Document:

Exhibit
      10.98

    

    BUILDING
      MATERIALS HOLDING CORPORATION

    

    MANAGEMENT
      RETENTION UNIT AGREEMENT

    

     

    This
      Management
      Retention Unit Agreement (this “Agreement”) is granted on the 19th day of
      February, 2008 (the “Date of Grant”) by Building Materials Holding Corporation,
      a Delaware corporation (the “Company”) to Michael D. Mahre (“Grantee”).

     

    1.    GRANT
      OF
      MANAGEMENT RETENTION UNITS.

     

    (a)    The
      Company hereby,
      as of the Date of Grant, grants to Grantee an award of 51,000 management
      retention units (the “MRUs”). Each MRU represents Grantee’s right to receive a
      cash settlement, upon vesting, equal to the Fair Market Value of one share
      of
      the Company’s common stock, par value $.001 per share (the “Common Stock”), on
      the vesting date. For purposes of this Agreement, “Fair Market Value” means the
      average closing price of Common Stock over the five trading days before the
      applicable measurement date.

     

    (b)    MRUs
      granted to
      Grantee will be credited to a Management Retention Unit Account, or “MRA,” which
      is a hypothetical account designated under Grantee’s name used solely for the
      purpose of tracking the value to be paid to Grantee upon the MRUs’ vesting
      dates.

     

    2.    CERTAIN
      DEFINITIONS.

     

    As
      used in this Agreement, the following terms shall have the meanings set forth
      below:

     

    (a)    “Affiliate”
shall
      mean a corporation or other entity controlled by, controlling or under common
      control with the Company.

     

    (b)    “Business
      Unit”
shall mean an entity, whether or not incorporated, more than fifty percent
      (50%)
      of the outstanding ownership interests of which are owned by the Company,
      directly or indirectly through one or more ownership chains where each link
      in
      the chain owns more than fifty percent (50%) of the outstanding ownership
      interests of the next link (either alone or together with other links in the
      same chain or another chain).

     

    (c)    “Cause”
shall
      mean
      (1) “Cause” pursuant to any individual employment agreement with the
      Company to which Grantee is a party that is then in effect, or (2) if there
      is
      no such individual employment agreement or if it does not define Cause,
      termination of Grantee’s employment by the Company or any of its Affiliates
      because of (A) conviction of or a plea of nolo
      contendre
      to a felony
      involving moral turpitude; (B) misappropriating any significant amount of funds
      or property of the Company; (C) attempting to obtain any significant personal
      profit from any transaction in which Grantee has an interest which is adverse
      to
      the interest of the Company, unless Grantee has first obtained consent from
      an
      officer of the Company; or (D) a pattern of gross dereliction of duty. The
      Compensation Committee (the “Committee”) of the Board of Directors (the “Board”)
      of the Company shall, unless otherwise provided in an individual employment
      agreement with Grantee, have the sole discretion to determine whether “Cause”
exists and its determination shall be final.

     

    
      
        Exhibit
          A to
Restricted Stock Agreement

      

      
        -1-

        
          

        

      

      
        
        

      

    

    (d)    “Change
      of Control”
shall mean the occurrence of any of the following events:

     

    (1)    Forty
      percent
      (40%) of the Company’s Common Stock Acquired by an Outsider.
      Any “person” (as
      such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act
      of
      1934, as amended (the “Exchange Act”), other than (A) the Company or any of its
      Affiliates, (B) any trustee or other fiduciary holding stock under an employee
      benefit plan of the Company or any of its Affiliates, and (C) any corporation
      owned, directly or indirectly, by the stockholders of the Company in
      substantially the same proportions as their ownership of the Company’s stock)
      becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
      Act), directly or indirectly, of more than forty percent (40%) of the Company’s
      then outstanding shares of Common Stock;

     

    (2)    Members
      of the
      Board as of February 19, 2008 cease to constitute a majority of
      Directors.
      The following
      individuals cease for any reason to constitute a majority of the number of
      directors then serving on Board: individuals who, on February 19, 2008,
      constituted the Board and any new director (other than a director whose initial
      assumption of office is in connection with an actual or threatened election
      contest, including but not limited to a consent solicitation, relating to the
      election of directors of the Company) whose appointment or election by the
      Board
      or nomination for election by the Company’s stockholders was approved or
      recommended by a vote of at least two-thirds (2/3) of the directors then still
      in office who either were directors on February 19, 2008 or whose appointment,
      election or nomination for election was previously so approved or
      recommended;

     

    (3)    Merger
      or
      Consolidation.
      There is
      consummated a merger or consolidation of the Company or any of its Affiliates
      with any other corporation or other entity in which the Company is not the
      continuing or surviving corporation or pursuant to which the Company’s Common
      Stock would be converted into cash or stock; provided, however, that the holders
      of the Company’s Common Stock immediately prior to the merger do not have the
      same proportionate ownership of the common stock of the surviving corporation
      immediately after such merger or consolidation;

