Document:

PLEDGE AGREEMENT

                  PLEDGE AGREEMENT, dated as of May 25, 2001 (as amended,
modified or supplemented from time to time, this "AGREEMENT"), made by each of
the undersigned pledgors (each a "PLEDGOR", and together with any entity that
becomes a party hereto pursuant to Section 19 hereof, the "PLEDGORS"), in favor
of BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, as collateral agent,
for the benefit of the Secured Creditors (as defined below) (in such capacity
and together with any successor thereto, the "PLEDGEE"). Except as otherwise
defined herein, terms used herein and defined in the Credit Agreement (as
defined below) shall be used herein as therein defined.

                              W I T N E S S E T H:

                     WHEREAS, Foster Wheeler LLC (the "COMPANY"), the Borrowing
Subsidiaries party thereto from time to time, the
Guarantors from time to time party thereto, various lenders from Lime to time
party thereto (the "BANKS"), ABN AMRO Bank N.V. and First Union National Bank,
as Documentation Agent and Syndication Agent, respectively (in such capacity,
the "DOCUMENTATION AGENT" and the "SYNDICATION AGENT", respectively), and Bank-
of America National Trust and Savings Association, as Administrative Agent (in
such capacity and together with any successor thereto, the "ADMINISTRATIVE
AGENT" and, together with the Pledgee, the Documentation Agent, the Syndication
Agent and the Banks and their respective successors and assigns, the "BANK
CREDITORS" have entered into a Second Amended and Restated Revolving Credit
Agreement, dated as of May 25, 2001, providing for the extensions of credit to
the Borrowers as contemplated therein (as used herein, the term "CREDIT
AGREEMENT" means the Credit Agreement described above in this paragraph, as the
same may be amended, modified, extended, renewed, replaced, restated,
supplemented or refinanced from time to time, and including any agreement
extending the maturity of, or refinancing or restructuring (including, but not
limited to, the inclusion of additional borrowers or guarantors thereunder or
any increase in the amount borrowed) all or any portion of, the indebtedness
under such agreement or any successor agreement, whether or not with the same
agent, trustee, representative, lenders or holders);

                  WHEREAS, pursuant to the terms of the Credit Agreement, the
Pledgors have either guaranteed or have agreed to be jointly and severally
liable to the Bank Creditors for the payment when due of all obligations and
liabilities of the Borrowers under or with respect to the Loan Documents;

                  WHEREAS, Foster Wheeler Corporation on November 15, 1995
issued $200,000,000 in aggregate principal amount of its 6-3/4% Notes due
November 15, 2005 (the "6-3/4% NOTES") (with the holders from time to time of
such 6-3/4% Notes being herein called the "NOTEHOLDERS") pursuant to an
Indenture, dated as of November 15, 1995, by and between Foster Wheeler
Corporation and Harris Trust and Savings Bank, as trustee (together with any
successor thereto, the "TRUSTEE") on behalf of the Noteholders (as amended,
modified or supplemented from time to time, the "INDENTURE");

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                  WHEREAS, the Pledgors have issued guarantees of the payment
when due of all of the obligations and liabilities of Foster Wheeler LLC (as
successor by merger to Foster Wheeler Corporation) under or with respect to the
6-3/4% Notes and the Indenture (with any such guarantees, together with the
6-3/4% Notes and Indenture being herein collectively called the "NOTE
DOCUMENTS");

                  WHEREAS, it is a condition to the extensions of credit under
the Credit Agreement, and the Indenture requires, concurrently with the
execution and delivery of the Credit Agreement by the Borrowing Subsidiaries,
that each Pledgor shall have executed and delivered to the Pledgee this
Agreement;

                  WHEREAS, it is contemplated that the Pledged Instruments (as
defined below) will be pledged to secure the "CREDIT DOCUMENT OBLIGATIONS" and
the "NOTE OBLIGATIONS" and all other amounts comprising "Obligations" (as each
such term is hereinafter defined) on an equal and ratable basis, as contemplated
hereby, and that in connection therewith, the-Pledgee, as collateral agent
hereunder, shall act as the "Collateral Agent" for the benefit of the Bank
Creditors, the Noteholders and the other Secured Creditors; and

                  WHEREAS, each Pledgor desires to execute this Agreement to
satisfy the conditions described in the second preceding paragraph;

                  NOW, THEREFORE, in consideration of the benefits accruing to
each Pledgor, the receipt and sufficiency of which are hereby acknowledged, each
Pledgor hereby makes the following z' representations and warranties to the
Pledgee and hereby covenants and agrees with the Pledgee as follows:

                  SECTION 1. SECURITY FOR OBLIGATIONS; DEFINITIONS.

                  (a) This Agreement is made by each Pledgor in favor of the
Pledgee for the benefit of the Bank Creditors, the Noteholders and the Trustee
(collectively, together with the Pledgee, the "SECURED CREDITORS"), to secure on
an equal and ratable basis:

                     (i) the full and prompt payment when due (whether at the
           stated maturity, by acceleration or otherwise) of all obligations
           (including obligations which, but for the automatic stay under
           Section 362(a) of the Bankruptcy Code, would become due (the
           "BANKRUPTCY CODE" as used herein shall mean Title 11 of the United
           States Code entitled "BANKRUPTCY" as now or hereafter in effect, or
           any successor thereto) and liabilities (including, without
           limitation, indemnities, fees and interest thereon) of such Pledgor
           to the Bank Creditors, whether now existing or hereafter incurred
           under, arising out of or in connection with the Credit Agreement and
           all other Loan Documents to which it is at any time a party
           (including, without limitation, all such obligations and liabilities
           of such Pledgor under the Credit Agreement and under any guaranty by
           it of the obligations under the Credit Agreement) and the due
           performance and compliance by such Pledgor with the terms of each
           such Loan Document (all such obligations and liabilities under this
           clause (i) being herein collectively called the "CREDIT DOCUMENT
           OBLIGATIONS");

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                     (ii) the full and prompt payment when due (whether at the
           stated maturity, by acceleration or otherwise) of all obligations
           (including obligations which, but for the automatic stay under
           Section 362(a) of the Bankruptcy Code, would become due) and
           liabilities (including, without limitation, indemnities, fees and
           interest thereon) of such Pledgor to the Noteholders and the Trustee,
           whether now existing or hereafter incurred BANKRUPTCY at any time a
           party (including, without limitation, all such obligations and
           liabilities of such Pledgor under the Indenture or any guaranty by it
           of the obligations under the Indenture) and the due performance and
           compliance by such Pledgor with all of the terms, conditions and
           agreements on its part contained in each such Note Document (all such
           obligations and liabilities under this clause (ii) being herein
           collectively called the "NOTE OBLIGATIONS");

                     (iii)     any and all sums advanced by the Pledgee in order
           to preserve the Collateral (as  hereinafter  defined) or preserve its
           security interest in the Collateral;

