Document:

CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT

           AGREEMENT by and between Foster Wheeler Inc., (the "Company") and an
indirect wholly-owned subsidiary of Foster Wheeler Ltd., a Bermuda company
("Parent"), and BERNARD H. CHERRY (the "Executive"), dated as of the 4th day of
November, 2002.

           WHEREAS the Board of Directors of Parent (the "Board"), has
determined that it is in the best interests of Parent and its shareholders and
subsidiaries, including the Company, to assure that Parent and the Company will
have the continued dedication of the Executive, notwithstanding the possibility,
threat or occurrence of a Change of Control (as defined below). The Board
believes it is imperative to diminish the inevitable distraction of the
Executive by virtue of the personal uncertainties and risks created by a pending
or threatened Change of Control and to encourage the Executive's full attention
and dedication to the Company currently and in the event of any threatened or
pending Change of Control, and to provide the Executive with compensation and
benefits arrangements upon a Change of Control which ensure that the
compensation and benefits expectations of the Executive will be satisfied and
which are competitive with those of other corporations. Therefore, in order to
accomplish these objectives, the Board has caused the Company to enter into this
Agreement.

           NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.         CERTAIN DEFINITIONS.

           (a) "Effective Date" shall mean the first date during the Change of
Control Period (as defined in Section 1(b)) on which a Change of Control (as
defined in Section 2) occurs. 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 (i) was at the request of a third party who has taken
steps reasonably calculated to effect a Change of Control or (ii) otherwise
arose in connection with or anticipation of a Change of Control, then for all
purposes of this Agreement the "Effective Date" shall mean the date immediately
prior to the date of such termination of employment.

           (b) The "Change of Control Period" shall mean the period commencing
on the date hereof and ending on the third anniversary of the date hereof;
provided, however, that commencing on the date one year after the date hereof,
and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate three years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

           (c) "Affiliated Company" means any company, directly or indirectly,
controlled by, controlling or under common control with Parent.

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2.         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 Parent where such acquisition causes such Person to own 20% or
more of the combined voting power of the then outstanding voting securities of
Parent entitled to vote generally in the election of directors (the "Outstanding
Parent Voting Securities"), provided, however, that for purposes of this
subsection (a), the following acquisitions shall not be deemed to result in a
Change of Control: (i) any acquisition directly from Parent or any corporation
or other legal entity controlled, directly or indirectly, by Parent, (ii) any
acquisition by Parent or any corporation or other legal entity controlled,
directly or indirectly, by Parent, (iii) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by Parent or any corporation or
other legal entity controlled, directly or indirectly, by Parent or (iv) any
acquisition by any corporation pursuant to a transaction that complies with
clauses (i), (ii) and (iii) of subsection (c) below; and provided, further, that
if any Person's beneficial ownership of the Outstanding Parent Voting Securities
reaches or exceeds 20% as a result of a transaction described in clause (i) or
(ii) above, and such Person subsequently acquires beneficial ownership of
additional voting securities of Parent, such subsequent acquisition shall be
treated as an acquisition that causes such Person to own 20% or more of the
Outstanding Parent Voting Securities; or

           (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 Parent'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 Parent of a reorganization,
merger or consolidation or sale or other disposition of all or substantially all
of the assets of Parent ("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
Parent 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 Parent or all or substantially all of Parent's assets
either directly or through one or more subsidiaries) in substantially the same

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proportions as their ownership, immediately prior to such Business Combination
of the Outstanding Parent Voting Securities, (ii) no Person (excluding any (x)
corporation owned, directly or indirectly, by the beneficial owners of the
Outstanding Parent Voting Securities as described in clause (i) immediately
preceding or (y) employee benefit plan (or related trust) of Parent 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

           (d) approval by the shareholders of Parent of a complete liquidation
or dissolution of Parent.