     

    (4)    Complete
      Liquidation or Disposition of more than 75% of the Company’s
      Assets.
      The stockholders
      of the Company approve a plan of complete liquidation of the Company or there
      is
      consummated an agreement for the sale or disposition by the Company of assets
      having an aggregate book value at the time of such sale or disposition of more
      than seventy-five percent (75%) of the total book value of the Company’s assets
      on a consolidated basis (or any transaction having a similar effect), other
      than
      any such sale or disposition by the Company (including by way of spin-off or
      other distribution) to an entity, at least fifty percent (50%) of the combined
      voting power of the voting securities of which are owned immediately following
      such sale or disposition by stockholders of the Company in substantially the
      same proportions as their ownership of the Company immediately prior to such
      sale or disposition; or

     

    (5)    Disposition
      of
      a Business Unit.
      There is
      consummated the Disposition of a Business Unit; provided, however, that this
      clause (5) shall apply only to a Grantee who (A) immediately prior to the
      Disposition of a Business Unit were employed by (and on the payroll of) the
      Business Unit that was the subject of the Disposition of a Business
      Unit.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (e)    “Disposition
      of a
      Business Unit” means a sale or other disposition, however effected, of a
      Business Unit which is either:

     

    (1)    A
      sale by the
      Company or any of its Affiliates of the then outstanding ownership interests
      of
      the Business Unit having more than 50% of the then existing voting power of
      all
      outstanding ownership interests of the Business Unit, whether by merger,
      consolidation or otherwise, unless after the sale the Company, any of its
      Affiliates, or any trustee or other fiduciary holding securities under an
      employee benefit plan of the Company, the Business Unit or any Affiliate,
      individually or collectively, directly or indirectly, owns the then outstanding
      ownership interests of the Business Unit having 50% or more of the then existing
      voting power of all outstanding ownership interests of the Business
      Unit;

     

    (2)    The
      sale of all or
      substantially all of the assets of the Business Unit as a going concern;
      or

     

    (3)    Any
      other
      transaction or course of action engaged in, directly or indirectly, by the
      Company, the Business Unit or any Affiliate, that has a substantially similar
      effect as the transactions of the type referred to in clause (1) or (2)
      above.

     

    (f)    “Disability”
shall
      mean either (1) Grantee is unable to engage in any substantial gainful
      activity by reason of any medically determinable physical or mental impairment
      that can be expected to result in death or can be expected to last for a
      continuous period of not less than 12 months, or (2) Grantee is, by reason
      of any medically determinable physical or mental impairment that can be expected
      to result in death or can be expected to last for a continuous period of not
      less than 12 months, receiving income replacement benefits for a period of
      not
      less than 3 months under an accident and health plan covering employees of
      the
      Company.

     

    (g)    “Good
      Reason” shall
      mean, without Grantee’s consent, the occurrence of any of the following
      circumstances unless such circumstances are fully corrected prior to the
      expiration of the thirty day period following delivery to the Company of
      Grantee’s notice of intention to terminate his or her employment for Good Reason
      describing the circumstances in reasonable detail:

     

    (1)    A
      material
      diminution in Grantee’s base compensation;

     

    (2)    A
      material
      diminution in Grantee’s authority, duties, or responsibilities;

     

    (3)    A
      material
      diminution in the authority, duties, or responsibilities of the supervisor
      to
      whom Grantee is required to report, including a requirement that Grantee report
      to a corporate officer or employee instead of reporting directly to the
      Board;

     

    (4)    A
      material
      diminution in the budget over which Grantee retains authority;

     

    (5)    A
      material change
      in the geographic location at which Grantee must perform the services;
      or

     

    (6)    Any
      other action or
      inaction that constitutes a material breach by the Company of its employment
      agreement with Grantee.

     

    Grantee
      shall be
      deemed to have waived his rights to terminate his or her employment with the
      Company for circumstances constituting Good Reason if s/he shall not have
      provided to the Company a notice of termination within ninety days immediately
      following his or her knowledge of the circumstances constituting Good
      Reason.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    3.    VESTING
      AND
      SETTLEMENT.

     

    MRUs
      shall fully
      vest on the second anniversary of the Date of Grant, so long as Grantee has
      continuously performed service (whether as an employee, director or consultant
      for the Company or any of its Affiliates) (“Service”) from the Date of Grant to
      the vesting date. MRUs shall be settled in cash by the Company no later than
      60
      days after the applicable vesting date, provided, however, that if Grantee
      is
      deemed on the date of termination to be a “specified employee” within the
      meaning of that term under Section 409A(a)(2)(B) of the Internal Revenue Code
      of
      1986, as amended (the “Code”), then with regard to any payment or the provision
      of any benefit that is considered deferred compensation under Section 409A
      of
      the Code payable on account of a “separation from service,” such payment or
      benefit shall be made or provided at the date which is the earlier of (i) the
      expiration of the six (6)-month period measured from the date of such
“separation from service” of Grantee, and (ii) the date of Grantee’s death.
      Grantee shall be entitled, at his or her election, to defer the cash settlement
      of MRUs into the Company’s Deferred Compensation Plan, pursuant to the terms and
      conditions of such plan and provided that Grantee is eligible to participate
      in
      such plan.

