Document:

Prepared and filed by St Ives Burrups

Exhibit 10.17

FOSTER WHEELER INC.

STOCK OPTION AGREEMENT

     THIS STOCK OPTION AGREEMENT (this “Agreement”), dated as of the 23rd day of December 2003, between Foster Wheeler Inc., a Delaware corporation, located at Perryville Corporate Park, Clinton, New Jersey (the “Company”) and Bernard H. Cherry (“Optionee”). 

     WHEREAS, the Optionee previously entered into an employment agreement  (“Employment Agreement”) with Foster Wheeler Ltd. (the “Parent”),

     WHEREAS,
    in accordance with the Employment Agreement between Foster Wheeler Ltd. and
Bernard H. Cherry and per the Parent’s Compensation Committee authorization, the Company wishes to grant to the Optionee an option to purchase common shares of Foster Wheeler Ltd. 

     NOW, THEREFORE, it is agreed as follows:

1.     Option. Pursuant to this Agreement and subject to the terms and conditions hereof, the Company hereby grants to Optionee on December 23, 2003, this non-qualified stock option ("Option”) to purchase 100,000 common shares of Parent at $1.205 per share, which is the mean of the high and low sale prices of the Common Shares of Parent on November 4, 2003, the effective date as defined in the Employment Agreement.

2.     Exercise of Option.  This
Option shall become exercisable (“vest”), in stages.  Except as provided in
Section 4 hereof, a portion of the Option representing 25,000 shares shall vest on each
date immediately preceding each of the first through fourth anniversaries of December 23,
2003.  This Option expires ten (10) years from the date hereof.

     This Option may be
 exercised, to the extent exercisable in accordance with this Agreement,  in whole or part,
  by written notice to the Company, except that this Option shall not be exercisable if,
   in the opinion of counsel for the Company, exercise of this Option or delivery of shares
    pursuant thereto might (i) result in a violation of any law or regulation of an agency
of government or (ii) have an adverse effect on the listing status or qualification of
Parent shares on any securities exchange.

3.     Payment of Purchase Price.  Payment for shares as to which this Option is exercised shall be made at the time written notice of exercise is given.  The option price shall be paid upon exercise (i) in cash in U.S. dollars, or (ii) in common shares of Parent owned of record by the Optionee and purchased or held for the requisite period of time as necessary to avoid a charge to the Company’s, Parent’s or any of their affiliate’s earnings for financial reporting. Such common shares shall be valued at the mean of the high and low sale prices of such shares on the day of exercise.  At the time of receipt of common shares upon exercise of the Option, the Optionee shall be required to pay to, or as directed by,
the Company in cash any taxes of any kind required by law to be withheld with respect to such
 shares, or make arrangements satisfactory to the Board of Directors of the Company
 (the “Board”) regarding payment of such taxes, and the Company and
 Parent shall have the right to deduct any such taxes from any payment of any kind
  otherwise due to the Optionee. 

 

4.     Termination of Employment.  Following any termination of the Optionee’s employment, the Optionee shall be entitled to vested options in accordance with the provisions discussed below and all unvested options
shall expire.

a) If the Optionee’s employment is terminated without Cause (as defined in the Employment Agreement) or by the Optionee for Good Reason (as defined in the Employment Agreement), and if the termination is within one year of the
termination or retirement of Raymond J. Milchovich, Optionee shall be provided full
vesting of the granted stock options which Optionee may exercise for a period of
 two years following the Termination Date.   If the termination is beyond one
 year from the termination or retirement of Raymond J. Milchovich, then the
 Optionee may exercise only the then vested stock options for a period of
 two years following the Termination Date.   All unvested Options shall
 expire.

b) In the event of death of the Optionee while an employee of the Company or a subsidiary or an affiliate of the Company or if the Optionee’s employment with the Company or
any such subsidiary or affiliate shall terminate by reason of disability
(as determined by the Compensation Committee or the Parent’s Board, the Option
 may be exercised, in the case of death, by the legatee or legatees of the Optionee
  under his last will or by the Optionee’s personal representatives or distributees,
   in accordance with the vesting schedule in section 2 hereof after the Optionee’s death
   or termination of employment due to disability until the expiration date of the Option.