           For the avoidance of doubt, neither the approval nor the consummation
of the merger of Foster Wheeler Corporation ("FWC") with and into Foster Wheeler
LLC, a Delaware limited liability company and an indirect wholly-owned
subsidiary of Parent (whereby each outstanding share of common stock of FWC
(other than those shares held by FWC or any direct or indirect wholly-owned
subsidiary of FWC) was converted into one common share of Parent), or any
restructuring transactions contemplated by or related to such merger, shall be
deemed to constitute or result in, directly or indirectly, a Change of Control,
for purposes of this Agreement.

           3. EMPLOYMENT PERIOD. The Company hereby agrees to continue the
Executive in its employ, subject to the terms and conditions of this Agreement,
for the period commencing on the Effective Date and ending on the third
anniversary of the Effective Date (the "Employment Period"). The Employment
Period shall terminate upon the Executive's termination of employment for any
reason.

           4. TERMS OF EMPLOYMENT.

           (a) POSITION AND DUTIES.

               (i) During the Employment Period, (A) the Executive's position
(including status, offices, titles and reporting requirements), authority,
duties and responsibilities shall be at least commensurate in all material
respects with the most significant of those held, exercised and assigned at any
time during the 120-day period immediately preceding the Effective Date and (B)
the Executive's services shall be performed at the office where the Executive
was employed immediately preceding the Effective Date or at any other location
less than 35 miles from such office.

               (ii) During the Employment Period, and excluding any periods of
vacation and sick leave to which the Executive is entitled, the Executive agrees
to devote reasonable attention and time during normal business hours to the
business and affairs of the Company and, to the extent necessary to discharge

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the responsibilities assigned to the Executive hereunder, to use the Executive's
reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period it shall not be a violation of
this Agreement for the Executive to (A) serve on corporate, civic or charitable
boards or committees, (B) deliver lectures, fulfill speaking engagements or
teach at educational institutions and (C) manage personal investments, so long
as such activities do not significantly interfere with the performance of the
Executive's responsibilities as an employee of the Company in accordance with
this Agreement. It is expressly understood and agreed that to the extent that
any such activities have been conducted by the Executive prior to the Effective
Date, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter he deemed to interfere with the performance of the Executive's
responsibilities to the Company.

           (b) COMPENSATION.

               (i) BASE SALARY. During the Employment Period, the Executive
shall receive an annual base salary ("Annual Base Salary"), at an annual rate,
at least equal to twelve times the highest monthly base salary paid or payable,
including any base salary which has been earned but deferred, to the Executive
by the Company and the Affiliated Companies in respect of the twelve-month
period immediately preceding the month in which the Effective Date occurs. The
Annual Base Salary shall be paid at such intervals as the Company pays executive
salaries generally. During the Employment Period, the Annual Base Salary shall
be reviewed at least annually, beginning no more than 12 months after the last
salary increase awarded to the Executive prior to the Effective Date. Any
increase in Annual Base Salary shall not serve to limit or reduce any other
obligation to the Executive under this Agreement. Annual Base Salary shall not
be reduced after any such increase and the term "Annual Base Salary" shall refer
to Annual Base Salary as so increased.

               (ii) BONUS. In addition to Annual Base Salary, but subject to
Section 4(b)(ix) below, the Executive shall be awarded, for each fiscal year
ending during the Employment Period, an annual bonus (the "Annual Bonus") in
cash at least equal to the Executive's highest Annual Incentive Award under the
Foster Wheeler Annual Incentive Plan for 2002 and Subsequent Years, or any
comparable bonus under any successor plan, including any bonus or portion
thereof that has been earned but deferred, for the last three full fiscal years
prior to the Effective Date (or for such lesser number of full fiscal years
prior to the Effective Date for which the Executive was eligible to earn such a
bonus, and annualized in the event that the Executive was not employed by the
Company for the whole of such fiscal year) (the "Recent Annual Bonus"). Each
such Annual Bonus shall be paid no later than the end of the third month of the
fiscal year next following the fiscal year for which the Annual Bonus is
awarded, unless the Executive shall elect to defer the receipt of such Annual
Bonus.

