Document:

Exhibit
10.1

     

    CONSULTING
AGREEMENT

     

    CONSULTING AGREEMENT (this
“Agreement”) dated as of
March 15, 2010 between FOSTER
WHEELER INC. (the “Company”), and RAYMOND J. MILCHOVICH (the
“Consultant”).

     

    WHEREAS, Foster Wheeler Ltd.
and the Consultant entered into an employment agreement dated as of August 11,
2006, as amended as of January 30, 2007, February 27, 2007 and May 6, 2008 (the
“2006 Employment
Agreement”) and subsequently amended and restated effective as of
November 4, 2008 (the “2008
Employment Agreement”);

     

    WHEREAS, the Company assumed
the 2008 Employment Agreement from Foster Wheeler Ltd. on January 23,
2009;

     

    WHEREAS, Foster Wheeler AG
(“FWAG”) is relocating
its primary office from Clinton, New Jersey to Switzerland and the Company
acknowledges that such relocation constitutes a material breach of Section 1.4
of the 2008 Employment Agreement in that the Consultant would be required to
perform duties primarily in Switzerland, rather than at the Company’s offices in
Clinton, New Jersey;

     

    WHEREAS, the Company further
acknowledges that the Company’s material breach of the 2008 Employment Agreement
would constitute a material negative change in the employment relationship such
that the Consultant may terminate employment for good reason pursuant to Section
4.5 (Without Cause; For Good Reason) of the 2008 Employment
Agreement;

     

    WHEREAS, in exchange for the
valuable consideration provided by this Agreement, the Consultant has agreed to
forego exercising his right to terminate employment for good reason and instead
retire as the Chief Executive Officer of FWAG pursuant to Section 4.7 (Without
Good Reason) of the 2008 Employment Agreement, effective as of May 31,
2010; provided, however, that the parties hereto agree that, upon the execution
of this Agreement, the Consultant shall not be entitled to receive the lump sum
cash payment described in Section 4.7 of the 2008 Employment
Agreement;

     

    WHEREAS, the Company desires
to retain the Consultant for a period of time after retirement to provide
business consulting services to the Company, including assistance with
transitioning his role and responsibilities to a new chief executive officer of
FWAG; and

     

    WHEREAS, the Consultant
desires to provide such services to the Company, its affiliates and its
representatives on the terms and conditions set forth herein.

     

    NOW THEREFORE, for good and
valuable consideration the receipt and sufficiency of which are hereby
acknowledged, and in further consideration of the following mutual promises,
covenants and undertakings, the parties agree as follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.

            	
              Consulting
      Services.

            

    

     

    1.1           Services.  For
the Term (as defined in Section 2.1) of this Agreement, Consultant shall provide
the Company with the services described on Annex 1 (the “Consulting
Services”).  The Consultant shall report to the Chief Executive
Officer (the “CEO”) of
FWAG.  In addition, the Company agrees to use its best efforts to
cause the Consultant to serve as the non-executive Chairman of the Board of
Directors of FWAG throughout the Term.

     

    1.2           Obligations;
Exclusivity.  The Consultant shall act at all times in the best
interests of the Company and shall do no act which would injure, directly or
indirectly, the Company’s business, interests or reputation.  The
Consultant will not provide any services to, or accept employment from, another
person while providing the Consulting Services in accordance with this
Agreement; provided, however, that the Consultant may, subject to approval by
the Board of Directors of FWAG (the “Board”), serve on the board
of directors of not more than two (2) for-profit businesses at any time during
the Term that do not compete with the Company and may participate in civic,
charitable and industry organizations to the extent that such participation does
not materially interfere with the performance of Consulting Services
hereunder.

     

    1.3           Location.  The
Consulting Services to be performed primarily in New Jersey or Florida, subject
to reasonable travel requirements consistent with the nature of the Consulting
Services provided.

     

    
      	
               
      

            	
              2.

            	
              Term of Consulting
      Services.

            

    

     

    2.1           Term.  The
Consulting Services provided by the Consultant under this Agreement (the “Term”) shall begin on June 1,
2010 (the “Effective
Date”), and shall end on the earlier of (i) November 3, 2011 and (ii)
such earlier date on which the Term is terminated pursuant to Section
4.