c) If the Optionee’s employment with the company or a subsidiary or affiliate of
the Company shall terminate by reason of retirement under a pension or retirement plan
of the Company or such a subsidiary or an affiliate (or retirement as otherwise determined
by the Compensation Committee or the Company Board), the Option, to the extent exercisable
 in accordance with the vesting schedule in Section 2
hereof as of the date of such termination of employment, may be exercised after
 such termination until the expiration date of the Option.

d) In the event the Optionee’s employment is terminated for Cause (as defined
in the Employment Agreement) or the Optionee terminates his employment other than for
 Good Reason (as defined in the Employment Agreement), this Option, to the extent
 unvested shall be immediately forfeited and the remainder of the Option, to the extent
 unexercised on the date which is ninety (90) days after such termination, shall be
 forfeited. 

               Notwithstanding the foregoing provisions of this Section 4, under no circumstances shall this Option be exercised after the expiration date stated in Section 2 hereof.

     5.     Investment Representations.  If at the time of exercise of all or part of the Option the common shares of Parent are not registered under the Securities Act and/or there is no current prospectus in effect under the Securities Act with respect to the common shares, the Optionee shall execute, prior to the issuance of any such shares to the Optionee, an agreement (in such form as the Board may specify) in which the Optionee, among other things, represents, warrants and agrees that the Optionee is purchasing or acquiring the shares acquired under this Agreement for the Optionee’s own account, for investment only and not with a view to the resale or distribution thereof, that the Optionee has
knowledge and experience in financial and business matters, that the Optionee is capable of evaluating the merits and risks of owning any such shares purchased or acquired under this Agreement, that the Optionee is a person who is able to bear the economic risk of such ownership and that any subsequent offer for sale or distribution of any such shares shall be made only pursuant to (a) a registration statement on an appropriate form under the Securities Act, which registration statement has become effective and is current with regard to the shares being offered or sold, or (b) a specific exemption from the registration requirements of the Securities Act, it being understood that to the extent any such exemption is claimed, the Optionee shall, prior to any offer for sale or sale of such
shares, obtain a prior favorable written opinion, in the form and substance satisfactory to the Board, from
counsel acceptable to the Board, as to the applicability of such exemption thereto.

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     6.     Recapitalization.  In
the event of changes in Parent common shares by reason of share dividends,
 split-ups or combination of shares, reclassifications, recapitalizations,
  mergers, consolidations, reorganizations or liquidations, appropriate
  adjustments shall be made by the Board in (a) the number and class of shares
  to which Optionee shall thenceforth be entitled upon exercise of this Option,
   and (b) the price which the Optionee shall be required to pay upon exercise.
    Whether any adjustment or modification is required as a result of the
 occurrence of any of the events heretofore specified, and the amount
 thereof, shall be determined, in good faith, by the Board, which
 determination shall be
final, binding and conclusive.

     7.     Continued Employment.  So long as the Optionee shall continue to be an employee of Parent, the Company or a subsidiary or affiliate of Parent, the Option shall not be affected by (i) any change of duties or position, or (ii) any temporary leave of absence approved by each employing corporation and by the Board.  Nothing in this Agreement shall confer upon the Optionee any right to continue in the employ of Parent, the Company or a subsidiary or affiliate of Parent or interfere in any way with the right of Parent, the Company or each such subsidiary or affiliate to terminate the Optionee's employment at any time, with or without cause. 

     8.     Transferability.  This Option is not transferable by Optionee except by will or by the laws of descent and distribution and is exercisable during Optionee’s lifetime only by him or a court appointed guardian.  No assignment or transfer by Optionee of this Option, or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise, except by will or by the laws of descent and distribution, shall vest in the assignee or transferee any interest or right herein whatsoever. Upon any attempt to assign or transfer this Option, the Option shall forthwith terminate.