                     (iv) in the event of any proceeding for the collection or
           enforcement of any indebtedness, obligations, or liabilities referred
           to in clauses (i) through (iii) above, after an Event of Default
           (such term, as used in this Agreement, shall mean (a) any "Event of
           Default" at any time under, and as defined in, the Credit Agreement,
           and (b) any payment default (after the expiration of any applicable
           grace period) on any of the Obligations secured hereunder at such
           time) shall have occurred and be continuing, the reasonable expenses
           of retaking, holding, preparing for sale or otherwise disposing or
           realizing on the Collateral, or of any exercise by the Pledgee of its
           rights hereunder, together with reasonable attorneys' fees and court
           costs; and

                  (v) all amounts paid by any Secured Creditor as to which such
           Secured Creditor has the right to reimbursement under Section 9 of
           this Agreement;

all such obligations, liabilities, sums and expenses set forth in clauses (1)
through (v) of this Section 1, being herein collectively called the
"Obligations," it being acknowledged and agreed that the "Obligations" shall
include extensions of credit of the type described above, whether outstanding on
the date of this Agreement or extended from time to time after the date of this
Agreement.

                  (b) As used herein, the term "Instruments" shall mean (i) a
promissory note dated February 10, 1999 of Foster Wheeler Constructors, Inc.
("CONSTRUCTORS") in the amount of $10,000,000 payable to the order of Foster
Wheeler USA Corporation; (ii) a promissory note dated February 10, 1999 of
Constructors in the amount of S10,000,000 payable to the order of Foster Wheeler
Energy International, Inc., (iii) a promissory note dated February 10, 1999 of
Constructors in the amount of $10,000,000 payable to `the order of Foster
Wheeler Energy Corporation, (iv) a promissory note dated May 25, 2001 of Foster
Wheeler International Holdings, Inc. in the amount of S10,000,000 payable to the
order of Foster Wheeler US Holdings, Inc., and (v) a promissory note dated May
25, 2001 of Foster Wheeler US Holdings, Inc. in the amount of $10,000,000
payable to the order of Foster Wheeler International Holdings, Inc.

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                  (c) All Instruments at any time pledged or required to be
pledged hereunder is hereinafter called the "Pledged Instruments," which
together with (i) all proceeds thereof, including any instruments, securities
and moneys received and at the time held by the Pledgee hereunder, and (ii) all
principal, interest, cash, rights, instruments and other property or proceeds
from time to time received, receivable or otherwise distributed in respect of or
in exchange for any or all of the Pledged Instruments are hereinafter called the
"Collateral".

                     SECTION 2.  PLEDGE OF INSTRUMENTS.

                     To secure all Obligations of such Pledgor and for the
purposes set forth in Section 1 hereof, each Pledgor
hereby: (i) grants to the Pledgee a first priority security interest in all of
the Collateral owned by such Pledgor; (ii) pledges and deposits as security with
the Pledgee the Pledged Instruments owned by such Pledgor on the date hereof,
and delivers to the Pledgee such Pledged Instruments, duly endorsed in blank by
such Pled-or, or such other instruments of transfer as are reasonably acceptable
to the Pledgee; and (iii) assigns, transfers, hypothecates, mortgages, charges
and sets over to the Pledgee all of such Pledgor's right, title and interest in
and to such Pledged Instrument, to be held by the Pledgee, upon the terms and
conditions set forth in this Agreement.

                     SECTION 3.  RIGHTS, ETC., WHILE NO EVENT OF DEFAULT.

                     Unless and until an Event of Default shall have occurred
and be continuing, each Pledgor shall be entitled to
exercise any and all rights pertaining to the Pledged Instruments; PROVIDED,
that no action shall be taken which would violate or be inconsistent with any of
the terms of this Agreement or any other Secured Debt Agreement (as hereinafter
defined). All such rights of such Pledgor shall cease in case an Event of
Default shall occur and be continuing, and Section 5 hereof shall become
applicable.

                     SECTION 4.  INTEREST AND OTHER DISTRIBUTIONS.

                  Except as provided in Section 5 hereof, all payments in
respect of the Pledged Instruments shall be paid to the respective Pledgor.

                     SECTION 5.  REMEDIES IN CASE OF EVENT OF DEFAULT.

                  In case an Event of Default shall have occurred and be
continuing, the Pledgee shall be entitled to exercise all of its rights, powers
and remedies (whether vested in it by this Agreement, by any other Loan
Document, or by any Note Document (with all of the Documents listed above being
herein collectively called the "SECURED DEBT AGREEMENTS") or by law) for the
protection and enforcement of its rights in respect of the Collateral, and the
Pledgee shall be entitled to exercise all the rights and remedies of a secured
party under the Uniform Commercial Code and also shall be entitled, without
limitation, to exercise the following rights, which each Pledgor hereby agrees
to be commercially reasonable:

                  (i) to receive all amounts payable in respect of the
           Collateral otherwise payable to such Pledgor under Section 4 hereof;

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                  (ii) to instruct makers of the Pledged Instruments to make any
           and all payments in respect of the Pledged Instruments directly to
           the Pledgee;

                  (iii) to transfer all or any part of the Pledged Instruments
           into the Pledgee's name or the name of its nominee or nominees;

                  (iv) to take any action in respect of the Collateral and
           otherwise act with respect thereto as though it were the outright
           owner thereof; and

                     (v) at any time or from time to time to sell, assign and
           deliver, or grant options to purchase, all or any part of the
           Collateral, or any interest therein, at any public or private sale,
           without demand of performance, advertisement or notice of intention
           to sell or of the time or place of sale or adjournment thereof or to
           redeem or otherwise (all of which are hereby waived by each Pledgor),
           for cash, on credit or for other property, for immediate or future
           delivery without any assumption of credit risk, and for such price or
           prices and on such terms as the Pledgee in its absolute discretion
           may determine; PROVIDED, that at least 10 Business Days' notice of
           the time and place of any such sale shall be given to such Pledgor.
           Each Pledgor hereby waives and releases to the fullest extent
           permitted by law any right or equity of redemption with respect to
           the Collateral, whether before or after sale hereunder, and all
           rights, if any, of marshalling the Collateral and any other security
           for the Obligations or otherwise. At any such sale, unless prohibited
           by applicable law, the Pledgee on behalf of the Secured Creditors may
           bid for and purchase all or any part of the Collateral so sold free
           from any such right or equity of redemption. Each purchaser at any
           such sale shall hold the property sold absolutely free from any claim
           or right on the part of any Pledgor, and each Pledgor hereby waives
           (to the extent permitted by law) all rights of redemption, stay
           and/or appraisal which it now has or may at any time in the future
           have under any rule of law or statute now existing or hereafter
           enacted. The Pledgee may adjourn any public or private sale from time
           to time by announcement at the time and place fixed therefor, and
           such sale may, without further notice, be made at the time and place
           to which it was so adjourned. Each Pledgor hereby waives any claims
           against the Pledgee arising by reason of the fact that the price at
           which any Collateral may have been sold at such a private sale was
           less than the price which .might have been obtained at a public sale,
           even if the Pledgee accepts the first offer received and does not
           offer such Collateral to more than one offer. If the proceeds of any
           sale or other disposition of the Collateral are insufficient to pay
           all the Obligations, the Pledgors shall be liable for the deficiency
           and the fees of any attorneys employed by the Pledgee to collect such
           deficiency. Neither the Pledgee nor any other Secured Creditor shall
           be liable for failure to collect or realize upon any or all of the
           Collateral or for any delay in so doing nor shall any of them be
           under any obligation to take any action whatsoever with regard
           thereto.