               (iii) INCENTIVE, SAVINGS AND RETIREMENT PLANS. During the
Employment Period, the Executive shall be entitled to participate in all cash
incentive, equity incentive, savings and retirement plans (excluding the
Company's current supplemental employee retirement plan, known as the Foster
Wheeler Corporation Supplemental Employee Retirement Plan, or any successor or
replacement plan), practices, policies and programs applicable generally to
other peer executives of the Company and the Affiliated Companies, but in no
event shall such plans, practices, policies and programs (taken together with

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the bonus payable under Section 4(b)(ii)) provide the Executive with incentive
opportunities (measured with respect to both regular and special incentive
opportunities, to the extent, if any, that such distinction is applicable),
savings opportunities and retirement benefit opportunities, in each case, less
favorable, in the aggregate, than the most favorable of those provided by the
Company and the Affiliated Companies for the Executive under such plans,
practices, policies and programs as in effect at any time during the 120-day
period immediately preceding the Effective Date or if more favorable to the
Executive, those provided generally at any time after the Effective Date to
other peer executives of the Company and the Affiliated Companies.

               (iv) WELFARE BENEFIT PLANS. During the Employment Period, the
Executive and/or the Executive's family, as the case may be, shall be eligible
for participation in and shall receive all benefits under welfare benefit plans,
practices, policies and programs provided by the Company and the Affiliated
Companies (including, without limitation, medical, prescription, dental,
disability, salary continuance, employee life, group life, accidental death and
travel accident insurance plans and programs) to the extent applicable generally
to other peer executives of the Company and the Affiliated Companies, but in no
event shall such plans, practices, policies and programs provide the Executive
with benefits which are less favorable, in the aggregate, than the most
favorable of such plans, practices, policies and programs in effect for the
Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company and
the Affiliated Companies.

               (v) EXPENSES. During the Employment Period, the Executive shall
be entitled to receive prompt reimbursement for all reasonable expenses incurred
by the Executive in accordance with the most favorable policies, practices and
procedures of the Company and the Affiliated Companies in effect for the
Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally at
any time thereafter with respect to other peer executives of the Company and the
Affiliated Companies.

               (vi) FRINGE BENEFITS. During the Employment Period, the Executive
shall be entitled to perquisites and fringe benefits, including, without
limitation, tax, financial and estate planning services, payment of club dues,
use of an automobile and payment of related expenses, facsimile machine, annual
physical exam, and relocation assistance, in accordance with the most favorable
plans, practices, programs and policies of the Company and the Affiliated
Companies in effect for the Executive at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the Executive,
as in effect generally at any time thereafter with respect to other peer
executives of the Company and the Affiliated Companies.

               (vii) OFFICE AND SUPPORT STAFF. During the Employment Period, the
Executive shall be entitled to an office or offices of a size and with
furnishings and other appointments, and to exclusive personal secretarial and
other assistance, at least equal to the most favorable of the foregoing provided
to the Executive by the Company and the Affiliated Companies at any time during
the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as provided generally at any time thereafter with
respect to other peer executives of the Company and the Affiliated Companies.

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               (viii) VACATION. During the Employment Period, the Executive
shall be entitled to paid vacation in accordance with the most favorable plans,
policies, programs and practices of the Company and the Affiliated Companies as
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives of
the Company and the Affiliated Companies.

               (ix) As soon as practicable following the Effective Date, the
Executive shall receive an immediate payment in cash of the Executive's Annual
Incentive Award under the foster Wheeler Annual Incentive Plan for 2002 and
Subsequent Years for the year in which the Change of Control takes place equal
to the Annual Incentive Award 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 such year, that the Annual Incentive Award
(or other bonus) that is actually earned for such year exceeds the amount paid
pursuant to the preceding sentence, the excess shall be paid to such participant
in accordance with the terms of the Plan.