     

    
      	
               
      

            	
              3.

            	
              Consulting Payments;
      Allowances.

            

    

     

    3.1           Consulting
Fee.  In payment of Consulting Services to be rendered pursuant
to this Agreement, the Company agrees to pay to the Consultant during the Term
$104,466.67 per month as a consulting fee (the “Consulting Fee”), payable
monthly in arrears.  On each anniversary of the Effective Date or such
other appropriate date as may be agreed to by the parties during the Term, the
Company shall review the Consulting Fee and determine if, and by how much, the
Consulting Fee should be increased.  Once the Consulting Fee has been
increased hereunder, it shall not be decreased.

     

    
      
         

      

      
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    3.2          Incentive
Fee.

     

    (i)           In
addition to the amounts to be paid to the Consultant pursuant to Section 3.1, if
FWAG achieves 100% or more of FWAG’s target objectives for a fiscal year of
FWAG, such target objectives to be approved by the Compensation Committee of the
Board (the “Compensation
Committee”) the Consultant shall receive a target incentive fee (an
“Incentive Fee”) equal
to the product of (i) the Consultant’s monthly Consulting Fee at the rate
in effect at the beginning of such fiscal year, multiplied by twelve and (ii)
130%.  Should FWAG achieve objectives in a fiscal year that are
determined by the Compensation Committee to be significantly beyond expectations
for FWAG’s performance for such year, the 130% target amount may be increased up
to a maximum multiplier of two (2) times that amount.  As approved by
the Compensation Committee, a formula will be established to provide for
recognition of threshold objectives below the target and for pro rata awards
between the threshold award opportunity and the maximum award
opportunity.  Notwithstanding the foregoing, for all years in which
this Agreement is in effect, the multiplier applied to the Consultant’s target
percentage shall not be less than the average multiplier applied for the three
(3) most highly compensated named executive officers of FWAG for that
period.

     

    (ii)          Any
Incentive Fee earned hereunder shall be payable not later than two and one-half
months following the end of the fiscal year to which it relates.

     

    (iii)         Except
in the event of a termination of this Agreement pursuant to Section 4.4, in the
event that this Agreement shall terminate other than on a date which is the last
day of a fiscal year of the Company, the Consultant’s Incentive Fee with respect
to the fiscal year in which the Agreement terminates shall be prorated at target
for the actual number of days the Consultant rendered services to the Company
during such fiscal year, and such Incentive Fee, if any, shall be payable on the
date that the Company pays bonuses generally, whether or not the Consultant
continues to provide Consulting Services on such date, provided, however, that
payment shall be made not later than two and one-half months following the end
of the fiscal year to which it relates.

     

    (iv)         For
the avoidance of doubt, with respect to the 2010 fiscal year, the Consultant
shall be entitled to receive an Incentive Fee based upon the provision of
services for the full fiscal year in recognition of the Consultant’s services
both as an employee and independent contractor throughout such
year.  The Consultant shall be entitled to no Incentive Fee in respect
of the fiscal year of the Company in which this Agreement terminates if such
termination is pursuant to Section 4.4.

     

    3.3          Long-Term
Incentive.  The parties acknowledge and agree that the
Consultant shall be eligible to participate in FWAG’s Omnibus Incentive
Plan.  Long-term incentive awards granted prior to the Effective Date
shall remain intact as if the Consultant had remained in employment during the
Term.

     

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

     

    
      
         

      

      
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    3.5          Allowances; Consultant
Cooperation.

     

    (i)           During
the Term, to the extent permitted by Company benefit plans, policies and/or
programs, the Consultant shall be entitled to participate in those employee
pension benefits plans, group insurance, medical, dental, disability and other
benefit plans and perquisites of the Company as from time to time in effect and
made available to senior executives of the Company generally; provided, however,
that the Consultant shall not be entitled to participate in any non-tax
qualified defined benefit or defined contribution plan offered by the Company or
in any Company split-dollar management life insurance program.  To the
extent that the Company’s benefit plans do not permit the Consultant’s
participation, the Company shall take action to provide equivalent benefits and
coverage outside such plans.