                  SECTION 6. REMEDIES, ETC., CUMULATIVE.

                  Each right, power and remedy of the Pledgee provided for in
this Agreement or in any other Secured Debt Agreement or now or hereafter

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existing at law or in equity or by statute shall be cumulative and concurrent
and shall be in addition to every other such right, power or remedy. `Me
exercise or beginning of the exercise by the Pledgee or any other Secured
Creditor of any one or more of the rights, powers or remedies provided for in
this Agreement or in any other Secured Debt Agreement or now or hereafter
existing at law or in equity or by statute or otherwise shall not preclude the
simultaneous or later exercise by the Pledgee or any other Secured Creditor of
all such other rights, powers or remedies, and no failure or delay on the part
of the Pledgee or any other Secured Creditor to exercise any such right, power
or remedy shall operate as a waiver thereof. The Secured Creditors agree that
this Agreement may be enforced only by the Pledgee acting upon the instructions
of the Required Secured Creditors (as defined in Annex A hereto) and that no
other Secured Creditor shall have any right individually to seek to enforce or
to enforce this Agreement or to realize upon the security to be granted hereby,
it being understood and agreed that such rights and remedies may be exercised by
the Pledgee for the benefit of the Secured Creditors upon the terms of this
Agreement.

                     SECTION 7.  APPLICATION OF PROCEEDS.

                  (a) All moneys collected by the Pledgee upon any sale or other
disposition of the Collateral of each Pledgor, together with all other moneys
received by the Pledgee hereunder, shall be applied as follows:

                  (i) first, to the payment of all Obligations owing to the
           Pledgee of the type provided in clauses (iii), (iv) and (v) of the
           definition of Obligations in Section 1 hereof;

                     (ii) second, to the extent proceeds remain after the
           application pursuant to the preceding clause (i), an amount equal to
           the outstanding Obligations shall be paid to the Secured Creditors as
           provided in Section 7(d) hereof, with each Secured Creditor receiving
           an amount equal to its outstanding Obligations of such Pledgor or, if
           the proceeds are insufficient to pay in full all such Obligations,
           its Pro Rata Share (as hereinafter defined) of the amount remaining
           to be distributed; and

                     (iii) third, to the extent proceeds remain after the
           application pursuant to the preceding clauses (i) and (ii),
           inclusive, and following the termination of this Agreement pursuant
           to Section 15 hereof, to the relevant Pledgor or to whomever may be
           lawfully entitled to receive such surplus.

                  (b) For purposes of this Agreement, "Pro Rata Share" shall
mean, when calculating a Secured Creditor's portion of any distribution or
amount, that amount (expressed as a percentage) equal to a fraction the
numerator of which is the then unpaid amount of such Secured Creditor's
Obligations and the denominator of which is the then outstanding amount of all
Obligations.

                  (c) If the Bank Creditors are to receive a distribution in
accordance with the procedures set forth above in this Section 7 on account of
undrawn amounts with respect to letters of credit issued under the Credit
Agreement, such amounts shall be paid to the Administrative Agent under the
Credit Agreement and held by it, for the equal and ratable benefit of the Bank
Creditors as such. If any amounts are held as cash security pursuant to the

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immediately preceding sentence, then upon the termination of all outstanding
letters of credit, and after the application of all such cash security to the
repayment of all Obligations owing to the Bank Creditors after giving effect to
the termination of all such letters of credit, if there remains any excess cash,
such excess cash shall be returned by the Administrative Agent to the Pledgee
for distribution in accordance with Section 7(a) hereof.

                  (d) Except as set forth in Section 7(c) hereof, all payments
required to be made hereunder shall be made (i) if to the Bank Creditors, to the
Administrative Agent under the Credit Agreement for the account of the Bank
Creditors, and (ii) if to any other Secured Creditors (other than the Pledgee),
to the Trustee or paying agent (each a "REPRESENTATIVE") for such Secured
Creditors or, in the absence of such a Representative, directly to the other
Secured Creditors.

                  (e) For purposes of applying payments received in accordance
with this Section 7, the Pledgee shall be entitled to rely upon (i) the
Administrative Agent under the Credit Agreement and (ii) the Representative for
any other Secured Creditors or, in the absence of such a Representative, upon
the respective Secured Creditors for a determination (which the Administrative
Agent, each Representative for any other Secured Creditors and the Secured
Creditors agree (or shall agree) to provide upon request of the Pledgee) of the
outstanding Primary Obligations and Secondary Obligations owed to the Secured
Creditors.

                  (f) It is understood and agreed that each Pledgor shall remain
liable to the extent of any deficiency between the amount of the proceeds of the
Collateral pledged by it hereunder and the aggregate amount of the Obligations
of such Pledgor.

                     SECTION 8.  PURCHASERS OF COLLATERAL.

                  Upon any sale of the Collateral by the Pledgee hereunder
(whether by virtue of the power of sale herein granted, pursuant to judicial
process or otherwise), the receipt of the Pledgee or the officer making the sale
shall be a sufficient discharge to the purchaser or purchasers of the Collateral
so sold, and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Pledgee or such
officer or be answerable in any way for the misapplication or nonapplication
thereof.

                     SECTION 9.  INDEMNITY.

                  Each Pledgor jointly and severally agrees (i) to indemnify and
hold harmless the Pledgee in such capacity and each Representative of a Secured
Creditor in its capacity as such from and against any and all claims, demands,
losses, judgments and liabilities of whatsoever kind or nature, and (ii) to
reimburse the Pledgee in such capacity and each Representative of a Secured
Creditor in its capacity as such for all reasonable costs and expenses,
including reasonable attorneys' fees, in each case to the extent growing out of
or resulting from the exercise by the Pledgee of any right or remedy granted to
it hereunder except, with respect to clauses (i) and (ii) above, to the extent
arising from the Pledgee's or such other Secured Creditor's gross negligence or
willful misconduct. In no event shall the Pledgee be liable, in the absence of
gross negligence or willful misconduct on its part, for any matter or thing in

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connection with this Agreement other than to account for moneys actually
received by it in accordance with the terms hereof. If and to the extent that
the obligations of the Pledgors under this Section 9 are unenforceable for any
reason, each Pledgor hereby agrees to make the maximum contribution to the
payment and satisfaction of such obligations which is permissible under
applicable law.