           5. TERMINATION OF EMPLOYMENT.

           (a) DEATH OR DISABILITY. The Executive's employment shall terminate
automatically if the Executive dies during the Employment Period. If the Company
determines in good faith that the Disability (as defined herein) of the
Executive has occurred during the Employment Period (pursuant to the definition
of "Disability"), it may give to the Executive written notice in accordance with
Section 12(b) of its intention to terminate the Executive's employment. In such
event, the Executive's employment with the Company shall terminate effective on
the 30th day after receipt of such notice by the Executive (the "Disability
Effective Date"), provided that, within the 30 days after such receipt, the
Executive shall not have returned to full-time performance of the Executive's
duties. For purposes of this Agreement, "Disability" shall mean the absence of
the Executive from the Executive's duties with the Company on a full-time basis
for 180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Executive or the
Executive's legal representative.

           (b) CAUSE. The Company may terminate the Executive's employment
during the Employment Period for Cause. For purposes of this Agreement, "Cause"
shall mean:

               (i) the willful and continued failure of the Executive to perform
           substantially the Executive's duties (as contemplated by Section
           4(a)(1)(A)) with the Company or any Affiliated Company (other than
           any such failure resulting from incapacity due to physical or mental
           illness or following the Executive's delivery of a Notice of
           Termination for Good Reason), after a written demand for substantial
           performance is delivered to the Executive by the Board or the Chief
           Executive Officer of the Company which specifically identifies the
           manner in which the Board or Chief Executive Officer of the Company
           believes that the Executive has not substantially performed the
           Executive's duties, or

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               (ii) the willful engaging by the Executive in illegal conduct or
           gross misconduct which is materially and demonstrably injurious to
           the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer of
the Company or a senior officer of the Company or based upon the advice of
counsel for the Company shall be conclusively presumed to be done, or omitted to
be done, by the Executive in good faith and in the best interests of the
Company. The cessation of employment of the Executive shall not be deemed to be
for Cause unless and until there shall have been delivered to the Executive a
copy of a resolution duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Board (excluding the Executive,
if the Executive is a member of the Board) at a meeting of the Board called and
held for such purpose (after reasonable notice is provided to the Executive and
the Executive is given an opportunity, together with counsel for the Executive,
to be heard before the Board), finding that, in the good faith opinion of the
Board, the Executive is guilty of the conduct described in Section 4(b)(i) or
4(b)(ii), and specifying the particulars thereof in detail.

           (c) GOOD REASON. The Executive's employment may be terminated by the
Executive for Good Reason or by the Executive voluntarily without Good Reason.
For purposes of this Agreement, "Good Reason" shall mean:

               (i) the assignment to the Executive of any duties inconsistent in
           any respect with the Executive's position (including status, offices,
           titles and reporting requirements), authority, duties or
           responsibilities as contemplated by Section 4(a), or any other
           diminution in such position, authority, duties or responsibilities
           (whether or not occurring solely as a result of Parent's ceasing to
           be a publicly traded entity), excluding for this purpose an isolated,
           insubstantial and inadvertent action not taken in bad faith and which
           is remedied by the Company promptly after receipt of notice thereof
           given by the Executive;

               (ii) any failure by the Company to comply with any of the
           provisions of Section 4(b), other than an isolated, insubstantial and
           inadvertent failure not occurring in bad faith and which is remedied
           by the Company promptly after receipt of notice thereof given by the
           Executive;

               (iii) the Company's requiring the Executive (A) to be based at
           any office or location other than as provided in Section 4(a)(i)(B),
           (B) to be based at a location other than the principal executive
           offices of the Company if the Executive was employed at such location
           immediately preceding the Effective Date, or (C) to travel on Company
           business to a substantially greater extent than required immediately
           prior to the Effective Date;

               (iv) any purported termination by the Company of the Executive's
           employment otherwise than as expressly permitted by this Agreement;
           or

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               (v) any failure by the Company to comply with and satisfy Section
           11(c).