     

    (ii)     
    During the Term, the Company shall pay the Consultant a
monthly allowance of $6,000 to cover the cost of miscellaneous expenses, such as
supplemental term life insurance in an amount equal to the Consulting Fee
multiplied by twelve, annual physical examinations, home office equipment,
personal financial and tax planning and automobile expenses.

     

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

     

    (iv)         To
the extent the provision of benefits described in this Section 3.5 results in
taxable income to the Consultant, the Company shall pay the Consultant an amount
to satisfy the Consultant’s income tax obligation.  Such payment shall
be grossed-up for taxes and made as soon as practicable after the tax liability
arises but in no event later than the end of the year following the year in
which the tax is due.

     

    
      	
               
      

            	
              4.

            	
              Termination.

            

    

     

    4.1          General.  Except
as otherwise provided in this Section 4, following any termination of the
Consultant’s Consulting Services, the Company shall pay to, provide to, or allow
the retention by, the Consultant, or his estate or beneficiary, as the case may
be, (i) Consulting Fees earned through the date of such termination; (ii) except
in the case of a termination described in Section 4.4, any earned, but unpaid,
Incentive Fee; (iii) any vested, but not forfeited, benefits on the date of such
termination under the Company’s employee benefit plans in accordance with the
terms of such plans; (iv) the vested portion of his long-term incentive awards
(including “Restricted Stock
Units” and “Options” granted under and
defined within Section 3.3 of the 2008 Employment Agreement and the vested
portion of his restricted stock and stock options previously granted under
Section 3.3 of the 2006 Employment Agreement (the “2006 Restricted Stock” and the
“2006 Options,”
collectively sometimes referred to as the “2006 Equity Awards”)); and (v)
benefit continuation and conversion rights to which the Consultant is entitled
under the Company’s employee benefit plans and this Agreement.

     

    
      
         

      

      
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    4.2          Death.  In
addition to those payments and benefits described in Section 4.1, if the
Consultant shall die during the Term, the Term shall immediately terminate and
the Consultant shall be entitled to no further payments or benefits hereunder,
except:  (i) the Company shall make a lump sum cash payment to the
Consultant’s estate or beneficiary, as the case may be, within two (2) months
following such termination an amount equal to one (1) year of the Consulting
Fees on the date of such termination; (ii) continuing receipt of the medical
benefits described in Section 3.5(i) during the twenty-four (24) month period
commencing on the date of such termination; (iii) any granted but unvested
long-term incentive awards under FWAG’s Omnibus Incentive Plan and any unvested
2006 Options shall become vested and exercisable and shall remain so for the
period commencing the date of such termination through the earlier of (Y) the
second anniversary of such termination, or (Z) the original expiration date; and
(iv) any granted but unvested long-term incentive awards (including Restricted
Stock Units set forth in Section 3.3 of the 2008 Employment Agreement and any
unvested 2006 Restricted Stock) shall become vested.

     

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

     

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

     

    4.5          Without Cause; For Good
Reason.  In addition to those payments and benefits described
in Section 4.1, if during the Term the Company terminates the Agreement without
Cause or if the Consultant terminates the Agreement with Good Reason, the Term
shall immediately terminate and the Consultant shall be entitled to no further
payments or benefits hereunder, except:  (i) the Company shall make a
lump sum cash payment to the Consultant within two (2) months following such
termination equal to the sum of (a) two hundred percent (200%) of the monthly
Consulting Fee on the date of such termination, multiplied by twelve (12) and
(b) two hundred percent (200%) of the Consultant’s Incentive Fee at target; (ii)
continuing receipt of those (or equivalent) benefits described in Section 3.5(i)
during the twenty-four month period commencing on the date of such termination,
provided, however, that
with regard to any benefits described in Section 3.5(i) which are not
health or welfare benefits, the Company shall determine, in its reasonable
discretion, the value of any such benefits and pay such value in a lump sum
within 30 days following such termination; (iii) any granted but unvested stock
options (including Options set forth in Section 3.3 of the 2008 Employment
Agreement and any unvested 2006 Options) shall become vested and exercisable and
shall remain so for the period commencing the date of such termination through
the earlier of (Y) the second anniversary of such termination, or (Z) the
original expiration date; and (iv) any granted but unvested long-term incentive
awards (including Restricted Stock Units set forth in Section 3.3 of the 2008
Employment Agreement and any unvested 2006 Restricted Stock) shall become
vested.