                     SECTION 10.  FURTHER ASSURANCES; POWER OF ATTORNEY.

                  (a) Each Pledgor agrees that it will join with the Pledgee in
executing and, at such Pledgor's own expense, file and refile under the
applicable Uniform Commercial Code or such other law such financing statements,
continuation statements and other documents in such offices as the Pledgee may
reasonably deem necessary or appropriate and wherever required or permitted by
law in order to perfect and preserve the Pledgee's security interest in the
Collateral and hereby authorizes the Pledgee to file financing statements and
amendments thereto relative to all or any part of the Collateral without the
signature of such Pledgor where permitted by law, and agrees to do such further
acts and things and to execute and deliver to the Pledgee such additional
conveyances, assignments, agreements and instruments as the Pledgee may
reasonably deem necessary or advisable to carry into effect the purposes of this
Agreement or to further assure and confirm unto the Pledgee its rights, powers
and remedies hereunder.

                  (b) Each Pledgor hereby appoints the Pledgee such Pledgor's
attorney-in-fact, with full authority in the place and stead of such Pledgor and
in the name of such Pledgor or otherwise, to act from time to time after the
occurrence and during the continuance of an Event of Default in the Pledgee's
reasonable discretion to take any action and to execute any instrument which the
Pledgee may deem necessary or advisable to accomplish the purposes of this
Section 10.

                     SECTION 11.  THE PLEDGEE AS AGENT.

                  The Pledgee will hold in accordance with this Agreement all
items of the Collateral at any time received under this Agreement. It is
expressly understood and agreed that the obligations of the Pledgee as holder of
the Collateral and interests therein and with respect to the disposition
thereof, and otherwise under this Agreement, are only those expressly set forth
in this Agreement. The Pledgee shall act hereunder on the terms and conditions
set forth herein and in Annex A hereto, the terms of which shall be deemed
incorporated herein by reference as fully as if same were set forth herein in
their entirety.

                     SECTION 12.  TRANSFER BY PLEDGORS.

                  No Pledgor will sell or otherwise dispose of, grant any option
with respect to, or mortgage, pledge or otherwise encumber any of the Collateral
or any interest therein (except in accordance with the terms of this Agreement
and as permitted by the terms of the Secured Debt Agreements).

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                  SECTION 13. REPRESENTATION S, WARRANTIES AND COVENANTS OF
                              PLEDGORS.

                  (a) Each Pledgor represents, warrants and covenants that:

                     (i) it is the legal, record and beneficial owner of, and
           has good title to, all Pledged Instruments purported to be owned by
           such Pledgor, subject to no Lien, except the Liens created by this
           Agreement;

                  (ii) it has full power, authority and legal right to pledge
           all the Pledged Instruments;

                     (iii) this Agreement has been duly authorized, executed and
           delivered by such Pledgor and constitutes the legal, valid and
           binding obligation of such Pledgor enforceable in accordance with its
           terms, except to the extent that the enforceability hereof may be
           limited by applicable bankruptcy, insolvency, reorganization,
           moratorium or other similar laws affecting creditors' rights
           generally and by equitable principles (regardless of whether
           enforcement is sought in equity or at law);

                     (iv) no consent of any other party (including, without
           limitation, any stock-holder or creditor of such Pledgor or any of
           its Subsidiaries) and no consent, license, permit, approval or
           authorization of, exemption by, notice or report to, or registration,
           filing or declaration with, any governmental authority is required to
           be obtained by such Pledgor in connection with the execution,
           delivery or performance of this Agreement, or in connection with the
           exercise of its rights and remedies pursuant to this Agreement, in
           each case except those which have been obtained or made or as may be
           required by laws affecting the offer and sale of securities generally
           in connection with the exercise by the Pledgee of certain of its
           remedies hereunder;

                     (v) the execution, delivery and performance of this
           Agreement by such Pledgor does not violate any provision of any
           applicable law or regulation or of any order, judgment, writ, award
           or decree of any court, arbitrator or governmental authority,
           domestic or foreign, or of the certificate of incorporation or
           by-laws (or analogous organizational documents) of such Pledgor or of
           any securities issued by such Pledgor or any of its Subsidiaries, or
           of any mortgage, indenture, lease, deed of trust, credit agreement or
           loan agreement, or any other material agreement, contract or
           instrument to which such Pledgor or any of its Subsidiaries is a
           party or which purports to be binding upon such Pledgor or any of its
           Subsidiaries or upon any of their respective assets and will not
           result in the creation or imposition (or the obligation to create or
           impose) of any lien or encumbrance on any of the assets of such
           Pledgor or any of its Subsidiaries except as contemplated by this
           Agreement;

                  (vi) all Pledged Instruments have been duly and validly
           issued; and

                     (vii) the pledge, assignment and delivery (which delivery
           has been made) to the Pledgee of the Pledged Instruments creates a
           valid and perfected first priority security interest in such Pledged
           Instruments, subject to no prior lien or encumbrance or to any
           agreement purporting to grant to any third party (except the Secured

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           Creditors) a lien or encumbrance on the property or assets of such
           Pledgor which would include the Instruments.

                  Each Pledgor covenants and agrees that it will defend the
Pledgee's right, title and security interest in and to the Collateral and the
proceeds thereof against the claims and demands of all persons whomsoever; and
such Pledgor covenants and agrees that it will have like title to and right to
pledge any other property at any time hereafter pledged to the Pledgee as
Collateral hereunder and will likewise defend the right thereto and security
interest therein of the Pledgee and the other Secured Creditors.

                  (b) The Pledgors hereby agree that the rights created by the
subordinated provisions of the guarantees executed by the Pledgors; related to
the Note Documents and the subordination provisions of the Credit Agreement
which each provide for the subordination of the indebtedness of the Borrowers
owing to any Pledgor to the Obligations of the Borrowers owing to the Secured
Creditors shall be on a parity basis for the equal and ratable benefit of the
Secured Creditors.

                     SECTION 14.  PLEDGORS' OBLIGATIONS ABSOLUTE, ETC.

