton, New Jersey, subject to reasonable travel
      requirements consistent with the nature of the Executive’s duties from time to
      time on behalf of the Company. The Executive shall keep Executive’s primary
      residence within reasonable daily commute of the Clinton, New Jersey area
      throughout the Term.

     

    
      	 	
              2.

            	
              Term
                of Employment.

            

    

     

    2.1 Term.
      The term
      of the Executive’s employment under this Agreement (the “Term”) shall commence
      on October 10, 2005 (the “Effective Date”), and shall end on the date on which
      the Term is terminated pursuant to Section 4.

     

    
      	 	
              3.

            	
              Compensation;
                Benefits.

            

    

     

    3.1 Salary.
      As
      compensation for all services to be rendered pursuant to this Agreement, the
      Company agrees to pay to the Executive during the Term a base salary, payable
      monthly in arrears, at the initial annual rate for fiscal 2008 of Four Hundred
      and Sixty Four Thousand One Hundred Dollars ($464,100.00) (the “Base Salary”).
      On each anniversary of the Effective Date or such other appropriate date during
      each year of the Term when the salaries of executives at the Executive’s level
      are normally reviewed, the Company shall review the Base Salary and determine
      if, and by how much, the Base Salary should be increased
      provided, however, the
      Base
      Salary under this Agreement, including as subsequently adjusted upwards, may
      not
      be decreased thereafter without the written consent of Executive, except for
      across-the-board changes for executives at the Executive’s level. All payments
      of Base Salary or other compensation hereunder shall be less such deductions
      or
      withholdings as are required by applicable law and regulations.

     

    3.2 Bonus.
      Executive
      shall be eligible to participate, as determined by the Compensation Committee
      of
      the Board of Directors of the Company (the “Board”), in the Company’s annual
      incentive program as in effect from time to time for executives at the
      Executive’s level. The Executive shall be eligible for an annual incentive bonus
      at a target opportunity of seventy percent (70%) of Base Salary (up to a maximum
      opportunity of one hundred forty percent (140%) of Base Salary) based upon
      the
      achievement of certain business unit objectives established in advance by the
      Company (the “Annual Bonus”). The actual amount of any Annual Bonus shall be
      determined by and in accordance with the terms of the Company’s annual incentive
      program as in effect from time to time and the Executive shall have no absolute
      right to an Annual Bonus in any year. 

     

    3.3 Equity
      Awards.
      

     

    3.3.1 The
      parties acknowledge and agree that Executive previously received (i) a signing
      bonus in the amount of Five Hundred Thousand Dollars ($500,000), (ii) a grant
      of
      a number of shares of Common Stock with an aggregate fair market value,
      determined by the average of the high and low prices of a share of Common Stock
      on October 7, 2005, of $521,645.00 (the “Restricted Stock”) and (iii) a
      grant of options to purchase 52,165 shares of Common Stock (the “Options”). The
      Restricted Stock and Options are governed by separate agreements entered into
      between Executive and the Company, and in the event of any inconsistency between
      such separate agreements and the terms of this Agreement (including, but not
      limited to, Section 4.2.2(iv) and (v)), the separate agreements shall govern
      and
      control. For avoidance of doubt, nothing in the preceding sentence shall be
      construed to limit the application of any provision of such separate agreements
      that expressly refers to and incorporates a provision of this
      Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.3.2 Executive
      shall be eligible for annual equity awards, as determined by the Compensation
      Committee of the Board, under the Company’s equity award plan covering
      executives at the Executive’s level, as in effect from time to time. Executive
      will be entitled to a long term incentive value opportunity equivalent to 1.5
      times Base Salary per year, the form and conditions of which will be established
      by the Compensation Committee.

     

    3.4 Business
      Expenses.
      The
      Company shall pay or reimburse the Executive for all reasonable expenses
      actually incurred or paid by the Executive during the Term in the performance
      of
      the Executive’s services under this Agreement, subject to and in accordance with
      applicable expense reimbursement and related policies and procedures as in
      effect from time to time.

     

    3.5 Vacation.
      During
      the Term, the Executive shall be entitled to an annual paid vacation period
      or
      periods in accordance with the applicable executive vacation policy as in effect
      from time to time, which in no event shall be less than the vacation policy
      as
      in effect on the Effective Date.

     

    3.6 Employee
      Pension and Health and Welfare Plans.
      During
      the Term, the Executive shall be entitled to participate in those defined
      benefit, defined contribution, group insurance, medical, dental, disability
      and
      other benefit plans of the Company as from time to time in effect and on a
      basis
      no less favorable than any other executive at the Executive’s
      level.

     

    3.7 Perquisites.
      During
      the Term, the Executive shall be entitled to receive the following
      perquisites:

     

    (i) an
      automobile allowance based upon the current Company policy;

     

    (ii) annual
      reimbursement for the reasonable fees associated with financial planning and
      income tax advice and document preparation not to exceed $5,000 per year (which
      amount includes any applicable gross-up for any taxes due for such
      payment);

     

    (iii) reimbursement
      for a one-time cost of estate planning services, at a time selected by the
      Executive during the Term, not to exceed $10,000 in the aggregate (which amount
      includes any applicable gross-up for any taxes due for such
      payment);

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (iv) home
      office equipment and associated services for business use in Executive’s home
      not to exceed $5,000 per year (which amount includes any applicable gross-up
      for
      any taxes due for such payment); and

     

    (v) an
      annual
      physical examination.

     

    
      	 	
              4.

            	
              Termination.

            

    

     

    4.1 Termination
      Events.
      

     

    4.1.1 Executive’s
      employment and the Term shall terminate immediately upon the occurrence of
      any
      of the following:

     

    (i) Death:
      the
      death of the Executive;

     

    (ii) Disability:
      the
      physical or mental disability of the Executive, whether totally or partially,
      such that with or without reasonable accommodation the Executive is unable
      to
      perform the Executive’s material duties, for a period of not less than one
      hundred and eighty (180) consecutive days; or

     

    (iii) For
      Cause By the Company:
      As used
      herein, “Cause” means (A) conviction of a felony; (B) actual or attempted theft
      or embezzlement of Company assets; (C) use of illegal drugs; (D) material breach
      of the Agreement that the Executive has not cured within thirty (30) days after
      the Company has provided the Executive notice of the material breach which
      shall
      be given within sixty (60) days of the Company's knowledge of the occurrence
      of
      the material breach; (E) commission of an act of moral turpitude that in the
      judgment of the Board can reasonably be expected to have an adverse effect
      on
      the business, reputation or financial situation of the Company and/or the
      ability of the Executive to perform the Executive's duties; (F) gross negligence
      or willful misconduct in performance of the Executive’s duties; (G) breach of
      fiduciary duty to the Company; (H) willful refusal to perform the duties of
      Executive’s titled position; or a material violation of the Foster Wheeler Code
      of Business Conduct and Ethics. 