     9.     Rights as a Shareholder.  Optionee shall not be deemed for any purpose to be a shareholder of Parent except to the extent that this Option shall have been exercised in accordance with this Agreement.  

     10.     Corporate Action by Parent.  Existence of this Option shall not impair the right of Parent or its shareholders to make adjustments, recapitalizations, reorganizations or other changes in its capital structure or business, to consummate any merger or consolidation of Parent, to issue bonds, debentures, preferred or prior preference stocks ahead of or affecting the common shares or the rights thereof, to dissolve or liquidate Parent, to sell or transfer all or any part of its assets or business, or to do or take any other corporate act or proceeding it or they might have done or taken if this Option was not in existence.

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     11.     Change of Control.  During the 60-day period from and after a Change of Control as defined in this Section 11 (the “Exercise Period”), the Optionee shall have the right, whether or not this Option is fully exercisable and in lieu of the payment of the exercise price for the common shares being purchased under the Option and by giving written notice to the Company, to elect (within the Exercise Period) to surrender all or part of this Option to the Company and to receive cash, within 30 days of such written notice, in an amount equal to the amount by which the Change of Control Price per common share, as defined in this Section 11, on the date of such election shall exceed the exercise price per
common share under the Option (the “Spread”) multiplied by the number of common shares subject to the Option as to which the right granted under this Section 11 shall have been exercised.

     Notwithstanding any other provision of the Plan to the contrary, in the event of a Change of Control, the Option outstanding as of the date such Change of Control is determined to have occurred and not then exercisable and vested shall become fully exercisable and vested to the full extent of the Option. 

     A “Change of Control” shall mean:

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

     (b)     individuals who, as of May 25, 2001, constitute the Board of Directors of Parent (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of Parent; provided, however, that any individual becoming a director subsequent to such date whose election, or nomination for election by Parent’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors of Parent; or

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

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

     For purposes of this Agreement, “Change of Control Price" means the higher of (i) the highest reported sales price, regular way, of a common share of Parent in any transaction reported on the New York Stock Exchange Composite Tape or other national exchange on which such shares are listed during the 60-day period prior to and including the date of a Change of Control, or (ii) if the Change of Control is the result of a tender or exchange offer or a Business Combination, the highest price per Common Share paid in such tender or exchange offer or Business Combination; provided, however, that if the Optionee is an officer or director of the Company or Parent and is subject to Section 16(b) of the
Exchange Act and the Option was granted within 240 days of the Change of Control, the Change of Control Price for the Option shall be the fair market value of the common shares on the date the Option is exercised or deemed exercised.  To the extent that the consideration paid in any such transaction described above consists in whole or in part of securities or other non-cash consideration, the value of such securities or other non-cash consideration shall be determined in the sole discretion of the Board. 

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     12.     Administration Disputes.  This Agreement and the Option shall be administered and interpreted exclusively by the Compensation Committee of the Board of Parent, which shall have discretionary authority concerning all matters relating to the Option, and whose actions and decisions shall be final and conclusive.  Any controversy, claim or dispute issues arising out of or relating to this Option shall be resolved in accordance with the Dispute Resolution Procedure set forth in the Employment Agreement.

     13.     Terms and Conditions.  This Agreement is subject to all terms and conditions of the Employment Agreement.

     14.     Governing Law.  This Agreement and the rights and obligations of the parties hereto shall be governed by the laws of the State of New Jersey without regard to the principles of conflicts of law which might otherwise apply.

     15.     Notice.  Any notice which either party hereto may be required or permitted to give to the other shall be in writing, and may be delivered personally or by mail to the Company at the office of the Secretary of Foster Wheeler Inc., Perryville Corporate Park, Clinton, New Jersey 08809-4000, and to the Optionee at his principal residence as reflected in the records of Parent.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized Officers and Optionee has hereunto set his hand, as of the day and year first above written.