                  The obligations of each Pledgor under this Agreement shall be
absolute and unconditional and shall remain in full force and effect without
regard to, and shall not be released, suspended, discharged, terminated or
otherwise affected by, any circumstance or occurrence whatsoever, including,
without limitation: (i) any renewal, extension, amendment or modification of or
addition or supplement to or deletion from any Secured Debt Agreement or any
other instrument or agreement referred to therein, or any assignment or transfer
of any thereof; (ii) any waiver, consent, extension, indulgence or other action
or inaction under or in respect of any such agreement or instrument or this
Agreement; (iii) any furnishing of any additional security to the Pledgee or its
assignee or any acceptance thereof or any release of any security by the Pledgee
or its assignee; (iv) any limitation on any party's liability or obligations
under any such instrument or agreement or any invalidity or unenforceability, in
whole or in part, of any such instrument or agreement or any term thereof; (v)
any limitation on any other Pledgor's liability or obligations under this
Agreement or under any other Secured Debt Agreement or any invalidity or
unenforceability, in whole or in part, of this Agreement or any other Secured
Debt Agreement or any ten-n thereof; or (vi) any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation or other like
proceeding relating to such Pledgor or any Subsidiary of such Pledgor, or any
action taken with respect to this Agreement by any trustee or receiver, or by
any court, in any such proceeding, whether or not such Pledgor shall have notice
or knowledge of any of the foregoing.

                     SECTION 15.  TERMINATION, RELEASE.

                  (a) After the Termination Date (as defined below), this
Agreement shall terminate (provided that all indemnities set forth herein
including, without limitation, in Section 9 hereof shall survive any such
termination) and the Pledgee, at the request and expense of the respective
Pledgor, will promptly execute and deliver to such Pledgor a proper instrument
or instruments acknowledging the satisfaction and termination of this Agreement,

                                      -10-
<PAGE>

and will duly assign, transfer and deliver to such Pledgor (without recourse and
without any representation or warranty) such of the Collateral as may be in the
possession of the Pledgee and as has not theretofore been sold or otherwise
applied or released pursuant to this Agreement. As used in this Agreement,
"Termination Date" shall mean the earliest of (i) the date upon which the Total
Revolving Credit Commitment has been terminated, no Note under the Credit
Agreement is outstanding and all other Credit Document Obligations (excluding
normal continuing indemnity obligations which survive in accordance with their
terms, so long as no amounts are then due and payable in respect thereof) have
been indefeasibly paid in full, (ii) the date upon which the Credit Documents
are amended to release all Collateral subject to this Agreement and (iii) the
date on which the Indenture no longer requires equal and ratable security or the
6-3/4% Notes have been paid in full.

                  (b) In the event that any part of the Collateral is sold
(other than to any Credit Party) in connection with a sale permitted by the
Secured Debt Agreement or is otherwise released at the direction of the Required
Secured Creditors, the Pledgee, at the request and expense of such Pledgor will
promptly execute and deliver to such Pledgor a proper instrument or instruments
acknowledging such release, and will duly assign, transfer and deliver to such
Pledgor (without recourse and without any representation or warranty) such of
the Collateral as is then being (or has been) so sold, distributed or released
and as may be in possession of the Pledgee and has not theretofore been released
pursuant to this Agreement.

                  (c) At any time that a Pledgor desires that Collateral be
released as provided in the foregoing Section 15(a) or (b), it shall deliver to
the Pledgee a certificate signed by an authorized Officer of such Pledgor
stating that the release of the respective Collateral is permitted pursuant to
Section 15(a) or (b), and the Pledgee shall be entitled (but not required) to
conclusively rely thereon.

                     SECTION 16.  NOTICES, ETC.

                  Except as otherwise specified herein, all notices, requests,
demands or other communications to or upon the respective parties hereto shall
be deemed to have been given or made when delivered to the party to which such
notice, request, demand or other communication is required or permitted to be
given or made under this Agreement, addressed as follows:

                     (a)       if to any Pledgor, at:

                               Perryville Corporate Park
                               Clinton, New Jersey 08809-4000
                               Attention:  Vice President and Treasurer
                               Telephone No.:  (908) 713-2945
                               Telecopier No.:  (908) 713-2953

                     (b)       if to the Pledgee, at:

                               Bank of America National Trust and Savings
                                   Association
                               1850 Gateway Boulevard, 5th Floor
                               Concord, California 94520
                               Attention:  Glenis Croucher
                               Telephone No.:  (925) 675-8447
                               Telecopier No.:  (925) 675-8500

                                      -11-
<PAGE>

                  (c) if to any Bank Creditor (other than the Pledgee), (x) to
the Administrative Agent, at the address of the Administrative Agent specified
in the Credit Agreement or (y) at such address as such Bank Creditor shall have
specified in the Credit Agreement;

                  (d) if to any other Secured Creditor, (x) to the
Representative for such Secured Creditor or (y) if there is no such
Representative, at such address as such Secured Creditor shall have specified in
writing to each Pledgor and the Pledgee;

or at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder.

                     SECTION 17.  WAIVER; AMENDMENT.

                  None of the terms and conditions of this Agreement may be
changed, waived, modified or varied in any manner whatsoever unless in writing
duly signed by each Pledgor directly affected thereby (it being understood that
additional Pledgors may be added as parties hereto from time to time in
accordance with Section 19 hereof and Pledgors may be released as parties hereto
in accordance with Sections 15 and 18 hereof and that no consent of any other
Pledgor or of the Secured Creditors shall be required in connection therewith)
and the Pledgee (with the written consent of the Required Lenders (or all the
Lenders if required by Section 10.03 of the Credit Agreement); PROVIDED, that
the Company certifies that any such change, waiver, modification or variance is
otherwise permitted by the terms of the respective Secured Debt Agreements or,
if not so permitted, that the requisite consents therefor have been obtained.
Notwithstanding anything to the contrary contained above, it is understood and
agreed that the Required Lenders may agree to modifications to this Agreement
for the purpose, among other things, of securing additional extensions of credit
(including, without limitation, pursuant to the Credit Agreement or any
refinancing or extension thereof), with such changes not being subject to the
proviso to the immediately preceding sentence. Furthermore, the proviso to the
second preceding sentence shall not apply to any release of Collateral effected
in accordance with the requirements of Section 18 of this Agreement, or any
other release of Collateral or termination of this Agreement so long as the
certifies that such actions will not violate the terms of any Secured Debt
Agreement then in effect.

                     SECTION 18.  RELEASE.

                  In the event any Pledgor is released from either its guaranty
obligation or its joint and several obligation under the Credit Agreement, such
Pledgor shall be released from this Agreement and this Agreement shall, as to
such Pledgor only, have no further force or effect.

                                      -12-
<PAGE>

                     SECTION 19.  ADDITIONAL PLEDGORS.

