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EXHIBIT 10.2    
  

Form of RETENTION AGREEMENT  

        THIS RETENTION AGREEMENT (the "Agreement") is made as of this            day of March 2001 between Washington Group
International, Inc., a
Delaware Corporation (the "Company") and                        (the "Employee"). 

BACKGROUND  

        The Company has determined that it is in its best interests to provide the payments described in this Agreement to the Employee to assure that the Company will
have the continued dedication of the Employee over the ensuing several months, notwithstanding the possibility or occurrence of a significant restructuring or change of control of the Company.
To accomplish these objectives, the Board has authorized the Company to enter into this Agreement. 

        In
consideration of the mutual promises set forth below, and for other good and valuable consideration, the sufficiency of which is acknowledged, the Company and the Employee hereby
agree as follows: 

AGREEMENT  

        1.    Effective Date.    This Agreement shall be effective as of the date first noted above (the "Effective Date"). 

        2.    Definitions.    The following capitalized terms used in this Agreement shall have the meanings assigned to them
below: 

        "Base Salary" means an amount equal to the annual base salary rate in effect for the Employee from time to time. 

        "Board" means the Board of Directors of the Company. 

        "Cause" means the Company having "cause" to terminate the Employee's employment or service upon (i) the determination by the
Company or the Board that the Employee has ceased to perform his duties to the Company (other than as a result of his incapacity due to physical or mental illness or injury), which failure amounts to
an intentional or extended neglect of his duties to the Company, (ii) the Company's or Board's determination that the Employee has engaged in or is about to engage in conduct materially
injurious to the Company, (iii) the Employee having been convicted of, or plead guilty or no contest to, a felony or (iv) the failure of the Employee to follow instruction of the Board
or his direct superiors. 

        "Change of Control" means and includes the occurrence of any one of the following events: 

        (i)    individuals
who, at the Effective Date, constitute the Board (the "Incumbent Directors") cease for any reason to constitute at least a majority of the Board, provided
that any person becoming a director after 

        (ii)  the
Effective Date and whose election or nomination for Election was approved by a vote of at least a majority of the Incumbent Directors then on the Board (either by a
specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent
Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened
election contest (as described in Rule 14a-11 under the 1934 Act ("Election Contest") or other actual or threatened solicitation of proxies or consents by or on behalf of any
"person" (as such term is defined in Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) and 14(d)(2) of the 1934 Act) other than the Board ("Proxy Contest"),
including 

 

by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; 

        (iii)  any
person becomes a "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company's then outstanding securities eligible to vote for the election of the Board (the "Corporation Voting Securities");  provided, however,
 that the event described in this paragraph (ii) shall not be deemed to be a Change in Control of the Company by virtue
of any of the following acquisitions: (A) any acquisition by a person who is on the Effective Date the beneficial owner of 25% or more of the outstanding Corporation Voting Securities,
(B) an acquisition by the Company which reduces the number of Corporation Voting Securities outstanding and thereby results in any person acquiring beneficial ownership of more than 25% of the
outstanding Corporation Voting Securities; (C) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Parent or Subsidiary, (D) an
acquisition by an underwriter temporarily holding securities pursuant to an offering of such securities, or (E) an acquisition pursuant to a Non-Qualifying Transaction (as defined
in paragraph (iii)); or 

        (iv)  the
consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company that requires the
approval of the Company's stockholders, whether for such transaction or the issuance of securities in the transaction (a "Reorganization"), or the sale or other disposition of all or substantially all
of the Company's assets to an entity that is not an affiliate of the Company (a "Sale"), unless immediately following such Reorganization or Sale; (A) more than 50% of the total voting power of
(x) the company resulting from such Reorganization or the company which has acquired all or substantially all of the assets of the Company (in either case, the "Surviving Corporation"), or
(y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation
(the "Parent Corporation"), is represented by the Company Voting Securities that were outstanding immediately prior to such Reorganization or Sale (or, if applicable, is represented by shares into
which such Corporation Voting Securities were converted pursuant to such Reorganization or Sale), (B) no person (other than (x) the Company, (y) any employee benefit plan (or
related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation, or (z) a person who immediately prior to the Reorganization or Sale was the beneficial owner of
25% or more of the outstanding Corporation Voting Securities) is the beneficial owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to
elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation), and (C) at least a majority of the members of the board of directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Reorganization or Sale were Incumbent Directors at the time of the Board's approval of
the execution of the initial agreement providing for such Reorganization or Sale (any Reorganization or Sale which satisfies all of the criteria specified in (A) (B) and (C) above
shall be deemed to be a "Non-Qualifying Transaction"); or 