     

    The
      Company may
      withhold from any amounts payable under this Agreement such Federal, state
      and
      local taxes as may be required to be withheld pursuant to any applicable law
      or
      regulation.

     

    4.    TERMINATION
      EVENTS.

     

    The
      following
      provisions shall apply to all MRUs granted hereunder upon termination of
      Grantee’s Service:

     

    (a)    If
      Grantee’s
      Service is terminated due to Grantee’s death or Disability, all MRUs credited to
      Grantee’s MRA shall become immediately vested and settled in accordance with
      Section 3. 

     

    (b)    If
      the Company
      terminates Grantee’s Service without Cause, all unvested MRUs shall become
      immediately vested and settled in accordance with Section 3.

     

    (c)    If
      Grantee
      voluntarily terminates Service under any circumstances, except as provided
      in
      Sections 4(a) or (d), or Grantee’s Service is terminated for Cause, all MRUs,
      whether vested or unvested, shall be immediately forfeited without settlement
      or
      payment of value.

     

    (d)    If,
      in connection
      with or at any time following the occurrence of a Change in Control, Grantee
      is
      terminated without Cause or resigns for Good Reason, all unvested MRUs shall
      become immediately vested and settled in accordance with Section 3. In the
      event
      the Common Stock is no longer publicly traded as of the date Grantee is
      terminated or resigns pursuant to this Section 4(d), the “Fair Market Value”
attributable to each MRU shall be determined by a nationally recognized
      valuation or investment banking firm selected by the board of directors (or
      similar governing body) of the Company or its successor.

     

    5.    ADJUSTMENT
      OF
      MRUs.

     

    Upon
      the occurrence
      of a reorganization, merger, consolidation, recapitalization, reclassification,
      stock split, reverse stock split, spin-off, repurchase, share exchange, dividend
      or distribution of stock, property or cash (other than regular, quarterly cash
      dividends), or any other event or transaction that affects the number or kind
      of
      shares of Common Stock outstanding, the Committee shall make appropriate,
      equitable adjustments in the value of the MRUs described herein in order to
      prevent the dilution or enlargement of either Grantee’s rights hereunder or the
      value of the MRUs (determined immediately before and after such adjustment);
      provided, however, that no such adjustment shall be made to the extent that
      the
      Committee determines that such adjustment would result in the disallowance
      of a
      federal income tax deduction for compensation attributable to the MRUs under
      Section 162(m) of the Code, if applicable.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    6.    UNFUNDED
      STATUS
      OF MRUs.

     

    MRUs
      are an
      unfunded obligation of the Company to pay compensation in the future. Neither
      the grant nor vesting of MRUs hereunder, nor the taking of any other action
      in
      respect of MRUs, shall give Grantee rights that are greater than those of a
      general creditor of the Company; provided, however, that the Company may create
      a trust or make other arrangements to meet its obligations in respect of MRUs,
      which trusts or other arrangements shall be consistent with the status of MRUs
      as an unfunded obligation, unless the Committee otherwise determines with the
      consent of Grantee.

     

    7.    CLAIMS;
      NOTICES.

     

    (a)    Any
      claim that
      Grantee makes for benefits relating to MRUs shall be filed in writing with
      the
      Committee. Written notice of the disposition of the claim shall be delivered
      to
      Grantee within 60 days after filing. If the claim is denied, the reasons shall
      be set forth in a statement delivered to Grantee. The filing of a claim in
      accordance with this Section 7 shall be a condition precedent to the initiation
      of any legal proceeding with respect to such claim.

     

    (b)    All
      notices or
      other communications made or given in respect off MRUs shall be in writing
      and
      shall be sufficiently made or given if hand-delivered or mailed by certified
      mail addressed to Grantee at the address contained in the records of the
      Company, or to the Company attention of the Committee at the Company’s principal
      office.

     

    8.    ENTIRE
      AGREEMENT.

     

    This
      Agreement
      constitutes the entire agreement between Grantee and the Company relating to
      this subject matter. No other prior or contemporaneous agreements, promises,
      representations, covenants, warranties, or any other undertaking whatsoever
      respecting such matters shall be deemed in any way to exist or to bind any
      of
      the parties. Grantee acknowledges and agrees that s/he has not executed this
      Agreement in reliance on any such other agreement, promise, representation,
      covenant, warranty, or undertaking. The Agreement may not be orally modified.
      All modifications must be agreed to in writing and signed by both
      parties.