                  Pursuant to Section 5.15 of the Credit Agreement, certain
Subsidiaries of the Company may after the date hereof be required to enter into
this Agreement as a Pledgor. Upon execution and delivery, after the date hereof,
by the Pledgee and such Subsidiary of an instrument in the form of Exhibit A-2,
such Subsidiary shall become a Pledgor hereunder with the same force and effect
as if originally named as a Pledgor hereunder. Each Subsidiary which is required
to become a party to this Agreement shall so execute and deliver a copy of
Exhibit A-2 to the Pledgee and, at such time, shall execute a Pledge and
Security Agreement Supplement in the form of Exhibit A-1 to this Agreement with
respect to all Collateral of such Pledgor required to be pledged hereunder,
which Supplement shall be completed in accordance with Exhibit A-1. The
execution and delivery of any such instrument shall not require the consent of
any other Pledgor hereunder. Upon the execution and delivery by the Pledgee and
such Subsidiary of an instrument in the form of Exhibit A-2 as provided above,
it is understood and agreed that the pledge and security interests hereunder
shall apply to all Collateral of such additional Pledgor as provided in Section
2 hereof regardless of an failure of an additional Pledgor to deliver, or any
inaccurate information stated in, the Pledge and Security Agreement Supplement.

                     SECTION 20.  RECOURSE.

                  This Agreement is made with full recourse to the Pledgors and
pursuant to and upon all representations, warranties, covenants and agreements
on the part of the Pledgors contained herein and otherwise in writing in
connection herewith.

                     SECTION 21.  PLEDGEE NOT BOUND.

                  (a) The Pledgee shall not be obligated to perform or discharge
any obligation of any Pledgor as a result of the collateral assignment hereby
effected.

                  (b) The acceptance by the Pledgee of this Agreement, with all
the rights, powers, privileges and authority so created, shall not at any time
or in any event obligate the Pledgee to appear in or defend any action or
proceeding relating to the Collateral to which it is not a party, or to take any
action hereunder or thereunder, or to expend any money or incur any expenses or
perform or discharge any obligation, duty or liability under the Collateral.

                     SECTION 22.  CONTINUING PLEDGORS.

                  The rights and obligations of each Pledgor (other than the
respective released Pledgor in the case of following clause (y)) hereunder shall
remain in full force and effect notwithstanding (x) the addition of any new
Pledgor as a party to this Agreement as contemplated by Section 19 hereof or
otherwise and/or (y) the release of any Pledgor under this Agreement as
contemplated by Section 18 hereof or otherwise.

                     SECTION 23.  NO FRAUDULENT CONVEYANCE.

                  Each Pledgor hereby confirms that it is its intention that
this Agreement not constitute a fraudulent transfer or conveyance for purposes
of any bankruptcy, insolvency or similar law, the Uniform Fraudulent Conveyance
Act or any similar Federal, state or foreign law. To effectuate the foregoing

                                      -13-
<PAGE>

intention, each Pledgor hereby irrevocably agrees that its obligations and
liabilities hereunder shall be limited to the maximum amount as will, after
giving effect to such maximum amount and all other (contingent or otherwise)
liabilities of such Pledgor that are relevant under such laws, result in the
obligations and liabilities of such Pledgor hereunder in respect of such maximum
amount not constituting a fraudulent transfer or conveyance.

                     SECTION 24.  MISCELLANEOUS.

                  This Agreement shall be binding upon the successors and
assigns of each Pledgor and shall inure to the benefit of and be enforceable by
the Pledgee and its successors and assigns; provided that no Pledgor may assign
any of its rights or obligations hereunder without the prior written consent of
the Pledgee (with the consent of the Required Lenders and, if required by
Section 10.03 of the Credit Agreement, all Lenders). This Agreement shall be
construed and enforced in accordance with and governed by the law of the State
of New York (without regard to principles of conflict of laws). The headings in
this Agreement are for purposes of reference only and shall not limit or define
the meaning hereof. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which shall
constitute one instrument.

                                      -14-
<PAGE>

                  IN WITNESS WHEREOF, each Pledgor has caused this Agreement to
be duly executed and delivered by its duly authorized officer on the date first
above written.

                               FOSTER WHEELER USA CORPORATION

                               By:  /S/ ROBERT S. KOECKERT
                                    ----------------------
                                    Title: Treasurer

                               FOSTER WHEELER ENERGY INTERNATIONAL, INC.

                               By:  /S/ ROBERT D. ISEMAN
                                    --------------------
                                    Title: Treasurer

                               FOSTER WHEELER ENERGY CORPORATION

                               By:  /S/ ROBERT A KOECKERT
                                    ---------------------
                                    Title: Treasurer

                               FOSTER WHEELER US HOLDINGS, INC.

                               By:  /S/ ROBERT D. ISEMAN
                                    --------------------
                                    Title: Treasurer

                               FOSTER WHEELER INTERNATIONAL HOLDINGS, INC.

                               By:  /S/ ROBERT D. ISEMAN
                                    --------------------
                                    Title: Treasurer
ACCEPTED AND AGREED TO:

BANK OF AMERICA NATIONAL TRUST
      AND SAVINGS ASSOCIATION, as
      Collateral Agent and Pledgee

By:   /S/ ROBERT W. TROUTMAN
      ----------------------
      Title: Managing Director

                                      -15-
<PAGE>

                                     ANNEX A
                                       TO
                          PLEDGE AND SECURITY AGREEMENT

                                   THE PLEDGEE

           1. APPOINTMENT. The Secured Creditors, by their acceptance of the
benefits of the Pledge Agreement to which this Annex A is attached (the "Pledge
Agreement") hereby irrevocably designate Bank of America National Trust and
Savings Association (and any successor Pledgee) to act as specified herein and
therein. Unless otherwise defined herein, all capitalized terms used herein (x)
and defined in the Pledge Agreement, are used herein as therein defined and (y)
not defined in the Pledge Agreement, are used herein as defined in the Credit
Agreement referenced in the Pledge Agreement. Each Secured Creditor hereby
irrevocably authorizes, and each holder of any Obligation by the acceptance of
such Obligation and by the acceptance of the benefits of the Pledge Agreement
shall be deemed irrevocably to authorize, the Pledgee to take such action on its
behalf under the provisions of the Pledge Agreement and any instruments and
agreements referred to therein and to exercise such powers and to perform such
duties thereunder as are specifically delegated to or required of the Pledge
Agreement by the terms thereof and such other powers as are reasonably
incidental thereto. The Pledgee may perform any of its duties hereunder or
thereunder by or through its authorized agents, sub-agents or employees.

           2. NATURE OF DITTIES. (a) The Pledgee shall have no duties or
responsibilities except those expressly set forth herein or in the Pledge
Agreement. The duties of the Pledgee shall be mechanical and administrative in
nature; the Pledgee shall not have by reason of the Pledge Agreement or any
other Secured Debt Agreement a fiduciary relationship in respect of any Secured
Creditor; and nothing in the Pledge Agreement or any other Secured Debt
Agreement, expressed or implied, is intended to or shall be so construed as to
impose upon the Pledgee any obligations in respect of the Pledge Agreement
except as expressly set forth herein and therein.

           (b) The Pledgee shall not be responsible for insuring the Collateral
or for the payment of taxes, charges or assessments or discharging of Liens upon
the Collateral or otherwise as to the maintenance of the Collateral.