For purposes of this Section 5(c), any good faith determination of Good Reason
made by the Executive shall be conclusive. Anything in this Agreement to the
contrary notwithstanding, a termination by the Executive for any reason pursuant
to a Notice of Termination given during the 30-day period immediately following
the first anniversary of the Effective Date shall be deemed to be a termination
for Good Reason for all purposes of this Agreement. The Executive's mental or
physical incapacity following the occurrence of an event described above in
clauses (i) through (v) shall not affect the Executive's ability to terminate
employment for Good Reason.

           (d) NOTICE OF TERMINATION. Any termination by the Company for Cause,
or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 12(b).
For purposes of this Agreement, a "Notice of Termination" means a written notice
which (i) indicates the specific termination provision in this Agreement relied
upon, (ii) to the extent applicable, sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated and (iii) if the Date of Termination
(as defined below) is other than the date of receipt of such notice, specifies
the Date of Termination (which Date of Termination shall be not more than thirty
days after the giving of such notice). The failure by the Executive or the
Company to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
the Executive or the Company, respectively, hereunder or preclude the Executive
or the Company, respectively, from asserting such fact or circumstance in
enforcing the Executive's or the Company's respective rights hereunder.

           (e) DATE OF TERMINATION. "Date of Termination" means (i) if the
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified in the Notice of Termination (which date shall not be
more than thirty days after the giving of such notice), as the case may be, (ii)
if the Executive's employment is terminated by the Company other than for Cause
or Disability, the Date of Termination shall be the date on which the Company
notifies the Executive of such termination and (iii) if the Executive's
employment is terminated by reason of death or Disability, the Date of
Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

           6. OBLIGATIONS OF THE COMPANY UPON TERMINATION.

           (a) GOOD REASON; OTHER THAN FOR CAUSE, DEATH OR DISABILITY. If,
during the Employment Period, the Company terminates the Executive's employment
other than for Cause or Disability or the Executive terminates employment for
Good Reason:

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

                    (A) the sum of (1) the Executive's Annual Base Salary
               through the Date of Termination to the extent not theretofore

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               paid, (2) the product of (x) the higher of (I) the Recent Annual
               Bonus or (II) 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 Employment Period, if any (such higher amount
               being referred to as the "Highest Annual Bonus") and (y) a
               fraction, the numerator of which is the number of days in the
               current fiscal year through the Date of Termination, and the
               denominator of which is 365 and (3) 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 (1), (2) and (3), (the "Accrued Obligations");

                    (B) the amount equal to the product of (1) three and (2) the
               sum of (x) the Executive's Annual Base Salary and (y) the Highest
               Annual Bonus;

                    (C) an amount equal to the excess of (a) 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 Date
               of Termination 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 4(b)(i) and 4(b)(ii), over (b) the actuarial equivalent
               of the Executive's actual benefit (paid or payable), if any,
               under the Retirement Plan as of the Date of Termination plus
               amounts, if any, that the Executive would have contributed under
               the Retirement Plan during such three-year period; and

                    (D) payment for any shares of restricted common shares
               issued under the Company's, Parent's or an Affiliated Company's
               Management and Sales Incentive Plan or any other plan (whether or
               not vested), to the extent such shares are tendered to the
               Company, Parent or an Affiliated Company, as applicable, by the
               Executive within 20 days after the Date of Termination, at a
               price per share equal to the highest of (i) the market price on
               the New York Stock Exchange of a common share of Parent at the
               close of business on the date of such tender, (ii) the highest
               price paid for a common share of Parent in any Change of Control
               transaction occurring on or after the Effective Date, or (iii)
               the market price on the New York Stock Exchange of a common share
               of Parent at the close of business on the date of any such Change
               of Control transaction;

               (ii) for five years after the Executive's Date of Termination, or
           such longer period as may be provided by the terms of the appropriate
           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 plans, programs, practices and policies described in Section
           4(b)(iv) of this Agreement if the Executive's employment had not been
           terminated or, if more favorable

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           to the Executive, 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 if the
           Executive becomes reemployed with another employer and is eligible to
           receive medical or other welfare benefits under another employer
           provided plan, the medical and other 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 Date of Termination and to have retired on such fifth
           anniversary;

               (iii) 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

               (iv) 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").