     

    
      
         

      

      
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    For
purposes of this Agreement, “Good Reason” shall mean a
material negative change in the consulting relationship without the Consultant’s
consent, as evidenced by the occurrence of any of the following:  (i)
a change in the Consultant’s reporting relationship; (ii) following a “Change of Control” (as defined
in Section 4.6.2), the relocation of the location at which Consulting Services
are primarily performed by more than fifty (50) miles; (iii) the Company
materially breaches this Agreement; or (iv) the Consultant is not timely
re-nominated for election to the Board or is involuntarily removed from the
Board under circumstances that would not constitute Cause or Disability
hereunder.  For each event described in the definition of Good Reason
set forth above, the Consultant 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.  The parties acknowledge and
agree that in exchange for the valuable consideration provided by this
Agreement, the Consultant has agreed to forego exercising his right to terminate
employment for good reason as a result of the relocation of FWAG’s operating
headquarters from New Jersey to Switzerland and instead retire as the Chief
Executive Officer of FWAG pursuant to Section 4.7 (Without Good Reason) of the
2008 Employment Agreement, effective as of May 31, 2010; provided, however,
that the parties hereto agree that, upon the execution of this Agreement, the
Consultant shall not be entitled to receive the lump sum cash payment described
in Section 4.7 of the 2008 Employment Agreement.

     

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

     

    4.6          Change of
Control.

     

    4.6.1       In
addition to those payments and benefits described in Section 4.1, if during the
Term the Company terminates the Agreement without Cause or the Consultant
terminates the Agreement with Good Reason, in each case within the thirteen (13)
month period following a Change of Control, or if the Consultant terminates the
Agreement for any reason during the thirty (30) day period commencing on the
date which is twelve (12) months following a Change of Control, the Term shall
immediately terminate and the Consultant shall be entitled to no further
payments or benefits hereunder, except (i) the Company shall within 30 days
following such termination make a lump sum cash payment to the Consultant equal
to the sum of (a) three hundred percent (300%) of the monthly Consulting Fee on
the date of such termination, multiplied by twelve (12) and (b) three
hundred percent (300%) of the Consultant’s Incentive Fee at target; (ii)
continuing receipt of those benefits described in Section 3.5(i) during the
thirty-six (36) month period commencing on the date of termination provided, however, that with
regard to any benefits described in Section 3.5(i) which are not health or
welfare benefits, the Company shall determine, in its reasonable discretion, the
value of any such benefits and pay such value in a lump sum within thirty (30)
days following such termination; (iii) any granted but unvested stock options
(including any unvested 2006 Options) shall become vested and exercisable and
shall remain so for the period commencing on the date of such termination
through the second anniversary of such termination, or if earlier, through the
remainder of the term of such awards; (iv) any granted but unvested long-term
incentive awards (including Restricted Stock Units set forth in Section 3.3 of
the 2008 Employment Agreement and any unvested 2006 Restricted Stock) shall
become vested; and (v) the payment required, if any, pursuant to Sections
4.6.3.1-7.

     

    
      
         

      

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

    

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

     

    
      
         

      

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

     

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

     

    4.6.3.4       
As a result of uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments not made by the Company should have been made
(“Underpayment”), or
that Gross-Up Payments will have been made by the Company which should not have
been made (“Overpayments”).  In
either such event, the Accounting Firm shall determine the amount of the
Underpayment or Overpayment that has occurred.  In the case of an
Underpayment, the amount of such Underpayment (together with any interest and
penalties payable by the Consultant as a result of such Underpayment) shall be
promptly paid by the Company to or for the benefit of the
Consultant.