           (c) The Pledgee shall not be required to ascertain or inquire as to
the performance by any Pledgor of any of the covenants or agreements contained
in the Pledge Agreement or any other Secured Debt Agreement.

           (d) The Pledgee shall be under no obligation or duty to take any
action under, or with respect to, the Pledge Agreement if taking such action (i)
would subject the Pledgee to a tax in any jurisdiction where it is not then
subject to a tax or (ii) would require the Pledgee to qualify to do business, or
obtain any license, in any jurisdiction where it is not then so qualified or
licensed or (iii) would subject the Pledgee to in personam jurisdiction in any
locations where it is not then so subject.

                                      -16-
<PAGE>

          (e) Notwithstanding any other provision of this Annex A, neither the
Pledgee nor any of its officers, directors, employees, affiliates or agents
shall, in its individual capacity, be personally liable for any action taken or
omitted to be taken by it in accordance with, or pursuant to this Annex A or the
Pledge Agreement except for its own gross negligence or willful misconduct.

           3. LACK OF RELIANCE ON THE PLEDGEE. Independently and without
reliance upon the Pledgee, each Secured Creditor, to the extent it deems
appropriate, has made and shall continue to make (i) its own independent
investigation of the financial condition and affairs of each Pledgor and its
Subsidiaries in connection with the making and the continuance of the
Obligations and the taking or not taking of any action in connection therewith,
and (ii) its own appraisal of the creditworthiness of each Pledgor and its
Subsidiaries, and the Pledgee shall have no duty or responsibility, either
initially or on a continuing basis, to provide any Secured Creditor with any
credit or other information with respect thereto, whether coming into its
possession before the extension of any Obligations or the purchase of any notes
or at any time or times thereafter. The Pledgee shall not be responsible in any
manner whatsoever to any Secured Creditor for the correctness of any recitals,
statements, information, representations or warranties herein or in any
document, certificate or other writing delivered in connection herewith or for
the execution, effectiveness, genuineness, validity, enforceability, perfection,
collectibility, priority or sufficiency of the Pledge Agreement or the security
interests granted hereunder or the financial condition of any Pledgor or any
Subsidiary of any Pledgor or be required to make any inquiry concerning either
the performance or observance of any of the terms, provisions or conditions of
the Pledge Agreement, or the financial condition of any Pledgor-or or any
Subsidiary of any Pledgor, or the existence or possible existence of any default
or Event of Default. The Pledgee makes no representations as to the value or
condition of the Collateral or any part thereof, or as to the title of any
Pledgor thereto or as to the security afforded by the Pledge Agreement.

           4. CERTAIN RIGHTS OF THE PLEDGEE. (a) No Secured Creditor shall have
the right to cause the Pledgee to take any action with respect to the
Collateral, with only the Required Secured Creditors having the right to direct
the Pledgee to take any such action. If the Pledgee shall request instructions
from the Required Secured Creditors, with respect to any act or action
(including failure to act) in connection with the Pledge Agreement, the Pledgee
shall be entitled to refrain from such act or taking such action unless and
until it shall have received instructions from the Required Secured Creditors
and to the extent requested, appropriate indemnification in respect of actions
to be taken, and the Pledgee shall not incur liability to any Person by reason
of so refraining. Without limiting the foregoing, no Secured Creditor shall have
any right of action whatsoever against the Pledgee as a result of the Pledgee
acting or refraining from acting hereunder in accordance with the instructions
of the Required Secured Creditors. As used herein, the term "Required Secured
Creditors" shall mean the holders of at least a majority of the then outstanding
Credit Document Obligations.

           (b) Notwithstanding anything to the contrary contained herein, the
Pledgee is authorized, but not obligated, (i) to take any action reasonably
required to perfect or continue the perfection of the liens on the Collateral
for the benefit of the Secured Creditors and (ii) when instructions from the

                                      -17-
<PAGE>

Required Secured Creditors have been requested by the Pledgee but have not yet
been received, to take any action which the Pledgee, in good faith, believes to
be reasonably required to promote and protect the interests of the Secured
Creditors in the Collateral; PROVIDED that once instructions have been received,
the actions of the Pledgee shall be governed thereby and the Pledgee shall not
take any further action which would be contrary thereto.

           (c) Notwithstanding anything to the contrary contained herein or in
the Pledge Agreement, the Pledgee shall not be required to take any action that
exposes or, in the good faith Judgment of the Pledgee may expose, the Pledgee or
its officers, directors, agents or employees to personal liability, unless the
Pledgee shall be adequately indemnified as provided herein, or that is, or in
the good faith judgment of the Pledgee may be, contrary to the Pledge Agreement,
any Secured Debt Agreement or applicable law.

           5. RELIANCE. The Pledgee shall be entitled to rely, and shall be
fully protected in relying, upon, any note, writing, resolution, notice,
statement, certificate, telex, teletype or telescopes message, cablegram,
radiogram, order or other document or telephone message signed, sent or made by
the proper Person or entity, and, with respect to all legal matters pertaining
hereto or to the Pledge Agreement and its duties thereunder and hereunder, upon
advice of counsel selected by it.

           6. INDEMNIFICATION. TO THE EXTENT THE PLEDGEE IS NOT REIMBURSED AND
INDEMNIFIED BY THE PLEDGORS UNDER THE PLEDGE Agreement, the Bank Creditors will
reimburse and indemnify the Pledgee, in proportion to their respective
outstanding principal amounts of Obligations, for and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by or asserted against the Pledgee in performing its duties
hereunder, or in any way relating, to or arising out of its actions as Pledgee
in respect of the Pledge Agreement except for those resulting solely from the
Pledgee's own gross negligence or willful misconduct. The indemnities set forth
in this Section 6 shall survive the repayment of all Obligations, with the
respective indemnification at such time to be based upon the outstanding
principal amounts (determined as described above) of Obligations at the time of
the respective occurrence upon which the claim against the Pledgee is based or,
if same is not reasonably determinable, based upon the outstanding principal
amounts (determined as described above) of Obligations as in effect immediately
prior to the termination of the Pledge Agreement. The indemnities set forth in
this Section 6 are in addition to any indemnities provided by the Banks to the
Pledgee pursuant to the Credit Agreement.

           7. THE PLEDGEE IN ITS INDIVIDUAL CAPACITY. With respect to its
obligations as a lender under the Credit Agreement and any other Loan Documents
to which the Pledgee is a party, and to act as agent under one or more of such
Loan Documents, the Pledgee shall have the rights and powers specified therein
and herein for a "Lender", or the "Administrative Agent", as the case may be,
and may exercise the same rights and powers as though it were not performing the
duties specified herein; and the terms "Banks" "Required Lenders," "holders of
Notes," or any similar terms shall, unless the context clearly otherwise
indicates, include the Pledgee in its individual capacity. The Pledgee and its
affiliates may accept deposits from, lend money to, and generally engage in any

                                      -18-
<PAGE>

kind of banking, investment banking, trust or other business with any Pledgor or
any Affiliate or Subsidiary of any Pledgor as if it were not performing the
duties specified herein or in the other Loan Documents, and may accept fees and
other consideration from the Pledgors for services in connection with the Credit
Agreement, the other Loan Documents and otherwise without having to account for
the same to the Secured Creditors.