           (b) DEATH. If the Executive's employment is terminated by reason of
the Executive's death during the Employment 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 Date of Termination. With respect to the provision of
Other Benefits, the term "Other Benefits" as utilized in this Section 6(b) 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
Effective Date or, it 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.

           (c) DISABILITY. If the Executive's employment is terminated by reason
of the Executive's Disability during the Employment 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 Date of Termination. With respect to
the provision of Other Benefits, the term "Other Benefits" as utilized in this
Section 6(c) shall include, and the Executive shall be entitled after the
Disability Effective 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

                                      -10-
<PAGE>

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 Effective 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.

           (d) CAUSE; OTHER THAN FOR GOOD REASON. If the Executive's employment
is terminated for Cause during the Employment Period, the Company shall provide
to the Executive (x) the Executive's Annual Base Salary through the Date of
Termination, (y) the amount of any compensation previously deferred by the
Executive, and (z) 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 Employment 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 Date of Termination.

           7. NON-EXCLUSIVITY OF RIGHTS. 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, subject to Section 12(f), 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. 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 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 Section 6(a) of this Agreement, 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.

           8. 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. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement and such amounts
shall not be reduced whether or not the Executive obtains other employment. The
Company agrees to pay as incurred (within ten days following the Company's
receipt of an invoice from the Executive), 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
Internal Revenue Code of 1986, as amended (the "Code").

                                      -11-
<PAGE>

           9. CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

               (a) 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.

               (b) Subject to the provisions of Section 9(c), all determinations
required to be made under this Section 9, 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 Section 9, 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 Section 9(c) 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.

               (c) 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:

                                      -12-
<PAGE>

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

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

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

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

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold 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 Section 9(c),
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.

           (d) If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 9(c), 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 Section 9(c)) 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 Section 9(c), 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

                                      -13-
<PAGE>

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.

           (e) Notwithstanding any other provision of this Section 9, 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.

           (f) Definitions. The following terms shall have the following
meanings for purposes of this Section 9.

               (i) "Excise Tax" shall mean the excise tax imposed by Section
           4999 of the Code, together with any interest or penalties imposed
           with respect to such excise tax.

               (ii) 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.

               (iii) "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.

               (iv) 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.

               (v) 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.

               (vi) "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 using
           the discount rate required by Section 280G(d)(4) of the Code.

           10. CONFIDENTIAL INFORMATION. The Executive shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company, Parent or the Affiliated Companies,
and their respective businesses, which information, knowledge or data shall have
been obtained by the Executive during the Executive's employment by the Company,
Parent or the Affiliated Companies and which information, knowledge or data
shall not be or become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement). After
termination of the

                                      -14-
<PAGE>

Executive's employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those persons designated by the Company. In no
event shall an asserted violation of the provisions of this Section 10
constitute a basis for deferring or withholding any amounts otherwise payable to
the Executive under this Agreement.

11.        SUCCESSORS.

               (a) This Agreement is personal to the Executive and without the
prior written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive's legal
representatives.

               (b) This Agreement shall inure to the benefit of and be binding
upon the Company and its successors and assigns. Except as provided in Sections
11(c), and 11(d), without the prior written consent of the Executive this
Agreement shall not be assignable by the Company.

               (c) 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. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise. The parties hereto understand and agree that, as of the date
hereof, Foster Wheeler LLC and Foster Wheeler International Holdings, Inc.,
indirect wholly-owned subsidiaries of Parent, shall have executed an agreement
to unconditionally guarantee the Company's performance of its obligations under
this Agreement, and Parent shall have executed an agreement to (i) perform the
obligations of Parent under this Agreement and (ii) as of and after the
Effective Date, unconditionally guarantee the performance of the obligations of
Foster Wheeler LLC and Foster Wheeler International Holdings, Inc. under this
Agreement. For purposes of this Agreement, and notwithstanding any other
provisions of this Agreement to the contrary, the performance of the Company's
obligations hereunder by Foster Wheeler LLC, Foster Wheeler International
Holdings, Inc., Parent or any Affiliated Company shall be deemed to be
performance by the Company of such obligations.