     

    9.    SETOFF.

     

    The
      Company may, to
      the extent permitted by law, deduct from and set off against its obligations
      to
      Grantee from time to time, (including without limitation amounts payable in
      connection with settlement of MRUs, as wages or benefits or other form of
      compensation), any amounts that Grantee owes to the Company or any of its
      Affiliates for any reason whatsoever. Grantee shall remain liable for any
      portion of Grantee’s obligation not satisfied by such setoff. By accepting the
      MRUs granted hereunder, Grantee agrees to any deduction or setoff under this
      Section 9.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    10.    TRANSFERABILITY
      AND ALIENATION.

     

    Except
      insofar as
      may otherwise be required by law or Section 9 above, no amount payable at any
      time pursuant to this award of MRUs shall be subject in any manner to alienation
      by anticipation, sale, transfer, assignment, bankruptcy, pledge, attachment,
      charge, or encumbrance of any kind, nor in any manner be subject to the debts
      or
      liabilities of any person, and any attempt to so alienate or subject any such
      amount, whether presently or thereafter payable, shall be void. If any person
      shall attempt to, or shall, alienate, sell, transfer, assign, pledge, attach,
      charge, or otherwise encumber any amount payable pursuant to this award of
      MRUs,
      or any part thereof, or if by reason of his or her bankruptcy or other event
      happening at any such time such amount would be made subject to his or her
      debts
      or liabilities or would otherwise not be enjoyed by him or her, then the
      Company, if it so elects, may direct that such amount be withheld and that
      the
      same or any part thereof be paid or applied to or for the benefit of such
      person, his or her spouse, children or other dependents, or any of Grantee’s
      heirs, in such manner and proportion as the Company may deem
      proper.

     

    11.    NO
      EMPLOYMENT,
      CONTINUED SERVICE OR EQUITYHOLDER RIGHTS.

     

    This
      Agreement
      shall not give Grantee any right to remain employed by the Company or any of
      its
      Affiliates, nor shall it provide Grantee with any rights to any other form
      of
      service (such as a consultant or director) with any of the foregoing entities.
      The Company reserves the right to terminate the employment or service of Grantee
      at any time, and for any reason or no reason, subject to applicable laws and
      any
      employment or other agreement. Grantee shall not have the rights of an
      equityholder of the Company as a result of the grant or vesting of
      MRUs.

     

    12.    COMMITTEE
      AUTHORITY

     

    The
      Agreement shall
      be administered by the Committee. The Committee shall be authorized and
      empowered to do all things necessary or desirable in connection with the
      administration of this Agreement, including, without limitation, the following:
      (a) accelerate the exercisability of the MRUs, (b) determine whether,
      and the extent to which, adjustments are required pursuant to Section 5,
      (c)  verify the extent of satisfaction of any conditions applicable to the
      vesting of the MRUs, (d) interpret and construe the terms and conditions of
      the award of MRUs hereunder, and to make exceptions to any such provisions
      in
      good faith and for the benefit of the Company and (e) to make all other
      determinations deemed necessary or advisable for the administration of the
      award
      of MRUs hereunder. All decisions, determinations and interpretations by the
      Committee regarding the terms and conditions of or operation of the award of
      MRUs hereunder shall be final and binding on Grantee and his or her
      beneficiaries, heirs, assigns or other persons holding or claiming rights under
      the MRUs. The Committee shall consider such factors as it deems relevant, in
      its
      sole and absolute discretion, to making such decisions, determinations and
      interpretations, including, without limitation, the recommendations or advice
      of
      any officer or other employee of the Company and such attorneys, consultants
      and
      accountants as the Committee may select. The Committee shall not be liable
      for
      any determination or action taken in good faith with respect to the MRUs granted
      hereunder. The Committee may correct any defect, supply any omission or
      reconcile any inconsistency in this Agreement in the manner and to the extent
      it
      shall deem desirable to effectuate the purposes of this Agreement. The Committee
      may delegate any or all aspects of the day-to-day administration of the
      Agreement to one or more officers or employees of the Company or any Affiliate,
      and/or to one or more agents.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Management Retention Unit Agreement
      to be duly executed by its officers thereunto duly authorized, and Grantee
      has
      hereunto set his or her hand as of the date first above written.

     

    
      
        	 	 	 
	 	BUILDING
                MATERIALS HOLDING CORPORATION
	 
 	 
 	 
 
	 	By:	 
	 	Name:	
                
Robert
                E. Mellor
	 	Title:	Chairman
                & Chief Executive Officer
	 	 	 
	 	 	 
	 	Acknowledged
                receipt of and agreement with the terms of the grant of Management
                Retention Units as set forth above.
	 	 	 