FOSTER WHEELER INC.

By: /S/ Raymond J. Milchovich

Raymond J. Milchovich

Chairman, President and CEO

/S/ Bernard H. Cherry

Bernard H. Cherry

Optionee

ATTEST:

/S/ Lisa Fries Gardner

 Secretary

6Prepared and filed by St Ives Burrups

EXHIBIT 10.19

EMPLOYMENT AGREEMENT

          EMPLOYMENT
      AGREEMENT (this “Agreement”) dated as of September 10,
      2002, between FOSTER WHEELER LTD., a Bermuda company (the “Company”),
      and Robert D. Iseman (the “Executive”).

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

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

		1.	
  Employment, Duties and Acceptance.

			 
			
               1.1     Employment, Duties.  The Company hereby agrees to continue to employ the Executive for the Term (as defined in Section 2.1), to render exclusive and full-time services to the Company, in the capacity of Vice President & 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 Senior Vice President & Chief Financial 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 Vice President & 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     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 on September 10, 2002 (the “Effective Date”),
      and shall end on the date on which the Term is terminated pursuant to Section
      4.

			 	 
		 	
      3.   Compensation; Benefits.

			 
			
               3.1     Salary.  As compensation for all services to be rendered pursuant to this Agreement, the Company agrees to pay to the Executive during the Term a base salary, payable monthly in arrears, at the initial annual rate of $300,000 effective October 1, 2002 (the “Base Salary”).  On each anniversary of the Effective Date or such other appropriate date during each year of the Term when the salaries of executives at the Executive’s level are normally reviewed, the Company shall review the Base Salary and determine if, and by how much, the Base Salary should be increased.  All payments of Base Salary or other compensation
hereunder shall be less such deductions or withholdings as are required by applicable law and regulations.

			 
			
               3.2     Bonus. Executive shall be eligible to participate, as determined by the Compensation Committee of the Board of Directors of the Company (the “Board”), in the Company’s annual incentive program as in effect from time to time for executives at the Executive’s level.  Initially, the Executive’s participation shall be in the discretionary bonus program designated the “Foster Wheeler Annual Incentive Plan for 2002 and Subsequent Years.”

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

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

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

			 
			
               3.6     Benefits and Perquisites.
During the Term, the Executive shall be entitled to participate in those defined
benefit, defined contribution, group insurance, medical, dental, disability and
other benefit plans and such perquisites of the

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			Company as from time to time in effect
      and on a basis no less favorable than any other executive at the Executive’s
    level.
			 
			
               3.7     Change of Control.  The Executive shall be covered under the Company’s Change in Control Agreement as in effect from time to time for executives at the Executive’s level.  Any amounts and/or benefits payable, paid or provided to the Executive under such Change in Control Agreement shall be in lieu of and not in addition to amounts and/or benefits payable or provided under this Agreement.  This Agreement is not intended to preclude benefits payable under the Change in Control Agreement should the events described therein occur.

			 	 
			 	
4.   Termination.

			 
			
               4.1     Termination Events.  

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

			 	 	 
			  
                                     (i)     the death of the Executive;

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

			 	 	 
			  
                                      (iii)     notice of termination for “Cause”.  As used herein, “Cause” means (i) conviction of a felony; (ii) actual or attempted theft or embezzlement of Company assets; (iii) use of illegal drugs; (iv) material breach of the Agreement that the Executive has not cured within thirty (30) days after the Company has provided the Executive notice of the material breach which shall be given within sixty (60) days of the Company's knowledge of the occurrence of the material breach; (v) commission of an act of moral turpitude that in the judgment of the Board can reasonably
be expected to have an adverse effect on the business, reputation or financial situation of the Company and/or the ability of the Executive to perform the Executive's duties; (vi) gross negligence or willful misconduct in performance of the Executive’s duties; (vii) breach of fiduciary duty to the Company; or (viii) willful refusal to perform the duties of Executive’s titled position. 