     

    4.1.2 For
      Good Reason By the Executive:
      The
      Executive may immediately resign the Executive’s position for Good Reason and,
      in such event, the Term shall terminate. As used herein, “Good Reason” means a
      material negative change in the employment relationship without the Executive’s
      consent, as evidenced by the occurrence of any of the following: (i) material
      diminution in title, duties, responsibilities or authority; (ii) reduction
      of
      Base Salary and benefits except for across-the-board changes for executives
      at
      the Executive’s level; (iii) exclusion from executive benefit/compensation
      plans; (iv) relocation of the Executive’s principal business location by the
      Company of greater than fifty (50) miles; (v) material breach of the Agreement
      by the Company; or (vi) resignation in compliance with securities/corporate
      governance applicable law (such as the US Sarbanes-Oxley Act) or rules of
      professional conduct specifically applicable to such Executive. For each event
      described above in this Section 4.1.2, the Executive must notify the Company
      within ninety (90) days of the occurrence of the event and the Company shall
      have thirty (30) days after receiving such notice in which to cure.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4.1.3 Without
      Cause By the Company:
      The
      Company may terminate the Executive’s employment thirty (30) days following
      notice of termination without Cause given by the Company and, in such event,
      the
      Term shall terminate. During such thirty (30) day notice period, the Company
      may
      require that the Executive cease performing some or all of the Executive's
      duties and/or not be present at the Company's offices and/or other facilities.
      

     

    4.1.4 Without
      Good Reason By the Executive:
      The
      Executive may voluntarily resign the Executive’s position effective thirty (30)
      days following notice to the Company of the Executive’s intent to voluntarily
      resign without Good Reason and, in such event, the Term shall terminate. During
      such thirty (30) day notice period, the Company may require that the Executive
      cease performing some or all of the Executive's duties and/or not be present
      at
      the Company's offices and/or other facilities. 

     

    4.1.5 Definition
      of Termination Date.
      The
      date upon which Executive’s employment and the Term terminate pursuant to this
      Section 4.1 shall be the Executive’s “Termination Date” for all purposes of this
      Agreement. 

     

    4.2 Payments
      Upon a Termination Event.
      

     

    4.2.1 Entitlements
      Upon Termination For Any Reason.
      Following any termination of the Executive’s employment, the Company shall pay
      or provide to the Executive, or the Executive’s estate or beneficiary, as the
      case may be, (i) Base Salary earned through the Termination Date;
      (ii) the balance of any awarded (i.e.,
      the
      amount and payment of the specific award has been fully approved by the
      Compensation Committee of the Board) but as yet unpaid, annual cash incentive
      or
      other incentive awards for any calendar year prior to the calendar year during
      which the Executive’s Termination Date occurs; (iii) a payment representing
      the Executive’s accrued but unused vacation; (iv) any vested, but not
      forfeited benefits on the Termination Date under the Company’s employee benefit
      plans in accordance with the terms of such plans; and (v) benefit
      continuation and conversion rights to which the Executive is entitled under
      the
      Company’s employee benefit plans.

     

    4.2.2 Payments
      Upon Involuntary Termination by the Company Without Cause or Voluntary
      Termination of the Executive with Good Reason. Following
      a termination by the Company without Cause or by the Executive for Good Reason,
      the Company shall pay or provide to the Executive in addition to the payments
      and benefits in Section 4.2.1 above:

     

    (i)
      an
      amount equal to twenty-four (24) months of Base Salary at the rate in effect
      on
      the Termination Date, payable in a lump sum within 30 days following the
      Termination Date; 

     

    (ii)
      an
      amount equal to 200% of the Executive’s annual cash incentive payment at target,
      payable in a lump sum within 30 days following the Termination Date;

     

    (iii)
      two
      years of continued health and welfare benefit plan coverage following the
      Termination Date (excluding any additional vacation accrual or sick leave)
      at
      active employee levels, if and to the extent the Executive was participating
      in
      any such plans on the Termination Date, provided that the Executive remits
      monthly premiums for the full cost of any health benefits; 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (iv)
      except as prohibited by law, removal of transfer and other restrictions from
      all
      shares of capital stock of the Company registered in the Executive’s
      name;

     

    (v)
      full
      vesting of all stock options to purchase shares of capital stock of the Company,
      restricted stock, and restricted stock units; 

     

    (vi)
      executive level career transition assistance services by a firm selected by
      the
      Executive and approved by the Company in an amount not to exceed $8,000.00
      in
      the aggregate (which amount includes any applicable gross-up for any taxes
      due
      for such payment); 

     

    (vii)
      a
      cash payment each month during the two-year period following the Termination
      Date equal to the full monthly premium for the health benefits described in
      clause (iii) above minus
      the
      active employee cost of such coverage,
      such
      full monthly premium to be grossed-up by the Company for any applicable income
      taxes; and 

     

    (viii)
      two additional years of age and service to be credited under the Company’s
      pension plan and/or supplemental pension plan, if and to the extent the
      Executive was participating in any such plans on the Termination
      Date.

     

    Notwithstanding
      any other provision of this Agreement, as consideration for the pay and benefits
      that the Company shall provide the Executive pursuant to this Section 4.2.2,
      the
      Executive shall provide the Company an enforceable waiver and release agreement
      in a form that the Company normally requires.

     

    4.3 Change
      of Control.
      

     

    4.3.1 Definitions.
      

     

    (i) Affiliated
      Company.
      For
      purposes of this Agreement, “Affiliated Company” means any company, directly or
      indirectly, controlled by, controlling or under common control with the
      Company.

     

    (ii) Change
      of Control.
      For
      the
      purpose of this Agreement, a “Change of Control” shall mean:

     

    (A) The
      acquisition by any individual, entity or group (within the meaning of Section
      13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
      “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of
      Rule 13d-3 promulgated under the Exchange Act) of voting securities of the
      Company where such acquisition causes such Person to own 20% or more of the
      combined voting power of the then outstanding voting securities of the Company
      entitled to vote generally in the election of directors (the “Outstanding
      Company Voting Securities”), provided,
      however,
      that
      for purposes of this subparagraph (A), the following acquisitions shall not
      be
      deemed to result in a Change of Control: (I) any acquisition directly from
      the
      Company or any corporation or other legal entity controlled, directly or
      indirectly, by the Company, (II) any acquisition by the Company or any
      corporation or other legal entity controlled, directly or indirectly, by the
      Company, (III) any acquisition by any employee benefit plan (or related trust)
      sponsored or maintained by the Company or any corporation or other legal entity
      controlled, directly or indirectly, by the Company or (IV) any acquisition
      by
      any corporation pursuant to a transaction that complies with clauses (I), (II)
      and (III) of subparagraph (C) below; and provided,
      further,
      that if
      any Person’s beneficial ownership of the Outstanding Company Voting Securities
      reaches or exceeds 20% as a result of a transaction described in clauses (I)
      or
      (II) above, and such Person subsequently acquires beneficial ownership of
      additional voting securities of the Company, such subsequent acquisition shall
      be treated as an acquisition that causes such Person to own 20% or more of
      the
      Outstanding Company Voting Securities; or