     

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

    
      
         

      

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

     

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

     

    4.6.4       As
soon as technically possible following a Change of Control, the Consultant shall
receive an immediate payment in cash of the Incentive Fee for the year in which
the Change of Control takes place equal to the Incentive Fee the Consultant
received (or annual bonus with respect to the Consultant’s prior service as an
employee of the Company) (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 Incentive Fee that is actually due to the Consultant for
such year exceeds the amount paid pursuant to the preceding sentence, the excess
shall be paid to the Consultant no later than the fifteenth day of the third
month of the fiscal year next following the fiscal year for which this Incentive
Fee is paid under this Section 4.6.4.  It is expressly agreed that the
overall Incentive Fee paid for the year in which the Change of Control takes
place in no event shall be lower than the Recent Incentive Fee.  For
purposes of this Agreement, a “Recent Incentive Fee” shall
mean a prior year’s Incentive Fee (or annual bonus with respect to the
Consultant’s prior service as an employee of the Company) 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 Consultant or any comparable incentive fee or bonus under any
predecessor or successor plan or any Incentive Fee received pursuant to this
Agreement, including any incentive fee, bonus or portion thereof that has been
awarded but deferred, for the last three full fiscal years prior to the Change
of Control.  Notwithstanding anything to the contrary, in the event
that during any three year look-back period above, any incentive fee or annual
bonus paid and received by Consultant was paid by a Foster Wheeler affiliate
other than the Company, then any such annual bonus paid by either the Company or
any other Foster Wheeler affiliate during the three-year look-back period shall
be deemed to be paid by the Company for purposes of this
computation.

     

    4.7         
No
Mitigation.          Upon
termination of this Agreement, the Consultant shall be under no obligation to
seek other employment or otherwise to mitigate the obligations of the Company
under this Agreement.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    4.8         
Without Good
Reason.  In addition to those payments and benefits described
in Section 4.1, if during the Term the Consultant voluntarily terminates this
Agreement other than for Good Reason, the exercise period set forth in Section
5(e)(ii) of the Employee Nonqualified Stock Option Agreement issued to the
Consultant pursuant to Section 3.3.2 of the 2008 Employment Agreement (the
“Option Agreement”), shall allow the Consultant to exercise any vested Options
through the fifth anniversary of the grant date and to exercise the vested
portion of the 2006 Option through August 11, 2011.  The Consultant
shall not voluntarily terminate this Agreement without Good Reason prior to the
date which is thirty (30) days following the date on which the Consultant
provides written notice of such termination to the Company; provided, however,
that the Company may waive such notice period in writing.

     

    4.9         
Extension for
Securities Laws Restrictions.  In the event that on the last
date on which a stock option (including an Option or any 2006 Options as such
terms are defined in the 2008 Employment Agreement) may be exercised under the
2008 Employment Agreement or the applicable option agreement, or on the last
date on which Restricted Stock Units or any 2006 Restricted Stock may be sold by
the Consultant under Section 4.4 of the 2008 Employment Agreement, applicable
law would preclude the Consultant from exercising or selling such equity award,
then the expiration of the applicable exercise and sale periods under this
Agreement and the applicable option agreement shall be tolled and extended until
the last trading day that is 30 days following the date upon which the exercise
or sale of the equity award would first no longer violate applicable
laws.  For the purpose of this Section 4.9, applicable law shall be
deemed to so preclude the Consultant if, among other things, his legal counsel
has advised him or the Company in writing that he is so precluded.

     

    4.10       
Health
Benefits.  With regard to any continuation of medical and
dental benefits (i.e., health benefits) provided under this Section 4, for each
month during the 24-month or 36-month (as applicable) continuation period
following the Agreement termination date, (i) the Company shall make a cash
payment each month equal to the full monthly premium for such medical and dental
benefits minus the active employee cost of such coverage, such full monthly
premium to be grossed-up for any applicable income taxes and (ii) the Consultant
(or his Estate or beneficiaries, as the case may be) shall remit monthly
premiums each month for the full cost of any such medical and dental
benefits.

     

    
      	
               
      

            	
              5.

            	
              Protection of
      Confidential Information:
  Non-Competition.