	 	 	 
	 	GRANTEE:
	 	 	 
	 	 	 
	 	Signed:	 
	 	 	
                
Michael
                D. Mahre

      

       

      
        
          
          

        

        
          -7-Unassociated Document

    Exhibit
      10.1

    EMPLOYMENT
      AGREEMENT

    

     

    EMPLOYMENT
      AGREEMENT
      (this
“Agreement”) dated as of May 6, 2008, between FOSTER
      WHEELER LTD.,
      a
      Bermuda company (the “Company”), and FRANCO
      BASEOTTO
      (the
“Executive”).

     

    WHEREAS,
      the
      Executive is currently employed by Foster Wheeler Continental Europe S.r.l.
      (the
“Italian Subsidiary”) but has been serving as the Company’s Executive Vice
      President and Chief Financial Officer since August 13, 2007 pursuant to a
      seconding arrangement among the parties;

     

    WHEREAS,
      Executive’s employment relationship with the Italian Subsidiary currently is
      governed by (i) Italian law, (ii) the Contratto
      Collettivo Nazionale Dirigenti Aziende Industriali
      which is
      set to expire on December 31, 2008, and any extension thereto or successor
      contract, (iii) an individual letter agreement, dated May 25, 1998, and (iv)
      the
      applicable Italian Subsidiary policies and procedures (all of (i) through (iv),
      collectively, the “Italian Arrangements”);

     

    WHEREAS,
      Executive, the Italian Subsidiary and the Company are currently also parties
      to
      a Supplemental Employment Agreement (the “Supplemental Agreement”) and a Change
      of Control Agreement (the “CoC Agreement”), each dated as of November 12, 2007,
      equalizing the Executive’s compensation and benefits under the Italian
      Arrangements by providing an employment arrangement to the Executive comparable
      to that generally provided to the Company’s executive officers at the
      Executive’s level; and

     

    WHEREAS,
      the
      Executive and the Italian Subsidiary have mutually agreed to terminate the
      Italian Arrangements (as they apply to the Executive) through separate
      document(s), such termination to be effective as of the Effective Date (as
      defined in Section 2.1), and, as a result of the termination of the Italian
      Arrangements, the Supplemental Agreement and the CoC Agreement shall terminate
      in accordance with their respective terms, such latter termination being
      effective immediately prior to the Effective Date of this
      Agreement.

     

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

     

    
      	
              1.

            	
              Employment,
                Duties and Acceptance.

            

    

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    
      	
              2.

            	
              Term
                of Employment.

            

    

     

    2.1 Term.
      The
      term
      of the Executive’s employment under this Agreement (the “Term”) shall commence,
      subject to the termination of the Italian Arrangements, on July 1, 2008 (the
      “Effective Date”) and shall end on the date on which the Term is terminated
      pursuant to Section 4. 

     

    
      	
              3.

            	
              Compensation;
                Benefits.

            

    

     

    3.1 Salary.
      As
      compensation for all services to be rendered pursuant to this Agreement, the
      Company agrees to pay to the Executive during the Term a base salary, payable
      monthly in arrears, at the initial annual rate of Four Hundred and Fifty
      Thousand Dollars ($450,000.00) (the
      “Base Salary”). On each anniversary of the Effective Date or such other
      appropriate date during each year of the Term when the salaries of executives
      at
      the Executive’s level are normally reviewed, the Company shall review the Base
      Salary and determine if, and by how much, the Base Salary should be increased;
      provided,
      however, the
      Base
      Salary under this Agreement, including as subsequently adjusted upwards, may
      not
      be decreased thereafter without the written consent of Executive, except for
      across-the-board changes for executives at the Executive’s level. All payments
      of Base Salary or other compensation hereunder shall be less such deductions
      or
      withholdings as are required by applicable law and regulations.

     

    3.2 Bonus.
      Executive shall be eligible to participate, as determined by the Compensation
      Committee of the Board of Directors of the Company (the “Board”), in the
      Company’s annual incentive program as in effect from time to time for executives
      at the Executive’s level. The Executive shall be eligible for an annual
      incentive bonus at a target opportunity of seventy-five percent (75%) of Base
      Salary (up to a maximum opportunity of one hundred fifty percent (150%) of
      Base
      Salary) based upon the achievement of certain business unit objectives
      established in advance by the Company (the “Annual Bonus”). The actual amount of
      any Annual Bonus shall be determined by and in accordance with the terms of
      the
      Company’s annual incentive program as in effect from time to time and the
      Executive shall have no absolute right to an Annual Bonus in any year.

     

    
      
        
        

      

      
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    The
      Executive’s Annual Bonus for performance during fiscal year 2008 shall be
      determined and paid as follows: The Company shall pay the full amount of any
      such Annual Bonus in U.S. Dollars and the relevant business unit objective
      for
      the entire year shall be that of the Corporate Center. 50% of any such Annual
      Bonus shall be calculated based upon the Executive’s Base Salary and target
      opportunity that applied between January 1, 2008 and June 30, 2008, i.e.,
      236,600 Euros and 60%, which amount shall be converted from Euros to U.S.
      Dollars on a date as close as practicably possible to the date upon which any
      such Annual Bonus is paid. The remaining 50% of any such Annual Bonus shall
      be
      calculated based upon the Executive’s Base Salary and target opportunity that
      applied between July 1, 2008 and December 31, 2008, i.e., $450,000 and
      75%.