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (B) Individuals
      who, as of the date hereof, constitute the Board (such individuals, the
“Incumbent Board”) cease for any reason to constitute at least a majority of the
      Board; provided,
      however,
      that
      any individual becoming a director subsequent to the date hereof 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
      shall be considered as though such individual were a member of the Incumbent
      Board, but excluding, for this purpose, any such individual whose initial
      assumption of office occurs as a result of an actual or threatened election
      contest with respect to the election or removal of directors or other actual
      or
      threatened solicitation of proxies or consents by or on behalf of a Person
      other
      than the Board; or

     

    (C) The
      approval by the shareholders of the Company of a reorganization, merger or
      consolidation or sale or other disposition of all or substantially all of the
      assets of the Company (“Business Combination”) or, if consummation of such
      Business Combination is subject, at the time of such approval by shareholders,
      to the consent of any government or governmental agency, the obtaining of such
      consent (either explicitly or implicitly by consummation); excluding, however,
      such a Business Combination pursuant to which (I) all or substantially all
      of
      the individuals and entities who were the beneficial owners of the Outstanding
      Company Voting Securities immediately prior to such Business Combination
      beneficially own, directly or indirectly, more than 60% of, respectively, the
      then outstanding shares of common stock and the combined voting power of the
      then outstanding voting securities entitled to vote generally in the election
      of
      directors, as the case may be, of the corporation resulting from such Business
      Combination (including, without limitation, a corporation that as a result
      of
      such transaction owns the Company or all or substantially all of the Company’s
      assets either directly or through one or more subsidiaries) in substantially
      the
      same proportions as their ownership, immediately prior to such Business
      Combination of the Outstanding Company Voting Securities, (II) no Person
      (excluding any (1) corporation owned, directly or indirectly, by the beneficial
      owners of the Outstanding Company Voting Securities as described in subclause
      (I) immediately preceding, or (2) employee benefit plan (or related trust)
      of
      the Company or such corporation resulting from such Business Combination, or
      any
      of their respective subsidiaries) beneficially owns, directly or indirectly,
      20%
      or more of, respectively, the then outstanding shares of common stock of the
      corporation resulting from such Business Combination or the combined voting
      power of the then outstanding voting securities of such corporation except
      to
      the extent that such ownership existed prior to the Business Combination and
      (III) at least a majority of the members of the board of directors of the
      corporation resulting from such Business Combination were members of the
      Incumbent Board at the time of the execution of the initial agreement, or of
      the
      action of the Board, providing for such Business Combination; or

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (D) approval
      by the shareholders of the Company of a complete liquidation or dissolution
      of
      the Company.

     

    (iii) Change
      of Control Period.
      For
      purposes of this Agreement, the “Change of Control Period” shall mean the period
      commencing on the date of a Change of Control and ending on the thirteenth-month
      anniversary of such date. 

     

    (iv) Good
      Reason.
      For
      purposes of Section 4.3, “Good Reason” (as defined in Section 4.1.2) shall also
      include a termination by the Executive for any reason during the 30-day period
      immediately following the first one-year anniversary of the Start Date (as
      defined below).

     

    (v) Recent
      Annual Bonus.
      For
      purposes of this Agreement, a “Recent Annual Bonus” shall mean a prior year’s
      Annual Bonus in cash equal to at least the highest “annual short-term incentive
      award” (as such terminology is defined in the Foster Wheeler Annual Executive
      Short-Term Incentive Plan) received by the Executive under the Foster Wheeler
      Annual Executive Short-Term Incentive Plan, or any comparable bonus under any
      predecessor or successor plan, including any bonus or portion thereof that
      has
      been awarded but deferred, for the last three full fiscal years prior to the
      Start Date. Notwithstanding anything to the contrary, in the event that during
      any three year look-back period above, any annual bonus paid and received by
      Executive under the Foster Wheeler Annual Executive Short-Term Incentive Plan
      (or any respective predecessor annual incentive plan) was paid by a Foster
      Wheeler affiliate other than the Company, then any such annual bonus paid by
      either the Company or any other Foster Wheeler affiliate during the three-year
      look-back period shall be deemed to be paid by the Company for purposes of
      this
      computation. 

     

    (vi) Start
      Date.
      For
      purposes of this Agreement, “Start Date” shall mean the first date of the Change
      of Control Period. Anything in this Agreement to the contrary notwithstanding,
      if a Change of Control occurs and if the Executive’s employment with the Company
      is terminated prior to the date on which the Change of Control occurs, and
      if it
      is reasonably demonstrated by the Executive that such termination of employment
      (A) was at the request of a third party who has taken steps reasonably
      calculated to effect a Change of Control or (B) otherwise arose in connection
      with or anticipation of a Change of Control, then for all purposes of this
      Agreement the “Start Date” shall mean the date immediately prior to the
      Termination Date.

     

    4.3.2 Obligations
      of the Company upon Executive’s Voluntary Termination with Good Reason or the
      Company’s Involuntary Termination of Executive Without Cause (Other Than for
      Death or Disability) During Change of Control Period.
      If,
      during the Change of Control Period, the Company terminates the Executive’s
      employment without Cause (other than for death or Disability) or the Executive
      terminates his employment for Good Reason:

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (i) Lump
      Sum Payment.
      The
      Company shall pay to the Executive in a lump sum in cash within 30 days
      following the Termination Date the aggregate of the following
      amounts:

     

    (A) Accrued
      Obligations.
      The
      sum
      of (I) the Executive’s Annual Base Salary through the Termination Date to the
      extent not theretofore paid, (II) the product of (1) the
      higher of: (a)
      any
      Recent Annual Bonus, and (b) the Annual Bonus paid or payable, including any
      bonus or portion thereof which has been earned but deferred (and annualized
      for
      any fiscal year consisting of less than twelve full months or during which
      the
      Executive was employed for less than twelve full months), for the most recently
      completed fiscal year during the Change of Control Period, if any (such higher
      amount being referred to as the “Highest Annual Bonus”) and (2) a fraction, the
      numerator of which is the number of days in the current fiscal year through
      the
      Termination Date, and the denominator of which is 365, and (III) any
      compensation previously deferred by the Executive (together with any accrued
      interest or earnings thereon) and any accrued vacation pay, in each case, to
      the
      extent not theretofore paid (the sum of the amounts described in subclauses
      (I),
      (II) and (III), the “Accrued Obligations”);