            

    

     

    5.1         
The Consultant acknowledges that the Consultant’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 Consultant’s work for the Company will give the
Consultant 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 Consultant
agrees:

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    5.1.1      
except in the course of performing the Consultant’s duties provided for in
Section 1.1, not at any time, whether before, during or after the Consultant’s
employment with the Company, to divulge to any other entity or person any
confidential information acquired by the Consultant concerning the Company’s or
its affiliates’ financial affairs or business processes or methods or their
research, development or marketing programs or plans, or any other of its or
their trade secrets.  The foregoing prohibitions shall include,
without limitation, directly or indirectly publishing (or causing, participating
in, assisting or providing any statement, opinion or information in connection
with the publication of) any diary, memoir, letter, story, photograph,
interview, article, essay, account or description (whether fictionalized or not)
concerning any of the foregoing, publication being deemed to include any
presentation or reproduction of any written, verbal or visual material in any
communication medium, including any book, magazine, newspaper, theatrical
production or movie, or television or radio programming or
commercial.  In the event that the Consultant 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 Consultant 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 Consultant 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.

     

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

     

    5.2       
  In consideration of the Company entering into this Agreement, the
Consultant agrees that at all times during the Term and thereafter until (i) the
second anniversary of the date of termination of the Term if the Company
terminates the Agreement without Cause or if the Consultant terminates the
Agreement with Good Reason (in each case, whether or not in connection with a
Change of Control), and (ii) the first anniversary of the date of the
termination of the Term for any other reason, the Consultant shall not, directly
or indirectly, for himself or on behalf of or in conjunction with, any other
person, company, partnership, corporation, business, group, or other entity
(each, a “Person”):

     

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

     

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

     

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

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

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

     

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

     

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

     

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

     

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

     

    
      	
               
      

            	
              6.

            	
              Inventions and
      Patents.

            

    

     

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

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

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

     

    
      	
               
      

            	
              7.

            	
              Intellectual
      Property.

            

    

     

    Notwithstanding
and without limiting the provisions of Section 6, the Company shall be the sole
owner of all the products and proceeds of the Consultant’s services hereunder,
including, but not limited to, all materials, ideas, concepts, formats,
suggestions, developments, arrangements, packages, programs and other
intellectual properties that the Consultant may acquire, obtain, develop or
create in connection with or during the Term, free and clear of any claims by
the Consultant (or anyone claiming under the Consultant) of any kind or
character whatsoever (other than the Consultant’s right to receive payments
hereunder), the Consultant 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.

     

    
      	
               
      

            	
              8.

            	
              Indemnification.

            

    

     

    In
addition to any rights to indemnification to which the Consultant 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 Consultant at all times,
during and after the Term, and, to the maximum extent permitted by applicable
law, shall pay the Consultant’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 Consultant 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 Consultant while he was an officer, director,
employee or consultant of the Company or of any subsidiary or affiliate of the
Company.  The Company shall maintain during the Term and thereafter
insurance coverage sufficient in the determination of the Company to satisfy any
indemnification obligation of the Company arising under this Section
8.

     

    
      	
               
      

            	
              9.

            	
              Notices.

            

    

     

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

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    If to the
Company, to:

     

    Foster
Wheeler Inc.

    Perryville
Corporate Park

    Clinton,
NJ  08809-4000

    Attention:  General
Counsel

     

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

     

    
      	
               
      

            	
              10.

            	
              General.

            

    

     

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

     

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

     

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

     

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

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    10.5     
   The Company’s obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against the Consultant or
others.  The Company agrees to pay as incurred (within ten days
following the Company’s receipt of an invoice from the Consultant, which invoice
the Consultant 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 Consultant may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company, the Consultant 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 Consultant
about the amount of any payment pursuant to this Agreement), plus in each case
interest on any delayed payment at the applicable Federal rate provided for in
Section 7872(f)(2)(A) of the Code.

     

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

     

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

     

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

     

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

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

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

     

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

     

    10.11  
   The Consultant agrees that Foster Wheeler’s Share Ownership
Guidelines, adopted and effective November 6, 2006, and as the same may be
amended from time to time, apply to the 2006 Equity Awards, the Restricted Stock
Units, and the Options (as well as any shares resulting from the exercise of
options), notwithstanding any provision in the Guidelines to the
contrary.

     

    
      	
               
      

            	
              11.