     

    3.3 Equity
      Awards.
      

     

    3.3.1 The
      parties acknowledge and agree that, on November 15, 2007 (the “November 2007
      Grant Date”), the Executive received a (i) a grant of
      a
      number of restricted stock units payable in shares of common stock of the
      Company (“Common Stock”) with an economic value as of the Grant Date equal to
      approximately $255,500 (the “November 2007 Restricted Stock Units”) and (ii) a
      grant of stock options to purchase shares of Common Stock with an economic
      value
      as of the November 2007 Grant Date equal to approximately $255,500 (the
“November 2007 Options”). The November 2007 Restricted Stock and November 2007
      Options are governed by separate agreements entered into between Executive
      and
      the Company, and in the event of any inconsistency between such separate
      agreements and the terms of this Agreement (including, but not limited to,
      Section 4.2.2(v) and (vi)), the separate agreements shall govern and control.
      For avoidance of doubt, nothing in the preceding sentence shall be construed
      to
      limit the application of any provision of such separate agreements that
      expressly refers to and incorporates a provision of this Agreement.

     

    3.3.2 Executive
      shall be eligible for annual equity awards, as determined by the Compensation
      Committee of the Board, under the Company’s equity award plan covering
      executives at the Executive’s level, as in effect from time to time. Executive
      will be entitled to a long term incentive value opportunity equivalent to 1.8
      times Base Salary per year, the form and conditions of which will be established
      by the Compensation Committee. 

     

    3.3.3 Executive
      will receive on a date designated by the Board during the first open trading
      window for Section 16 officers subsequent to the effectiveness of this Agreement
      (known as the “2008 Grant Date”) the following:

     

    (i) A
      grant
      of a number of restricted stock units which will be payable in shares of Common
      Stock with an economic value as of the 2008 Grant Date equal to approximately
      $75,082 (the “2008 Restricted Stock Units”). The 2008 Restricted Stock Units
      will be granted under the Company’s Omnibus Incentive Plan. The 2008 Restricted
      Stock Units will be issued on the 2008 Grant Date. For purposes of this
      Subsection 3.3.3, the determination of the number of 2008 Restricted Stock
      Units
      to be granted to Executive shall be consistent with the methodology used for
      valuing restricted stock units granted to employees which has been approved
      and
      adopted by the Compensation Committee of the Board.

     

    
      
        
        

      

      
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    (ii) A
      grant
      of stock options to purchase shares of Common Stock with an economic value
      as of
      the 2008 Grant Date equal to approximately $75,082 (the “2008 Options”). The
      2008 Options will be granted under the Company’s Omnibus Incentive Plan and for
      purposes of such Omnibus Incentive Plan:

     

    (A) the
      2008
      Options will be Nonqualified Stock Options; 

     

    (B)the
      exercise price will be equal to the Fair Market Value of a share of Common
      Stock
      as defined under the terms of the Company’s Omnibus Incentive Plan on the 2008
      Grant Date; and 

     

    (C) the
      Expiration Date will be the last business day immediately preceding the fifth
      anniversary of the 2008 Grant Date. 

     

    The
      2008
      Options will be issued on the 2008 Grant Date. For purposes of this Subsection
      3.3.3, the determination of the number of 2008 Options to be granted to
      Executive shall be consistent with the methodology used for valuing stock
      options granted to employees that has been approved and adopted by the
      Compensation Committee of the Board. The 2008 Restricted Stock and 2008 Options
      shall be governed by separate agreements to be entered into between Executive
      and the Company, and in the event of any inconsistency between such separate
      agreements and the terms of this Agreement (including, but not limited to,
      Section 4.2.2(v) and (vi)), the separate agreements shall govern and control.
      For avoidance of doubt, nothing in the preceding sentence shall be construed
      to
      limit the application of any provision of such separate agreements that
      expressly refers to and incorporates a provision of this Agreement.

     

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

     

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

     

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

     

    3.7 Perquisites.
      During
      the Term, the Executive shall be provided by the Company with the following
      perquisites:

     

    
      
        
        

      

      
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    3.7.1 an
      annual
      physical examination; 

     

    3.7.2 an
      annual
      automobile allowance based upon the current Company policy;

     

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

     

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

     

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

     

    3.8 Relocation. 

     

    3.8.1 General: The
      relocation of the Executive, his family, and belongings to the Clinton, New
      Jersey area will be in accordance with the Company’s usual Employee Relocation
      Policy, but in all events shall include the following:

     

    (i) reimbursement
      of all fees and expenses reasonably incurred for the purchase of a house in
      the
      New Jersey area (for the avoidance of doubt, excluding amounts paid in respect
      of the purchase price of the house, but including applicable closing costs,
      taxes and legal and financing fees;

     

    (ii) reimbursement
      of all costs reasonably incurred for the moving of personal belongings and
      furniture from Italy and New Orleans to New Jersey; and

     

    (iii) an
      allowance of $15,000 for settling in and transitioning to the new
      home.