     

    (B) Three
      Times Amount.
      The
      amount equal to the product of (I) three and (II) the sum (1) the Executive’s
      Annual Base Salary and (2) the Highest Annual Bonus; 

     

    (C) Retirement
      Plan Make Whole. An
      amount
      equal to the excess of (I) the actuarial equivalent of the benefit under the
      Company’s qualified defined benefit retirement plan (the “Retirement Plan”)
      (utilizing actuarial assumptions no less favorable to the Executive than those
      in effect under the Retirement Plan immediately prior to the Effective Date)
      which the Executive would receive if the Executive’s employment continued for
      three years after the Termination Date assuming for this purpose that all
      accrued benefits are fully vested, and, assuming that the Executive’s
      compensation in each of the three years is that required by Sections 3.1 and
      3.2
      above, over (II) the actuarial equivalent of the Executive’s actual benefit
      (paid or payable), if any, under the Retirement Plan as of the Termination
      Date
      plus amounts, if any, that the Executive
      would
      have contributed under the Retirement Plan during such Change of Control Period;
      and

     

    (D) Payment
      of Equity Awards.
      Payment
      for any shares of restricted common shares issued under the Company’s or an
      Affiliated Company’s Omnibus Incentive Plan or any other plan (whether or not
      vested), to the extent such shares are tendered to the Company or an Affiliated
      Company, as applicable, by the Executive within 20 days after the Termination
      Date, at a price per share equal to the highest of (I) the market price on
      the
      NASDAQ Stock Market LLC of a common share of the Company at the close of
      business on the date of such tender, (II) the highest price paid for a common
      share of the Company in any Change of Control transaction occurring on or after
      the Start Date, or (III) the market price on the NASDAQ Stock Market LLC of
      a
      common share of the Company at the close of business on the date of any such
      Change of Control transaction;

     

    (ii) Medical
      Coverage.
      For
      five
      years after the Executive’s Termination Date, or such longer period as may be
      provided by the terms of the appropriate health or welfare plan, program,
      practice or policy, the Company shall continue benefits to the Executive and/or
      the Executive’s family at least equal to those which would have been provided to
      them in accordance with the health or welfare plans, programs, practices and
      policies if the Executive’s employment had not been terminated or, if more
      favorable to the Executive, and to the extent he otherwise is or becomes
      eligible therefor, as in effect generally at any time thereafter with respect
      to
      other peer executives of the Company and the Affiliated Companies and their
      families; provided,
      however,
      that
      the Executive remits monthly premiums for the full cost of any health benefits;
      and provided
      further that
      if
      the Executive becomes reemployed with another employer and is eligible to
      receive health or welfare benefits under another employer provided plan, the
      health and welfare benefits described herein shall be secondary to those
      provided under such other plan during such applicable period of eligibility.
      For
      purposes of determining eligibility (but not the time of commencement of
      benefits) of the Executive for retiree benefits pursuant to such plans,
      practices, programs and policies, the Executive shall be considered to have
      remained employed until the fifth anniversary of the Termination Date and to
      have retired on such fifth anniversary;

     

    
      
        
        

      

      
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    (iii) Medical
      Payments.
      The
      Company shall make a cash payment each month during the five-year period
      commencing after the Executive’s Termination Date, equal to the full monthly
      premium for the health benefits described in Section 4.3.2(ii) above minus
      the
      active employee cost of such coverage, such full monthly premium to be
      grossed-up for any applicable income taxes;

     

    (iv) Outplacement
      Services.
      The
      Company shall, at its sole expense as incurred, provide the Executive with
      outplacement services the scope and provider of which shall be selected by
      the
      Executive in the Executive’s sole discretion; and

     

    (v) Other
      Benefits.
      To the
      extent not theretofore paid or provided, the Company shall timely pay or provide
      to the Executive any other amounts or benefits required to be paid or provided
      or which the Executive is eligible to receive under any plan, program, policy
      or
      practice or contract or agreement of the Company and the Affiliated Companies
      (such other amounts and benefits shall be hereinafter referred to as the “Other
      Benefits”).

     

    4.3.3 Obligations
      of the Company upon Executive’s Death.
      If
      the
      Executive’s employment is terminated by reason of the Executive’s death during
      the Change of Control Period, the Company shall provide the Executive’s estate
      or beneficiaries with the Accrued Obligations and the timely payment or delivery
      of the Other Benefits, and shall have no other severance obligations under
      this
      Agreement. The Accrued Obligations shall be paid to the Executive’s estate or
      beneficiary, as applicable, in a lump sum in cash within 30 days of the
      Termination Date. With respect to the provision of Other Benefits, the term
      “Other Benefits” as utilized in this Subsection 4.3.3 shall include, without
      limitation, and the Executive’s estate and/or beneficiaries shall be entitled to
      receive, benefits at least equal to the most favorable benefits provided by
      the
      Company and the Affiliated Companies to the estates and beneficiaries of peer
      executives of the Company and the Affiliated Companies under such plans,
      programs, practices and policies relating to death benefits, if any, as in
      effect with respect to other peer executives and their beneficiaries at any
      time
      during the 120-day period immediately preceding the Start Date or, if more
      favorable to the Executive’s estate and/or the Executive’s beneficiaries, as in
      effect on the date of the Executive’s death with respect to other peer
      executives of the Company and the Affiliated Companies and their
      beneficiaries.

     

    
      
        
        

      

      
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    4.3.4 Obligations
      of the Company upon Executive’s Disability.
      If the
      Executive’s employment is terminated by reason of the Executive’s Disability
      during the Change of Control Period, the Company shall provide the Executive
      with the Accrued Obligations and the timely payment or delivery of the Other
      Benefits, and shall have no other severance obligations under this Agreement.
      The Accrued Obligations shall be paid to the Executive in a lump sum in cash
      within 30 days of the Termination Date. With respect to the provision of Other
      Benefits, the term “Other Benefits” as utilized in this Subsection 4.3.4 shall
      include, and the Executive shall be entitled after the Disability Start Date
      to
      receive, disability and other benefits at least equal to the most favorable
      of
      those generally provided by the Company and the Affiliated Companies to disabled
      executives and/or their families in accordance with such plans, programs,
      practices and policies relating to disability, if any, as in effect generally
      with respect to other peer executives and their families at any time during
      the
      120-day period immediately preceding the Start Date or, if more favorable to
      the
      Executive and/or the Executive’s family, as in effect at any time thereafter
      generally with respect to other peer executives of the Company and the
      Affiliated Companies and their families.