            	
              Dispute
      Resolution.

            

    

     

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

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              12.

            	
              Free to
      Contract.

            

    

     

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

     

    
      	
               
      

            	
              13.

            	
              Subsidiaries and
      Affiliates.

            

    

     

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

     

    
      	
               
      

            	
              14.

            	
              Nature of
      Relationship.

            

    

     

    14.1    
    Generally.  It
is expressly acknowledged and agreed that, in performing any Consulting Services
pursuant to this Agreement, the Consultant shall be an independent contractor to
the Company and the Consultant shall not be considered as having employee or
agent status with respect to the Company or any of its subsidiaries or
affiliates for any purpose.  Accordingly, the Company shall not
supervise, control or direct the manner or means by which the Consultant
performs the Consulting Services, and Consultant shall have no authority to
contractually bind the Company without the Company’s express written
consent.

     

    14.2     
   Taxes.  The
Consultant shall be solely responsible for payment of all Federal, state and
local taxes imposed on the Consultant as a result of the Consultant’s
performance of the Consulting Services or receipt of the Consulting Compensation
described in Section 3, above, including by way of illustration but not
limitation, Federal, state and local income taxes, Social Security taxes or
social insurance obligations and any other taxes or business license fees
required to be paid by the Consultant by applicable law.  The Company
shall not carry workers’ compensation insurance nor pay any amounts on account
of the Consultant for purposes of Social Security or social insurance,
unemployment insurance, or Federal, state or local withholding and employment
taxes.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    14.3   
    Indemnification.  The
Consultant agrees to indemnify and hold harmless the Company and its
subsidiaries and affiliates, and their respective directors, officers and
employees (“Company Indemnified
Parties”), from and against any taxes, penalties, interest, liabilities,
costs or expenses (including, without limitation, reasonable attorney’s fees and
disbursements) incurred by Company Indemnified Parties arising out of or related
to the Consultant’s material breach of his obligations under Section 14.2
hereof.  The Consultant agrees to reimburse the Company and its
subsidiaries and affiliates for any amounts that the Internal Revenue Service
and/or any state or local tax authority claims should have been withheld by the
Company from monies paid to the Consultant in accordance with this Agreement or
as a result of the reclassification of the Consultant as an employee of the
Company or its subsidiaries or affiliates or a determination that the Company or
any of its subsidiaries or affiliates shall be considered the employer of the
Consultant for any purpose.

     

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

     

    
      
        
          
            
              	
                      FOSTER
      WHEELER INC.

                    
	 
      	 
      
	
                      By:

                    	
                      /s Steven J. Demetriou

                    
	 
	
                      Name:
      Steven J. Demetriou

                    
	 
	
                      Title:
      Chairman, Compensation Committee, Foster

                      Wheeler
      AG

                    

            

          

        

      

    

     

    
      
        	
                /s/ Raymond J.
      Milchovich

              
	
                     
      Raymond J. Milchovich

              

      

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    ANNEX
1

    

    Consultant
shall provide the Company with assistance in the transition of the Consultant’s
duties and responsibilities and such other business consulting services as the
Board or the CEO may request, from time to time.Exhibit
10.11

    

    Director
Fee Arrangements for 2010

    

    Each
director of MutualFirst
Financial, Inc. (the “Company”) also is a director of MutualBank.  For
2010, each non-employee director will receive an annual fee of $27,750 for
serving on MutualBank’s Board of Directors.  In addition to this
annual fee, Wilbur R. Davis will receive a $6,000 annual fee for serving as
Chairman of the Board of Directors, Linn Crull will receive a $5,000 annual fee
for serving as Chairman of the Audit Committee, Jerry McVicker will receive a
$3,000 annual fee for serving as Chairman of the Compensation Committee and Jon
Kintner will receive a $3,000 annual fee for serving as Chairman of the Trust
Management Committee.  Directors are not compensated for their service
on the Company’s Board of Directors.

    

    MutualBank
maintains deferred compensation arrangements with some directors that allows
them to defer all or a portion of their Board fees and receive income when they
are no longer active directors.  Deferred amounts earn interest at the
rate of 10 percent per year.

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