               (d) Notwithstanding any other provision of this Agreement: (i) in
the event that the Company ceases to be an Affiliated Company at any time before
the Effective Date, and immediately thereafter the Executive is an employee of
Parent or any other entity that remains an Affiliated Company (a "Continuing
Affiliate"), then Parent shall assume this Agreement, or cause it to be assumed
by a Continuing Affiliate, and from and after such assumption, the Company shall
have no further obligations hereunder and references herein to the "Company"
shall be deemed to refer to the entity that so assumes this Agreement; and (ii)
in the event that the Company ceases to be an Affiliated Company at any time
before the Effective Date, and

                                      -15-
<PAGE>

immediately thereafter the Executive is not an employee of Parent or any
Continuing Affiliate, then this Agreement shall immediately terminate and be of
no further force or effect.

           12. MISCELLANEOUS.

               (a) This Agreement shall be governed by and construed in
accordance with the laws of the State of New Jersey, without reference to
principles of conflict of laws. The captions of this Agreement are not part of
the provisions hereof and shall have no force or effect. This Agreement may not
be amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

               (b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

           If to the Executive:

                     Mr. Bernard H. Cherry
                     One North Breaker Row
                     Apt. 231
                     Palm Beach, FL 33480

           If to the Company:

                     Foster Wheeler Inc.
                     Perryville Corporate Park
                     Clinton, New Jersey  08809-4000

                     Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

               (c) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.

               (d) The Company may withhold from any amounts payable under this
Agreement such United States federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

               (e) The Executive's or the Company's failure to insist upon
strict compliance with any provision of this Agreement or the failure to assert
any right the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Sections 5(c)(i) through 5(c)(v), shall not be deemed to be a waiver
of such provision or right or any other provision or right of this Agreement.

                                      -16-
<PAGE>

               (f) The Executive and the Company acknowledge that, except as may
otherwise be provided under any other written agreement between the Executive
and the Company, the employment of the Executive by the Company is "at will"
and, subject to Sections 1(a), and 11(d), prior to the Effective Date, the
Executive's employment may be terminated by either the Executive or the Company
at any time prior to the Effective Date, in which case the Executive shall have
no further rights under this Agreement. From and after the Effective Date except
as specifically provided herein, this Agreement shall supersede any other
agreement between the parties with respect to the subject matter hereof.

           IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization from the Board, the Company has caused
this Agreement to be executed in its name on its behalf, all as of the day and
year first above written.

                                                   /S/BERNARD H. CHERRY
                                                   -----------------------------
                                                   Bernard H. Cherry

                                                   FOSTER WHEELER INC.

                                                   By /S/RAYMOND J. MILCHOVICH
                                                      --------------------------
                                                       Raymond J. Milchovich
                                                       Chairman, President and
                                                       Chief Executive Officer

                                      -17-
<PAGE>EMPLOYMENT AGREEMENT

           EMPLOYMENT AGREEMENT (this "Agreement") dated as of September 10,
2002, between FOSTER WHEELER LTD., a Bermuda company (the "Company"), and Thomas
R. O'Brien (the "Executive").

           The Executive is currently employed by the Company, and the Executive
and the Company wish to continue their employment relationship, on the terms and
conditions set forth in this Agreement.

           Accordingly, the Company and the Executive hereby agree as follows:

           1. EMPLOYMENT, DUTIES AND ACCEPTANCE.

               1.1 EMPLOYMENT, DUTIES. The Company hereby agrees to continue 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 Senior Vice
President & 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 Chairman,
President and 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
Senior Vice President & 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 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

<PAGE>

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 September 10, 2002 (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
of $338,000 (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. 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. Initially, the
Executive's participation shall be in the discretionary bonus program designated
the "Foster Wheeler Annual Incentive Plan for 2002 and Subsequent Years."