     

    3.8.2 Schooling:
      The
      Company shall provide the Executive cash payments in 2008, 2009, and 2010 equal
      to the cost of the Executive's daughter's high school tuition, books and fees
      for each year. Such payments shall be made by lump sum payment to the Executive
      promptly after the costs are incurred by the Executive, but in no event earlier
      than January 1 nor later than December 31 of the taxable year to which they
      relate. 

     

    
      3.8.3 Grossup: To
        the extent that any
        of the
        costs, fees or expenses covered by this Section 3.8 can not be
        deducted as relocation expenses or otherwise by the Executive on his applicable
        tax returns, they will be grossed up in order to offset any taxes incurred
        on
        any such non-deductible costs, fees or expenses, such grossup payment to be
        made by lump sum payment no later than the year following the taxable year
        in
        which such taxes are incurred.

    

     

    
      
        
        

      

      
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      	4.	
              Termination.

            

    

     

    4.1 Termination
      Events. 

     

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

     

    (i) Death:
      the
      death
      of the Executive;

     

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

     

    (iii) For
      Cause By the Company:
      As
      used
      herein, “Cause” means: 

     

    (A) conviction
      of a felony; 

     

    (B) actual
      or
      attempted theft or embezzlement of Company assets; 

     

    (C) use
      of
      illegal drugs; 

     

    (D) material
      breach of the Agreement that the Executive has not cured within thirty (30)
      days
      after the Company has provided the Executive notice of the material breach
      which
      shall be given within sixty (60) days of the Company’s knowledge of the
      occurrence of the material breach; 

     

    (E) commission
      of an act of moral turpitude that in the judgment of the Board can reasonably
      be
      expected to have an adverse effect on the business, reputation or financial
      situation of the Company and/or the ability of the Executive to perform the
      Executive's duties; 

     

    (F) gross
      negligence or willful misconduct in performance of the Executive’s duties;

     

    (G) breach
      of
      fiduciary duty to the Company; 

     

    (H) willful
      refusal to perform the duties of Executive’s titled position; or 

     

    (I) a
      material violation of the Foster Wheeler Code of Business Conduct and
      Ethics.

     

    4.1.2 For
      Good Reason By the Executive:
      The
      Executive may immediately resign the Executive’s position for Good Reason and,
      in such event, the Term shall terminate. As used herein, “Good Reason” means a
      material negative change in the employment relationship without the Executive’s
      consent, as evidenced by the occurrence of any of the following:

     

    
      
        
        

      

      
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    (i) material
      diminution in title, duties, responsibilities or authority; 

     

    (ii) reduction
      of Base Salary and benefits except for across-the-board changes for executives
      at the Executive’s level; 

     

    (iii) exclusion
      from executive benefit/compensation plans; 

     

    (iv) relocation
      of the Executive’s principal business location by the Company of greater than
      fifty (50) miles; 

     

    (v) material
      breach of the Agreement by the Company; or 

     

    (vi) resignation
      in compliance with securities/corporate governance applicable law (such as
      the
      US Sarbanes-Oxley Act) or rules of professional conduct specifically applicable
      to such Executive.

     

    For
      each
      event described above in this Section 4.1.2, the Executive must notify the
      Company within ninety (90) days of the occurrence of the event and the Company
      shall have thirty (30) days after receiving such notice in which to
      cure.

     

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

     

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

     

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

     

    4.2 Payments
      Upon a Termination Event. 

     

    4.2.1 Entitlements
      Upon Termination For Any Reason.
      Following
      any termination of the Executive’s employment, the Company shall pay or provide
      to the Executive, or the Executive’s estate or beneficiary, as the case may be:

     

    (i) Base
      Salary earned through the Termination Date; 

     

    (ii) the
      balance of any awarded (i.e.,
      the
      amount and payment of the specific award has been fully approved by the
      Compensation Committee of the Board) but as yet unpaid, annual cash incentive
      or
      other incentive awards for any calendar year prior to the calendar year during
      which the Executive’s Termination Date occurs;

     

    
      
        
        

      

      
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    (iii) a
      payment
      representing the Executive’s accrued but unused vacation; 

     

    (iv) any
      vested, but not forfeited benefits on the Termination Date under the Company’s
      employee benefit plans in accordance with the terms of such plans; and

     