        (v)  approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company unless such transaction is a Non-Qualifying Transaction. 

        "Disability" means the inability of the Employee to perform the essential functions of his regular duties and responsibilities, with or
without reasonable accommodation, due to a medically determinable physical or mental illness that has lasted (or can reasonably be expected to last) for a period of 6 consecutive months. A Disability
shall be deemed to have occurred if the Employee makes application for disability benefits under any Company-sponsored long-term disability program (whether insured or self insured, basic
or supplemental) covering the Employee and qualifies for such benefits. 

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Alternatively, Disability may be determined by the Board or may be established by certification of two physicians mutually agreed upon by the Employee, or his personal representative, and the
Company. 

        "Target Bonus" means 100% of the Employee's Base Salary as in effect on March 31, 2001. 

        3.    Retention Bonus.    The Company will pay to the Employee a total retention bonus equal to 1.5 times the
Employee's Target Bonus, payable in cash in three equal installments on September 1, 2001, March 1, 2002, and September 1, 2002; provided that  the Employee must be employed by the Company
on the applicable payment date to receive the payment due on that date. (Notwithstanding the foregoing, if the Employee's
employment with the Company terminates before a particular payment date because of the Employee's death or Disability, the Company will pay to the Employee (or the Employee's estate in the case of
death) a prorated portion of the retention bonus payment otherwise due on such payment date, based upon the number of days the Employee remained employed by the Company since the previous
payment date.) This retention bonus will take the place of all other incentive compensation, whether annual or long-term, for the Company's 2001 fiscal year (except for any project bonus
the Employee may be eligible to receive). If the Employee is eligible for a project bonus for 2001, the retention bonus payments payable on September 1, 2001, and March 1, 2002, under
this Agreement shall be offset against the project bonus for 2001. The retention bonus payment payable on September 1, 2002, shall be offset against any annual incentive or project incentive
compensation otherwise payable for the Company's 2002 fiscal year. 

        4.    Severance Benefit.    If the Employee's employment with the Company or its subsidiaries is terminated before
December 31, 2002 (other than a termination for Cause or by reason of the Employee's death, Disability or voluntary resignation or retirement) or if, following a Change in Control, the
Employee's Base Salary is reduced or the Employee is asked to relocate to a city more than 50 miles from the office or location in which the Employee is based on the date of the Change in Control and
the Employee resigns employment before December 31, 2002, rather than accepting such reduction in Base Salary or relocation, the Employee shall be entitled to (1) a prorated portion of
the next retention bonus payment, if any, that otherwise would be payable to the Employee if no termination had occurred, based upon the number of days the Employee remained employed by the
Company since the previous payment date and (2) an amount equal to the sum of the Employee's Base Salary as of the date of termination and the Employee's Target Bonus. The Company shall pay
these severance benefits to the Employee in a single lump sum cash payment within fifteen (15) days after the Employee's final regular salary payment. If the Employee's employment with the
Company or its subsidiaries is terminated for Cause or by reason of the Employee's death, Disability or voluntary resignation or retirement, the Employee is not entitled to any severance benefit under
this paragraph. Any amounts owed to the Employee under this paragraph shall be subject to offset for amounts owed the Employee under any other plan or agreement providing for continuation of
Compensation after termination of employment or for any other form of severance benefits that duplicate the benefits provided hereunder.
Notwithstanding the foregoing, any compensation for services rendered or consulting fees earned after the date of termination shall not diminish the Employee's right to receive all severance benefits
due under this paragraph. 