     

    4.3.5 Obligations
      of the Company upon Executive’s Voluntary Termination Without Good Reason or the
      Company’s Involuntary Termination of Executive With Cause During Change of
      Control Period.
      If
      the
      Executive’s employment is terminated for Cause during the Change of Control
      Period, the Company shall provide to the Executive (i) the Executive’s Annual
      Base Salary through the Termination Date, (ii) the amount of any compensation
      previously deferred by the Executive, and (iii) Other Benefits, in each case
      to
      the extent theretofore unpaid, and shall have no other severance obligations
      under this Agreement. If the Executive voluntarily terminates employment during
      the Change of Control Period, excluding a termination for Good Reason, the
      Company shall provide to the Executive the Accrued Obligations and the timely
      payment or delivery of Other Benefits, and shall have no other severance
      obligations under this Agreement. In such case, all Accrued Obligations shall
      be
      paid to the Executive in a lump sum in cash within 30 days of the Termination
      Date.

     

    4.3.6 Certain
      Additional Payments by the Company.

     

    (i) Definitions.
      The
      following terms shall have the following meanings for purposes of this
      Subsection 4.3.6.

     

    (A) Excise
      Tax.
      “Excise
      Tax” shall mean the excise tax imposed by Section 4999 of the Internal Revenue
      Code of 1986, as amended (the “Code”), together with any interest or penalties
      imposed with respect to such excise tax.

     

    (B) Net
      After-Tax Amount.
      The
“Net
      After-Tax Amount” of a Payment shall mean the Value of a Payment net of all
      taxes imposed on the Executive with respect thereto under Sections 1 and 4999
      of
      the Code and applicable state and local law, determined by applying the highest
      marginal rates that are expected to apply to the Executive’s taxable income for
      the taxable year in which the Payment is made.

     

    (C) Parachute
      Value.
      “Parachute Value” of a Payment shall mean the present value as of the date of
      the change of control for purposes of Section 280G of the Code of the portion
      of
      such Payment that constitutes a “parachute payment” under Section 280G(b)(2), as
      determined by the Accounting Firm for purposes of determining whether and to
      what extent the Excise Tax will apply to such Payment.

     

    
      
        
        

      

      
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    (D) Payment.
      A
      “Payment” shall mean any payment or distribution in the nature of compensation
      (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit
      of
      the Executive, whether paid or payable pursuant to this Agreement or
      otherwise.

     

    (E) Safe
      Harbor Amount.
      The
“Safe
      Harbor Amount” means the maximum Parachute Value of all Payments that the
      Executive can receive without any Payments being subject to the Excise
      Tax.

     

    (F) Value.
      “Value”
      of a Payment shall mean the economic present value of a Payment as of the date
      of the change of control for purposes of Section 280G of the Code, as determined
      by the Accounting Firm (as defined below) using the discount rate required
      by
      Section 280G(d)(4) of the Code.

     

    (ii) Gross-Up
      Payment.
      Anything in this Agreement to the contrary notwithstanding, in the event it
      shall be determined that any Payment would be subject to the Excise Tax, then
      the Executive shall be entitled to receive an additional payment (a “Gross-Up
      Payment”) in an amount such that after payment by the Executive of all taxes
      (and any interest or penalties imposed with respect to such taxes), including,
      without limitation, any income taxes (and any interest and penalties imposed
      with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the
      Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
      imposed upon the Payments. Any Gross-Up Payment will be made as soon as
      reasonably practicable but in no event later than December 31 of the year
      following the year in which the Excise Tax is incurred.

     

    (iii) Determination
      of the Gross-Up Payment.
      Subject
      to the provisions of paragraph (iv) immediately below, all determinations
      required to be made under this Subsection 4.3.6, 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
      PricewaterhouseCoopers LLP or such other nationally recognized certified public
      accounting firm as may be designated by the Executive (the “Accounting Firm”).
      The Accounting Firm shall provide detailed supporting calculations both to
      the
      Company and the Executive within 15 business days of the receipt of notice
      from
      the Executive that there has been a Payment, or such earlier time as is
      requested by the Company. In the event that the Accounting Firm is serving
      as
      accountant or auditor for the individual, entity or group effecting the Change
      of Control, the Executive may 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 Subsection 4.3.6, shall be paid by the Company
      to
      the Executive within five days of the receipt of the Accounting Firm’s
      determination. Any determination by the Accounting Firm shall be binding upon
      the Company and the Executive. As a result of the uncertainty in the application
      of Section 4999 of the Code at the time of the initial determination by the
      Accounting Firm hereunder, it is possible that Gross-Up Payments which will
      not
      have been made by the Company should have been made (“Underpayment”), consistent
      with the calculations required to be made hereunder. In the event that the
      Company exhausts its remedies pursuant to paragraph (iv) below and the Executive
      thereafter is required to make a payment of any Excise Tax, the Accounting
      Firm
      shall determine the amount of the Underpayment that has occurred and any such
      Underpayment shall be promptly paid by the Company to or for the benefit of
      the
      Executive.

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    (D) permit
      the Company to participate in any proceedings relating to such
      claim;

     

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

     

    
      
        
        

      

      
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    (v) Entitlement
      to Refund.
      If,
      after
      the receipt by the Executive of an amount advanced by the Company pursuant
      to
      paragraph (iv) above, the Executive becomes entitled to receive any refund
      with
      respect to such claim, the Executive shall (subject to the Company’s complying
      with the requirements of paragraph (iv)) promptly pay to the Company the amount
      of such refund (together with any interest paid or credited thereon after taxes
      applicable thereto). If, after the receipt by the Executive of an amount
      advanced by the Company pursuant to paragraph (iv), a determination is made
      that
      the Executive shall not be entitled to any refund with respect to such claim
      and
      the Company does not notify the Executive in writing of its intent to contest
      such denial of refund prior to the expiration of 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.

     

    (vi) Consent
      to Withholding.
      Notwithstanding any other provision of this Subsection 4.3.6, the Company may,
      in its sole discretion, withhold and pay over to the Internal Revenue Service
      or
      any other applicable taxing authority, for the benefit of the Executive, all
      or
      any portion of the Gross-Up Payment, and the Executive hereby consents to such
      withholding.

     

    4.3.7 Immediate
      Payment of Annual Bonus.  As
      soon
      as technically possible following the Start Date, the Executive shall receive
      an
      immediate payment in cash of the Annual Bonus under the Foster Wheeler Annual
      Executive Short-Term Incentive Plan, or any successor plan, for the year in
      which the Change of Control takes place equal to the Annual Bonus the Executive
      received (if any) for the calendar year immediately preceding the year in which
      the Change of Control took place. If it is determined, after the end of the
      year
      in which the Change of Control took place, that the amount of the Annual Bonus
      that is actually due to the Executive for such year under the Foster Wheeler
      Annual Executive Short-Term Incentive Plan, or any successor plan, exceeds
      the
      amount paid pursuant to the preceding sentence, the excess shall be paid to
      the
      Executive no later than the fifteenth day of the third month of the fiscal
      year
      next following the fiscal year for which this Annual Bonus is paid under this
      Section 4.3.7. It is expressly agreed that the overall Annual Bonus paid for
      the
      year in which the Change of Control takes place in no event shall be lower
      than
      the Recent Annual Bonus.