               3.3 STOCK OPTIONS. Executive shall be eligible for annual stock
option grants, as determined by the Compensation Committee of the Board, under
the Company's stock option plan covering executives at the Executive's level, as
in effect from time to time.

               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 BENEFITS AND PERQUISITES. 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 and such
perquisites of the

                                      -2-
<PAGE>

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 CHANGE OF CONTROL. The Executive shall be covered under the
Company's Change in Control Agreement as in effect from time to time for
executives at the Executive's level. Any amounts and/or benefits payable, paid
or provided to the Executive under such Change in Control Agreement shall be in
lieu of and not in addition to amounts and/or benefits payable or provided under
this Agreement. This Agreement is not intended to preclude benefits payable
under the Change in Control Agreement should the events described therein occur.

           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) the death of the Executive;

                         (ii) 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) notice of termination for "Cause". As used
herein, "Cause" means (i) conviction of a felony; (ii) actual or attempted theft
or embezzlement of Company assets; (iii) use of illegal drugs; (iv) 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; (v) 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; (vi) gross
negligence or willful misconduct in performance of the Executive's duties; (vii)
breach of fiduciary duty to the Company; or (viii) willful refusal to perform
the duties of Executive's titled position.

                    4.1.2 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 without the Executive's consent (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
that the Company has not cured within thirty (30) days after the Executive has
provided the Company notice of the material breach which

                                      -3-
<PAGE>

shall be given within sixty (60) days of the Executive's knowledge of the
occurrence of the material breach; or (vi) resignation in compliance with
applicable law or rules of professional conduct.

                    4.1.3 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 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 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 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 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 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 in Section 4.2.1 above, (i) Base Salary at
the rate in effect on the Termination Date ("Termination Base Salary Rate"),
payable monthly following the Termination Date and continuing for twenty-four
months thereafter; (ii) an annual cash incentive payment for the calendar year
that includes the Executive's Termination Date and the following calendar year
equal to a percentage of the Termination Base Salary Rate equal to the average
percentage of base salaries paid as bonuses to the executives of the Company at
the Executive's level under the Company's annual incentive program during such
applicable calendar year and payable at the time that the Company pays annual
cash incentive payments to other participants in such program; (iii) two
additional years of age and service to be credited under the Company's

                                      -4-
<PAGE>

pension plan and supplemental pension plan; (iv) 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 and active
employee cost; (v) 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; (vi) full vesting of all stock options to purchase shares of
capital stock of the Company; and (vii) executive level career transition
assistance services by a firm selected by the Executive and approved by the
Company. 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 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.

           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 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

                                      -5-
<PAGE>

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.

                    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 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"):

                    5.2.1 until the first anniversary of the Termination Date,
engage in any activity for or on behalf of a Competitor, as director, employee,
shareholder, 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;

                    5.2.2 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 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

<PAGE>

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 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 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 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 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. INTELLECTUAL PROPERTY.

           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.

           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

<PAGE>

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):

           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.

           9. GENERAL.

               9.1 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.

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

               9.3 This Agreement sets forth the entire agreement and
understanding of the parties relating to the subject

<PAGE>

matter hereof, and supersedes all prior agreements, arrangements and
understandings, written or oral, relating to the subject matter hereof
including, but not limited to, that certain letter agreement between the Company
and/or its subsidiary and the Executive dated on or about May 29, 2001. 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.

               9.4 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.

               9.5 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.

               9.6 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.

               9.7 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.

               9.8 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

<PAGE>

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.

           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.

<PAGE>

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

                                         FOSTER WHEELER LTD.

                                         By:/S/ RAYMOND J. MILCHOVICH
                                            ------------------------------------
                                         Raymond J. Milchovich
                                         Chairman, President and
                                         Chief Executive Officer

                                         /S/THOMAS R. O'BRIEN
                                         ---------------------------------------
                                         Thomas R. O'Brien

<PAGE>

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