        5.    Mitigation.    The Employee shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking employment or otherwise during the period he is entitled to such payment. 

        6.    Limitation on Payments and Benefits.    Notwithstanding any provision of this Agreement to the contrary, if any
amount or benefit to be paid or provided under this Agreement would be an "Excess Parachute Payment," within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the
"Code"), or any successor provision thereto, but for the application of this sentence, then the payments and benefits to be paid or provided under this Agreement will be reduced to the minimum extent
necessary (but in no event to less than zero) so that no portion of any such payment 

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or benefit, as so reduced, constitutes an Excess Parachute Payment; provided, however, that the foregoing reduction will be made only if and to the
extent that such reduction would result in an increase in the aggregate payment and benefits to be provided, determined on an after-tax basis (taking into account the excise tax imposed
pursuant to Section 4999 of the Code, or any successor provision thereto, any tax imposed by any comparable provision of state law, and any applicable federal, state and local income and
employment taxes). Whether requested by the Employee or the Company, the determination of whether any reduction in such payments or benefits to be provided under this Agreement or otherwise is
required pursuant to the preceding sentence will be made at the expense of the Company by the Company's independent accountants, as determined immediately prior to the Change of Control. The fact that
the Employee's right to payments or benefits may be reduced by reason of the limitations contained in this paragraph 6 will not of itself limit or otherwise affect any other rights of the
Employee other than pursuant to this Agreement. In the event that any payment or benefit intended to be provided under this Agreement or otherwise is required to be reduced pursuant to this
paragraph 6, the Employee will be entitled to designate the payments and/or benefits to be so reduced in order to give effect to this paragraph 6. The Company will provide the Employee
with all information reasonably requested by the Employee to permit the Employee to make such designation. In the event that the Employee fails to make such designation within 10 business days
prior to the date of termination of Employee's employment, the Company may effect such reduction in any manner it deems appropriate. 

        7.    Successors, Binding Agreement.    

        (a)  The
Company will cause 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 expressly assume 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. 

        (b)  This
Agreement shall inure to the benefit of and be enforceable by the Company's successors and assigns and by the Employee's personal or legal representatives,
executors, administrators, successors, heirs, distributees, devises and legatees. 

        8.    Miscellaneous.    

        (a)    Withholding.    The Employee agrees to make appropriate arrangements with the Company for satisfaction of any
applicable federal, state or local income and excise tax withholding requirements or like requirements to satisfy all obligations for the payment of such taxes. 

        (b)    Assignability.    Payments due under this Agreement may not, at any time, be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by the Employee, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable
against the Company; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer
or encumbrance. 

        (c)    Discontinued Business.    If the business conducted by the Company shall be discontinued, any previously earned
and unpaid payments under this Agreement shall become immediately payable to the Employee. 

        (d)    Amendments.    No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Employee and such officer of the Company as may be specifically designated by the Board. 

        (e)    Waivers.    No waiver by either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior
or subsequent time. 

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        (f)    Entire Agreement.    No agreement or representations, oral or otherwise, express or implied, with respect to
the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. 

        (g)    Governing Law.    The validity, interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of Idaho. 

        (h)    Severability.    The invalidity or enforceability of any provision of this Agreement shall not affect validity
or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

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

        (j)    Arbitration.    Any dispute or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration in Idaho in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator's award in any court having
jurisdiction. 

        (k)    Costs of Enforcement.    Each party shall pay its own legal fees and expenses incurred in connection with any
arbitration (or other proceeding whether or not instituted by the Company or the Employee), relating to the interpretation or enforcement of any provision of this Agreement (including any action
seeking to obtain or enforce any right or benefit provided by this Agreement). 

        (l)    No Restriction on Employment Rights.    This contract is in relation to certain benefits and compensation only
and is not to be construed as an employment contract for a definite term. Nothing in this Agreement shall confer on the Employee any right to continue in the employ of the Company or shall interfere
with or restrict the rights of the Company, which are expressly reserved, to discharge the Employee at any time for any reason whatsoever, with or without Cause. Nothing in this Agreement shall
restrict the right of the Employee to terminate his employment with the Company at any time for any reason whatsoever. 