     

    4.4 No
      Mitigation.
      Upon
      termination of the Executive’s employment with the Company, the Executive shall
      be under no obligation to seek other employment or otherwise mitigate the
      obligations of the Company under this Agreement.

     

    
      
        
        

      

      
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              5.

            	
              Protection
                of Confidential Information; Non-Competition and
                Non-Solicitation.

            

    

     

    5.1 Confidential
      Information.
      The
      Executive acknowledges that the Executive’s services will be unique, that they
      will involve the development of Company-subsidized relationships with key
      customers, suppliers, and service providers as well as with key Company
      employees and that the Executive’s work for the Company will give the Executive
      access to highly confidential information not available to the public or
      competitors, including trade secrets and confidential marketing, sales, product
      development and other data and information which it would be impracticable
      for
      the Company to effectively protect and preserve in the absence of this
      Section 5 and the disclosure or misappropriation of which could materially
      adversely affect the Company. Accordingly, the Executive agrees:

     

    5.1.1 except
      in
      the course of performing the Executive’s duties provided for in
      Section 1.1, not at any time, whether before, during or after the
      Executive’s employment with the Company, to divulge to any other entity or
      person any confidential information acquired by the Executive concerning the
      Company’s or its subsidiaries’ or affiliates’ financial affairs or business
      processes or methods or their research, development or marketing programs or
      plans, or any other of its or their trade secrets. The foregoing prohibitions
      shall include, without limitation, directly or indirectly publishing (or
      causing, participating in, assisting or providing any statement, opinion or
      information in connection with the publication of) any diary, memoir, letter,
      story, photograph, interview, article, essay, account or description (whether
      fictionalized or not) concerning any of the foregoing, publication being deemed
      to include any presentation or reproduction of any written, verbal or visual
      material in any communication medium, including any book, magazine, newspaper,
      theatrical production or movie, or television or radio programming or
      commercial. In the event that the Executive is requested or required to make
      disclosure of information subject to this Section 5.1.1 under any court
      order, subpoena or other judicial process, then, except as prohibited by law,
      the Executive will promptly notify the Company, take all reasonable steps
      requested by the Company to defend against the compulsory disclosure and permit
      the Company to control with counsel of its choice any proceeding relating to
      the
      compulsory disclosure. The Executive acknowledges that all information, the
      disclosure of which is prohibited by this section, is of a confidential and
      proprietary character and of great value to the Company and its subsidiaries
      and
      affiliates; and

     

    5.1.2 to
      deliver promptly to the Company on termination of the Executive’s employment
      with the Company, or at any time that the Company may so request, all
      confidential memoranda, notes, records, reports, manuals, drawings, software,
      electronic/digital media records, blueprints and other documents (and all copies
      thereof) relating to the Company’s (and its subsidiaries’ and affiliates’)
      business and all property associated therewith, which the Executive may then
      possess or have under the Executive’s control.

     

    5.2 Company
      Protections.
      In
      consideration of the Company’s entering into this Agreement, the Executive
      agrees that at all times during the Term and thereafter for the time period
      described hereinbelow, the Executive shall not, directly or indirectly, for
      Executive or on behalf of or in conjunction with, any other person, company,
      partnership, corporation, business, group, or other entity (each, a
“Person”):

     

    
      
        
        

      

      
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    5.2.1 Non-Competition:
      until
      the first anniversary of the Termination Date, engage in any activity for or
      on
      behalf of a Competitor, as director, employee, shareholder (excluding any such
      shareholding by the Executive of no more than 5% of the shares of a
      publicly-traded company), consultant or otherwise, which is the same as or
      similar to activity in which Executive engaged at any time during the last
      two
      (2) years of employment by the Company; and

     

    5.2.2 Non-Solicitation:
      until
      the second anniversary of the Termination Date, (i) call upon any Person who
      is,
      at such Termination Date, engaged in activity on behalf of the Company or any
      subsidiary or affiliate of the Company for the purpose or with the intent of
      enticing such Person to cease such activity on behalf of the Company or such
      subsidiary or affiliate; or (ii) solicit, induce, or attempt to induce any
      customer of the Company to cease doing business in whole or in part with or
      through the Company or a subsidiary or affiliate, or to do business with any
      Competitor.

     

    For
      purposes of this Agreement, “Competitor” means a person or entity who or which
      is engaged in a material line of business conducted by the Company. For purposes
      of this Agreement, “a material line of business conducted by the Company” means
      an activity of the Company generating gross revenues to the Company of more
      than
      twenty-five million dollars ($25,000,000) in the immediately preceding fiscal
      year of the Company. 

     

    5.3 Remedies
      and Injunctive Relief.
      If the
      Executive commits a breach or threatens to breach any of the provisions of
      Section 5.1 or 5.2 hereof, the Company shall have the right and remedy to have
      the provisions of this Agreement specifically enforced by injunction or
      otherwise by any court having jurisdiction, it being acknowledged and agreed
      that any such breach will cause irreparable injury to the Company in addition
      to
      money damage and that money damages alone will not provide a complete or
      adequate remedy to the Company, it being further agreed that such right and
      remedy shall be in addition to, and not in lieu of, any other rights and
      remedies available to the Company under law or in equity.

     

    5.4 Severability.
      If any
      of the covenants contained in Sections 5.1, 5.2 or 5.3, or any part
      thereof, hereafter are construed to be invalid or unenforceable, the same shall
      not affect the remainder of the covenant or covenants, which shall be given
      full
      effect, without regard to the invalid portions.

     

    5.5 Extension
      of Term of Covenants Following Violation.
      The
      period during which the prohibitions of Section 5.2 are in effect shall be
      extended by any period or periods during which the Executive is in violation
      of
      Section 5.2.

     

    5.6 Blue
      Penciling by Court.
      If any
      of the covenants contained in Sections 5.1 or 5.2, or any part thereof, are
      held
      to be unenforceable, the parties agree that the court making such determination
      shall have the power to revise or modify such provision to make it enforceable
      to the maximum extent permitted by applicable law and, in its revised or
      modified form, said provision shall then be enforceable.