			 	 
			                      4.1.2     The
        Executive may immediately resign the Executive’s position for Good
        Reason and, in such event, the Term shall terminate. As used herein, “Good
        Reason” means without the Executive’s consent (i) material
        diminution in title, duties, responsibilities or authority; (ii) reduction
        of Base Salary and benefits except for across-the-board changes for executives
        at the Executive’s level; (iii) exclusion from executive benefit/compensation
        plans; (iv) relocation of the Executive’s principal business location
        by the Company of greater than fifty (50) miles; (v) material breach
        of the Agreement that the Company has not cured within thirty (30) days
        after the Executive has provided the Company notice of the material breach
    which

 

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

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

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

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

			 
			
               4.2     Payments Upon a Termination Event.  

			 	 
			 	
                    4.2.1     Following any termination of the Executive’s employment, the Company shall pay or provide to the Executive, or the Executive’s estate or beneficiary, as the case may be, (i) Base Salary earned through the Termination Date; (ii) the balance of any awarded but as yet unpaid, annual cash incentive or other incentive awards for any calendar year prior to the calendar year during which the Executive’s Termination Date occurs; (iii) a payment representing the Executive’s accrued but unused vacation; (iv) any vested, but not forfeited benefits on the Termination Date under
the Company’s employee benefit plans in accordance with the terms of such plans; and (v) benefit continuation and conversion rights to which the Executive is entitled under the Company’s employee benefit plans.

			 	 
			 	
                    4.2.2     Following a termination by the Company without Cause or by the Executive for Good Reason, the Company shall pay or provide to the Executive in addition to the payments in Section 4.2.1 above, (i) Base Salary at the rate in effect on the Termination Date (“Termination Base Salary Rate”), payable monthly following the Termination Date and continuing for twenty-four months thereafter; (ii) an annual cash incentive payment for the calendar year that includes the Executive’s Termination Date and the following calendar year equal to a percentage of the Termination Base Salary Rate equal to the
average percentage of base salaries paid as bonuses to the executives of the Company at the Executive’s level under the Company’s annual incentive program during such applicable calendar year and payable at the time that the Company pays annual cash incentive payments to other participants in such program; (iii) two additional years of age and service to be credited under the Company’s

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		 	  pension plan and supplemental
        pension plan; (iv) two years of continued health and welfare benefit
        plan coverage following the Termination Date (excluding any additional
        vacation accrual or sick leave) at active employee levels and active
        employee cost; (v) except as prohibited by law, removal of transfer and
        other restrictions from all shares of capital stock of the Company registered
        in the Executive’s name; (vi) full vesting of all stock options
        to purchase shares of capital stock of the Company; and (vii) executive
        level career transition assistance services by a firm selected by the
        Executive and approved by the Company. Notwithstanding any other provision
        of this Agreement, as consideration for the pay and benefits that the
        Company shall provide the Executive pursuant to this Section 4.2.2, the
        Executive shall provide the Company an enforceable waiver and release
        agreement in a form that the Company normally requires.

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

			 	 
			 	5.     Protection of Confidential Information;
    Non-Competition.

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

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

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			counsel of its choice any proceeding relating
        to the compulsory disclosure. The Executive acknowledges that all information,
        the disclosure of which is prohibited by this section, is of a confidential
        and proprietary character and of great value to the Company and its subsidiaries
    and affiliates.
			 
			
                               5.1.2     to deliver promptly to the Company on termination of the Executive’s employment with the Company, or at any time that the Company may so request, all confidential memoranda, notes, records, reports, manuals, drawings, software, electronic/digital media records, blueprints and other documents (and all copies thereof) relating to the Company’s (and its subsidiaries’ and affiliates’) business and all property associated therewith, which the Executive may then possess or have under the Executive’s control.