           8. HOLDERS. The Pledgee may deem and treat the payee of any note as
the owner thereof for all purposes hereof unless and until written notice of the
assignment, transfer or endorsement thereof, as the case may be, shall have been
filed with the Pledgee. Any request, authority or consent of any person or
entity who, at the time of making such request or giving such authority or
consent, is the holder of any note, shall be final and conclusive and binding on
any subsequent holder, transferee, assignee or endorsee, as the case may be, of
such note or of any note or notes issued in exchange therefor.

           9. RESIGNATION BY THE PLEDGEE. (a) The Pledgee may resign from the
performance of all of its functions and duties hereunder and under the Pledge
Agreement at any time by giving 15 Business Days' prior or written notice to the
Company, the Banks and Representatives for the other Secured Creditors or, if
there is no such Representative, directly to such Secured Creditors. Such
resignation shall take effect upon the appointment of a successor Pledgee
pursuant to clause (b) or (c) below.

           (b) If a successor Pledgee shall not have been appointed within said
15 Business Day period by the Required Secured Creditors, the Pledgee, with the
consent of the , which consent shall not be unreasonably withheld or delayed,
shall then appoint a successor Pledgee who shall serve as Pledgee hereunder or
thereunder until such time, if any, as the Required Secured Creditors appoint a
successor Pledgee as provided above.

           (c) If no successor Pledgee has been appointed pursuant to clause (b)
above by the 20th Business Day after the date of such notice of resignation was
given by the Pledgee, as a result of a failure b the to consent to the
appointment of such a successor Pledgee, the Required Secured Creditors shall
then appoint a successor Pledgee who shall serve as Pledgee hereunder or
thereunder until such time, if any, as the Required Secured Creditors appoint a
successor Pledgee as provided above.

                                      -19-
<PAGE>CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT

               AGREEMENT by and between Foster Wheeler US Holdings, Inc., a
Delaware corporation, which is expected to be renamed Foster Wheeler Inc., (the
"Company") and an indirect wholly-owned subsidiary of Foster Wheeler Ltd., a
Bermuda company ("Parent"), and name (the "Executive"), dated as of the 25th
day of May, 2001.

                     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.

<PAGE>

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

               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

                                      -2-
<PAGE>

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 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

                                      -3-
<PAGE>

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
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) ANNUAL AND LONG TERM 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 Payment under the Annual Incentive Segment of the Company's Executive
Compensation Plan, 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"). In addition, the Executive shall be awarded, for each fiscal
year during the Employment Period, a long term incentive bonus in cash at least
equal to the Executive's highest long term incentive bonus payment under the
Long Term Incentive Segment of the Company's Executive Compensation Plan, 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 any such fiscal year) (the "Recent Long Term Bonus"). Each such

                                      -4-
<PAGE>

Annual Bonus and Long Term 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, 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 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 fringe benefits, including, without limitation, tax and
financial planning services, payment of club dues, and, if applicable, use of an
automobile and payment of related expenses, 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

                                      -5-
<PAGE>

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.

               (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 Payment under the Executive Compensation Plan for the year in which
the Change of Control takes place, based upon the Executive's Target Incentive
percentage with an Adjustment Factor of 1.0. If it is determined, after the end
of such year, that the Annual Incentive Payment (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. In addition, as soon as practicable following the Effective
Date, the Executive shall receive immediate payment in cash of a pro rata
portion of the Executive's Performance Units under the Executive Compensation
Plan for each Cycle that includes the Effective Date, based upon a Performance
Unit value equal to the highest such value paid with respect to any of the most
recent three Cycles ending before the Effective Date, and pro-rated based upon
the ratio of the number of days during the portion of the relevant Cycle that
occurs before the Effective Date to the total number of days during such Cycle.
If it is determined, after the end of the relevant Cycle, that the value of the
Performance Units for such Cycles as actually earned exceeds the amount paid
with respect thereto pursuant to the preceding sentence, the excess shall be
paid to such participant in accordance with the terms of the Plan.
Notwithstanding the foregoing, if as of the Effective Date the Executive
Compensation Plan has been amended or replaced, such that any of the foregoing
provisions are no longer applicable, the Executive shall be entitled to receive
payments with respect to the annual and long term awards thereunder for periods
that include the Effective Date on an equivalent basis (I.E., payment of the
annual awards as if target performance had been achieved, without pro-ration,
and payment of a pro-rata portion of the long term awards based upon the highest
level of achievement during the three performance periods immediately preceding
the Effective Date).

               5. TERMINATION OF EMPLOYMENT. (a) DEATH OR DISABILITY. The
Executive's employment shall terminate automatically if the Executive dies

                                      -6-
<PAGE>

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

                         (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.

                                      -7-
<PAGE>

               (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

                         (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

                                      -8-
<PAGE>

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 paid, (2) the product of (x) the higher of (I)
                     the Recent Annual Bonus and (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,
                     (y) the Highest Annual Bonus and (z) the higher of (A) the
                     Recent Long Term Bonus and (B) the amount of the
                     Executive's long term incentive bonus payment under the

                                      -9-
<PAGE>

                     Long Term Incentive Segment of the Company's Executive
                     Compensation Plan, or any comparable bonus under any
                     successor plan, most recently paid to the Executive during
                     the Employment Period;

                               (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) and any
                     excess or supplemental retirement plan in which the
                     Executive participates (together, the "SERP") 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 and the SERP as
                     of the Date of Termination plus amounts, if any, that the
                     Executive would have contributed under the Retirement Plan
                     and the SERP 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 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

                                      -10-
<PAGE>

           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 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.

                                      -11-
<PAGE>

               (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").

                                      -12-
<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:

                                      -13-
<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

                                      -14-
<PAGE>

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.

               (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

                                      -15-
<PAGE>

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 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. In consideration of entering into this Agreement, as of the
date hereof, the Agreement by and between FWC, the predecessor of Parent, and
the Executive, dated as of March 1, 2001 shall be mutually canceled without any
payments, penalties or costs being incurred by either party thereto. 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 Time, 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

                                      -16-
<PAGE>

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 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:
                     -------------------

                             Name
                             Address
                             Address 2
                             City State ZipCode

                     IF TO THE COMPANY:
                     -----------------

                               Foster Wheeler US Holdings, 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.

                                      -17-
<PAGE>

               (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.

               (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.

                                            ------------------------------------
                                                           Name

                                            FOSTER WHEELER US HOLDINGS, INC.

                                            By
                                              ----------------------------------

                                      -18-
<PAGE>

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