     

    5.7 Blue
      Penciling by One Court Not to Affect Covenants in Another
      State.
      The
      parties hereto intend to and hereby confer jurisdiction to enforce the covenants
      contained in Sections 5.1, 5.2 and 5.3 upon the courts of any state within
      the geographical scope of such covenants. In the event that the courts of any
      one or more of such states shall hold such covenants wholly unenforceable by
      reason of the breadth of such covenants or otherwise, it is the intention of
      the
      parties’ hereto that such determination not bar or in any way affect the
      Company’s right to the relief provided above in the courts of any other states
      within the geographical scope of such covenants as to breaches of such covenants
      in such other respective jurisdictions, the above covenants as they relate
      to
      each state being for this purpose severable into diverse and independent
      covenants.

     

    
      
        
        

      

      
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              6.

            	
              Intellectual
                Property.

            

    

     

    6.1 Company’s
      Rights.
      Notwithstanding and without limiting the provisions of Section 5, the
      Company shall be the sole owner of all the products and proceeds of the
      Executive’s services hereunder, including, but not limited to, all materials,
      ideas, concepts, formats, suggestions, developments, arrangements, packages,
      programs and other intellectual properties that the Executive may acquire,
      obtain, develop or create in connection with or during the Term, free and clear
      of any claims by the Executive (or anyone claiming under the Executive) of
      any
      kind or character whatsoever (other than the Executive’s right to receive
      payments hereunder), the Executive shall, at the request of the Company, execute
      such assignments, certificates or other instruments as the Company may from
      time
      to time deem necessary or desirable to evidence, establish, maintain, perfect,
      protect, enforce or defend its right, title or interest in or to any such
      properties.

     

    
      	 	
              7.

            	
              Indemnification.

            

    

     

    7.1 General
      Rule.
      In
      addition to any rights to indemnification to which the Executive is entitled
      under the Company’s charter and by-laws, to the extent permitted by applicable
      law, the Company will indemnify, from the assets of the Company supplemented
      by
      insurance in an amount determined by the Company, the Executive at all times,
      during and after the Term, and, to the maximum extent permitted by applicable
      law, shall pay the Executive’s expenses (including reasonable attorneys’ fees
      and expenses, which shall be paid in advance by the Company as incurred, subject
      to recoupment in accordance with applicable law) in connection with any
      threatened or actual action, suit or proceeding to which the Executive may
      be
      made a party, brought by any shareholder of the Company directly or derivatively
      or by any third party by reason of any act or omission or alleged act or
      omission in relation to any affairs of the Company or any subsidiary or
      affiliate of the Company of the Executive as an officer, director or employee
      of
      the Company or of any subsidiary or affiliate of the Company. The Company shall
      use its best efforts to maintain during the Term and thereafter insurance
      coverage sufficient in the determination of the Company to satisfy any
      indemnification obligation of the Company arising under this
      Section 7.

     

    
      	 	
              8.

            	
              Notices.

            

    

     

    All
      notices, requests, consents and other communications required or permitted
      to be
      given hereunder shall be in writing and shall be deemed to have been duly given
      if delivered personally, one day after sent by overnight courier or three days
      after mailed first class, postage prepaid, by registered or certified mail,
      as
      follows (or to such other address as either party shall designate by notice
      in
      writing to the other in accordance herewith):

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Company, to:

     

    Foster
      Wheeler Ltd.

    Perryville
      Corporate Park

    Clinton,
      NJ 08809-4000

    Attention:
      Chief Executive Officer

     

    If
      to the
      Executive, to the Executive’s principal residence as reflected in the records of
      the Company.

     

    
      	 	
              9.

            	
              General;
                Termination of Prior Agreement.

            

    

     

    9.1 Governing
      Law.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of New Jersey applicable to agreements made between residents
      thereof and to be performed entirely in New Jersey.

     

    9.2 Headings.
      The
      section headings contained herein are for reference purposes only and shall
      not in any way affect the meaning or interpretation of this
      Agreement.

     

    9.3 Termination
      of CoC Agreement.
      The
      parties hereby agree to terminate the CoC Agreement, such termination to be
      effective immediately prior to the date of this Agreement.

     

    9.4 Entire
      Agreement.
      This
      Agreement sets forth the entire agreement and understanding of the parties
      relating to the subject matter hereof, and supersedes all prior agreements,
      arrangements and understandings, written or oral, relating to the subject matter
      hereof. No representation, promise or inducement has been made by either party
      that is not embodied in this Agreement, and neither party shall be bound by
      or
      liable for any alleged representation, promise or inducement not so set
      forth.

     

    9.5 Non-exclusivity
      of Rights.
      Other
      than as expressly set forth in this Agreement, nothing in this Agreement shall
      prevent or limit the Executive’s continuing or future participation in any plan,
      program, policy or practice provided by the Company or the Affiliated Companies
      and for which the Executive may qualify, nor shall anything herein limit or
      otherwise affect such rights as the Executive may have under any other contract
      or agreement with the Company or the Affiliated Companies. For avoidance of
      doubt, it is agreed and understood that this Agreement shall not supersede
      or
      otherwise adversely affect any stock option, restricted stock or other form
      of
      equity grant or award provided to Executive prior to the Effective Date, or
      any
      indemnification agreement heretofore entered into between the Company and the
      Executive. Amounts which are vested benefits or which the Executive is otherwise
      entitled to receive under any plan, policy, practice or program of or any
      contract or agreement with the Company or any of the Affiliated Companies at
      or
      subsequent to the Termination Date shall be payable in accordance with such
      plan, policy, practice or program or contract or agreement except as explicitly
      modified by this Agreement. Notwithstanding the foregoing, if the Executive
      receives payments and benefits pursuant to this Agreement in connection with
      the
      termination of the Executive’s employment, the Executive shall not be entitled
      to any severance pay or benefits under any severance plan, program or policy
      of
      the Company and the Affiliated Companies, unless specifically provided therein
      in a specific reference to this Agreement.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    9.6 Full
      Settlement.
      The
      Company’s obligation to make the payments provided for in this Agreement and
      otherwise to perform its obligations hereunder shall not be affected by any
      set-off, counterclaim, recoupment, defense or other claim, right or action
      which
      the Company may have against the Executive or others. The Company agrees to
      pay
      as incurred (within ten days following the Company’s receipt of an invoice from
      the Executive, which invoice the Executive must submit to the Company not later
      than March 1 of the year following the year in which the expenses were
      incurred), to the full extent permitted by law, all legal fees and expenses
      which the Executive may reasonably incur as a result of any contest (regardless
      of the outcome thereof) by the Company, the Executive or others of the validity
      or enforceability of, or liability under, any provision of this Agreement or
      any
      guarantee of performance thereof (including as a result of any contest by the
      Executive about the amount of any payment pursuant to this Agreement), plus
      in
      each case interest on any delayed payment at the applicable Federal rate
      provided for in Section 7872(f)(2)(A) of the Code.