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

			 
			
                               5.2.1     until the first anniversary of the Termination Date, engage in any activity for or on behalf of a Competitor, as director, employee, shareholder, consultant or otherwise, which is the same as or similar to activity in which Executive engaged at any time during the last two (2) years of employment by the Company;

			 
			
                               5.2.2     until the second anniversary of the Termination Date, (i) call upon any Person who is, at such Termination Date, engaged in activity on behalf of the Company or any subsidiary or affiliate of the Company for the purpose or with the intent of enticing such Person to cease such activity on behalf of the Company or such subsidiary or affiliate; or (ii) solicit, induce, or attempt to induce any customer of the Company to cease doing business in whole or in part with or through the Company or a subsidiary or affiliate, or to do business with any Competitor.

			 
			               For purposes of this Agreement, “Competitor” means
      a person or entity who or which is engaged in a material line of business
      conducted by the Company. For purposes of this Agreement, “a material
      line of business conducted by the Company” means an activity of the
      Company generating gross revenues to the Company of more than twenty-five
      million dollars ($25,000,000) in the immediately preceding fiscal year
    of the Company.
			 
			
               5.3     If the Executive commits a breach or threatens to breach any of the provisions of Section 5.1
or 5.2 hereof, the Company shall have the right and remedy to have the provisions
of this Agreement specifically enforced by injunction or otherwise by any court
having jurisdiction, it being acknowledged and agreed that any such breach will
cause irreparable injury to the Company in addition to money damage and that
money damages alone will not provide a complete or adequate remedy to the Company,
it being further agreed that such right and remedy shall be in addition to, and

6

 

		 not in lieu of, any other rights and remedies
      available to the
Company under law or in equity.
		 
		
               5.4     If any of the covenants contained in Sections 5.1, 5.2 or 5.3, or any part thereof, hereafter are construed to be invalid or unenforceable, the same shall not affect the remainder of the covenant or covenants, which shall be given full effect, without regard to the invalid portions.

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

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

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

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

			7.	Indemnification.
			 
		                In addition to any rights
        to indemnification to which the Executive is entitled under the Company’s
        charter and by-laws, to the extent permitted by
applicable
			 

7

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

		 	
  8.    Notices.

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

	 	 If
    to the Company, to:

    

    Foster Wheeler, Inc.

  Perryville Corporate Park
Clinton, NJ 08809-4000
Attention:  General Counsel

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

		 	
  9.    General.

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

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

			 
		
                 9.3     This
Agreement sets forth the entire agreement and understanding of the parties relating
to the subject matter hereof, and supersedes all prior agreements, arrangements
and understandings, written or oral, relating to the subject 

8

 

			matter hereof including, but not limited
        to, that certain letter agreement between the Company and/or its subsidiary
        and the Executive dated on or about May 29, 2001. No representation,
        promise or inducement has been made by either party that is not embodied
        in this Agreement, and neither party shall be bound by or liable for
    any alleged representation, promise or inducement not so set forth.
			 
			
               9.4     This Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive, nor may the Executive pledge, encumber or anticipate any payments or benefits due hereunder, by operation of law or otherwise.  The Company may assign its rights, together with its obligations, hereunder (i) to any affiliate or (ii) to a third party in connection with any sale, transfer or other disposition of all or substantially all of any business to which the Executive’s services are then principally devoted, provided that no assignment pursuant to clause (ii) shall relieve the Company from its
obligations hereunder to the extent the same are not timely discharged by such assignee.

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

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

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

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

			 	 
			 	 10.    Dispute Resolution. 
			 	 
			               Subject to the rights of the Company pursuant
        to Section 5.3 above, any controversy, claim or dispute arising
        out of or relating to this Agreement, the breach thereof, or the Executive’s
    employment by the Company shall be settled by arbitration

          

9

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

		11.	 Free to Contract.

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

		12.
  Subsidiaries and Affiliates.

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

10

 

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

	 	FOSTER WHEELER LTD.

By: /s/ Raymond J. Milchovich
Raymond J. Milchovich
Chairman, President and 

  Chief Executive Officer

  

  

  /s/RobertD.Iseman

  Robert D. Iseman

11

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