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

	

 	
 	

WASHINGTON GROUP INTERNATIONAL, INC.
	

 	
 	

By:	
 	

	

 	
 	

EMPLOYEE
	

 	
 	

By:	
 	

 [name]

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Schedule to EXHIBIT 10.2  

WGI Retention Agreements

With Named Executives

Each dated as of March 14, 2001  

Vincent
L. Kontny

Charles R. Oliver, Jr.

Ambrose L. Schwallie

Thomas H. Zarges 

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EXHIBIT 10.3    
  

AGREEMENT TO REPAY  

        THIS AGREEMENT is made this 7th day of March, 2001, by and between Thomas H. Zarges (the "Employee") and Washington Group
International, Inc., an Ohio Corporation (the "Company"). 

        1.    In
consideration for the Employee's relocation from the Company's Cleveland, Ohio, office to the Company's Princeton, New Jersey office, the Employee will receive from
the Company a one-time payment of One Hundred Eighty-Five Thousand One Hundred Ninety-One Dollars and 42/100s ($185,191.42) to reflect the difference in fair market
value of housing between the two geographic areas. This payment includes a "gross up" for federal and state income taxes and is subsequently referred to in this Agreement as the "FMV Differential
Payment." The Employee's right to receive the FMV Differential Payment is contingent upon the Employee promising to repay the FMV Differential Payment to the Company under the conditions set forth in
the remainder of this Agreement. 

        2.    If
the Employee voluntarily terminates employment with the Company, or if the Employee's employment with the Company is terminated for Cause, within two years of
the date of this Agreement, the Employee will repay to the Company the full amount of the FMV Differential Payment received by the Employee reduced by the product of (a) times (b), where
(a) is a fraction, the numerator of which is the number of full months the Employee remains employed by the Company after the date of this Agreement and the denominator which is 24, and
where (b) equals the full amount of the FMV Differential Payment. For purposes of this paragraph, full months of employment shall be determined by measuring from the date of this
Agreement to the corresponding date in subsequent calendar months. 

        3.    For
purposes of this Agreement, the Employee's employment with the Company will be considered terminated for Cause if the Employee is discharged for Cause or if the
Employee resigns or quits in lieu of being discharged for Cause. "Cause" means (i) willful and continued failure by the Employee to perform his or her duties (except as a direct result of the
Employee's incapacity due to physical or mental illness) after receiving notification by the Company identifying the manner in which the Employee has failed to perform his or her duties,
(ii) willfully engaging in conduct materially injurious to the Company, or (iii) conviction of the Employee of any felony involving moral turpitude. 

        4.    If
the Employee terminates employment with the Company due to the Employee's death or disability, the Employee shall have no obligation to repay the amount of the FMV
Differential Payment to the Company. For these purposes, "disability" means any termination of employment with the Company as a result of a physical or mental condition that prevents the Employee from
performing his or her normal duties of employment in accordance with the following rules: If the Employee applies for disability benefits under the Company's long-term disability program
and qualifies for such benefits, the Employee shall be disabled within the meaning of this paragraph. In the absence of a Company-sponsored long-term disability program, the Employee will
be considered totally and permanently disabled under this Agreement if, in the opinion of two doctors, one retained by the Company and one 

 

retained by the Employee, the Employee is considered unable to perform his or her normal duties or employment as a result of a physical or mental condition. 

	

 	
 	

Thomas H. Zarges (Employee)
	

 	
 	

By:	
 	

/s/  TOM ZARGES      
 [Signature]
	

 	
 	

Washington Group International, Inc. (Company)
	

 	
 	

By:	
 	

/s/  ROGER P. ALLEN      
 [Signature]
	

 	
 	

 	
 	

Roger P. Allen—Vice President Compensation and Benefits

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EXHIBIT 10.3

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