    (v) any
      benefit continuation and conversion rights to which the Executive is entitled
      under the Company’s employee benefit plans.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (vii) executive
      level career transition assistance services by a firm selected by the Executive
      and approved by the Company in an amount not to exceed $8,000 in the aggregate
      (which amount includes any applicable gross-up for any taxes due for such
      payment); and

     

    
      
        
        

      

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

     

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

     

    4.3 Change
      of Control. 

     

    4.3.1 Definitions. 

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    
      
        
        

      

      
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    4.3.6 Certain
      Additional Payments by the Company.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

    (v) Entitlement
      to Refund.
      If,
      after
      the receipt by the Executive of an amount advanced by the Company pursuant
      to
      paragraph (iv) above, the Executive becomes entitled to receive any refund
      with
      respect to such claim, the Executive shall (subject to the Company’s complying
      with the requirements of paragraph (iv)) promptly pay to the Company the amount
      of such refund (together with any interest paid or credited thereon after taxes
      applicable thereto). If, after the receipt by the Executive of an amount
      advanced by the Company pursuant to paragraph (iv), a determination is made
      that
      the Executive shall not be entitled to any refund with respect to such claim
      and
      the Company does not notify the Executive in writing of its intent to contest
      such denial of refund prior to the expiration of 30 days after such
      determination, then such advance shall be forgiven and shall not be required
      to
      be repaid and the amount of such advance shall offset, to the extent thereof,
      the amount of Gross-Up Payment required to be paid.

     

    
      
        
        

      

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

     

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

     

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

     

    
      	5.	
              Protection
                of Confidential Information; Non-Competition and
                Non-Solicitation.

            

    

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

    5.2.2 Non-Solicitation:
      until
      the
      second anniversary of the Termination Date: 

     

    (i) Of
      Employees:
      call
      upon
      any Person who is, at such Termination Date, engaged in activity on behalf
      of
      the Company or any subsidiary or affiliate of the Company for the purpose or
      with the intent of enticing such Person to cease such activity on behalf of
      the
      Company or such subsidiary or affiliate; or 

     

    (ii) Of
      Customers:
      solicit,
      induce, or attempt to induce any customer of the Company to cease doing business
      in whole or in part with or through the Company or a subsidiary or affiliate,
      or
      to do business with any Competitor.

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    
      	6.	
              Intellectual
                Property.

            

    

     

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

     

    
      
        
        

      

      
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      	7.	
              Indemnification.

            

    

     

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

     

    
      	8.	
              Notices.

            

    

     

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

     

    If
      to the
      Company, to:

     

    Foster
      Wheeler Ltd.

    Perryville
      Corporate Park

    Clinton,
      NJ 08809-4000

    Attention:
      General Counsel

     

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

     

    
      	9.	
              General;
                Termination of Prior
                Agreements.

            

    

     

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

     

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

     

    
      
        
        

      

      
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    9.3 Termination
      of Supplemental Agreement and CoC Agreement.
      The
      parties acknowledge and agree that, upon the the termination of the Italian
      Arrangements, the Supplemental Agreement and the CoC Agreement shall terminate
      in accordance with their respective terms and shall be of no further force
      and
      effect, provided,
      however,
      that,
      for the avoidance of doubt, Articles 5 and 6 of the Supplemental Agreement
      shall
      survive such termination.

     

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

     

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

     

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

     

    
      
        
        

      

      
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    9.7 Assignability. 

     

    9.7.1 Nonassignability
      by Executive.
      This
      Agreement, and the Executive’s rights and obligations hereunder, may not be
      assigned by the Executive, nor may the Executive pledge, encumber or anticipate
      any payments or benefits due hereunder, by operation of law or otherwise.

     

    9.7.2 Assignability
      by Company.
      The
      Company may assign its rights, together with its obligations,
      hereunder:

     

    (i) to
      any
      affiliate; or 

     

    (ii) to
      a
      third party in connection with any sale, transfer or other disposition of all
      or
      substantially all of any business to which the Executive’s services are then
      principally devoted; 

     

    provided,
      however,
      that no
      assignment pursuant to this paragraph 9.7.2 shall relieve the Company from
      its
      obligations hereunder to the extent the same are not timely discharged by such
      assignee.

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	10.	
              Dispute
                Resolution. 

            

    

     

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

     

    
      	11.	
              Free
                to Contract. 

            

    

     

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

     

    
      	12.	
              Subsidiaries
                and Affiliates.

            

    

     

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

     

    
      
        
        

      

      
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      	13.	
              Code
                Section 409A Legal
                Requirement.

            

    

     

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

     

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

    

      
        	
                FOSTER
                  WHEELER LTD.

              
	 	 
	
                By: 

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

              
	
                Title:
                  Chairman and Chief Executive Officer

              
	 
	
                /s/
                  Franco Baseotto

              
	
                                    Franco
                  Baseotto

              

      

       

      
        
          
          

        

        
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