     

    9.7 Assignability.
      This
      Agreement, and the Executive’s rights and obligations hereunder, may not be
      assigned by the Executive, nor may the Executive pledge, encumber or anticipate
      any payments or benefits due hereunder, by operation of law or otherwise. The
      Company may assign its rights, together with its obligations, hereunder
      (i) to any affiliate or (ii) to a third party in connection with any
      sale, transfer or other disposition of all or substantially all of any business
      to which the Executive’s services are then principally devoted, provided that no
      assignment pursuant to this Section 9.7 shall relieve the Company from its
      obligations hereunder to the extent the same are not timely discharged by such
      assignee.

     

    9.8 Assumption
      of Agreement by Successor.
      The
      Company will require any successor (whether direct or indirect, by purchase,
      merger, consolidation or otherwise) to all or substantially all of the business
      and/or assets of the Company to assume expressly and agree to perform this
      Agreement in the same manner and to the same extent that the Company would
      be
      required to perform it if no such succession had taken place.

     

    9.9 Survival.
      The
      respective rights and obligations of the parties hereunder shall survive any
      termination of this Agreement or the Term to the extent necessary to the
      intended preservation of such rights and obligations.

     

    9.10 Amendment.
      This
      Agreement may be amended, modified, superseded, canceled, renewed or extended
      and the terms or covenants hereof may be waived, only by a written instrument
      executed by both of the parties hereto, or in the case of a waiver, by the
      party
      waiving compliance. The failure of either party at any time or times to require
      performance of any provision hereof shall in no manner affect the right at
      a
      later time to enforce the same. No waiver by either party of the breach of
      any
      term or covenant contained in this Agreement, whether by conduct or otherwise,
      in any one or more instances, shall be deemed to be, or construed as, a further
      or continuing waiver of any such breach, or a waiver of the breach of any other
      term or covenant contained in this Agreement.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    9.11 Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed to be an original but all of which together will constitute one and
      the
      same instrument.

     

    9.12 Acknowledgement
      of Ability to Have Counsel Review.
      The
      parties acknowledge that this Agreement is the result of arm’s-length
      negotiations between sophisticated parties each afforded the opportunity to
      utilize representation by legal counsel. Each and every provision of this
      Agreement shall be construed as though both parties participated equally in
      the
      drafting of same, and any rule of construction that a document shall be
      construed against the drafting party shall not be applicable to this
      Agreement.

     

    
      	 	
              10.

            	
              Dispute
                Resolution.
                

            

    

     

    Subject
      to the rights of the Company pursuant to Section 5.3 above, any
      controversy, claim or dispute arising out of or relating to this Agreement,
      the
      breach thereof, or the Executive’s employment by the Company shall be settled by
      arbitration with three arbitrators. The arbitration will be administered by
      the
      American Arbitration Association in accordance with its National Rules for
      Resolution of Employment Disputes. The arbitration proceeding shall be
      confidential, and judgment on the award rendered by the arbitrator may be
      entered in any court having jurisdiction. Any such arbitration shall take place
      in the Clinton, New Jersey area, or in any other mutually agreeable location.
      In
      the event any judicial action is necessary to enforce the arbitration provisions
      of this Agreement, sole jurisdiction shall be in the federal and state courts,
      as applicable, located in New Jersey. Any request for interim injunctive relief
      or other provisional remedies or opposition thereto shall not be deemed to
      be a
      waiver or the right or obligation to arbitrate hereunder. The arbitrator shall
      have the discretion to award reasonable attorneys’ fees, costs and expenses to
      the prevailing party. To the extent a party prevails in any dispute arising
      out
      of this Agreement or any of its terms and provisions, all reasonable costs,
      fees
      and expenses relating to such dispute, including the parties’ reasonable legal
      fees, shall be borne by the party not prevailing in the resolution of such
      dispute, but only to the extent that the arbitrator or court, as the case may
      be, deems reasonable and appropriate given the merits of the claims and defenses
      asserted.

     

    
      	 	
              11.

            	
              Free
                to Contract.
                

            

    

     

    The
      Executive represents and warrants to the Company that Executive is able freely
      to accept engagement and employment by the Company as described in this
      Agreement and that there are no existing agreements, arrangements or
      understandings, written or oral, that would prevent Executive from entering
      into
      this Agreement, would prevent Executive or restrict Executive in any way from
      rendering services to the Company as provided herein during the Term or would
      be
      breached by the future performance by the Executive of Executive’s duties
      hereunder. The Executive also represents and warrants that no fee, charge or
      expense of any sort is due from the Company to any third person engaged by
      the
      Executive in connection with Executive’s employment by the Company hereunder,
      except as disclosed in this Agreement.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	 	
              12.

            	
              Subsidiaries
                and Affiliates.

            

    

     

    As
      used
      herein, the term “subsidiary” shall mean any corporation or other business
      entity controlled directly or indirectly by the Company or other business entity
      in question, and the term “affiliate” shall mean and include any corporation or
      other business entity directly or indirectly controlling, controlled by or
      under
      common control with the Company or other business entity in
      question.

     

    
      	 	
              13.

            	
              Code
                Section 409A Legal
                Requirement.

            

    

     

    Notwithstanding
      anything to the contrary in this Agreement, if the Executive constitutes a
      “specified employee” as defined and applied in Section 409A of the Code as of
      his Termination Date, to the extent any payment under this Agreement 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, no payments due under this Agreement may be made until the earlier of:
      (i)
      the first day following the sixth month anniversary of Executive’s Termination
      Date, or (ii) the Executive’s date of death; provided, however, that any
      payments delayed during this six-month period shall be paid in the aggregate
      in
      a lump sum as soon as administratively practicable following the sixth month
      anniversary of the Executive’s Termination Date. For purposes of Section 409A of
      the Code, each “payment” (as defined by Section 409A of the Code) made under
      this Agreement shall be considered a “separate payment.” In addition, for
      purposes of Section 409A of the Code, the cash payments to facilitate
      post-termination health coverage described in Sections 4.2.2 and 4.3.2 shall
      be
      deemed exempt from Section 409A of the Code to the full extent possible under
      the “short-term deferral” exemption of Treasury Regulation § 1.409A-1(b)(4)
      and (with respect to amounts paid no later than the second calendar year
      following the calendar year containing the Executive’s Termination Date) the
“two-years/two-times” separation pay exemption of Treasury Regulation
§ 1.409A-1(b)(9)(iii), which are hereby incorporated by
      reference.

     

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

    

    
      	 	
              FOSTER
                WHEELER LTD.

            
	 	 
	 	
              By:

            	/s/
Raymond
              J. Milchovich
	 	
              Name:
                Raymond J. Milchovich

            
	 	
              Title:
                Chairman and Chief Executive Officer

            
	 	 
	 	
              /s/
                Peter J.
                Ganz

            
	 	
              Peter J.
                Ganz

            

    

     

    
      
        
        

      

      
        21

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